Apprenticeships

Jake Berry Excerpts

Wednesday 4th February 2015 Commons Chamber

[Mr Umunna]

I agree that quality is important, but apprenticeships in the hon. Gentleman’s constituency have fallen by 11%. Many apprenticeships are not the high-quality apprenticeships that I think he refers to. Many of them are level 2.

There has been much debate in economic circles as to why we have gone backwards on productivity so fast under this Government. People have pointed to the lack of business investment, which is compounded by the problems that businesses have faced in getting access to finance, but skills shortages in our economy are also holding Britain back. Too many young people in particular do not have the skills our businesses require when they leave secondary education, and even among those who do have skills and qualifications, there is a mismatch between their skills and the demand for technician-level competency, particularly for jobs requiring people with science, technology, engineering and maths skills—the STEM skills.

To address this we need a major expansion of high-quality vocational and technical education, in particular apprenticeships for young people, offering more and better work-and-train opportunities in all sectors of the economy, giving them those skills which employers say are lacking.

[Jake Berry (Rossendale and Darwen) (Con)]

On the number of apprenticeship starts in the hon. Gentleman’s constituency, will he comment on the fact that in 2010 340 people started apprenticeships and last year 880 people started them. Why does he think the number of apprenticeships has doubled in his constituency?

--- Later in debate ---

[Mr Umunna]

We should do everything that we can to encourage all businesses to take on apprenticeships. We need to be mindful of the fact that sometimes that can be a bit more challenging for smaller businesses, and we should think how we can better support them to take on apprentices. It seems to me that, if there were fewer frameworks and more sector-driven apprenticeship frameworks, we could make the system less bureaucratic. But, absolutely, we should do as much as we can to make it easy for businesses to take on apprentices.

[Jake Berry]

On a point of interest, I have recruited an apprentice to work for me in my parliamentary office. When the hon. Gentleman says that we should do all that we can to recruit apprentices, I just wondered whether he has done so himself.

[Mr Umunna]

My hon. Friend the Member for Liverpool, Walton (Steve Rotheram) says that he has. I have not been able to because I am right up to my limit on my staff allowance, but I would very much like to. One challenge in representing an inner-London seat is the amount of casework that is involved, but I would love to take on an apprentice if we could all convince the Independent Parliamentary Standards Authority to provide us with more money to do so.

I have talked about what our record was and what this Government are doing, but what do we plan to do in the future? At the Labour party conference in 2014, my right hon. Friend the Leader of the Opposition outlined our ambitious six national goals for Britain in 2025, which included ensuring that as many school leavers go on to apprenticeships as go to university. That will require a dramatic increase in numbers. To achieve that, we will work in partnership with employers to ensure that apprenticeships are appropriate to their needs, which in turn will boost employer demand for them.

We will give employers, through sector and industry bodies, a greater role, ensuring that courses reflect their skills needs and that rigorous standards are set. The aim is for a skills system that is better aligned to the needs of employers and that delivers a pipeline of talented employees. We will also look to boost take-up by employers locally, which is best done by colleagues in local government working with their businesses locally and by those coming together to form combined authorities. We need to see more of such practice. Just look at the incredible progress that has been made by the Labour-run authority in Leeds under the leadership of Sir Keith Wakefield. The city’s new apprenticeship hub has doubled the number of apprentices in the city, especially among small and medium-sized businesses. Labour colleagues in Plymouth, Bury and Reading are actively engaging with local employers to boost apprenticeship opportunities, too, and we want to see lots more of that.

Alongside such practice, we would use the money that the Government already spend on procurement to require major suppliers on Government contracts to offer new apprenticeships. In that way, we can create thousands of new apprenticeship opportunities. That builds on the successful approach of the previous Labour Government. It is an approach that has been backed by the cross-party Business Innovation and Skills Committee, which has suggested that a minimum of one new apprenticeship place could be created for each £l million spent on public procurement. So a major project such as HS2 could, under Labour’s plans, lead to the creation of as many as 33,000 new apprenticeships.

As I said earlier, quality matters. Under Labour’s plans, all apprenticeships would last a minimum of two years and be level 3 qualifications to safeguard the trusted and historic apprenticeship brand, which has been tarnished in recent years. Those new rigorous standards would ensure that apprenticeships are, once again, a trusted gold standard and address the way they have been downgraded under this Government.

We were attacked for setting high standards by the Deputy Prime Minister in a frankly embarrassing and cack-handed response by him at Deputy Prime Minister’s questions last March. He lambasted us for apparently wanting to halve the numbers of apprenticeships by requiring that all apprenticeships be set at level 3 and last for at least two years. The truth is that we want to rename intermediate apprenticeships to protect the “apprenticeship” brand. Apprenticeships that do not currently meet the criteria will continue but under a different name.

The Deputy Prime Minister also got very excited about the use of the word “deadweight” in the independent report into apprenticeships that was produced for us. Chaired by the Institute of Education’s Professor Chris Husbands, the report recommended that we adopt those criteria. What the Deputy Prime Minister failed to notice when he got himself so excited about the use of the word “deadweight” is that the Business Secretary had published a report in 2012 with the title “Assessing the Deadweight Loss Associated with Public Investment in Further Education and Skills.” Clearly, the sooner the Business Secretary successfully carries out his coup of his party, the better.

--- Later in debate ---

[Jake Berry (Rossendale and Darwen) (Con)]

I am sorry we have only a short time to discuss apprenticeships, which have changed my constituency massively over the last five years of this Government. In 2010, 630 under-24s were claiming jobseeker’s allowance, and in the year before the election, there were 600 apprenticeship starts. During that time of high youth unemployment in my constituency, we saw something really bizarre: both the vacancy rate and, in certain sectors, the number of unemployed people rose. It was completely counterintuitive. The reason was that young people were leaving school without the menu of skills that our local high-tech, high-quality engineering and manufacturing businesses wanted.

We have heard about the importance of encouraging smaller businesses to take on apprenticeships. I took it upon myself to visit all the small businesses in my constituency and say, “Why are you not embedding apprenticeships in your business?” In 2010-11, I found that lots of those businesses, for myriad reasons, had simply given up on apprenticeships. I visited a weaving mill in Darwen and said to the owner, “It’s fantastic to see all your looms still going”—people think we have lost our textile industry in Lancashire, but it is still going strong—“but every single person working them has white hair.” I do not mean to criticise anyone with white hair, but in 10 years, if he has not got apprentices back into his business, his highly skilled British manufacturing business will shut.

The mill owner, along with other great employers in my constituency, such as JJO plc and WEC Engineering, came together to launch apprenticeships campaigns with the simple aim of recruiting 100 apprentices in 100 days. We have now had three of these campaigns. In the first one, we recruited 160 apprentices in 100 days; in the second, we recruited more than 200; and in last year’s, we recruited more than 300. In fact, the tie I am wearing for this debate was woven by a young apprentice who benefited from one of those campaigns. It is three campaigns old and is beginning to look its age—and it gives evidence of the number of lunches I have worn it for as well.

Businesses in my area embraced apprenticeships, so we have cut by half—to just 320—the number of unemployed young people and doubled the number of apprenticeships to more than 1,100. I am grateful for the support of businesses in my area in doing this.

--- Later in debate ---

[Richard Graham (Gloucester) (Con)]

It falls on me to be tail-end Charlie in this debate on which so much consensus could and should have been reached, as the hon. Member for West Bromwich West (Mr Bailey) pointed out. We all, across the House, share enthusiasm for apprenticeships: their improvement, their widening and their breadth. Unfortunately, today that opportunity was lost in what was, frankly, a disgraceful speech by the shadow Business Secretary. His dire, tribal attempt to rubbish this Government’s—and, above all, the country’s —remarkable achievements in growing apprenticeships and shrinking youth unemployment led to a string of inaccurate and, frankly, almost offensive claims. Let me try to deal, very briefly, with some of them.

The shadow Business Secretary said that the numbers of young apprenticeships were down. The Secretary of State pointed out that they are slightly down for 19 to 24-year-olds in 2013-14. In Gloucester, however, they are still more than 80% higher than the comparable figure when the previous Government were in power, and were more than double that figure in 2012-13. Overall, apprenticeships for 19 to 24-year-olds in Gloucester are at 1,730 in the past three years, compared with 740 in the last three years of the Labour Government. The figures, however one tries to twist them, are remarkable.

The shadow Business Secretary said that many of the apprenticeships were not worth the paper they are written on. How insulting to the 5,000 new apprentices in Gloucester. He said, and it is in the motion, that level 2 apprenticeships are not worth anything at all. Let me tell the House that that is completely wrong. The evidence shows that many apprentices do a level 2 apprenticeship—for example, in business administration—for a year and then go on to do a level 3 apprenticeship in the second year. I know this to be true as the second MP to hire his own apprentice. The shadow Secretary of State admitted that he himself does not have an apprentice and I do not believe that any others on the Opposition Front Bench do. I am happy to take an intervention. [Interruption.] The shadow Minister, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) is saying that he does have one, which is encouraging, but it is disappointing that the shadow Business Secretary does not and does not have that first-hand experience.

[Jake Berry]

Very briefly, because I know we are pushed for time. On the point of MPs having apprentices—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The hon. Gentleman has already made many interventions. I am sorry, but we are at the end of this debate.