Apprenticeships and Skills Policy

Debate between Judith Cummins and Carolyn Harris

Tuesday 8th January 2019 Westminster Hall

[Judith Cummins]

That is a very interesting and pertinent point. I know that some apprenticeships are paid so poorly and offer so little training—apprenticeships are supposed to be jobs with training—that they are not really worth the paper that they are written on. In my view, they should not be called apprenticeships.

At a local level, a significant amount of work is under way to meet the challenges that I have spoken about, with the Bradford Economic Partnership setting out a local economic strategy with a focus on increasing the number of productive businesses in the district through investing in skills provision.

We recently had Bradford manufacturing week, which I was delighted to support. It aimed to show the young people in Bradford the many exciting opportunities in manufacturing that are right on their doorstep, to get them thinking about the skills that they will need for the future. Over half of our secondary schools took part. In just one week more than 3,000 children crossed the doors to get that first-hand manufacturing experience in workplaces.

Another exciting area of work that is being developed locally in Bradford involves the industrial centres of excellence—or ICE—approach to post-14 careers and technical education. ICE gives business a partnership vehicle with local schools, colleges and the University of Bradford to ensure that education and learning in Bradford meet the skills demands of businesses in the local and regional economy within given sector footprints, which opens up opportunities for our young people and improves social mobility.

Those centres are good examples of how schemes that are locally led can deliver for businesses and encourage social mobility. I would welcome the opportunity to discuss them further with the Minister, but Government policy is making it more difficult for places such as Bradford to bring about a transformative change in their labour markets. I will start with the specific issues that Bradford businesses and education providers have raised with me about the operation of the apprenticeship levy.

I fully support the principles behind the levy, but its implementation has compounded the problems of underinvestment in training rather than improving the situation. As the Minister will be aware, the apprenticeship levy aims to encourage employers to invest in apprenticeship programmes, but apprenticeship starts have been significantly down since the introduction of the levy in May 2017. In July 2018, the total number of apprenticeship starts nationally was 25,200.

[Carolyn Harris (Swansea East) (Lab)]

I congratulate my hon. Friend not only on securing the debate but on her generosity in giving way. I am sure it will help the new year planning for the keep fit programme.

Skills, education and training are devolved matters in Wales, where there has been a 23% rise in the uptake of apprenticeships—obviously, we are doing something right. I wonder whether the UK Government are talking to the Welsh Government, perhaps about sharing good practice so we can make the success in Wales a success right across the United Kingdom.

[Judith Cummins]

I thank my hon. Friend for making that point, which is definitely one for the Minister to address.

As I was saying, in July 2018 there was a total of 25,200 apprenticeship starts nationally, which represents a 43% drop from July 2016. Starts in Bradford South have fallen from 1,370 in 2015-16 to just 680 in 2017-18 —very nearly a 50% drop. Several Bradford firms have told me that the complexity of the system is a major barrier to entry, and that seems to be a particular problem for small and medium-sized businesses. That was clearly set out to me when I had the privilege of attending the apprenticeship awards evening at Bradford College late last year. While we were discussing the fantastic successes of apprenticeships at the college, it raised a number of difficulties facing both the college and the many small and medium-sized enterprises it works with. Many of the latter find the administrative demands of the new apprenticeship system extremely difficult to manage, and the college itself is experiencing cash-flow difficulties, caused by changes to the apprenticeship contract and the digital payment process, with payment times having increased to an average of 14 weeks from an average of seven before the reforms. The college has had to create four new posts to help it to navigate the changes and support its employers.

In his recent Budget, the Chancellor acknowledged some of the shortcomings identified in the current apprenticeship policy. For example, he announced his intention to reduce the requirement to contribute to the costs of off-the-job training from 10% to 5% for non-levy employers, which should help a little. In Bradford South, I have levy employers asking if the same 5% reduction in fees will apply to them once they have exhausted their levy funds. They currently deliver the extra apprenticeships under Solenis, which also requires a 10% core contribution from employers.

I recognise that a new system takes time to bed in, but the Government’s approach needs more than just a little fine tuning. We need a more radical overhaul of our skills policy to help places such as Bradford get the growth and prosperity we deserve. We have a situation where public policy, whether intentionally or unintentionally, has turbo-charged the London economy to the detriment of other towns and cities outside the capital. The Government need to address the failure over decades to tackle persistent regional skills imbalances. We need a mechanism to support industries and individuals in areas that face economic decline and need help to adapt to the demands of the global economy.

The jobs of the future will require people to work more closely with advanced technologies. Workers will need support to adapt and retrain, to secure decent and sustainable work; otherwise, in many places in the UK we will face a lasting legacy of low qualifications, low productivity and low pay. Yet the Government have no convincing strategic framework for identifying sectors and areas in which large numbers of jobs are at risk from technological and economic change. In fact, the apprenticeship levy contributes to further regional imbalances, as more funding is raised per head in London and the south-east than in the rest of the country. London has the lowest skills need in the country, yet the levy will raise more funds there, as the capital has both a greater proportion of workers employed by large employers and far higher pay. The Social Mobility Commission’s “State of the Nation 2017: Social Mobility in Great Britain” report identifies that as an emerging risk, and the commission urges the Government to develop education and skills policies to better support disadvantaged young people in areas such as Bradford South, stating that that could be done

“by targeting any used apprenticeship levy funds at regions with fewer high-level apprenticeships”.

According to the commission, apprenticeships are a more common path into employment for young people in many youth coldspot areas, where there are higher barriers to social mobility than in hotspots, but those apprenticeships are often of lower quality than in the hotspots. If we are to rebalance our economy, we urgently need reforms to the apprenticeship levy to ensure that it meets the needs of the most disadvantaged areas and those with a legacy of underinvestment, such as my constituency of Bradford South.

A debate about skills policy must not be just about how to support young people to enter the workplace; it also must consider those who are already working. To achieve a sustainable supply of skills with the flexibility to meet the ever-evolving needs of business, industry and the public sector, the UK must maximise the potential of its existing workforce. That is why the 45% reduction in spending on adult education since 2010 is so short-sighted and damaging to our economy. If Government want business and individuals to see training as an investment and not as a cost, they must lead by example. To meet the wider training need of the economy, we need more focus on how the apprenticeship levy can be used to tackle the overall skills shortage.

Ending Exploitation in Supermarket Supply Chains

Debate between Judith Cummins and Carolyn Harris

Thursday 18th October 2018 Commons Chamber

[Carolyn Harris]

The right hon. Gentleman is absolutely right, and I totally agree with him.

Taking Indian tea and Kenyan green beans as examples, the research by Oxfam found that workers and small-scale farmers earned less than 50% of what they needed for a basic but decent standard of living in their societies. The report also found that the gap between the reality and a decent standard of living was greatest where women provided the majority of the labour. In South Africa, over 90% of surveyed women workers on grape farms reported not having enough to eat in the previous month. Nearly a third of them said that they or a family member had gone to bed hungry at least once in that time.

In Thailand, over 90% of surveyed workers at seafood processing plants reported going without enough food in the previous month. In Italy, 75% of surveyed women workers on fruit and vegetable farms said that they or a family member had cut back on the number of meals in the previous month because their household could not afford sufficient food. In less than five days, the highest paid chief executive at a UK supermarket earns the same as a woman picking grapes on a typical farm in South Africa will earn in her entire lifetime. That is simply not good enough.

Large UK supermarkets lack sufficient policies to protect the human rights of the people they rely on to produce our food. Supermarkets need to act on human and labour rights, support a living wage and radically improve transparency of their own human rights and those of their suppliers. This is vital if our supermarket supply chains are not to be a breeding ground for trafficking. We must be persistent on this matter. Unfortunately, we cannot depend on supermarkets to do this on their own. We need the Government to enforce compliance with the Modern Slavery Act 2015. They must set out how they will measure decent work practices, reform company law and support the adoption of a binding United Nations treaty on business and human rights.

[Judith Cummins (Bradford South) (Lab)]

My hon. Friend is making an excellent speech. Section 54 of the Modern Slavery Act is a very welcome provision, but does she agree that its effective enforcement will require a central register of all the companies that are required to comply?

[Carolyn Harris]

I most certainly do, and I look forward to hearing the Minister’s response to that point. The Modern Slavery Act places a requirement on companies with a turnover of £36 million and above to publish a statement outlining what steps they are taking to tackle exploitation in their supply chains. However, the Act does not require companies to take action; it requires only that they make a statement saying what they are doing.