Apprenticeships Funding

Debate between David Lammy and Michael Tomlinson

Tuesday 1st November 2016 Westminster Hall

[Mr Lammy]

I will not at this stage.

I now turn to the disadvantage uplift—the additional funding to support disadvantaged areas that I referred to earlier. That was quietly scrapped completely in the proposals published in August. Last week’s statement promised a

“simplified version of the current system of support for people from disadvantaged areas”,

yet the Minister has told FE Week that that is guaranteed only for one year, while the Department undertakes a review to work out how best to support disadvantaged young people to undertake apprenticeships. One year? Why does it take so long to work out what needs to be done for disadvantaged young people? It is clear: give them an opportunity! It is quite straightforward, and that requires resources.

What does this mean? Will Parliament be told what is going on or will Members of Parliament have to find out through the media? It sounds to me like more cuts will come in a year’s time. Will the Minister confirm today what will happen to support for disadvantaged areas in 12 months’ time? Will the support be maintained or cut? If it is to be cut, may I reassure him that I will be back here, along with many other Members of Parliament, to oppose that once again?

On Tuesday, the Secretary of State told Parliament:

“Apprenticeships transform lives and are vital in making this a country that works for everyone.”

Apparently, the changes made since August

“will ensure apprenticeships are high quality…and provide opportunities for millions more people.”—[Official Report, 25 October 2016; Vol. 616, c. 6WS.]

If the Government are serious about social mobility, will the Minister explain today why the Government are pushing ahead with cuts of anything between 27% and 45% for nine of the 10 most popular apprenticeships? Does he have a response for Paul Warner of the Association of Employment and Learning Providers, who warned:

“It is completely self-defeating to cut funding, because that is just preventing disadvantaged young people from getting on”?

The apprenticeship levy will raise £3 billion from large employers and will replace all current Treasury funding of apprenticeships. If the Government are making a saving by passing the cost of funding apprenticeships to the private sector through the levy, why cannot the Treasury give some of that money back to reverse the funding rate cuts and provide support for disadvantaged areas? I hope the Minister will be able to explain.

It is also important to look at the context in which the cuts are happening. The Brexit vote was underpinned by people living in our post-industrial towns in the north and the midlands and in our seaside towns, who are feeling left behind and left out of economic growth. Youth unemployment stands at 13.7%, with 624,000 people aged between 16 and 24 unemployed; more than 100,000 of them have been unemployed for at least a year. The unemployment rate for 16 and 17-year-olds is a staggering 27.7%. It is interesting to look at other countries. Relative to population size, we are doing worse than Slovakia, worse than Hungary, worse than Ireland, Poland, Portugal, the United States, Canada, Australia, Estonia and New Zealand. We are doing four times worse than Germany, three times worse than the Czech Republic and twice as badly as Japan, Denmark and Sweden in terms of the proportion of our young people who are not in education, employment or training.

Last year, the Treasury found that

“the UK’s skills weaknesses…are of such long standing, and such intractability, that only the most radical action can address them.”

I ask the Minister: is this the radical action that his Treasury was talking about?

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

In fact, the national picture is that the youth unemployment statistics are down to 13.7%, which is down on last year, down from the height, and close to the lowest they have ever been, which was 11.1%.

[Mr Lammy]

Unless the hon. Gentleman is suggesting that the figures I just quoted are wrong, we should not be happy with the picture of youth unemployment in our country. Many Members in the Chamber are well aware of the young people walking our streets literally because there is not enough to do. I might just remind him that I have seen two riots in a generation, so I know something about idle hands making very dangerous work indeed. We need to put these young people to work. We need apprenticeships for them. We need more than rhetoric from the Government, and we certainly do not need cuts in this part of the economy.

The Royal Institution of Chartered Surveyors has warned that

“we are in the grip of our worst construction skills crisis in almost 20 years.”

That skills crisis will hold back big infrastructure and house building projects. Post-16 education was cut by 14% between 2010 and 2015 and last year the Public Accounts Committee warned of a “financial meltdown” in further education.

Further education is just about on its knees. Most of the Members in this House grew up in a period when they could go into an FE college that was open well into the evening, not just for young people but for adults—adults could also get into FE and skill up. I ask hon. Members to find me an FE college open past 8 o’clock in the evening where an adult can skill up and I will give them a beer. It is not happening! We should not be having a debate in Britain about grammar schools; we should be having a debate about night schools. Bring back night schools! Instead, we see cuts in funding for young people and no mention of the importance of adult education in an economy that will be more reliant on talent on its own shores in the coming years.