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

Ian Sollom Excerpts

Committee stage
Thursday 20th March 2025 Public Bill Committees

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

I beg to move, That the clause be read a Second time.

It is a pleasure to serve under you in the Chair, Ms Furniss. I rise to move new clause 1, which addresses fundamental concerns about the governance and accountability of Skills England. While the Bill as amended in the Lords does now make reference to Skills England, which the original Bill presented to the Lords did not, it still does not establish it properly as an organisation, define its powers, or provide robust mechanisms for parliamentary scrutiny of its work.

The Bill, as we know, simply abolishes the Institute for Apprenticeships and Technical Education and transfers its functions directly to the Secretary of State, with only limited reporting requirements. The most recent evidence provided to the Committee reinforces those concerns, particularly the evidence from the Skills Federation, as was highlighted by the shadow Minister.

New clause 1 remedies that by requiring comprehensive proposals for Skills England to be laid before Parliament for proper scrutiny and approval. It would ensure that both Houses have a meaningful say in how the organisation is structured and operates. It would establish ongoing accountability through annual statements to Parliament and formal evaluation of its governance structure within the first year.

The Government have positioned Skills England as transformative, and the Minister’s letter to peers, which was also shared with the Committee early this week, outlines hugely impressive ambitions for Skills England. I welcome those, as I think we all do. But the governance framework described in that letter is largely discretionary. The framework document that the Minister references in that letter, which has still not formally been published, will be finalised by agreement between the Department and Skills England, with no formal parliamentary input at all.

We are being asked to approve a fundamental restructuring of the skills system without proper guarantees about how the body will operate or be held accountable. The skills system is simply too critical to proceed just on faith. I think Members on the Government Benches would be making the same arguments if they were in our position. I want to stress that the new clause is not about preventing the creation of Skills England; it is about ensuring it is established with the proper scrutiny and accountability that an organisation of such importance deserves. If the Government truly believe in Skills England as the vehicle to address our skills challenges, they should welcome the provisions for proper accountability in new clause 1.

[Neil O’Brien]

I rise only to support the hon. Member for St Neots and Mid Cambridgeshire. I shall speak to new clauses 2 and 3 later, but I do not want the hon. Member to feel that that is because I do not support new clause 1. I absolutely do. I think it is entirely sensible, and if the Government had sense then they would listen to him and include the new clause in the Bill.

--- Later in debate ---

[Janet Daby]

I thank the hon. Member for St Neots and Mid Cambridgeshire for tabling new clause 1, which would require the Secretary of State to lay draft proposals for a new executive agency, to be known as Skills England, before Parliament within six months of the Bill gaining Royal Assent.

Complexity and fragmentation within the skills systems are contributing to critical skill gaps in our economy. We need to urgently reform the delivery of skills and technical education without delay—I cannot stress that enough. After 14 years of inaction, we really need to get on with the job and build back the foundations. We plan to establish Skills England as an executive agency requiring a robust and rigorous process. That process applies across Government for all executive agencies. As with all new executive agencies, the approval of the creation of Skills England will be announced to Parliament in a written ministerial statement to both Houses. In line with other executive agencies, Skills England will be required to have robust governance arrangements and clear lines of accountability, including to Parliament. Ministers, the principal accounting officer and the chief executive will all be accountable to Parliament, and could appear before Select Committees if invited.

The broader governance and accountability framework in which Skills England will operate will be set out in the framework document. All arm’s length bodies have such a core constitutional document, which must be approved by the Treasury. The framework document will detail how Skills England will regularly report on its functions and performance, including by publishing a corporate plan and annual report.

There is a high level of interest among Skills England’s stakeholders, such as the Association of Colleges, which has expressed strong support for the plans to establish Skills England, recognising the critical role it will play in the Government’s broader post-16 education and skills agenda. We have listened to and acted on the contributions of peers in the other place, which is why we have provided even greater transparency about what Skills England will do. The Bill already requires the Secretary of State to report within six months of IfATE’s closure. The report will detail which functions are being exercised by Skills England and the impact on apprenticeships and technical education in England. The new clause is therefore not necessary.

We need to address the urgent skills challenges in our economy. There is already a robust approach to establishing and running an executive agency, and the Government have included in the Bill a legislative commitment to a report on Skills England’s functions. On that basis, I ask the hon. Member for St Neots and Mid Cambridgeshire to reconsider.

[Ian Sollom]

I thank the Minister for her response. In the interests of time—and lunch—I will not go into detail. I wish to press the new clause to a vote.

Question put, That the clause be read a Second time.