Baroness Sharp of Guildford
Main Page: Baroness Sharp of Guildford (Liberal Democrat - Life peer)Enterprise Bill [HL]
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Lord Mendelsohn
My Lords, apprenticeship quality is an issue that we are revisiting, as it was debated in Grand Committee. The argument was made very strongly by my noble friend Lord Stevenson, the noble Baroness, Lady Sharp, and the noble Lord, Lord Stoneham, and the provisions in Clauses 18 and 19, which set a target for the public sector, remain a matter of significant interest for us. We accept the argument that the Government have made—that, if they are asking this of business, as a major employer the public sector should not be exempt. We further accept their argument that the public sector should not just be another employer but that it should be exemplary, leading the way in ensuring that it demonstrates the strongest possible adherence to the policy and implements it in a way to set a gold standard. We agree and, in keeping with that objective, this amendment seeks to ensure that the gold standard and the Government’s objective are properly reflected in the legislation.
Given the announcements today, I point out that local authorities should give careful attention to how they implement this commitment. It is not just the problem of having to deliver the level of restructuring required by the Chancellor, which might make it difficult in some areas to develop effective schemes, especially in places undergoing restructuring where management change might be present. Some schemes run by local authorities support those who cannot access apprenticeships due to weak literacy and other skills or learning difficulties. It would be tragic if such schemes that can never be delivered by business are cut as a result of the direct transfer of resource management away from these areas. I would be grateful if the Minister could say how existing schemes that provide skills and capabilities for people to access apprenticeships will be addressed in the implementation.
Amendment 55 amends the apprenticeship target so that it is no longer simply a numerical target but a target for high-quality and high-level skilled apprenticeships. The amendment suggests that there might be more return if the restrictions on statutory apprenticeships could focus on the higher-quality and the higher-skilled elements. In other words, they should be at levels 4 and 5 in the training schemes and not at levels 1 and 2.
Ofsted’s report on the state of apprenticeships, Apprenticeships: Developing Skills for Future Prosperity, which business agrees with, highlighted the value of quality apprenticeships as the route to the high-level skills that business and the economy need. The message in that report is the message that we are trying to drive home today—that there is a distinction to be made between the level of an apprenticeship and the quality of that apprenticeship. The report found that one-third of apprenticeships did not provide sufficient high-quality training to stretch apprentices and improve their capabilities. During inspections, apprentices were seen engaging in activities which had become so common as to be a deplorable cliché, such as making coffee, serving sandwiches or cleaning floors. These were accredited placements. That is exactly the kind of scenario that we predict will occur with the Government’s new target unless the quality threshold is strongly applied.
The noble Lord, Lord O’Neill, and the Minister, Anna Soubry, were challenged by the Business, Innovation and Skills Select Committee in another place earlier this month on how their work would ensure that apprenticeship starts counting towards the target were of sufficient high quality. Both said that focusing on the levels was not necessary; we do not agree. The committee from all sides challenged the duo as to why the Government had not set a target for high-level apprenticeships at level 4 and above. One of the committee members encapsulated the issue in suggesting that all evidence presented to the committee in its inquiry had been that the emphasis should be,
“on quality not quantity—the only target you have is for quantity not quality”.
The Minister responded by saying that apprenticeships should be,
“quality-assured by virtue of the Enterprise Bill”.
However, I cannot really see anything in the Bill that assures such quality. I would be very grateful if the Minister could provide some clarity regarding the comments made in that evidence session, explaining how quality is assured in the Enterprise Bill for apprenticeships in the public sector. If it is not present in the Bill, I would be very encouraged if the Minister would confirm that we have ensured that Anna Soubry’s commitment is properly reflected in our amendment.
In Committee, the Minister mentioned a few steps that the Government have taken to improve the quality of apprenticeships, and I would like some clarity on those. One measure that she cited was:
“Short-duration apprenticeships have been removed from the system; apprenticeships must … last a minimum of 12 months”.
How does extending the length of the apprenticeship improve the quality? It could offer employers the opportunity to abuse the system further by offering low- quality apprenticeships with little learning opportunities for young people over a longer period of time. Was that the scenario addressed in the Government’s consultation on these provisions, and are there any safeguards in place to prevent that happening?
The Minister said that the Government were,
“introducing more rigorous testing and grading at the end of the apprenticeship to ensure that apprentices are reaching full occupational competence”.—[Official Report, 2/11/15; col. GC 283-4.]
Do the Government have any intention of piloting the programme in a few public authorities? Perhaps the test would help to estimate whether the apprenticeships on offer were successful or not.
The main argument that we heard in relation to the proposals in the amendment was that the Government are wary of the potential bureaucracy in the new arrangements and that there must be a balance. I searched for a copy of “Yes Minister” to help me to understand what that meant. Judging by the importance that the Government have placed on apprenticeships, I believe that they anticipated some level of bureaucracy in the delivery of this policy and that they have thought about what the border and membrane is between an acceptable and unacceptable level. There are many economic and social gains to be made by promoting apprenticeships, but that can be done only if they are of a quality by which young people can learn and become skilled workers. By prioritising the quality of apprenticeships, the contributions made to the public sector would far outweigh any of the anticipated bureaucracy. Indeed, productivity improvements in the private sector have been very encouraging, and there is no reason why such improvements could not be reflected in the public sector.
That is why we have tabled this amendment and have such a strong feeling on this issue. Apprenticeships represent barrier-breaking entry into industries that young people would otherwise not have a chance to work in. By undertaking high-quality and high-skill apprenticeships, they will be spending time in worthwhile employment, not wasting a year stacking shelves. I am sure the Minister will agree that that is not what the Government intend but, by simply imposing a target with few checks on quality, that is what is going to happen. For us, delivering quality is an essential part of the Government leading and establishing a gold standard. I beg to move.
Baroness Sharp of Guildford (LD)
We on these Benches have considerable sympathy with this amendment. In Committee, we had a lot of discussion on quality and the number of apprentices who have completed only level 2 apprenticeships, which many people regard as being not really full apprenticeships. Indeed, the Government have a notion in a later part of the Bill of creating a statutory apprenticeship—the level 3 apprenticeship, which is normally a two-year or even a three-year apprenticeship.
Yesterday I had the benefit of visiting Rolls-Royce’s Apprenticeship Academy and saw precisely what a high-quality apprenticeship is really about. It is important to recognise that there are different levels of apprenticeship. The noble Lord, Lord Mendelsohn, talked about the need for us to aim at higher-level apprenticeships—levels 4 and 5—but it is important to recognise that there is a progression in apprenticeships from level 2, which is almost an entry-level apprenticeship, through to level 3, which is the standard apprenticeship, and on to levels 4 and 5, which are the more detailed apprenticeships for technicians. As the noble Lord, Lord Mendelsohn, mentioned, we as a country are extremely short of those who have completed apprenticeships at level 4 or 5, the technician level, and we need to put in considerable effort to increase the numbers. Equally, for some young people, a level 2 or level 3 apprenticeship is more appropriate than trying to push them into the very much higher-level apprenticeships.
I endorse the move by the Government to try to increase the quality of apprenticeships as well as the number of apprenticeships. There is some danger that in trying to reach the 3 million target, this may get pushed to one side again. For that reason, we on these Benches endorse the amendment.
Lord Young of Norwood Green (Lab)
My Lords, I shall speak also to Amendment 56, which is in my name. I endorse what my noble friend Lord Mendelsohn said about ensuring that we get high-quality as well as high-level skill. We are about to enter quite a complicated area in relation to apprenticeships. In the Autumn Statement today, the Chancellor talked about the apprenticeship levy. How it operates in relation not just to large companies but to SMEs will be vital. The Government have a doubled-edged, or perhaps even a triple-edged, challenge: increasing the number of apprenticeships to a large degree; ensuring that we sustain quality, which has already been mentioned by my noble friend Lord Mendelsohn and the noble Baroness, Lady Sharp; increasing the number of SMEs that employ apprentices; and attracting young people into apprenticeships with the guarantee that they will participate in a high-quality scheme.
“( ) A prescribed public body may set apprenticeship targets for its subcontractors.”
Baroness Sharp of Guildford
My Lords, this amendment is slightly different from the one that we discussed in Committee, and suggests that prescribed public bodies should be able to set a target for their subcontractors. In Committee, the Minister reminded us that on 1 September this year all central government contracts over £10 million were required to commit to including a certain number of apprentices within the contract. At that time, there were discussions with the Department for Communities and Local Government and the Local Government Association about extending to local authorities the notion of contracts over £10 million having an apprenticeship target attached to them. It would still exist—it would be a matter of all large contracts of one sort or another, over £10 million.
Although we very much welcome this initiative and feel that it is a right use of public procurement to help promote what is such a central aim of government—indeed, it is a cross-government aim, given that all of us back it—we feel that many local authority contracts fall well below the £10 million mark and yet could very usefully be used to help promote the apprenticeship programme. For that reason, we have put down the amendment again, though we have made it somewhat less prescriptive. It is very much a “may” amendment: that is, prescribed public bodies “may”, if they wish, include a target for their subcontractors. It picks up the notion that I spoke of in Committee, of nudging contractors to move in this direction.
We are very concerned about the relatively small number of employers in this country who take on apprentices of one sort or another. Only 15% of employers do so, and many small and medium-sized businesses do not. It would be good if we had some means of encouraging them to do so. It seems to me that, if it is felt appropriate to set such a target, it would help to nudge such employers into taking on apprenticeships. I beg to move.
Lord Mendelsohn
My Lords, I declare an interest as the co-president of Norwood, a very large charity that deals with children with special educational needs and people with learning disabilities. I thank the noble Baroness, Lady Sharp, for proposing this amendment. I apologise—I am speaking about the wrong amendment. I will return to that in due course.
I speak to Amendment 60, which raises a matter that we discussed in detail in Grand Committee—that is, the duty on trading standards to enforce apprenticeship quality. I thank the Minister for her excellent work on that and for the work she and her officials have done in talking to the Trading Standards Institute to make sure that this is addressed. I am very pleased that she has been able to report that trading standards have suggested a model using one lead standards institute to try to ensure that this is delivered—I believe that that is Birmingham City Council. In my view, they have made quite a small resource suggestion, and I hope that in due course that would be reviewed to see whether it is sufficient to undertake the duty. I am very pleased, too, that the Department for Business, Innovation and Skills has agreed to fund this additional post, which I think is essential.
I was very encouraged that the Minister has taken extra care to propose that the Skills Funding Agency acts as the first point of contact on compliance, which is a very good idea and bridged what was, in our view, a large hole. I think the Minister will understand that I would be more than tempted not to move this amendment, but I am taking the opportunity to say thank you for addressing this concern and coming up with an even better suggestion than we had in Grand Committee.
Baroness Neville-Rolfe
My Lords, I thank the noble Baroness, Lady Sharp, for her support for the Government’s new procurement rules under which, on big projects—a £10 million project lasting for more than 12 months—an apprenticeship commitment is now required in the contract.
Amendment 57 seeks to allow for the employment of apprentices by subcontractors of a public body to be included in targets set for the public body, and for a public body to be able to set apprenticeship targets for its subcontractors, as defined in Amendment 59.
Amendment 60 removes the enforcement duty on local weights and measures authorities for protecting the term “apprenticeship” from misuse. In order to meet the 3 million starts commitment, I agree that the public sector needs to do its fair share by employing more apprentices. As I said before, my own Bill team is leading by example, with an excellent apprenticeship, and I take the point made earlier by the noble Lord, Lord Mendelsohn, about levels.
It is important that the public sector seizes the real value and benefits that apprentices of all levels can bring to their organisations. This modern approach will allow it to develop internal talent, answer ongoing business needs and develop existing staff. However, I fear that Amendment 57 could put this ambition at risk. It would enable public sector bodies that are captured by the duty to meet their targets via persons who supply goods and services to them.
I reassure noble Lords that the Government recognise that certain public procurement contracts can be a key means of upskilling workforces, but we do not believe that this is the right way to do it. Although the policy is currently mandatory only for central government, its agencies and non-departmental public bodies, all other contracting authorities are strongly encouraged to adopt the new approach. Many public bodies and local government already build skills considerations into their procurement on a voluntary basis. A decision was therefore taken not to introduce this in the wider public sector initially but, in the first instance, to take a voluntary and collaborative approach, learning from the sort of good practice that we discussed in Committee —we talked about Crossrail, and of course other big infrastructure projects are on their way.
Officials in the Department for Business, Innovation and Skills and the Crown Commercial Service will work together with officials in the Department for Communities and Local Government, the Local Government Association and local authorities to identify existing best practice and experience and bring forward further proposals for wider action in local government in 2016.
I now turn to Amendment 60. I am very grateful to the noble Lord, Lord Mendelsohn, for returning, after a bit of a bump, to happy collaboration on this Bill. I would also like to thank the noble Lord, Lord Harris of Haringey, for what he said. I go back with trading standards; as an official, I was responsible for the Food Safety Act, where we also managed to find some money for trading standards. I thank the noble Lord for the great work that he has done and that is done by trading standards right across the country. As he says, they are multitaskers with a vengeance and cover an enormous area. I understand the noble Lord’s point and, as I am sure he knows, government officials have been reviewing the burdens on trading standards. In due course, we will return to that subject.
In the mean time, I reassure the House, as has been said, that we intend to appoint and fund a lead local authority to carry out the enforcement of the measure on behalf of the Department for Business, Innovation and Skills. That has been discussed with the Trading Standards Institute, which agrees that this is the most sensible approach. We already know that this model works successfully for some functions, such as the illegal moneylending team which is based in Birmingham City Council.
I hope that the noble Lords feel that we have made progress in these areas, have found my explanation reassuring and, on this basis, will feel able to withdraw their amendments.
Baroness Sharp of Guildford
I thank the Minister for her reply. I rather expected it, but had hoped that perhaps in discussing the issue further with the DCLG and the Local Government Association they might have discussed this all-embracing amendment.
I did not see, if I may say so, my amendment as necessarily meaning that a public body could transfer some of its target to its subcontractors, which was a point the Minister made. In the amendment I moved in Committee, one of the points I made was that the target could be transferred. However, I do not see this amendment as providing for a transfer of targets. I see it very much as an additional target that could be set using the power of public procurement for some of these smaller contracts, which the public bodies concerned might find quite useful.
I recognise that there is a push on the part of the Government to get all public bodies to take on apprentices, and this is one that we very much welcome. As I said, the idea was really to do nothing but provide an extra nudge. I am sorry that the Government are rejecting this idea of the extra nudge. With that, I beg leave to withdraw the amendment.
“( ) The regulations may specify that a proportion of the apprenticeship targets referred to in subsection (5) shall be reserved for—
(a) young people leaving care, and(b) young people with physical and learning disabilities.”
Baroness Sharp of Guildford
My Lords, Amendment 58 is again similar to an amendment that we moved in Committee. We have brought it back because we would like to discuss it just a little more.
I thank the Minister very much for her letter. There was considerable detail in it and it was extremely useful.
As the Minister said in reply to me in Committee, the Government are already doing a great deal to ensure that these vulnerable young people are given the opportunity to train through apprenticeships.
This amendment is much less prescriptive than the one we moved in Committee, which required the Government to set a specified proportion of the target for care leavers and those with special educational needs. This amendment suggests just that any such proportion is set out by regulations. Again, it is a “may” rather than a “must”; it states that “regulations may specify”. To some extent, given the discretion that can be used in regulations, it might be more appropriate for the Government to suggest that some sets of public bodies should aim for a proportion of the apprenticeship target to be taken from care leavers and those with special educational needs.
I return to the point I made in Committee: these are two groups of vulnerable young people in society that often find it very difficult to get on to the job ladder. The opportunity to get an apprenticeship—admittedly, often a fairly low-level apprenticeship—and get on the ladder to show that they can achieve and be trained properly for a job is of great advantage. Sometimes, the period of training needs to be extended more than with other apprenticeships, but they are a very useful vehicle for helping these young people get into employment and on to some sort of career path.
We spoke in Committee about the good example of some local authorities and I drew particular attention to Birmingham as an exemplar in what it does for these young people. We thought it was worth bringing back a somewhat amended version of the amendment that recognised the points made by the Minister in Committee. We hoped she might look on this one somewhat more favourably. I beg to move.
Baroness Neville-Rolfe
My Lords, as the noble Baroness, Lady Sharp, said, Amendment 58 is less specific than the amendment we debated in Committee, but its purpose is to impose targets on public sector bodies to specify a proportion of apprenticeships for young persons leaving care and young persons with learning difficulties or disabilities. Those are laudable aims, and I appreciate the way that the noble Lord, Lord Mendelsohn, shared his own charitable experience. But it is crucial that we ensure focus and simplicity for employers and do not deter them from hiring apprentices. It is a matter of principle for the Government that we should not mandate what type of person employers, whatever the sector, should be recruiting as apprentices. Apprenticeships are real jobs with training. Employers make the final decision about who they hire for any apprenticeships that they have advertised, and ring-fencing apprenticeships for particular groups would mean requiring employers to hire particular people for their vacancies.
Alongside the Department for Education, we will continue to promote opportunities for care leavers to receive extra support through traineeships and other study programmes. Among other things, we have introduced a personal adviser for every care leaver to support them until they are at least 21. In addition, full funding for apprenticeship training is available under existing frameworks for eligible 19 to 23 year-old care leavers. We are now extending this to cover the new apprenticeship standards and to care leavers up to the age of 24 from September 2016.
The Government will also publish, in spring 2016, a refreshed strategy to improve the lives and life chances of young care leavers. We anticipate that this will include the Government’s proposals to support care leavers entering the world of work in the coming years. We are committed to ensuring that apprenticeships are accessible to young people with learning difficulties or disabilities. We continue to look at how we can improve accessibility by working with key stakeholders, and have already taken steps to ensure that barriers preventing access to apprenticeships for those with learning difficulties or disabilities are removed.
To respond to the noble Lord, Lord Mendelsohn, as an incentive to employers, the Government fully fund apprenticeship training for all young people aged 16 to 18. This fully funded apprenticeship training is extended to eligible care leavers aged 19 to 23. A number of local authorities already prioritise support with apprenticeships for care leavers, which of course we encourage, and, where eligible, care leavers can also access programmes such as traineeships to get the support they need to get ready for an apprenticeship. They are flexible, so providers can adapt them to the needs of the trainee by including additional support such as mentoring.
There are examples of good practice and they have grown in recent years, to respond to wider needs. I believe that this amendment would take us down the wrong path. I hope noble Lords will understand how the Government have approached this and the things we are doing outside the framework of the Bill, and that the noble Baroness will feel able to withdraw her amendment.
Baroness Sharp of Guildford
I am grateful to the Minister for her reply. It is rather as I had expected. I acknowledge the amount of work that the Government are doing outside the Bill by promoting apprenticeships, particularly for these vulnerable young people. I hope they will continue to press public authorities to take their share of helping to train young people and give them opportunities. With that, I beg leave to withdraw the amendment.