Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [ Lords ] (First sitting) Debate

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Department: Department for Education

Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [ Lords ] (First sitting)

Laurence Turner Excerpts
Damian Hinds Portrait Damian Hinds
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Yes, but the Bill does not do that, and if the hon. Member thinks it does, I am afraid he is mistaken.

Some years ago, I used to sit on the Government Benches and was a Minister at the Department for Education, as the hon. Member said, and on many occasions I have had a close interest in these areas. There was a cross-party coming together in the early to mid-2010s, which resulted in the Sainsbury report. The noble Lord Sainsbury, as the hon. Member may know, is a Labour peer who devoted a great deal of his life and the work of his foundation, the Gatsby Foundation, to trying to improve something that in this country, historically and by international comparison, we have not been tremendously good at: technical and vocational education and training. The Independent Panel on Technical Education, which convened in 2015 to 2016, took a broad overview of exactly the fractured landscape that the hon. Member talked about. By the way, I have missed out the page of my notes where I was going to go through all the qualifications that someone could do at level 3 to age 18, which is a similarly sized list.

Laurence Turner Portrait Laurence Turner (Birmingham Northfield) (Lab)
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Will the right hon. Member give way?

Damian Hinds Portrait Damian Hinds
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I had probably better go on a little, but I would love to hear from the hon. Gentleman. I promise that the Committee will have a chance so to do.

Unsurprisingly, that panel found that the technical and vocational education and training landscape in this country was over-complex. The example of plumbing was given, with 33 different qualifications that a young person could decide to do. Moreover, the panel found that the system was not providing for the skills that the country needed and that the technical and vocational education and training had become “divorced” from the occupations that they were there to serve, with no or weak requirements to meet employers’ actual needs.

The Sainsbury report, published in April 2016, set out a blueprint for what would be a major upgrade and simplification of technical and vocational education and training, to address the productivity gap in this country—we talk about this sometimes; there has been a productivity gap every year I have been alive, and I am in my mid-50s today—and indeed a major social justice gap. Although it was a blueprint, it was also a redprint because it had cross-party support. It called for a fundamental shift in how we did technical and vocational education, with coherent routeways from level 2 through to level 5 along 15 different sector routes, three of which would be apprenticeship only, through to 35 different pathways mapped as specific occupations—specific needs of the economy and companies.

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Damian Hinds Portrait Damian Hinds
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My hon. Friend is right. If we take the full etymology, we can go back a lot further, to the creation of guilds centuries ago, which evolved into the modern system.

Laurence Turner Portrait Laurence Turner
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I have enjoyed the right hon. Gentleman’s recapitulation of the history. In the last Parliament, I attended meetings of the UK shipbuilding skills taskforce, which was sponsored by the Department for Education, and considered these matters in respect of that industry quite closely. Employers and employee representatives were unanimous that the GCSE entry standard requirements should be removed in that industry, but the inclusion of that recommendation was blocked because, we were given to understand, it would not be supported by DFE Ministers. Does he share my concern that the independence of the current system is more claimed than real?

Damian Hinds Portrait Damian Hinds
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No, I do not, but there is a definition of what an apprenticeship is. There are perfectly good reasons to have all manner of training courses, including entry-level ones, that do important things, but they are not apprenticeships. The shadow Minister talked about Germany. In our country, the minimum length of an apprenticeship is shorter than the typical length of one in Germany. The time off the job—the time in college—is shorter. As I say, we can add on other things, but we cannot stretch the definition of what an apprenticeship is indefinitely. I may come back to that later.

On the face of it, this is a simple Bill—it has 13 pages and is on a simple subject—so it should be fairly easy for a Committee to dispatch in a couple of Thursdays. I have no doubt that Government Members will take the opportunity to make speeches on this subject, and I am sure those will be rather good. Members may make what could be described as great speeches and what they say will be largely unarguable. I fancy that we may hear the word “mission” from them, perhaps even more than once. They will talk about the importance of skills in our economy, investing in the next generation, valuing every single person for what they can do and the value of joining-up across Government Departments.

That will all be correct, but it will be largely beside the point. To turn a great speech that includes those things into a truly outstanding speech in this Committee, they would have to explain why taking away the independence of the body overseeing the system that upholds the standards would make those entirely laudable and shared goals more likely to come about. I know of no reason to believe that it will, but I am keen to hear from anybody who has such an idea.

In the Labour manifesto, there were some very laudable aims. It said that it wanted to empower

“local communities to develop the skills people need”

and to

“put employers at the heart of our skills system.”

Labour said that it would

“establish Skills England to bring together business, training providers and unions with national and local government”,

in order to deliver its industrial strategy. The manifesto said:

“Skills England will formally work with the Migration Advisory Committee to make sure training in England accounts for the overall needs of the labour market”.

It mentioned a commitment to

“devolving adult skills funding to Combined Authorities…alongside a greater role in supporting people into work”,

and Labour will

“transform Further Education colleges into specialist Technical Excellence Colleges.”

There are different ways that those aims could be achieved, and I would argue that there are better ways. The Government could, for example, keep IfATE as the standard-setting and upholding body, and create a new, small body, possibly inside the Treasury, to assess the needs of the economy and allocate funds accordingly. They could also strengthen the powers of local skills improvement partnerships, working closely with devolved authorities and mayors, to ensure that what is delivered at a local level in individual colleges matches what the local economy needs. I would have probably chosen that architecture, but plenty of other variations are possible.

To be clear, the Bill does not do any of those things. It simply abolishes the independent body that convenes employers to set the standards and then uphold them, and it hands those powers to the Secretary of State. It does nothing else—I say that, but it is not totally clear to me what it does to Ofqual, and we may debate that when we get to clause 8. I suggest that the Bill presents two fundamental questions: first, about independence; and secondly, about who should set the expectations and standards in any given sector of work—should it be the employers in that sector or somebody else? We will come to that debate when we reach clauses 4 and 5.

Ultimately, this is about whether we believe enough in the phrase “parity of esteem” to do the things necessary to achieve it. As I said in the House the other day, parity of esteem is not something one can just “assert”, and it cannot be legislated for. We cannot pass a law to give something greater esteem. Esteem is in the eye of the esteemer and it can only be earned. In part, that comes from knowing that the qualifications of the technical and vocational strand in our country are just as rigorous and have the same integrity as the academic strand.

By the way, independence is not totally a left/right issue. There are plenty of people on the right of politics who share the Minister’s desire not to have independent bodies. There is a general “anti the quangos” strand, and I have some sympathy for that. By the way, a debate is going on at the moment about removing the independence of the national health service and bringing it into the Department of Health and Social Care. That can be argued both ways. On the one hand, it will be harder for the NHS to do some things, particularly what they call reconfigurations, when they become subject to political pressure. On the other hand, it can be argued that there should of course be direct control from a democratically elected Government over the most important institution in our country. However, I think an independent body for upholding standards in education is in a separate bracket.

Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [Lords] Debate

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Department: Department for Education

Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [Lords]

Laurence Turner Excerpts
Peter Swallow Portrait Peter Swallow
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I was proud to serve on the Bill Committee for this vital legislation. It is a small Bill, but, by goodness, it is mighty. I rise to speak against amendment 6. In doing so, I will highlight a local success story in recognition of the third National Supported Internship Day. It took place on 27 March, which also happens to be my birthday.

For 15 years, Bracknell and Wokingham college—my local college—and Activate Learning have been working together with over 100 employers to offer supported internship placements for learners with special educational needs. The scheme offers invaluable opportunities, and provides the skills, confidence and qualifications necessary to thrive in the workplace. Their partners include the National Grid, the Royal Berkshire hospital, Johnson & Johnson, and Sodexo. It is an excellent example of a local college working with big players in the energy, medical and food industries to provide high-quality schemes for stable, well-paid employment. It is proof that young people with special educational needs can thrive with the right support. We face one in eight young people being not in education, employment or training—the number is at an 11-year high, after 14 years of the Tories—and we need more supported internships to address the challenge.

Skills England will deliver opportunities across the country in key industries including green energy, construction and healthcare. That is vital for the Government’s five missions, and for communities like Bracknell. It is a step towards ending fragmentation. A less complex, more flexible skills system will deliver for young people, especially those with special educational needs. By bringing together the constituent parts of the skills architecture, Skills England will create a system that is fit for purpose, responsive to the needs of employers and businesses, and capable of driving economic growth in the years to come. It will lay the ground for a better system.

There is a need to move fast. As the right hon. Member for East Hampshire (Damian Hinds) pointed out, the UK’s productivity is almost 40% below that of the US, and 20% below that of other major economies, such as France and Germany. A major reason for that is a lack of appropriate skills, so the Conservatives’ amendment 6, which would delay the creation of Skills England by a year, is nothing short of irresponsible. We need to work faster, not more slowly. The amendment is indicative of their approach to government: where there was a challenge, they ducked it; where a decision was needed, they put it off; and when a broken system needed fixing, they left it for the next lot. Well, the next lot are now in government and will not put off for tomorrow what needs to be done today.

We know that skills are a crucial driver of economic growth and the key to tackling productivity gaps, but our economy is changing rapidly in ways we cannot fully anticipate, so it is crucial that our education system equips young people with a broad range of the skills necessary for success in the jobs market of tomorrow. That is exactly what the Bill and Skills England will deliver.

Laurence Turner Portrait Laurence Turner (Birmingham Northfield) (Lab)
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On the face of it, this is a technical Bill, but the benefits and opportunities that the transition to Skills England can create across the country, including in communities such as Birmingham Northfield, are real and tangible. The amendments would have similar effects. In terms of timing, while new clause 1 would delay the establishment of Skills England by six months, new clause 4 and amendment 6 would delay it by a year. There is a risk that by accepting such amendments we would recreate IfATE under the name of Skills England. As my hon. Friends have said, we cannot wait that long. A new approach is needed.

As the first Skills England report, which was published last September, identified, there has been a steady decline in employers’ investment in training during the past decade. Investment in real terms has fallen by about 20%, even though 90% of the roles in critical demand across the economy require training or education.

In my constituency, apprenticeship starts fell by 35% during the last Parliament, more than double the national rate. This is a social issue as well, because more than half the young people not in education, employment or training in Northfield are classed as vulnerable, and adult skills funded education is accessed particularly in the areas of my constituency with some of the highest levels of social need, including Longbridge and West Heath, Weoley and the three estates in Kings Norton. I am sure the situation is similar for other hon. Members.

According to a response to a freedom of information request in 2022, some £1 billion a year nationally in apprenticeship levy funding was unspent. At the same time, major local employers have expressed their frustration to me about skills shortages in areas from construction and home upgrades to computer science.

I have seen some of the good work already done locally to provide apprenticeships and other forms of technical education. Next month, we will witness the 20th anniversary of the closure of MG Rover in my constituency. Today, South and City College Birmingham, which is partly built on the old Austin site, is one of the largest training providers in the west midlands. A number of hon. Members have paid tribute to their local colleges, and I would like to do the same. That college offers impressive programmes, developing the technical and soft skills of students in a multitude of industries including catering, automotive and advanced manufacturing.

As manufacturing jobs start to return to Longbridge, these facilities and the experienced staff who work there will be vital to delivering economic growth and opportunities for young people, but they are attempting to fit into a system that is not fit for purpose and is not working. In other words, skills policy is essential for the Government’s plans for economic recovery and industrial strategy, and it is appropriate to place accountability for the new development directly with Ministers for this period.

We heard a lot on the Bill Committee as well as elsewhere about whether Skills England should be created as a stand-alone agency at arm’s length from the core Department. As we heard on Second Reading, the Government may review Skills England’s status after 18 months to two years, which seems like a sensible way forward. That is a legitimate debate, but we should not agree tonight to delay Skills England’s creation.

It is important to say that IfATE has not lived up to expectations and that the status quo is a barrier to the Government’s objectives. Nine years ago, the then Minister for skills, Nick Boles, told the House’s Education, Skills and the Economy sub-Committee that IfATE would

“be much more akin to the Bank of England”

in terms of its independence compared with a traditional arm’s length organisation. I think most hon. Members would agree that that has not been borne out.

During the last Parliament, I attended meetings of the UK shipbuilding skills taskforce, where there was common agreement between employers and employee representative organisations that the GCSE entry-level requirement was a barrier for employers taking on the young people who were best equipped for those apprenticeships. However, that recommendation was blocked—by DFE Ministers, we were given to understand—from the final report. Similarly, employers and people with direct knowledge of the skills system I have talked to over the last few weeks have stressed some of the frustrations that existed in the trailblazer employer organisations: within the bureaucracy of IfATE, some recommendations and expertise would be either delayed or disregarded by the route panels, some of which were made up of employers who did not necessarily have expertise in a particular industry.

It is important to reduce some of that bureaucracy so the Bill’s effect of removing a requirement for a regular review of an apprenticeship’s standard—in practice, every few years—is a sensible change. There are, at the last count, 658 live apprenticeships listed on the IfATE website. That implies 219 reviews every year or four a week; I think we are entitled to question how effective those reviews can be given IfATE’s current resources.

If I may, I will list one more example of where the current system is going wrong. The special educational needs and disabilities teaching assistant apprenticeship standard, which was discussed during the last Parliament and then formally created during this one, lists a very large number of organisations that contributed to its design. The overwhelming majority are employers, who, of course, need to be represented. Only one trade union was represented and I question why that was the case. However, not a single SEND parents’ organisation or other group that represents the needs of those young people was drawn into the creation of that standard. I think we are entitled to ask whether that is the right approach. The discussions that led up to the creation of the standard, in practice, were heavily DfE-guided, so I think we are entitled to question the independence of the current system as it exists.