Apprenticeships Funding

Gary Streeter Excerpts

Tuesday 1st November 2016 Westminster Hall

[Richard Burden (Birmingham, Northfield) (Lab)]

I congratulate my right hon. Friend on securing this debate. The Institute of the Motor Industry described the original cuts as a “car crash”. I suppose a U-turn is not a bad idea when faced with a car crash, but that organisation is still warning that a lot of employers in the motor industry simply will not be able to cope with the existing shortfall in funding and the complexity of the existing frameworks. The Minister really needs to do more work on that if he is to answer the criticisms that have been levelled by both employers and potential apprentices.

[Mr Gary Streeter (in the Chair)]

Order. Let me give an early reminder that interventions should be brief.

[Mr Lammy]

Absolutely. Nissan might have decided to stay, but it may look again at the decision if apprentices do not come forward and participate in the industry. That is very important.

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[Several hon. Members rose—]

[Mr Gary Streeter (in the Chair)]

Colleagues, Front-Bench speeches will begin at 10.30 am, which gives us 40 minutes for the eight people who have caught my eye, so there are five minutes per speaker.

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[Mr Gary Streeter (in the Chair)]

The hon. Gentleman quite correctly anticipated that we are one speaker down, so each Member now has six minutes to speak, not five. Well done to him.

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[Derek Thomas]

That is a fantastic point. When I stood in the election and finally won, I met and worked with local businesses, and they kept telling me that they need courses provided by the college to provide the workers they need and the training their young people need. It is important that businesses lead the way in ensuring that they have the skills they need to move forward.

We have massive vacancies in Cornwall, and clearly we cannot continue like this. The modern apprenticeship programme, if communicated properly and successfully delivered, gives young people the opportunity to train locally, work locally, live locally, shop locally—in my part of the world, it is important that we look after our local retailers—and go on to raise a family locally. Rather than just welcome the Government’s ambitious target regarding the number of apprenticeships, it is essential that we meet it, simply because we do not have the people to do the jobs whom we need at the moment.

I heard the points that the right hon. Member for Tottenham made about funding. However, the great challenge we face is to engage more small businesses to take on apprentices. It makes sense that the Government are focusing on and prioritising funding, meaning that 90% of all funding for small businesses will be met by the Government. It makes sense that small businesses do not pay anything towards training people under 18 years of age. The real challenge is not so much the amount of money but how it is spent, as well as improving links between our schools and employers, so that young people and their families are aware of the opportunities available to them in the areas where they live. That would have a significant impact on the skills gap in west Cornwall and across the country. I welcome this debate, but I argue that we should concentrate on how we equip and enable young people to do apprenticeships, rather than fall out about the money available.

[Mr Gary Streeter (in the Chair)]

I call the one and only Jim Shannon.

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[Mr Lammy]

On a point of order, Mr Streeter. The Minister is reliant on the new standards, which only just over 3,000 apprentices have taken up. More than 99% are on the current frameworks, which is the subject of the debate, and the Minister has not addressed that at all. He is trying to hoodwink the House.

[Mr Gary Streeter (in the Chair)]

That is not a point of order. The Minister may continue.

[Robert Halfon]

The right hon. Gentleman should check his statistics. There have been more than 4,000 starts on standards, and 400 standards are in development. Many frameworks are going up, and we are putting a huge amount of money into uplifting the STEM frameworks. That is what employers want, and we are designing an employer-led system.

We are raising the prestige of apprenticeships, helping the socially disadvantaged, and introducing the levy to change behaviours and so that the cost is borne evenly throughout society. We will reach the target of 3 million; as I said, we have had 619,000 since May last year. We are raising the quality of apprenticeships through the Institute for Apprenticeships and through degree and higher apprenticeships, which many thousands of people have taken up.

The Government are transforming the country into an apprenticeship nation. I am proud of the work that has been done, and of the officials who have worked hard to ensure that we listen to employers, as we said we would when we first announced the levy.

[Mr Lammy]

It is disappointing that the Minister has said nothing about funding cuts. He has been reliant on the extra £2.5 billion that he said is coming in. He is robbing Peter to pay Paul. Will he confirm that there will be funding cuts that will lead to deserts—

[Mr Gary Streeter (in the Chair)]

Order. We must move on from this excellent debate to a debate on another interesting subject.

Motion lapsed (Standing Order No. 10(6)).