Apprenticeships

Iain Wright Excerpts

Thursday 10th March 2016 Commons Chamber

[Nick Boles]

Any excuse to go to Weymouth—and I am your man, Madam Deputy Speaker. I am grateful to my hon. Friend for inviting me. Like him, I feel an innate scepticism about a new levy on business, but if we talk to large businesses, particularly the ones that are investing in apprenticeships, we find that they say that some of their competitors do not, which restrains the overall level of investment in apprenticeships, because some are taking a free ride on the rest. We are introducing this levy to ensure that all large employers are making this investment, but we are giving them control of the money, so that they can spend it on the apprenticeships that benefit them. If we have to have a new levy—I agree that we should do so only as a last resort—it is best to have one that employers control and from which they can benefit.

[Mr Iain Wright (Hartlepool) (Lab)]

It is always nice to see the Minister and it is always welcome to discuss apprenticeships in this place. The Enterprise Bill mentions the public sector apprenticeship targets. Given that we discussed that Bill both yesterday and the day before, why was not the public sector apprenticeship target mentioned then? Will there be a need for new legislation? The statement referred to the need to persuade more employers to offer apprenticeships, and the levy will be the means by which this happens. Will the Minister provide more information—any information—about the 98% of employers who will not pay the levy? In a previous response, he seemed to suggest that nothing would change or that large employers would somehow benevolently give away this levy receipt. Clarity is crucial for the success of the 3 million apprenticeship target. Will he provide more clarity, and if not, what is the point of his statement?

[Nick Boles]

First, I am grateful to the hon. Gentleman for returning to the subject of the public sector target, because it gives me an opportunity to respond to one of the questions asked by the hon. Member for Blackpool South (Mr Marsden). It was not the case that we were due to respond to the consultation on the public sector target by 4 March; rather, it was that the consultation closed on 4 March. The hon. Gentleman will understand that it takes more than six days to go through all the consultation responses and decide on our response.

We do not need legislation—I mean primary legislation —to create that target, which is why it was not necessary to include provisions in the Enterprise Bill. I understand the hon. Gentleman’s impatience—to some extent I share it—to get the details on how exactly the levy will work and the new digital accounts system will work as it goes out to all employers. I can assure him that more than 12 months’ notice will be given to everyone. We will publish very soon, but he will be aware that there is a Budget next week and he will also know that it would be a career-limiting move for me to anticipate the Chancellor in his Budget statement.