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

Laurence Turner Excerpts

Report stage
Monday 31st March 2025 Commons Chamber

[Peter Swallow]

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 (Birmingham Northfield) (Lab)]

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.