Skill Shortages in Business and Industry

Baroness Wilcox of Newport Excerpts

Wednesday 28th February 2024 Lords Chamber

[Baroness Barran (Con)]

I am aware that we are doing a great deal of work to try to understand some of the issues that the noble Lord rightly raises, and which are particularly acute in some of our shortage occupations. I am not aware whether we track specifically how to encourage people to return, but I will take that back to the department.

[Baroness Wilcox of Newport (Lab)]

Apprenticeship schemes are essential for developing vital skills in young people, yet in the last decade apprenticeship starts have fallen by one-third, while over £1 billion raised by the apprenticeship levy goes unspent every year. Does the Minister accept that the apprenticeship levy requires a total revision of how companies are encouraged to offer apprenticeships?

[Baroness Barran (Con)]

Apprenticeship starts fell because we had to do so much work with what we inherited as an apprenticeship system to make sure that we offered the quality that employers required. I do not agree that the apprenticeship levy requires a major overhaul. In the last two years, the levy has effectively been fully spent; where it is not spent by levy-paying employers, either they can spend 25% of the levy on companies within their own supply chains, so enhancing that productivity, or it can be spent by small and medium-sized enterprises. I wonder what the noble Baroness would say to them if her party was to be elected and go through with its proposed policy.