Industrial Training Levy (Engineering Construction Industry Training Board) Order 2020

Baroness Garden of Frognal Excerpts

Wednesday 2nd September 2020 Grand Committee

[Baroness Garden of Frognal (LD)]

My Lords, this order is not contentious, but it is worthy of some discussion. The construction industry is alone in continuing a training levy, as the noble Lord, Lord Hain, just set out. Some years ago, industry training boards were transformed from statutory to non-statutory bodies, and as the Minister stated, the Construction Industry Training Board, or CITB, and the Engineering Construction Industry Training Board, or ECITB, retained their statutory status and powers. They make annual proposals for the levy for their respective industries. The Secretary of State, having been satisfied that the proposed levies meet the statutory criteria, lays orders before Parliament to give effect to the proposals. This is the routine order we are now considering. The ECITB training levy is specific to the engineering construction industry. The ECITB determines how the money is invested in training and other projects for the benefit of the sector and is a registered charity. There might be advantages in other industries having such well-regulated training requirements.

However, issues now arise with the introduction of the apprenticeship levy. I agree with what the noble Lord, Lord Bourne, said. Employers with a pay bill of more than £3 million per fiscal year relating to employed labour have been required to pay the apprenticeship levy since April 2017. This payment is made to HMRC through the PAYE process and is in addition to any industrial training levy charged by the ECITB. The apprenticeship levy is ring-fenced to support apprenticeships in England across all sectors and occupations. However, we know there have been many issues with this levy, with it being applied to programmes of learning which could in no way be described as apprenticeships, such as master’s degrees and other advanced learning. In my book, an apprentice is somebody who is starting out on their career. Employers have long asked to be able to use the levy for a wide range of training, not just apprenticeships. Does the Minister have any update for us on whether that change might happen?

As we have said before, the apprenticeship levy system means that the electrical and construction industries have a double bill of training levies. Can the Minister say whether this is contentious in the industry? What discussions are held to ensure that those in the engineering and construction industries are happy to pay twice for training in this way? We know that the ECITB consults widely and we hope that it would pick up such concerns.

We know that the construction industry’s workforce is around only 2% female, yet women who are practitioners can earn an excellent living and enjoy their work. What efforts are the Government making to attract more women and girls into construction? How, for instance, does careers advice and guidance in primary schools, as well as in secondary schools, portray this industry as attractive and accessible to all? The image of construction is of burly men with hods in muddy fields, and of engineers with spanners and greasy overalls. The reality is so very different. My daughter was an oil engineer for a number of years, yet she never had greasy overalls. Early in her career, she was the most senior woman at Esso’s refinery, which said less about her meteoric career and more about how very few women there were at the refinery—yet most of the jobs there could equally have been done by men or women.

The Prime Minister has expressed his intention to “build, build, build”, but without qualified builders, this is a hollow promise. Vocational, practical, technical education should be right at the heart of the political agenda, yet this Government have driven a coach and horses through long-standing, well-understood, highly-respected vocational qualifications by bringing in the untried, untested and flawed T-levels. I declare an interest as a vice-president of City & Guilds, an organisation for which I worked for 20 years. I am very well aware of the value of and respect for City & Guilds qualifications, and indeed of BTECs, which are highly regarded but are sidelined by curious, non-expert decisions with this new qualification. How do the Government hope to encourage and train construction workers when they are set on destroying the very training and qualifications which have been the bedrock for generations?

A further aspect of the apprenticeship levy is that Liberal Democrats would seek to expand its scope to a wider skills and training levy and to add flexibility that works for employers and trainees. While keeping the contribution at 0.5%, we would use the cash raised not just for apprenticeships but for a wider training programme, and ensure that 25% of the funds raised would go into a social mobility fund, which we would use to feed into the regions and the cold spots and to make sure that we have diverse apprenticeships in the parts of the country and the sectors where they are most needed.

The electrical and construction industries are vital to our economic revival. As we agree this order—because we have no other option—can we keep in mind the vital importance of explaining and selling these exciting industries to children and adults? If we continue the obsession with academic qualifications and achievement, we shall never be able to restore the economy as the country needs.