Skills: Importance for the UK Economy and Quality of Life

Baroness Hayman Excerpts

Thursday 9th May 2024 Lords Chamber

[Baroness Hayman (CB)]

My Lords, I declare my interest as chair of Peers for the Planet and congratulate my noble friend Lord Aberdare, both on securing this debate and on the way in which he introduced it. He managed to cover such a wide range of issues, which I am sure will be highlighted in various respects over the course of the debate. I very much look forward to the maiden speeches that we are to hear.

I want to concentrate my contribution on the importance of green skills for the successful economy of the future, and for the delivery of the Government’s stated commitments towards net zero and a nature-based and nature-positive economy. Those commitments will mean a shift to jobs in low-carbon industries, and in providing nature-based solutions as part of a fair transition to net zero and nature restoration. That change can bring associated health and other co-benefits to all parts of the UK, particularly to the most vulnerable and some of the most disadvantaged.

As my noble friend Lord Aberdare so obviously and clearly explained, we need a national skills strategy. As part of that, we need a specific green skills strategy, which sets out a comprehensive plan for how the Government intend to deliver the green jobs and skills of the future. It is important to emphasise that green jobs are not just going to be those in the energy sector. In the same way that delivering the net-zero transition will need a concerted effort from all sectors—from government, education, government departments and local authorities—so the green jobs of the future will require the same comprehensive approach, with a huge range of jobs and skills needed in all sectors, from the health service and social care to education, transport and the built environment, including learning how to repair things once again, rather than throwing them away.

I would like to specifically ask the Minister about the Government’s promised net zero and nature workforce action plan. In 2023, the CCC noted that it was overdue. It has now been promised for 2024. To echo a remark made yesterday in the House, can the Minister tell us whether we will see it soon, shortly or in due course? Also, how will it fit into any broader national skills and productivity planning, such as the work of the Unit for Future Skills? It is vital that we have a proper, joined-up plan to deliver the skills we need for the future in a fair way, and to seize the opportunities it can bring across all regions of the UK.

As well as the new roles that will be created by the net-zero transition—the CCC estimates this to be up to 700,000 jobs by 2030—a recent report from Bain & Company estimates that around 4 million workers will need reskilling by 2030 to prepare for the new green economy. The Association of Colleges briefing, which noble Lords received, highlights the need for reform of the UK’s tertiary education system to help address future skills gaps, which could be a major constraint in delivering on the plans and commitments that the Government have made. Practically, if we are to deliver the Government’s target of 600,000 heat pump installations by 2028, how are we going to train enough heat-pump engineers when we have 3,000 at the moment and it is estimated that we need 27,000 to deliver on the Government’s promise?

It is also extremely important that we do not leave behind those who work in high-emitting sectors at the moment, whose transferable skills could be redirected very easily to the low-carbon industries of the future. If we do not reskill them, we will lose them to other countries which are developing their own green energy projects.

During debate on the Offshore Petroleum Licensing Bill, we discussed an amendment which proposed the publication of a green skills retraining plan for the 30,000 or so oil and gas workers still working in our declining North Sea basin. This included a skills passport which would provide financial and practical support so that those workers who wish to do so can easily—and without additional cost to them—reskill and retrain. In that debate, the Minister confirmed that the Government are “keen to take … forward” such a plan and are supporting the delivery of work being led by Offshore Energies UK, which includes a skills passport. When she replies, can the Minister let us know when this work will be delivered? It is now two years since the industry-led integrated people and skills strategy recommended it. Will there be financial support for workers looking to move into green jobs?