Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [Lords]

Ashley Fox Excerpts

2nd reading
Tuesday 25th February 2025 Commons Chamber

[The Secretary of State for Education (Bridget Phillipson)]

I beg to move, That the Bill be now read a Second time.

We are a country of incredible talent and enterprise; a country of industry and invention. Our universities lead the world. Our colleges deliver excellence to hundreds of thousands up and down the country. British companies founded on great ideas export their products across the globe. Our strengths range from research to manufacturing and from professional services to creative industries, yet there remains a wide and growing gap between where we are now and what I know our great country is capable of, because, despite our many strengths, there are skills missing from our workforce.

There are skills missed by people who want to get on in life, get better training to land that great job and earn a decent living; skills missed by our employers, with businesses, hospitals, labs and factories held back; skills missed by so many of our communities, with towns and cities left behind as industry has moved on; and skills missed by our country. Those skills are vital to the security and growth that this Labour Government are so determined to deliver.

Our latest data shows us that half a million vacancies sit empty simply because employers struggle to find the right staff with the right skills: the most since we started collecting the data in 2011. That is half a million jobs not filled, half a million careers not boosted and half a million opportunities not taken—a tragic waste that this country simply cannot afford. But I am sorry to say that this is not surprising. We have fallen behind our neighbours on higher technical qualifications—the ones that sit just below degree level, but which can lead to well-paid, fulfilling careers for software developers, civil engineering technicians or construction site supervisors.

Over 90% of employers value basic digital skills in their job candidates, but more than 7 million adults lack them. Our skills gaps deal our people and our country a double blow. They hold back the economic growth we need to invest in our public services and drive national prosperity, and they hold back the ambitions of working people who deserve the chance not just to get by but to get on. They deny them the opportunity, the power and the freedom to choose the life they want to live.

[Sir Ashley Fox (Bridgwater) (Con)]

Would the Secretary of State agree that one of the difficulties is that employers cannot spend the money from the apprenticeship levy easily, and that too much of that money is retained by the Treasury? Will she undertake to speak to the Chancellor to see whether she could make it easier for employers to spend that money on training?

[Bridget Phillipson]

I can assure the hon. Gentleman that the Chancellor is as committed as I am to ensuring that we have the right skills within the economy, because without them we will not be able to deliver the economic growth that is the No. 1 mission of this Labour Government. But we are committed to reforming the failing apprenticeship levy, reforming the system and converting it into a growth and skills levy with more flexibility for employers. As a first step, this will include shorter-duration and foundation apprenticeships in targeted sectors, making sure that we are working more effectively with employers in order for our economy to grow.

--- Later in debate ---

[Sir Ashley Fox (Bridgwater) (Con)]

This Bill is important for the future of technical education and apprenticeships in our country, and I accept that the Government’s intention is to streamline the governance and management of skills. However, I believe that, in its current form, the Bill threatens to centralise the system to such an extent that it may undermine the independence and effectiveness of our skills system.

The Institute for Apprenticeships and Technical Education was established with the clear purpose of ensuring that apprenticeship standards and assessments were determined with the input of employers, education providers and industry experts. I fear that by abolishing this body in favour of a group of civil servants appointed by the Secretary of State, the Government will make technical education less responsive to the needs of the labour market. The Bill removes the requirement to publish regular reviews of occupational standards and apprenticeship assessment plans. The Government say that removing this duty allows for much greater flexibility, but they are doing so without ensuring that the views of employers, educators and other relevant bodies will continue to be heard and considered.

The Bill grants the Secretary of State power to determine the standards and assessments that will be used to measure progress in technical education. No longer will these decisions be made by a broad group of stakeholders, including employers and sector specialists. What does all this mean for our workforce, and what does it mean for learners? It means that we are at risk of creating a system that is more distant, less responsive and potentially less effective. When decisions are made by civil servants without the input of those on the ground—those directly impacted by these decisions—we risk losing touch with the realities of the skills landscape.

[Luke Murphy (Basingstoke) (Lab)]

I am afraid the hon. Member and the shadow Secretary of State speak as if the Institute for Apprenticeships and Technical Education was an unblemished success. Between 2018-19 and 2023-24, apprenticeship starts in England per capita dropped by 16%, so how is it a responsive system? I think the House would be better served if Opposition Members acknowledged that. I understand why he is focused on structures, because that is in part what the Bill focuses on, but surely we should also be focused on outcomes, on which the previous Government were not delivering.

[Sir Ashley Fox]

The pandemic clearly had something to do with that reduction. I would not say the system is perfect, but I fear that replacing it with a committee of civil servants appointed by the Secretary of State is likely to be less successful still.

Amendments have been made in the other place to address some of these concerns. Specifically, a one-year delay was added between the establishment of Skills England and the commencement of the Bill, which would allow for a more effective transition and give Skills England a better chance of getting up and running. It is crucial that we do not damage the very real progress that was made on technical education under the last Government. During the general election, my party pledged to raise the number of people in high-skilled apprenticeships by 100,000 per year, representing a 30% rise. This was to recognise that, for many young people, apprenticeships represent a better way to enter the workplace than some university degrees.

Bridgwater and Taunton College, based in my constituency, is the UK’s largest provider of apprenticeships, supporting thousands of learners in achieving their career ambitions. With over 120 apprenticeship programmes, the college offers exceptional opportunities for individuals to gain hands-on experience and develop the skills needed for today’s competitive job market. BTC’s success is reflected in its recent achievements, such as its registered nurse degree apprenticeship, which recruited 53 apprentices in the 2023-24 academic year alone. The college’s commitment to employer engagement and industry-aligned training is at the heart of its success. It has strong partnerships with employers of all sizes, ensuring that its apprenticeship programmes meet local and national skill needs.

While BTC welcomes the streamlining of the management of apprenticeships, it is clear that these changes must not reduce the quality of education and support provided to apprentices. As it rightly points out, it is crucial that these changes do not compromise the wellbeing of students or the high standards of education they have come to expect. I hope that the new framework will continue to uphold these standards and ensure that the needs of both students and employers are met effectively. It is this type of local, industry-focused and employer-engaged approach to skills training that we should be fostering.

In conclusion, while I understand the desire to create a streamlined, more efficient system, the Government must be careful not to sacrifice the effectiveness and independence that have been the hallmark of our apprenticeship and technical education system. This Bill, in its current form, grants perhaps too much power to the Secretary of State with too little accountability. It risks diminishing the role of employers and learners, and weakening the checks and balances that have served us well, so I will continue to scrutinise this Bill as it proceeds through Parliament.