Apprenticeships

Jim Shannon Excerpts

Tuesday 4th February 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you, Ms Jardine. I am always happy to be a substitute. I commend the hon. Member for Peterborough (Andrew Pakes) for securing the debate, and I spoke to him beforehand. There is a big crowd here because the subject is all-important to each and every one of us. I look forward to hearing the Minister’s contribution, which I know will be positive.

Along with everyone here, I am a massive supporter of apprenticeships and the value they bring to the world of careers for young people. As I told the hon. Gentleman beforehand, I tabled an early-day motion about Northern Ireland apprenticeships two weeks ago. I see the good and the potential for apprentices across Northern Ireland. I am giving a Northern Ireland perspective to this debate to complement, echo and support the hon. Gentleman and everyone who speaks.

There are 13,000 apprentices across Northern Ireland, and it is great to be able to say that there are some incredible opportunities for young people in my constituency. Companies such as Thales and many car companies are brilliant at encouraging young people down the apprenticeship path. My right hon. Friend the Member for Belfast East (Gavin Robinson) and I met representatives of Thales just before Christmas. I was impressed by the work the company is doing with apprenticeships. Apprentices get a good wage, which starts small and gives them encouragement to stay at it. As an example of what can be done, their student fees are paid by the company. Job suitability is about nothing more than having the desire and the work ethic to learn.

It is important to look at the range of stakeholders: local councils, employers, further education colleges, universities and others. The South Eastern Regional College in my constituency is brilliant at supporting young people through their educational journey. It is holding its spring awards ceremony in the terrace pavilion on Monday 3 March. I look forward to that, and to sharing its success.

In Northern Ireland, especially in my constituency and the Ards peninsula, we have a tradition of work in the construction sector. It is important that those in the sector have plenty of opportunities to advance— for some of them, to having their own businesses. The Department for the Economy in Northern Ireland has set aside some £600,000 to increase apprenticeship participation among women, people with disabilities and individuals from disadvantaged areas. That will encourage collaboration between education, business and community sectors to develop innovative solutions for enhancing inclusivity in apprenticeships.

The theme for this year’s Northern Ireland Apprenticeship Week is “Getting it Right for You”, and that is we want to do for apprentices. Job creation is so important for sectors such as STEM, mechanics, aerospace and defence across the UK. There are endless opportunities, and we must do more to make our young people aware of them. Boys and girls, men and women can all take advantage of them. I am encouraged by the women in Northern Ireland who are looking for jobs in engineering. I look forward to the Minister’s contribution and to doing all we can to support apprenticeship opportunities across the devolved nations.

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[The Parliamentary Under-Secretary of State for Education (Janet Daby)]

It is a privilege to speak with you as Chair, Ms Jardine. I congratulate my hon. Friend the Member for Peterborough (Andrew Pakes) on securing a debate on this subject and on his thoughtful speech. Whether in debates like today, or in his role as co-chair of the APPG on apprenticeships, he is an excellent ambassador for apprenticeships. I appreciate his enthusiasm and drive, and I was extremely impressed to hear that he has visited over 100 businesses since being a Member of Parliament.

As we have heard, I have a good many questions to respond to and I will endeavour to do my best. It is refreshing to hear from the many Members on the Government Benches about their grassroots experiences; there are those who have held jobs, been apprentices and are well connected to their communities, and we appreciate them all.

I want to set the record straight when it comes to what the Government have inherited. As well as inheriting the £22 billion black hole, we also inherited the fact that one in eight 16 to 24-year-olds are not in education, employment or training. Indeed, UK employers have said to us that a third of vacancies are due to skills shortages under the previous Government. Technical training at level 4 and 5 in the UK is at only 4% of adults, compared to Germany at 20% and Canada at 34%. What we have inherited is absolutely staggering. This is a Government for change—we are investing in our people and their future careers, and I will continue to speak about these issues.

I acknowledge everybody who has spoken: my hon. Friends the Members for Stafford (Leigh Ingham), for Barrow and Furness (Michelle Scrogham), for Gloucester (Alex McIntyre), for Rugby (John Slinger) for Coatbridge and Bellshill (Frank McNally), for Leicester South (Shockat Adam), for Derby South (Baggy Shanker), for Paisley and Renfrewshire North (Alison Taylor), for Carlisle (Ms Minns), for Hexham (Joe Morris), for South West Norfolk (Terry Jermy), for Nuneaton (Jodie Gosling), for Rossendale and Darwen (Andy MacNae), for Colchester (Pam Cox), for Erewash (Adam Thompson), for Barking (Nesil Caliskan), for Hitchin (Alistair Strathern), and for Tipton and Wednesbury (Antonia Bance), as well as my hon. and learned Friend the Member for Folkestone and Hythe (Tony Vaughan), the right hon. Member for Aldridge-Brownhills (Wendy Morton), and the hon. Members for Strangford (Jim Shannon), for Glastonbury and Somerton (Sarah Dyke), for Cheltenham (Max Wilkinson) and for Reigate (Rebecca Paul). I thank them all for their contributions.

National Apprenticeship Week promises to be the best yet, with more than 1,000 events across the country showcasing all that apprenticeships have to offer, as well as the wonderful apprentices taking to social media, including Instagram, to share their stories to inspire the apprentices of tomorrow. I thank all the apprentices, employers and providers who have worked so hard to provide these opportunities and to make apprenticeships such a success.

We know that right now the system is not working for far too many young people who have the most to gain from apprenticeships, but who have too often been locked out of accessing these opportunities. Apprenticeship starts by young people under 25 fell by almost 40% between 2015-16 and 2023-24. We are committed to changing this and to rebalancing the system to support more young people. That is why we are introducing new foundation apprenticeships in targeted, growing sectors. These will give more young people a foot in the door at the start of their working lives, while supporting the pipeline of new talent that employers will need to drive economic growth. We are working closely with employers and providers to design these new offers and ensure that they have the opportunity to develop their infrastructure before training and assessment starts.

We also want to make sure that apprentice wages support the attraction of talented individuals into apprenticeships. We are increasing the apprenticeship minimum wage by 18% this April, from £6.40 to £7.55, which will boost the hourly rate for thousands of young apprentices across a range of sectors and those in their first year of an apprenticeship.

We will continue to support care leavers to undertake apprenticeships. Apprentices under the age of 25 who have been in local authority care can claim a bursary of £3,000 when they start an apprenticeship. We will continue to pay £1,000 to both employers and training providers to support them to take on apprentices aged under 19, or 19 to 24 if they have an education, health and care plan or have been in care. Employers are exempt from paying towards employees’ national insurance for all apprentices aged up to 25 when the employee’s wage is below £50,270 a year.

As we work to support more apprenticeship opportunities for young people, it is vital we make sure they are aware of these opportunities. We are promoting career starter apprenticeships, suitable for those leaving full-time education, and targeting young people through the Skills for Life campaign. We have committed to improving careers advice and guaranteeing two weeks of work experience for every young person, as well as to establishing a national jobs and careers service to support people into work and help them to get on at work.

We are also taking action to support employers who want to build the skilled workforce they need for long-term success but who have told us they have not been able to find the right training options. In recent years, UK employers have said that over a third of their vacancies were down to skill shortages. That is why, as a key step of our levy-funded growth and skills offer, we will be introducing shorter duration apprenticeships. These will allow employers to benefit from high-quality apprenticeship training for valuable, in-demand roles that need less than 12 months’ training to be fully occupationally competent, offering more flexibility where that is right for the employer and the learner. We will continue to listen to employers as we deliver the greater flexibility they have called for, and to work with them as we build a vigorous and responsive skills system that will support employers to fill skills gaps that are holding back our economy.

After the Conservatives left us with a collapsing apprenticeship system as well as skills shortages, Labour is listening to employers and redrawing the system through Skills England, a new growth and skills levy, and new foundation apprenticeships. Apprenticeship starts by young people under 25 fell by almost 40% between 2015-16 and 2023-24. The Government are focusing on establishing a coherent skills system, with more flexible training options that support employers to fill skills gaps by driving growth and spreading opportunity. We are introducing foundation apprenticeships to get young people into work-based training and employment, as well as delivering shorter duration apprenticeships to provide flexibility for employers and learners.

SMEs are incredibly important to the economy and to apprenticeships. They are more likely to employ younger apprentices and apprentices from disadvantaged areas. We pay 100% of the training costs for young apprentices aged 16 to 21 and for apprentices aged 22 to 24 who have an education, health and care plan or have been in local authority care where they have undertaken apprenticeships with SMEs. As I have mentioned, we also pay £1,000 to employers and providers for apprentices aged 16 to 18 and those aged 19 to 24 who have an EHCP. We will ensure that we consider the needs of the smaller employer as we develop our levy-funded growth and skills offer.

The Government’s first mission is to kickstart economic growth. Across the country, skills gaps are holding back business growth, so we will support employers to invest in skills training. That brings me on to Skills England. We know that right now the skills system in England is complex. There is no shared national ambition on skills development. There is a need to bring together in one place a range of functions, currently scattered across different organisations, to better support the delivery of the skills that the economy needs and to further our industrial strategy, and growth and opportunity missions.

We are setting up Skills England to address these problems by bringing coherence and efficiency to the system, for the benefit of learners, businesses and local areas. Skills England will ensure that we know where our skills gaps are, and the training needed to fill them now and in the future. Skills England will combine the best available statistical data, with insights generated by employers and other key stakeholders. It will also ensure that there is a comprehensive suite of apprenticeships, training and technical qualifications that are aligned with skills gaps and the needs of employers.

The first Skills England report highlighted employer demand for levels 4 and 5—high technical qualifications; those qualifications have been independently approved as providing the skills that employers need. Skills England will work closely with employers, providers, trade unions, Government Departments, combined authorities, regional bodies and other agencies, all of which will help deliver our mission to drive economic growth and to open up a world of opportunity for young people and adults. The Government have an ambitious plan to rebuild Britain. We will deliver 1.5 million homes in England in this Parliament. Around 5,000 more construction apprenticeship places will be made available per year by 2027-28, thanks to an £140 million industry investment to get Britain building again.

We welcome Peterborough’s commitment to breaking down barriers to opportunity by being part of one of eight youth trailblazers that will launch in April 2025. Peterborough and Cambridgeshire have just announced the formation of their youth forum to shape the youth guarantee, to ensure that the voices and perspectives of young people are included in decision making. That pilot will address the needs and challenges faced by the young people in that area. It was wonderful to hear from many MPs about the work in their constituencies. I thank everybody for championing the work that the Government are doing in this area.

[Jim Shannon]

On a point of order, Ms Jardine. The hon. Member for Peterborough (Andrew Pakes) has not wound up the debate.

[Christine Jardine (in the Chair)]

We are out of time. The hon. Member indicated at the start that he did not mind.

Question put and agreed to.

Resolved,

That this House has considered the value of apprenticeships and National Apprenticeships Week.