Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [Lords]

Debate between Damian Hinds and Andrew Pakes

Report stage
Monday 31st March 2025 Commons Chamber

[Damian Hinds]

Of course we should be listening to colleges such as Bournemouth and Poole college. We heard the Government announce earlier that thousands of people were going to go into construction, but then say that they could not do anything until they created this body and subsumed the functions of IfATE into it. I do not see how all those things fit together. Yes, we want more people going into construction, and a long list of other sectors too, but that does not necessarily mean an apprenticeship in every case. There is a whole suite of existing technical and vocational courses, and T-levels are still ramping up as well.

On breadth versus depth, IfATE has a huge range, with more than 600 occupational standards for apprenticeships, T-levels and higher technical qualifications. Skills England is initially looking at a narrower set of sectors, but has a much broader remit for them, so it does more than IfATE. There are three big things on its list. The first is to identify where skills gaps exist, which is itself a very significant task. It may at first glance sound obvious, but it really is not. First, there is a question of what time horizon we are talking about. Are we talking about today, or planning five, 10 or more years into the future? More significantly, I am sure people would generally say that we could train more people to go into the social care sector. The issue is not so much whether we have the training courses available, but whether people are willing and happy to go into the sector. That is a broader question.

Secondly, Skills England has to work across Government with the Industrial Strategy Advisory Council and the Migration Advisory Committee, as well, of course, as with the Labour Market Advisory Board, under the DWP. The MAC is a well-established body, having been around for a number of years, that has a remit on immigration; it will not necessarily have the same perspective as Skills England. As the hon. Member for St Neots and Mid Cambridgeshire rightly said, the ISAC is going to be given its own statutory footing, which begs the question of where in the hierarchy Skills England will be. We want this to be a body that is able to speak authoritatively right across Government.

Thirdly, Skills England is going to identify the training that should be accessible via the growth and skills levy. That, again, is a huge task. What can be funded from the levy is a huge strategic question. What specific skills should we rightly expect a firm to provide, and what should be generalisable skills for the economy?

Even after all that, there is still the big question about supply and demand at college level—this may come back to the point the hon. Member for Bournemouth East (Tom Hayes) made about listening to colleges, on which he was absolutely right. We do not currently stop people doing courses because there is a surplus of people in such and such a sector and a shortage somewhere else, but some hard questions are going to come up around the funding formulae for these things to ensure that we do have enough people going into construction, social care and so on.

My contention is that each of those functions is enormous. Amendment 6 would, therefore, perform a useful role. It is not about dither and delay, but about allowing Skills England to establish itself and to carry out those key strategic functions that it is there to do, and then to be able to subsume the functions from IfATE.

[Andrew Pakes (Peterborough) (Lab)]

It is a pleasure to follow the contributions of the right hon. Member for East Hampshire (Damian Hinds) and the hon. Member for St Neots and Mid Cambridgeshire (Ian Sollom), who spoke powerfully to their amendments. It may disappoint them to know that I will be speaking against both new clauses, as they risk undermining the speed with which we need to effect change in the sector.

It is a privilege to speak in this debate on a subject about which I am very passionate, and as co-chair of the all-party parliamentary group on apprenticeships. The transfer of functions to the Secretary of State and the creation of Skills England is one of the most critical reforms this Government are due to bring about. It addresses one of the most damaging legacies of the previous Government: the fall in apprenticeships. This matters when we look at the structure of the Bill, which is why I am concerned about new clauses 1 and 4 in particular. It also matters in constituencies like mine in Peterborough, and in neighbouring St Neots and Mid Cambridgeshire, where we have seen falling apprenticeship starts, falling training and rising unemployment. Peterborough is a city with one of the highest levels of young people not in education, employment or training. This is not just the folly of opportunities lost and young people let down, but the story of a failed economy.

I take the opposite view to that expressed by the right hon. Member for East Hampshire, who seemed to elevate the independence of Skills England as a virtue in respect of what it could deliver; I see the independence of IfATE as one of the tools that led to its failure. The fact of its independence removed it from economic need, made it bureaucratic and meant it failed to address the needs of businesses and other providers to get the flexibility and delivery of skills that we need. Independence does not always guarantee success or the things that we need.

[Damian Hinds]

Would the hon. Gentleman extend that principle to the academic route? I have asked the Minister this question a number of times now. I do not think we would stand for anyone saying that the standard and specification for A-levels should be set in Sanctuary Buildings by the Department for Education. If we would not do it for A-levels, why would we think it is right for T-levels? What is the answer to that?

[Andrew Pakes]

I think we need a mixed economy in this area. The principles I elevate in this debate are speed, substance and bringing businesses around the table, alongside providers and colleges—such as my excellent provider in Peterborough, ARU Peterborough, with its new university campus—to deliver the goods and get the job done. My concern with new clauses 1 and 4 and amendment 6 is that they elevate a level of independence that does not address the overall issue.

In fact, many of the issues the right hon. Member for East Hampshire described in his speech were actually around delivery and political choices. Having the Secretary of State and the Department establishing Skills England will make it much more likely, in my view, that we deliver at speed on those challenges. However, I am sure scrutiny will come from all parties of this House if that is not the case.

Our No. 1 mission is economic growth, spread across all parts of the UK and built on a diverse base of industries and services. The Government have already made a powerful start, which could be undermined by these amendments if they cause further delay, with early work on the growth and skills levy to drive up standards and places, the move to functional English and maths, foundation apprenticeships providing flexibility and a route in, and a £600 million investment in construction skills. I particularly welcome the replies from my right hon. Friend the Minister for Skills, who has acknowledged in written answers the need for social mobility to be a factor that Skills England will consider, so that we can actually change people’s life opportunities. This is something I am passionate about, and which the Co-operative Group and other employers I have talked to consider to be very important. This mission will fail without the urgency needed to get the Bill passed and to get Skills England up and running.

Skills England has already been set up in shadow form. Given the urgency of the task, it provides the best of external industry leadership in its Skills England shadow board, which will move to a full board. It provides independence for the voices around the table, and therefore already meets the needs that new clauses 1 and 4 seek to address. It also focuses on delivery and the speed with which we can get going to bring jobs and opportunities to all parts of the country.

The Government had already been clear, before these new clauses and amendments were tabled, that the transfer of the institute’s statutory functions to the Secretary of State will introduce more flexibility to the skills system, which I wholeheartedly endorse. It will allow us to be more responsive to the needs of employers, learners and the economy, which I also endorse. The Secretary of State will delegate these powers to Skills England. I think new clauses 1 and 4 risk delaying and creating confusion, rather than aiding purpose and delivery of what we need. I therefore oppose the moves to create a separate Executive agency or to bind Skills England before it is even created.

We need to get going. This is not just a political slogan or the subject of debates in this House, but the message I hear from businesses, providers and schools in Peterborough. We need a genuine partnership in places such as my community between colleges and employers to ensure that we are providing leadership at all levels; we need practical action and leadership, working together to improve lives and our economy. The independence of IfATE, as I said earlier, elevates it to a level that risks undermining the ability to get going quickly.

Let me provide an example. A few weeks ago, I met MDS, a not-for-profit membership organisation in my constituency that is a pioneer in flexi-job apprenticeships and training in the food supply chain, working with some of the biggest names in the food sector to create a workforce for tomorrow. It is looking to Skills England and this Bill to create the flexibility and opportunities that businesses and learners need. It would be sorry to see any delays or confusion over structure when it knows what needs to be done to get the jobs. It wants this Bill.

Can the Minister say what additional funding and resources are available to help businesses to provide pre-apprenticeship training for individuals who have been unemployed long term? Businesses want the Government and Skills England to do that quickly. They want to understand how, with SMEs and others, the Government are supporting the growth of flexi-job apprenticeships to help industries to attract new talent into the food and fresh produce industry. That is a direct criticism of IfATE and the structures we already have, and there is concern that delay through new clauses 1 and 4 will make it more difficult. As we have heard, Skills England will identify the skills gaps in our economy and work with the Industrial Strategy Advisory Council and the Migration Advisory Committee to plug them. The direct link between the industry, the MAC and the Industrial Strategy Advisory Council will address our industrial need and purpose at the necessary speed.

The new clauses are not necessary. This is a Bill about skills and about addressing our skills shortages, and it needs to get going. I support the Bill and oppose new clauses 1 and 4 and amendment 6.