Trades and Apprenticeships

Clive Betts Excerpts

Tuesday 17th December 2024 Westminster Hall

[Amanda Martin (Portsmouth North) (Lab)]

I beg to move,

That this House has considered public perceptions of trades and apprenticeship completion rates.

It is a pleasure to serve under your chairmanship, Mr Betts. One of the many toxic legacies of the previous Government is a crisis in education and training, overwhelming barriers to opportunity for many young people and the denigration and downplaying of the construction industry. Young people in my city are not accessing well-paid jobs, despite the many opportunities on our doorstep in the maritime, space, science and trade sectors. To fix that, we must improve and promote vocational pathways through increasing the number of apprenticeships available, improving apprenticeship completion rates, simplifying the apprenticeship system and increasing its flexibility.

Much of the research for this debate has come from Checkatrade, a home improvement platform based in Portsmouth North. I will therefore focus mainly on the construction sector. The trade and construction sector sits at the heart of the national mission to get Britain building, to reach net zero and to drive economic growth. From plumbers and electricians to roofers and carpenters, there will be huge opportunities for careers and job creation in building the skilled workforce we need to deliver those targets.

Research by Checkatrade has found that the UK economy faces a severe skills challenge. The UK must find 1.3 million new skilled trade people and 350,000 new apprenticeships over the next 10 years to meet the Government’s ambitious but much-needed housing and net zero targets. London will require at least 55,000 qualified construction apprenticeships, but the demand is not just in England; it is spread across the UK, with Scotland needing 26,000 new apprenticeships, Manchester 15,000 and Birmingham 13,000. With 35% of those working in the sector over the age of 50, and almost three fifths of tradies planning to retire between the ages of 61 and 65, the industry is facing a cliff edge of retirement with little or no succession planning.

The transition to net zero is also impacting jobs and apprenticeships, with 59% of jobs affected and 29% of those jobs requiring upskilling. However, apprenticeship starts have declined in recent years, highlighting the urgent need for a renewed focus. In 2022-23, there were 337,140 apprenticeship starts, compared with more than half a million in 2011-12. Challenges in the sector, such as high apprentice drop-off rates and high levels of self-employment—37%—make addressing the skills gap even more challenging and crucial.

What solutions can we explore? First, we must create more apprenticeships: despite a chronic skills gap in the UK, for every apprenticeship there are three applications, but only one successful candidate. That can be achieved by restoring financial incentives to small and medium-sized enterprises to take on apprentices under the age of 25, offering an apprenticeship incentive payment and expanding funding to create apprenticeships.

SMEs have a crucial role to play in boosting the number of apprentices, and we need to find ways to incentivise them to invest in training. We must provide them with the support they need to take on an apprentice and ensure flexibility in training that works for their businesses and for the apprentices. Making the apprenticeship funding model more transparent to help to improve businesses’ understanding of and confidence in the apprenticeship system is vital.

Secondly, we must improve completion rates. Only a third of apprenticeships are currently completed—a shockingly low statistic. We could improve that rate by increasing financial support. The apprenticeship rate of pay currently sits at £6.40 per hour, making apprenticeships financially unattractive. More targeted support should be made available to attract those with dependants and other financial responsibilities, and those wishing to change career. Financial mentoring for apprentices could also go a long way towards improving the completion rates. We should also look at expanding foundational apprenticeships and introducing a shorter apprenticeship course for those who cannot afford the minimum length of 12 months in a placement.

Lastly, we must simplify the system and increase flexibility. That could be achieved by creating more flexibility through the apprenticeship levy. For example, the functional skills requirement is cited by employers as a barrier to learning and is not always relevant to the role or individual. Those could be removed in some cases. Apprenticeships and training programme providers should be enabled to deliver three, six or even nine month-courses, which could be used to help workers to reskill and retrain in areas that are part of the green transition. We must also end geographical differences; apprenticeship levy funds can currently be spent only on apprenticeships in England.

To do all that, we must value all the pathways. The toxic legacy of the Tories in education was the undervaluing of certain subjects, including vocational courses and apprenticeships. We must value all pathways if we are to move towards a productive, highly skilled population and achieve our growth targets. Apprenticeships of all kinds create successful business owners and entrepreneurs who are well paid. Average weekly earnings in the construction sector are £761, surpassing the national average by 13%.

Furthermore, not all apprenticeships are low-paid during training. Roofing apprentices can earn more than £24,000 a year, plastering apprentices £19,000 and plumbing apprentices £18,000. Apprenticeships can be a stable and reliable route to success: with success rates remaining stable at 93% over past years and many apprentices staying on with their employer after qualifying, they offer value for money and a good career.

Despite that, however, many young people and their parents do not see a trade career as aspirational. We must highlight those benefits of vocational courses to young people, to inspire them into diverse sectors and to elevate vital sectors, including construction. That could be achieved by using the money raised by the growth and skills levy on access and outreach activities, and by the Department for Education ensuring that careers advice highlights the training provisions available, including T-levels, BTecs, skills bootcamps and more, as well as the career opportunities accessible through apprenticeships. We must ensure that work experience gives an insight into the opportunities and, although it must have safety at its heart, we must reduce the red tape for SMEs and larger companies to offer valuable work experience places.

In conclusion, to achieve our national mission of kick-starting growth and breaking down barriers to opportunities, we must look at people and skills in the round and value them. To create a highly skilled and highly paid workforce, we must provide accessible, well-funded and fairly paid vocational training. We must provide balanced education about vocational options and provide support for those on vocational pathways to help them to complete courses. That will help to diversify vocational pathways.

Apprenticeships in construction are currently almost 91% male and 92% white. Although there has been some progress in diversifying the workforce, its composition remains highly disproportionate compared with society and other sectors. As an ex-teacher, I truly believe in the saying, “If you cannot see it, you cannot do it.” Those opportunities must be visible and open to local communities, whether that is our young people or someone who wants to change career or upskill to a new one.

We must place pride, value and respect in this sector. As the proud sister of an electrician, the daughter of a plumber and the granddaughter of a painter and decorator, I know the value of tradespeople in our communities and families. They are the backbone of our everyday lives—building, fixing, and ensuring that our houses, schools, hospitals and communities are safe, functioning spaces.

[Mr Clive Betts (in the Chair)]

Probably much to his surprise, I am going to call Jim Shannon as the next speaker.