Apprenticeships

Karen Buck Excerpts

Monday 19th December 2011 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

We have enjoyed a thoughtful debate this evening with contributions from both sides of the House that have stressed Members’ real concern, and interest in, apprenticeships and the need to raise the skills base among young people and the general population. In particular, I congratulate Members on both sides who have taken on apprentices, with your support, Mr Speaker, and hope that that will encourage others who have vacancies to divert them to that purpose. [Interruption.] I apologise to the House—I have a terrible cold and my throat keeps catching.

We heard some thoughtful contributions from Opposition Members. The hon. Member for Strangford (Jim Shannon) asked where the strategy was for linking youth unemployment to apprenticeships. My hon. Friend the Member for Liverpool, Walton (Steve Rotheram) spoke from personal experience about apprenticeships and warned about the impact of the cuts in the construction industry and the extent to which they might choke off opportunities for young people in that important sector. My hon. Friends the Members for Inverclyde (Mr McKenzie), for Sheffield Central (Paul Blomfield) and for Scunthorpe (Nic Dakin) all made pleas for making better use of public procurement powers, which is a message I would also like the Minister to take away. My hon. Friend the Member for West Bromwich West (Mr Bailey), who chairs the Business, Innovation and Skills Committee, and others mentioned their fears about the extent to which adult in-work training programmes are branded as apprenticeships—I will touch upon this in my contribution—in the context of the abolition of Train to Gain. Although in-work programmes offer important skills training to older people, they are not exactly what many of us consider to be apprenticeships.

When the Minister made his contribution at the start of the debate, he used poetry and spoke from the heart, and I genuinely believe that he has a passion for apprenticeships and for providing an alternative to the traditional academic and higher education route, particularly for young people. That message was reinforced by the overwhelming majority of contributions we heard this evening. That was at the heart of the report on 14 to 18-year-olds’ education by Professor Wolf, who stressed the importance of expanding the number of high-quality apprenticeships that offer genuine career progression to young people. We are all as one in saying that apprenticeships are of equal value and provide an alternative and equally important route for young people through post-16 education.

The Labour Government made substantial progress on that issue, as well as on increasing—quite rightly, and for which I make no apology—the number of young people who went into higher education. In the globalised economy in which we operate, it is absolutely essential that we do not tip the balance the other way and underplay the importance for many of our young people of a university education.

We quadrupled the number of apprenticeships to 279,000, and those who make much of the additional apprenticeships that the coalition Government have introduced have not stressed the context of the abolition of the future jobs fund, which was intended to provide 200,000 jobs for young people; the rise in youth unemployment, which is now at its highest level since comparable records began in 1992; or the rise, by 140,000, in the number of young people not in education, employment or training. The Minister spoke of the number of NEETs being 925,000 in 2009, but that figure now exceeds 1.1 million.

The additional apprenticeships that are being provided—and they are being provided; that is not in doubt—must therefore be seen in the context of the rise in demand and need, particularly among young people, and the abolition of the future jobs fund. Alongside that, young people have also borne the brunt of many other Government cuts, which have had an impact on their ability to access and make better use of skills and training. Those cuts range from the abolition of the education maintenance allowance to the scrapping of Connexions, access to face-to-face careers advice and youth work and mentoring services, which were also an important signpost for such skills and training.

Overall, as many Opposition Members have said, while the economy is flatlining employers and, especially, small employers are unlikely to respond with apprenticeships, employment or work training on the scale that we would like. A recent Federation of Small Businesses survey showed that only 8% of the small businesses surveyed had taken on an apprentice in the previous year, and that is a particular concern, because we know from labour force survey statistics that in the past more than half of apprenticeships were based in businesses with fewer than 50 employees.

We welcome the Government’s incentive scheme, which I hope will be effective, because it certainly needs to be in the economic context in which we operate, but I add my voice to those asking the Government to review as soon as possible the incentive payment’s concentration only on those businesses with fewer than 50 employees, as we also want to put a great deal of stress on the role of medium-sized organisations—those with between 50 and 149 employees—in creating employment.

The £1 billion youth jobs fund that the coalition is delivering via the Work programme is also a cause for concern, because it is unlikely to have any impact on the delivery of apprenticeships to young people, so I hope that it too will be reviewed. Money and effort are being concentrated on a Work programme, but we need to ensure that it delivers apprenticeships, too.

Almost all Opposition Members who spoke stressed that the growth in apprenticeships, of which Government Members have made so much, has not delivered for young people in the way it has for their older counterparts. That masks a genuinely worrying position for young people. In 2009, the final year of the Labour Government, 42% of apprenticeship starts went to those aged under 19; in 2010-11, that figure had fallen to 29%. In 2009, 41% of all starts went to 19 to 24-year-olds, and that figure had fallen to 31% last year. That is genuinely concerning. Given the crisis of youth unemployment, we need to make absolutely sure that the opportunities out there are going to young people who need them.

In the context of the abolition of Connexions and the reduction in funding and access to a face-to-face careers service, it is also important that the young people most in need of accessing apprenticeships have the knowledge and support to be able to do so. In the past few months, I have had extensive first-hand experience of working with young NEET children who need access to apprenticeships and training. They have so little ability to be guided to the opportunities that exist, and that is worrying. The issue of confidence among young people without good qualifications is critical; it is no good simply relying on access to the internet and telephone advice lines. Even for those who are able to use those, making that first contact requires a mentor—a guide and someone to advise them. Without that, I fear that those who most need support will be those least able to access it.

Members have spoken about pre-apprenticeship training, which I would also like to emphasise. About 10% of young people not in education, employment or training have been in that situation for a year or more. They are a core group about whom we should be most concerned. Such an experience, at that stage in life, can be absolutely devastating to a young person. As the Minister is aware, many of those young people have not got GCSE C grades in English and maths, in particular. The problem is that because there is such competition for the apprenticeships that now exist, particularly among young people who have been through a university education, young people without a GCSE find it very hard—in some cases, impossible—to get on the first rung of the apprenticeship ladder.

Although additional skills training within the apprenticeship programme is welcome, we need to make sure that we are not locking out some of the young people with particular needs. That issue has been raised with me by the apprenticeship training agencies, which are very concerned about the issue. It is particularly worrying because a young person who has perhaps done all right at GCSE, but not got a C grade in maths or English, will be required to retake before they even get on to the apprenticeship programme. That can be difficult and challenging.

I have been impressed with the work of my local regional apprenticeship training agency with young NEETs. Some of its outcomes are very impressive: 90% of its apprenticeship starts involve young people who are not in employment, education or training. All its apprenticeships starts are new placements, not conversions, and 99% of them are in the 16-to-24 year-old age group. However, there is a worry that the Government are not making such good use of the resources and skills that such agencies provide. It would be helpful if the Minister confirmed that client hosts of apprenticeship training agencies will be included as beneficiaries of the £1,500 apprentice incentive schemes. Will the Minister meet representatives from the new Confederation of Apprenticeship Training Agencies to discuss that?

In conclusion, we welcome an expansion of apprenticeships. Any good news, money or resources in the field are welcome and need to be supported. However, given the issue of access to the additional places, there is still a real risk that young people are being left on the shelf. We look to the Government not only to congratulate themselves on a higher number of apprenticeships overall but to address more effectively how to respond to the national emergency engulfing so many of our young people.