Opportunities for the Next Generation

Catherine McKinnell Excerpts

Tuesday 13th September 2011 Commons Chamber

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

There is no doubt that this is a worrying time for this and the next generation of young people. That is not just my view but that of those who see first hand the damage being done to opportunities for young people, particularly across Newcastle and the north-east.

The abolition of Labour’s education maintenance allowance came as a serious blow to thousands of young people across the north-east, yet organisations have stepped into the breach. Newcastle city council, now safely back in Labour hands, was not prepared to stand back and abandon Newcastle’s generation of young people and therefore established a new 16-to-19 bursary scheme that is helping young people who face financial hardship to stay in full-time education.

The decision to end the highly regarded Aimhigher programme recently came in for strong criticism from regional universities, which fear that greater barriers to social mobility in deprived areas will be the result. Despite what the hon. Member for Solihull (Lorely Burt) has just said, I have yet to find any support for the scrapping of Labour’s future jobs fund, which helped more than 5,000 young people get a foot on the job ladder in the north-east alone, not to mention the coalition’s decision to allow universities to charge students up to £9,000 per year, with the maximum fee looking likely to be the norm, not the exception, despite the promises of Ministers.

That all adds up to a total lack of Government strategy to support young people at a time when youth unemployment has hit record levels. Some 949,000 16 to 24-year olds—more than one in five across the country—are now out of work. Over the past 12 months the north-east has seen an 18% rise in the number of jobseeker’s allowance claimants, one of the highest increases in any region by some margin. For me—and for many, I am sure—that is very alarming.

Since I was first elected to this House, I have been a passionate advocate of apprenticeships and the important role that they can play in supporting young people into the workplace. To give him his due, the Minister for Further Education, Skills and Lifelong Learning shares my passion. Indeed, I welcome his commitment to expanding the number of apprenticeship places and to building on Labour’s excellent work in government. I am seriously concerned, however, that the figures on apprenticeship places are possibly being fudged, with the number of places increasing by 234% in the past nine months, which is largely attributable to Train to Gain being rebadged.

I also believe that we need to look very carefully at the quality and types of apprenticeships that are being created because we need to ensure that they genuinely meet the needs of current and future employers and match the skills that we need for Britain’s future economy. How will the Government ensure that new apprenticeship places are additional to any new jobs created? It is no good converting existing jobs into apprenticeships just to say that a target has been reached; we need to offer genuine opportunities to young people and provide genuine support for businesses so that they embrace the apprenticeship model. Despite many local employers taking up the apprenticeship agenda with gusto, many still do not appreciate the benefits that taking on an apprentice can have for their organisation. Indeed, that concern is borne out by a recent north-east chamber of commerce report that found that companies wrongly believe that taking on an apprentice is “too expensive”, or that apprenticeships are available only in a very narrow range of sectors.

[Caroline Dinenage (Gosport) (Con)]

Does the hon. Lady agree that the emphasis that the Government have put on apprenticeships has been fantastic PR in the sense that people who would not previously have thought of offering them now do so? I met a chap in my constituency the other day who is a carpet cleaner and who, purely because of the Government’s emphasis on apprenticeships, suddenly had the idea of offering an apprenticeship to kids from the hardest-hit areas of my constituency. That move has been a huge success and can be credited solely to the emphasis that the Government have put on apprenticeships.

--- Later in debate ---

[Catherine McKinnell]

I agree that apprenticeships need a sales job to be done on them, but there is a greater need for real action that meets the needs of businesses and the economy, and I am worried that the Government’s approach is just a PR job and does not have much substance. Having met a number of apprentices from across Newcastle who work in catering, construction and as motor technician apprentices, I have seen how beneficial they can be to businesses. I have a business apprentice in my constituency office in Lemington, who just turned 18 last week and who is genuinely invaluable to my office. I encourage all hon. Members to take on an apprentice in their office and lead the way.

Clearly, the coalition needs to do more. In these straitened economic times, the Government should use every lever in their power to increase the opportunities available to young people. They should lead the way and they could make a huge difference by using public procurement to achieve social and economic ends. They spend £220 billion a year purchasing goods and services from the private sector—from business support services to new schools and hospitals to new trains. They are the top single contractor in the UK. I introduced my Apprenticeships and Skills (Public Procurement Contracts) Bill, which is due to have its Second Reading shortly, so that all companies that win major public sector contracts give a firm commitment to create apprenticeships as part of that bid.

I am delighted that my proposal has been adopted as Labour party policy, but I am disappointed that it has received only warms words from the Minister for Further Education, Skills and Lifelong Learning. As I have said, this is not the time for warm words—it is the time for action. It is hugely disappointing that the Minister for the Cabinet Office has repeatedly rejected the idea, stating that using public procurement policy

“to stimulate the creation of more apprentices...wouldn’t be appropriate”.

I ask, “Why?” If getting the cheapest price for a contract results in long-term costs and missed opportunities for young people and for the creation of our future skills base, that is short-termism at its worst and is an irresponsible way of spending taxpayers’ money. That attitude is even more disappointing because the policy has the backing of many people and major organisations, including the Federation of Small Businesses, chambers of commerce, the Association of Colleges, many unions, the Federation of Master Builders, the Electrical Contractors Association and indeed Lord Sugar.

I urge all right hon. and hon. Members to lend their support to today’s Opposition motion, because we simply cannot take the risk of creating another lost generation of young people. We have the tools to make a difference and we have the spending power of public procurement—let us use them.