Apprenticeship Levy

Jo Gideon Excerpts

Tuesday 11th February 2020 Westminster Hall

[Jo Gideon (Stoke-on-Trent Central) (Con)]

It is a pleasure to speak today, and I congratulate my hon. Friend the Member for Gloucester (Richard Graham) on securing this hugely important debate. Given our manifesto commitment to investigate how the levy can be improved, I know that Ministers will have listened to his excellent speech carefully. I am certainly pleased to follow in my hon. Friend’s wake. I share his concern for SMEs and challenger firms looking to provide apprenticeships. I also wish to stress the challenges faced by further and higher education providers in delivering their vital role.

In particular, I want to set out the work of Staffordshire University, which is based in my constituency and with which I had a meeting last week to discuss National Apprenticeship Week. I look forward to further meetings with the university in the near future, especially after the lessons of this stimulating debate. There are 750 apprentices studying at Staffordshire University, and more than 450 of them are based with an employer. The apprenticeship programme is a major local asset, with more than 150 employers engaging with the university on it. Of course, apprenticeships are not just about numbers; they must also be about quality. The standards at Staffordshire University are high and meaningful. Engagement with best practice providers will be the key to improving and reforming the levy, and I hope the Department will be as keen as I am to meet with Staffordshire University for further discussions.

I am told that an estimated 300 potential apprenticeships have been lost because of drawbacks in the current system, with the non-levy allocation making it particularly challenging to work optimally. Only three applications are allowed per SME, and I would like improving that to be a key focus of the policy process. The promise was that employers would be put at the centre of the system. That needs to include smaller employers with apprenticeship needs.

It also means making sure that all employers understand how the system works. I understand that opportunities are currently being missed because the digital application service is not sufficiently well known or embedded in business practice. I would be interested to hear, for example, how the Department is engaging with local chambers of commerce on that. That is particularly important because I am told by Staffordshire University that the rule changes of the past few weeks are making a positive difference, as non-levy payers can now use the digital system. I hope that there are measures in place to ensure that no business misses an opportunity that could benefit the economy as a whole.

Staffordshire University is certainly playing its part, offering courses, advice and support around enterprise, continuing professional development certification and skills for those not yet ready to take on apprentices. That is extremely important. I know from having set up my own business that it is always daunting—exciting but daunting—to try something new, and taking on a first apprentice will be a key step in a business’s development. The most daunting word is always “compliance”, and I hope Ministers agree that support must be on offer so that businesses are not put off by concerns about compliance.

At Staffordshire University, there will soon be a £40 million new university building called Catalyst. It will focus on digital skills, include an incubation centre and act as a base for apprenticeships, with the aim of having 6,500 apprentices in place by 2030. I cannot stress enough how important that will be to the continuing efforts to level up skills in Stoke-on-Trent and retain talent within the city. While apprenticeships must be about quality, not quantity, we need to look at how to address the gender imbalance in apprenticeships, which is something we should not ignore.

In conclusion, apprenticeships are vital to levelling up skills, but the levy must work to deliver the right quality of programme, with the right portable qualifications and the optimal level of awareness among employers of all sizes.