Apprenticeships (Alternative English Completion Conditions and Miscellaneous Provisions) (Amendment) (Coronavirus) Regulations 2020

Baroness Berridge Excerpts

Monday 12th October 2020 Lords Chamber

Moved by

[Baroness Berridge]

That the draft Regulations laid before the House on 10 September be approved.

Relevant document: 27th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Education and Department for International Trade (Baroness Berridge) (Con)]

My Lords, apprenticeships have an important role to play in creating employment opportunities post pandemic and support employers to meet their skills needs to maintain their businesses. The Coronavirus Job Retention Scheme was launched in March to protect jobs and businesses from the worst of the pandemic, and it enabled workers who were still employed to be furloughed. The Government have made financial support available to employers and targeted relief at the hardest-hit sectors. To enable apprenticeships to continue during the pandemic, we introduced a number of measures and flexibilities to enable apprentices to undertake remote learning and complete their end-point assessment.

We all know that, sadly, young people starting their careers have been severely affected by this pandemic. As we build back stronger, we will need to ensure that apprenticeships play a key role in creating jobs and boosting the skills that employers need. To ensure this, the Government are already taking action. For example, our plan for jobs set out new payments for employers who hire a new apprentice between 1 August and the end of January next year. Where that apprentice is under 25, the employer will receive £2,000, and they will receive £1,500 where the apprentice is aged 25 or older. This is a strong encouragement for employers to create new apprenticeship opportunities in their businesses. Additionally, for young people seeking the skills to enter the labour market, we are tripling the number of traineeships we make available and rewarding employers for offering work placements. For those at risk of long-term unemployment, we are subsidising employers to create new short-term roles as part of the Kickstart Scheme.

However, the scale of the economic impact of the pandemic means that apprentices are not immune from redundancy. While employers are doing their best to protect and retain existing apprentices, sadly, many have cut their workforce and made the difficult decision to make them redundant. To help apprentices through this difficult time, we launched in August a new support service for redundant apprentices. This provides individuals who have been made redundant, or who are at risk of redundancy, with advice and guidance on the impact of redundancy on their apprenticeship. It also enables them to access wider support services, such as careers and financial advice and well-being support. More importantly, it helps them to find new apprenticeship opportunities with employers as part of our vacancy sharing service. We must remember that apprentices have valuable skills, often transferable to different industries and sectors.

It is wonderful and encouraging to see that more than 700 employers have come forward to support those apprentices who have been made redundant by providing them with the chance to apply for the range of opportunities available across all sectors and regions. We have received positive feedback from a number of employers who have shared their vacancies and successfully recruited redundant apprentices via this service.

We hope that any apprentice who is made redundant will be able to secure new employment and continue their apprenticeship. Sadly, we know that this will not always be possible. We now require training providers to produce a record of part-completion where an apprentice has to stop their apprenticeship as a result of redundancy. This sets out the knowledge, skills and behaviours that the apprentice has acquired prior to redundancy, helping the apprentice to secure future employment. It is important that, where individuals have made a commitment to their training and where the end goal is in sight, they are not prevented from completing their training due to redundancy. However, we want to go further by giving more apprentices who suffer redundancy the opportunity to complete their apprenticeship should they not find new employment immediately. That is the key reason why these regulations are being debated today.

There have been significant changes to apprenticeships. We have introduced higher and degree apprenticeships, which are of a longer duration. As a result of this, the average duration of an apprenticeship has increased: more apprentices are starting longer programmes. Apprentices on longer programmes who are made redundant do not always benefit from the current policy, where they can continue to be funded if they are six months or less from completion. We now propose to go further. We want those who have completed 75% or more of their apprenticeship to be funded as well. This could mean that an additional 8,000 apprentices can complete their programmes in the event of redundancy. I think we all recognise that apprenticeships are not just training programmes. The unique benefit of an apprenticeship is that it is a real job, and the training consists of a mixture of on-the-job and off-the-job training to achieve occupational competence.

To conclude, having taken steps to encourage employers to offer new apprenticeship opportunities, we are now taking further steps to extend support to existing apprentices seeking to complete their apprenticeship in the face of redundancy. We believe that these regulations strike the right balance between supporting these apprentices and protecting the quality of the apprenticeship experience they receive and the endorsement it provides to employers of their knowledge, skills and behaviours. I beg to move.

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[Baroness Berridge (Con)]

My Lords, I thank noble Lords for their contributions to the debate. I am delighted that the valuable contribution that apprenticeships can make to individuals’ careers and businesses’ productivity was so clearly recognised.

In July, the Chancellor recognised the value of apprenticeships when setting out the Plan for Jobs. The payments we have introduced for employers hiring a new apprentice will help to promote many more apprenticeship starts before the end of January next year. Now, we are going further in supporting redundant apprentices. I welcome noble Lords’ support for the steps that we will introduce to protect apprentices from further redundancies.

It was wonderful to hear about the family history of the noble Lord, Lord Kirkhope, in apprenticeships and to see that he has transferred his skills from his telephone days. It was also wonderful to hear him agree that the Government are correct to make this earn-while-you-learn approach a priority.

The apprenticeship levy for this year is £2.5 billion. In answer to a query raised by many noble Lords, if an apprentice is made redundant, they have a 12-week period in which to find new employment where their training is paid for anyway. Obviously, we hope that they will receive a new apprenticeship in that period.

We consulted on the 75% figure that many noble Lords mentioned. There is no precise science to it, but a balance had to be struck. The point of an apprenticeship is that you have occupational competency, so on balance, someone on, say, a three-year apprenticeship probably has the competences after 75% of it to go on and be employed in that sector. Anything less than that will affect employers’ confidence in apprenticeships. The whole point of this provision is that once 75% of the apprenticeship is completed, it will complete without the need for an employer. The training carries on even if the apprentice cannot find a suitable employer to transfer to. It is about that balance—the training carries on but without that valuable part of being on the job. As I say, it is not a precise science, but it was felt that for the longer apprenticeships, 75% was the appropriate point from which the person could go on and gain employment, while the employer could be confident that the apprentice had the skills and knowledge that they should. As for whether it should happen at an earlier stage, it was not to do with cost but was rather—as the noble Baroness properly asked the Government—to do with this balance of ensuring that an apprentice is a competent employee in that sector and field.

I can confirm to the noble Baroness, Lady Meacher, and other noble Lords that if an apprentice has part completed and transfers to a new employer, that new employer is indeed entitled to the new payments, whether £2,000 or £1,500, depending on the apprentice’s age. That creates the incentive for other employers to take on a part-completed apprentice. We are doing as much as we can to address the situation in which someone experiences, as the noble Lord, Lord Storey, said, the excitement of getting an apprenticeship and then finds that they lose it due to the pandemic.

As many noble Lords mentioned, this is the time when, thankfully, the Government, the Secretary of State for Education and the Prime Minister have been talking about FE and skills and want to level up the parity of esteem, so that an apprenticeship is seen as a valuable way to earn and learn. This year there will be an investment of £200 million in our FE colleges.

As I say, we consulted on apprenticeships with the employment ambassadors, the AOC, the AELP and the provider reference group.

It is wonderful to hear my first speech from my noble friend Lord Vaizey. Other help has been given to apprentices through remote training and the apprenticeship service, and this support is being brought in now because, as many noble Lords will be aware, there will be a transition from the furlough scheme into the new support for jobs. At this point, we expect that employers will make those decisions about any apprentices they have furloughed, so it is important that we introduce this support now.

I was pleased to hear my noble friend Lord Vaizey talk about the technical skills that apprentices can have and develop, and I assure him that that passion is shared in the department by the honourable Member Gillian Keegan, the Minister for this area. I believe she is the only Member of Parliament with a degree apprenticeship, so she is passionate about this area.

On the levy, we have been doing more to enable levy payers to transfer their levy down their supply chain. I am grateful that my noble friend, despite being a levy sceptic, has appreciated that it has been a success. But it is not perfect and we know that we need to do more to make it even more flexible for levy payments to be sent to small and medium-sized employers. It has been vital to the whole scheme that employers are there, developing the standards, so that when people complete their apprenticeship, they know that they have the necessary skills to be an employee in that sector.

Of course, the future is with tech apprenticeships, as the noble Lord outlined in relation to Facebook, but we are also looking at flexibilities in relation to culture, the other sector he mentioned. We recognise that in culture and media there is often not a traditional single employer for which someone will work; we are looking at flexibility so that an apprentice could have a number of employers, as is the nature of the sector. We are trying to develop this so that we can meet the needs of all the different sectors.

On the Whitehall apprenticeship scheme the noble Lord mentioned, I am pleased to note that I have a meeting tomorrow with a DfE data apprentice who is sorting out some data in the school sector for me. So, yes, we are looking at meeting the commitments we made, and the levy has enabled us to invest more in apprenticeships.

On the points made by the noble Lord, Lord Storey, about the Kickstart scheme, we are all working hard to try to ameliorate as many of the effects of the pandemic as we can on the career prospects of young people, whom we know are more affected during this pandemic. I have received his inquiry on the Kickstart Scheme. We must have some kind of criteria for entry to the scheme. I will write with further clarification but, as I understand it, only the DWP holds the necessary data on young people to know whether they will be vulnerable to being NEET and whether they are in employment. That is why that scheme is being run out of the DWP, with which we are working closely. As I say, I will refer any further details on that.

I can say to the noble Lord, Lord Bassam, only that the apprenticeship service is being used by hundreds of employers and redundant apprentices. It is aimed at all sectors and has been made available hopefully in advance of the decisions that have been made on furlough. There have also been other announcements such as the free level three entitlement to qualification.

Skills are an enormous focus. The Government have launched a skills toolkit, and we now have a national productivity board so we can know at a national level what skills employers will need.

In supporting these regulations, we hope we can increase the number of apprentices who can complete their apprenticeships in the event of redundancy, recognising the sustained commitment that these individuals have made to their training over a period of months or years. It will make a huge difference to those individuals and ensure that they can make a full contribution to our businesses and help the country to recover and thrive in future. I commend the regulations to the House.

Motion agreed.