Government Skills Strategy

Anne Marie Morris Excerpts

Wednesday 19th January 2011 Westminster Hall

[Anne Marie Morris (Newton Abbot) (Con)]

I congratulate my hon. Friend the Member for Harlow (Robert Halfon) on his excellent contribution and the Government on their skills strategy, which is an excellent piece of work. Clearly, if we are to get this country back on its feet, apprenticeships will be key. They will generate private sector jobs, particularly in manufacturing and industry, which will create wealth, so I really welcome this strategy. The fact that we are creating 50,000 new apprenticeships for young people, using, in part, some £50 million from the Train to Gain fund is good news. Moreover, we will put some £605 million into creating 75,000 apprenticeships for adults. That is an area that has not been given the funding or attention that it deserves, so I really appreciate the investment.

My hon. Friend talked about the challenge of creating apprenticeships that are valued, and that goes hand in hand with making manufacturing jobs, or any job that requires the use of one’s hands as well as one’s brain, valued in this community. In Germany, those involved in such industries are well respected, and we must bring that view here. I agree with my hon. Friend that bodies should be created to help build some pride in the idea of being an apprentice. I ask the Minister to think of a way in which we can regenerate some value in the word “technician”. Those of us who have been lucky enough to go to university can call ourselves graduates, which is an incredibly valuable term. It would be good if we could make the word “technician” resonate in the same way.

The Government are looking to raise the baseline for apprenticeships. At the moment, we have NVQ level 2, which is the basic apprenticeship scheme, NVQ level 3, which is the advanced apprenticeship scheme and NVQ level 4, which is the higher apprenticeship scheme. The Government plan to make the advanced level the new baseline, which is an excellent idea. That will help people to aspire to something higher and enable employers to see how much we value the scheme.

Research has shown that those who take on apprenticeships do better economically than those who do not. An advanced apprentice is likely to earn £105,000 more over a lifetime than a colleague with a lower qualification, so there is a definite win for the individual who makes that investment.

The hon. Member for Upper Bann (David Simpson) talked about some apprentices starting courses and not completing them. I am heartened to find that the apprentice success rate is on the increase. The latest figures that I have seen put the success rate at 70.9%, which, in the grand scheme of things, is not bad at all. In my constituency of Newton Abbot, we have a history of manufacturing. Originally, Newton Abbot was at the heart of the railway industry. When that fell away in the 1950s, a number of individuals were taken on at Centrax, which has been the hub of engineering and manufacturing in my constituency. I am pleased to say that the organisation has attracted a number of other businesses to the area. Getting apprenticeships working well in the area should help more engineering businesses—some of them will be very small—to establish and develop in the area.

[Mr Andrew Smith]

I am following the hon. Lady’s remarks with interest. She referred earlier to the shift of more apprenticeships to the higher levels. Has she seen the Association of Colleges briefing for this debate, which points out that such a shift is not as simple as it might appear, because the time commitment and the cost increase for both the apprentice and the employer? Moreover, it found that there was less demand from employers for apprenticeships at the higher level. Does that not reinforce the point that I made earlier that there must be a thorough dialogue and engagement with employers, with incentives where appropriate, to ensure that they take advantage of the scope to expand the higher level apprenticeships?

[Anne Marie Morris]

The right hon. Gentleman makes a good point. It is crucial that we get employers as engaged in the process as the potential apprentices. A private sector vocational organisation in my constituency is an excellent example of that. Before finding the apprentices, it makes contact with local businesses to explain the opportunities offered by the scheme and to create those apprenticeships. That sort of proactive approach is invaluable. The more of that we can do, the better off we will be.

The real value of the apprenticeship scheme is that it will give young people an alternative. Not everyone is suited to an academic career. Many NEETs in our society feel that there is no real alternative. Nationally, we have more than 1 million NEETs, which is far too high. In Devon, within which my constituency sits, there are 1,190 NEETs between the ages of 16 and 18 —5.7% of the youngsters—which is a huge waste. Research shows that the cost to the taxpayer is substantial—around £97,000 over a lifetime. Some people put the cost as high as £300,000 because of the associated benefits, which is a huge price to pay both financially and socially. Therefore, this must be the right way forward.

To get the apprenticeship programme working well, we must look at the linked-in skills training that is on offer and establish the link between training colleges and sixth forms. Will the Minister tell us what sort of grant might be available to those skills colleges, because, at the moment, that is an area that lacks clarity? A number of training organisations and colleges in my constituency have questioned me on the matter. They ask what the picture will be when the Train to Gain programme slowly begins to evaporate. They are particularly concerned that grants will be as available to the smaller organisations as they are to the larger organisations. I am interested to hear the Minister’s thoughts on that particular front.

As I have said, it is important to get employers to play their part and to incentivise them, as the college I referred to earlier is doing. We want our colleges literally to go out on the streets and find those young people. I have been very impressed by South Devon college, which does just that. There are parts of Newton Abbot where young people with no education, training or job congregate. Individuals go to those places to talk to young people about what might be possible. That is absolutely the right way forward, and I welcome it.

[Mr Gregory Campbell (East Londonderry) (DUP)]

The hon. Lady talks about actively targeting young people on the streets, but does she agree that some groups—I am sure things are the same in my constituency as they are in hers—are also actively involved in mentoring young people? Many young people feel helpless when it comes to getting the vocational training that might help them to get employment—they feel completely disempowered. If these groups get out there, they can target young people, help them, sit alongside them and bring them into the mainstream to ensure that they get essential qualifications.

[Anne Marie Morris]

That is a prime example of the big society. We are in a good position to achieve exactly what he has indicated. We are all in this together, and there is a lot that we can do together.

While we are on that point, my hon. Friend the Member for Harlow has mentioned his concern about the withdrawal of the EMA. I share his view that the old system did not work terribly well, but I also share his concern that there needs to be something to help young people. I am pleased that the new fund will be made available, but the real challenge is the transition and ensuring that nobody falls down the gap. One of the things that I have been doing locally in my constituency is trying to help deal with that gap. I have been working with colleges and voluntary charities that provide local transport and asking them whether we can find a way to work together and get young people to college. I am pleased to say that I have received positive responses from local transport charities. That is exactly where we should be going and what we should be doing.

Perhaps I can leave the Minister with a second and final question, which is about real challenge that we face in deprived rural areas, of which Newton Abbot is undoubtedly one. The cost of living in Newton Abbot is very high, partly because of the distances involved in getting around the constituency and, as hon. Members are well aware, because of the huge water bills. However, we also have very low salary levels. The challenges that my hon. Friend has mentioned are particularly acute in rural areas. I appreciate that we are in difficult times and that we must be careful to get value for every penny we spend, but I wonder whether particular consideration can be given to helping youngsters in rural communities access the apprenticeships and training that they need.