Apprenticeships Funding

Jim Shannon Excerpts

Tuesday 1st November 2016 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Mr Streeter. May I first thank the right hon. Member for Tottenham (Mr Lammy) for presenting an excellent case? We are all here because we feel passionately about this issue. I have spoken about apprenticeships many times in this House—unsurprisingly, Mr Streeter—and when I was a Member of the Legislative Assembly in a previous life. There is a reason for that: apprenticeships are a vital part of our country’s future. It is essential that we do not leave ourselves with skills gaps and that we have knowledge, ability and opportunities at every age group and level.

I want to give a Northern Ireland perspective to the apprenticeships scheme and speak about something that is close to my heart—the Prince’s Trust. I often have pointed to the great apprenticeship schemes at Bombardier and other major employers throughout Northern Ireland. I welcome the fact that the importance of this training has been recognised in Northern Ireland. In my constituency, there is an opportunity for everyone in pharmaceuticals, food processing, light engineering and agri-food, which is a growth industry.

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the right hon. Member for Tottenham (Mr Lammy) on securing this debate. Does the hon. Gentleman agree that we need an investment of time and effort by Government and those in the hospitality industry to bring forward apprenticeships in catering to underpin that industry?

[Jim Shannon]

I thank the hon. Lady for that important comment. The tourism sector can, should and must grow. One way of doing that is through the apprenticeship scheme; she is absolutely right. I fully support that, as I am sure all of us here would.

Businesses and companies must step up to the bar and be prepared to take people on. That is why when the scheme was announced I openly welcomed the initiative to create provision for 3 million places—how tremendous to have help in ensuring that work schemes are available to young men and women alike. However, I was not so excited when I realised what exactly was happening with the scheme. That is why I congratulate the right hon. Member for Tottenham on bringing this issue to the Chamber for consideration. What seemed to promise more help in fact seems to have the opposite effect, with the number of apprenticeships for perhaps the most vulnerable group—16 to 18-year-olds—being cut. I know that the changes impact all ages of apprentices, but time demands that I focus on only one strand, and that is young people.

I will never forget reading the dire statistics from research by the Prince’s Trust two years ago, which laid bare a direct link between joblessness and suicidal thoughts, as well as self-harming, alcohol and drug abuse. The figures do not make good reading but they are the reality for many people.

About one in three—35%—of youngsters in Northern Ireland experienced mental health issues, compared with the UK national average of 19%, which is almost one in five. The research also revealed that long-term unemployed 16 to 25-year-olds are twice as likely as their peers to have been prescribed anti-depressants and to believe they have nothing to live for. Over one in three—34%—young people said that they always, or often feel down or depressed, compared with a national average of 32%, with the long-term unemployed significantly more likely to feel that way. Over one in four—29%—said that they feel like an outcast, compared with 24% nationally, with the report finding that the long-term unemployed are significantly more likely to feel that way. Over one in five—21%—admitted that they feel like a waste of space, against the national average of 17%, with the long-term unemployed more than twice as likely to feel that way.

Those stats tell the story of young people and how they feel about their lives in Northern Ireland. They show why Northern Ireland Members are here today and why we are pleased to be able take part in the debate.

[David Simpson (Upper Bann) (DUP)]

A point was made earlier about some schools perhaps looking at the content of skills and at keeping the level up, but surely careers officers in schools play a pivotal role in helping to advise young people to go down the vocational route.

[Jim Shannon]

My hon. Friend always brings a wealth of knowledge to these debates and I thank him for his intervention. Careers officers and school staff have an important role to play.

The correlation with the figures is clear, which is why, with others, I have fought and pressed for more apprenticeship schemes and why, with great respect to the Minister, I was so disheartened to see the details of the new scheme. I was pleased to hear of the so-called U-turn, but the Government must rectify the shortfall and do what they said they would do: create more apprenticeships and more training opportunities.

We will all have read the figures provided by Government and the figures, which are disputed in articles such as those by FE Week, that indicate that the introduction of two measures to arrest the decline—paying an extra 20% on the funding band limit for 16 to 18-year-olds, and promising £60 million of

“additional support in areas of disadvantage”—

has not and will not stop or address the shortfall. Indeed it is alleged that most frameworks will still feel cuts of 20% or more.

My hon. Friend the Member for Belfast East (Gavin Robinson), who has just left the Chamber, has done exceptionally good work in his constituency for the apprenticeship schemes in Bombardier. I am conscious of the time, Mr Streeter, so I will hurry along. It was announced that the cuts to construction skills at level 2 would range between 27% and 50%. Later, it was announced that they would range between 14% and 37%, which could still devastate the sector. In sectors such as hairdressing—I do not have worry about that—and engineering, FE Week analysis revealed that at levels 2 and 3 there could still be maximum cuts of some 50%.

I stand firmly with the right hon. Member for Tottenham and thank the Government for the changes, but they are not enough. We already have a society in which too many young people feel worthless and they need the help and attention that these schemes provide. Let us do what we can for young people. They are crying out for help, support and particularly hope. Let us give them that hope today in this debate and from the Minister.

--- Later in debate ---

[The Minister for Apprenticeships and Skills (Robert Halfon)]

It is a pleasure to serve under your chairmanship, Mr Streeter.

I congratulate the right hon. Member for Tottenham (Mr Lammy) on securing this important debate and on the work he has done, but I was disappointed that he did not feel that it was right to mention the £13.4 million spent by the Government in his constituency on the new digital college, which I was proud to open with him only a couple of weeks ago; the 920 apprentice starts in his constituency over the past year; the Government’s doubling of apprenticeship spending to £2.5 billion by 2020; the 619,000 apprentice starts that we have had since May 2015; or even—dare I say it?—the record on people not in education, employment or training. The previous Government left us with 1 million unemployed young people. Between 2014 and 2015, the proportion of 16 to 18-year-olds in education or work-based learning increased to 90%, which is the highest figure on record, and the proportion of 16 to 18-year-old NEETs fell to 6.5%, which is the lowest rate since records began. I was also disappointed that the right hon. Gentleman did not mention the 500% increase in higher apprenticeships since 2010, the £7 billion to be spent on further education and training, and the extra incentives given to the frameworks. His speech was partial and disappointing given his record in standing up for apprenticeships and skills.

I congratulate my many hon. Friends, and hon. Gentlemen and Ladies of all parties, on their thoughtful speeches. My hon. Friend the Member for North Swindon (Justin Tomlinson) was a brilliant Disabilities Minister. We are very supportive of the work done by him and my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) to encourage more disabled people into apprenticeships. We fully accept their recommendations and we are implementing them.

On the levy, we are increasing the incentives to employers and providers by £1,000 each for those on a healthcare plan or those from care homes; specific disabilities providers will get an extra £150 a month, and up to £19,000 will be provided for adaptation. My hon. Friend the Member for North Swindon will know about the £2 million that we put by for support for mental health apprenticeships; that money supports roughly 2,000 participants. It is worth mentioning traineeships, on which something like 19.7% of those with learning disabilities are represented. That has not been mentioned in this debate.

I am very happy to meet with the hon. Member for Liverpool, Walton (Steve Rotheram), and I am meeting him on Thursday about another issue. There are no existing plans to devolve the levy funds to specific areas. We are creating a system that simplifies funding across England, making it easier for employers to navigate. We will be reviewing how the disadvantage funding works over the next 12 months.

There were some thoughtful speeches, including from the hon. Member for Glasgow North West (Carol Monaghan). I say to her and to the hon. Member for Motherwell and Wishaw (Marion Fellows) that the devolved Administrations will get a fair share, and we hope to make the announcement shortly. The hon. Member for Glasgow North West made important points about apprentices getting real jobs. It is good that 90% of apprentices stay in work. Surveys show that the satisfaction of those apprentices is incredibly high.

I could talk about many of the issues raised today, but in the time available I want to go through those raised by the right hon. Member for Tottenham and Labour’s Front-Bench spokesman, the hon. Member for Blackpool South (Gordon Marsden). Hon. Members have to see what the Government are doing in the overall context of the £2.5 billion increase by 2020. A huge amount is going towards increasing funding rates for STEM frameworks—that too was not mentioned by Opposition Members. Just under half of 16 to 18-year-olds will attract more funding thanks to the uplift in STEM frameworks. Huge amounts of money are going into support for disadvantaged apprentices, as was acknowledged by the right hon. Gentleman and others today. A significant amount is going towards helping small employers, as those with below 50 employees will pay no training costs at all. There are all kinds of other incentives. Some 25% of frameworks will be replaced by the new apprenticeship standards by the end of the year.

[Jim Shannon]

rose—

[Robert Halfon]

I am sorry, but I cannot give way because very little time remains.

More money will be spent on standards. A huge amount of money is going into the system to ensure that 16 to 18-year-olds and those who are socially disadvantaged are properly represented. Many of the frameworks that apply to adults are the same as those applied to 16-year-olds, yet the ones for 16 to 18-year-olds can cost double the amount. The surveys and the evidence show that they do not need to cost as much, and that, often, only a few hundred pounds would make a difference.

We are moving into a new world. The apprenticeship levy is changing employer behaviour. Businesses will choose different kinds of apprenticeships because of the move to standards, and would-be apprentices will choose different kinds of apprenticeships. The way the discussion has gone among some Opposition Members, it is as if we were comparing apples with apples. However, the world is changing and we are now comparing apples with pears.