Apprenticeships and T-Levels

Ian Sollom Excerpts

Wednesday 20th November 2024 Westminster Hall

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I thank all hon. Members who have taken part in the debate, and the right hon. Member for East Hampshire (Damian Hinds) for introducing it. I am sure we all agree that we owe it to our young people to ensure that they have access to all education and training options, and that those options are of the very highest standard. That is not always the case in the present system, which is having an impact not just on young people and their futures, but, as has been said, on the country’s economic development and prospects.

Apprenticeships, vocational education and skills are all vital if the Government are serious about their growth mission and breaking down barriers to opportunity. I think we all share those ambitions, but the system needs reform across the board, starting right at the beginning by ensuring that all young people are fully aware and informed of all their options—many thousands, as it may be—post 16 and post 18. We need to see an improvement in the quality of careers education, information, advice and guidance in schools to support them making those decisions.

[Clive Jones]

Many residents in my constituency of Wokingham are concerned about the uncertainty around T-level courses and other existing level 3 qualifications. Students in Wokingham have been looking at courses and colleges to apply to, and some colleges are currently unable to confirm existing level 3 courses. Does my hon. Friend agree that the current lack of clarity about the implementation of T-level courses is causing unnecessary stress to parents, students and teachers?

[Ian Sollom]

I absolutely agree, and I will come back to that point later.

The services that inform and offer guidance need to be informed themselves about the local and national job market, which industries and sectors are growing, and which skills are in demand in order to support students into top-quality jobs. We know that there are skills shortages, and giving higher-quality, useful information will be essential to plugging that skills gap.

On apprenticeships, the Lib Dems recognise that we not only need more apprenticeships, but that they need to be more attractive to young people. Guaranteeing that an apprenticeship pays at least the national minimum wage would be a good place to start. The Chancellor announced a welcome increase in the apprenticeship wage in the Budget last month, but even after those changes, that amount is still only just over 60% of the national living wage. That is quite a disincentive for young people to take up an apprenticeship.

We have also heard today that the apprenticeship levy is not working as well as it should, and that employers often cannot get the funding they need to train staff. In 2023-24, the levy raised £3.9 billion for the Treasury, but the apprenticeship budget, which is separate, awarded only £2.7 billion. Although £500 million goes to the devolved nations under the Barnett formula, as it should, that still leaves a shortfall of £700 million, as was pointed out by the hon. Member for Hartlepool (Mr Brash). That money has been paid in through the levy, and therefore to the Treasury, but does not reach employers; as was said, it is raised for skills but not spent on skills. That is at a time when the Government say they are keen to encourage businesses to invest in skills. We need that to be directed to skills.

Furthermore, the system was designed so that levy payers do not spend all their levy funds and so that small businesses can access the levy to fund apprenticeships. That said, 98% of the apprenticeship budget was spent each year for the past three years, and if large employers spend all their levy funds, there would be no apprenticeship funding remaining for small businesses. We know that small businesses are crucial to the apprentice system. Non-levy-paying employers recruit more apprentices each year than levy-paying businesses: last year, that was 42,000 apprentices under 19 compared with 35,000 by larger recruiters—a difference of 7,000. We are waiting for more details on the Government’s new growth and skills levy, but if they are serious about pivoting the apprenticeship system towards young people, they need to sort out apprenticeship funding.

On T-levels, the Liberal Democrats welcome the ambition to achieve equal value between academic and vocational routes—that has been a common theme across many parties for a considerable time—but we do not agree with the previous Government’s decision simply to scrap dozens of BTEC courses. Those qualifications are a middle pathway that allows many students, including those who find the T-level entry requirements simply too high, to benefit from a combination of academic and applied qualifications. Research indicates that BTECs significantly improve university entry rates for both white working-class and black students.

Many parts of industry are concerned about T-levels. For example, the hospitality sector prides itself on having no barriers to entry to those with no industry experience, and opens its doors to people with low educational attainment. That encourages a more diverse, inclusive and accessible workforce. However, the hospitality T-level requires 16 to 18-year-olds to have 5 GCSEs of grade 5 and above. That excludes a whole host of young people with many non-academic skills and talents, who could make successful careers in hospitality. It is important that we keep BTEC routes for those people.

As other Members have mentioned, there have been problems with the roll-out of T-levels, and concerns have been expressed by education providers and employers about their ability to deliver industry placements. A report by the Education Policy Institute this year highlighted issues with student retention, with nearly a third of first-year health and science T-level students dropping out of their programme. Until the new T-levels are well established, understood by students and employers, and proven to be successful, rolling back BTECs, which are successful, would be a huge mistake. The Government’s decision earlier in the year to review the defunding of BTECs was welcome. Now, however, as my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) pointed out, the delay in the outcome of that review is affecting planning for the next academic year and the opportunities available to young people. So, I urge the Government to get on and publish the outcome of that review.

Finally, with a lot of issues around skills at the moment, it seems that the answer is “Skills England”. I will echo the words of the right hon. Member for East Hampshire in his opening remarks that the King’s Speech referred to a Skills England Bill, whereas the Bill that is in the other place does not refer to Skills England at all. We would welcome the opportunity to discuss Skills England when we consider the actual legislation.