Skills and Post-16 Education Bill [HL]

Lord Aberdare Excerpts

Report stage
Tuesday 12th October 2021 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise to find myself in the slightly unusual position of warmly welcoming a government amendment. I thank the Minister for the meeting on Friday and the Bill team for the briefing that she provided. I welcome her to her post and offer congratulations to her predecessor.

I do not know whether this is the result of your Lordships’ House making the case so clearly in Committee, of the young climate strikers who were in Parliament Square after our debate finished, or of the young people who have so clearly been delivering the message that they want climate change and the nature crisis at the centre of every aspect of their education—perhaps it is a combination of all those—but this is a real demonstration that campaigning works.

I congratulate all the Members of your Lordships’ House, led by the noble Baroness, Lady Hayman, who have helped to get us to this point. Had there been space, I would have attached my name to all these amendments, but I agree with all the other speakers who said that, except for Amendment 64, they have now been supplanted by the government amendment.

I will make one small point about how this government proposal should be interpreted. Sometimes, when we think about green skills, a lot of hard hats and yellow jackets are involved. Green skills and preparing to tackle the climate emergency we are now in takes a lot more than simply technical and physical skills. We also need an enormous amount of social innovation.

I was just thinking about my visit to Lancaster after the very big floods up there about six years ago. A couple of years later, I heard how local communities had got together, preparing flood resilience plans and for the next flood, which is very likely coming. Those communities had organised together to make sure that vulnerable residents would be rescued, cared for and supported to make sure that they were ready to do whatever they could to stop the floods. All of that was the community organising. This might not be what you think of as green skills, but it is absolutely crucial to adaptation and mitigation of the climate emergency.

This brings me to Amendment 64, which is about a “Skills Strategy”. Lots of people were talking about green jobs, but we need to think much more broadly than just about jobs. We are also talking very much about preparing our society for living in an age of shocks.

I finish by again commending the Minister and her team. We are making great progress but, as the noble Baroness, Lady Hayman, said, the next step in the scale of our progress will be when we open a government Bill and the climate emergency and the nature crisis are addressed in Committee and we can then say, “Well, how do we make this better?”

[Lord Aberdare (CB)]

My Lords, as a member of the Parliament Choir I am happy to join the chorus of welcome for the Minister in her new role, which is at least as important to the issues I care about as her previous one. I also thank her for helpfully including me in one of the very many meetings she has obviously been having in the last few days, along with members of the Bill team. I shall speak mainly to the Government’s Amendment 49 and very briefly in support of the amendments of the noble Baroness, Lady Hayman.

I do not quite know what to make of Amendment 49, despite the Minister’s helpful introduction. I very much welcome what she said about the Government’s support for independent training providers, but I remain concerned that they are sometimes viewed mainly as gap-fillers in the training system, as being of secondary importance to colleges and other statutory providers, and as having an unfortunate propensity to abandon their learners, which, in reality, happens only very rarely. As a result, they often seem to be at the back of the queue for the allocation of government funding for skills training, and they may have to cut the amount of training they are able to offer.

I understand that Amendment 49 aims to ensure that conditions specified for inclusion in the list of relevant providers allow some flexibility in determining whether they have been met. This is welcome if it gives independent training providers some wiggle room in meeting conditions, but less so if it results in judgments—for example, on the quality of the student support plans the Minister mentioned—which could have a degree of unpredictability or subjectivity.

Apart from that, independent training providers have continuing concerns about the implications of the list and the conditions for inclusion in it, such as the suggested requirement for a form of professional indemnity insurance which does not currently exist, and about the fees and other costs involved, which may restrict access to the market for smaller providers. West Midlands Combined Authority has also expressed the concern that mayors of combined authorities may be prevented from funding providers they deem suitable but which are not on the centrally approved list.

I welcome the Government’s intention to ensure that this measure does not impose an unreasonable barrier to market for training providers while protecting the interests of learners, and their commitment to continuing to engage and consult with a wide range of stakeholders. I hope the Minister can give some reassurance that the discretion allowed by this amendment will be used wherever possible to facilitate inclusion for ITPs in the list, and that their contribution will be duly recognised in the new arrangements under the Bill, including within LSIPs and in the allocation of funding for skills training.

Finally, I add my support particularly to Amendments 17 and 64 in this group, in the name of my noble friend Lady Hayman and others, which require the Secretary of State to report on how each published LSIP takes account of any national skills strategy and aligns with UK climate change and biodiversity targets. This is the sort of joined-up thinking needed to ensure that the different parts of the new system operate in a coherent way to deliver the skills and training needed by the nation as a whole, as well as in the local areas covered by LSIPs.

[Baroness Whitaker (Lab)]

My Lords, I too welcome not only the Minister but the Government’s recognition of the vital importance of a climate-oriented curriculum. I support Amendment 64, tabled by the noble Baroness, Lady Hayman, and others. This amendment should succeed because it places the policy of integrating the national response to the climate emergency even more solidly into the education and skills process. Without it, we risk not having an entrenched capability to cope with the most long-lasting peril of our times.

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[Lord Storey (LD)]

My Lords, before speaking to the amendment of the noble Lord, Lord Watson, to which I added my name, I thank the noble Baroness, Lady Berridge, for the work she did on this Bill and wish her well.

The noble Lord, Lord Watson, uses the word “integrated”; I would use “partnership”. What the Government are trying to achieve, which we want to achieve, will fail if we do not get the local skills improvement plan right. To do that, we must have a partnership of people. A key factor in that must be the local combined authorities. It is not just me saying that. Your Lordships may remember when a former Chancellor, George Osborne, set up combined authorities. He said that they were a “devolution revolution” and gave them extra powers involving the provision of skills training, business support and economic development.

Indeed, the powers of the Liverpool City Region Combined Authority, where I live, include apprenticeships, grants for employers, an adult skills budget, post-16 FE and oversight of skills and advisory panels. Combined authorities have a wealth of experience, yet we are pushing them to the side. We are marginalising them. I just do not get it at all. It is not just me saying that, or the combined authorities saying that, or Peers saying that. It is interesting to see that message coming loud and clear from employers themselves. You have only to look at the comments from the Food and Drink Federation, which has again said that it is really important that there is a partnership across all areas.

Interestingly, the Energy & Utility Skills Partnership talks about the need to look not just at local skills but at those skills which are nationwide and at how they will be swept up or dealt with if there is just a local focus. I hope that when she responds the Minister will be positive. I agree with the noble Lord, Lord Lucas, that when this goes to the Commons it will be sensible enough to realise what we have said, and that changes will be made if we are able to give it those changes.

I end by saying how much I support Amendment 19 from the right reverend Prelate the Bishop of Durham. He is right to say that if we are to have these representative employer bodies, they must have a record of showing that they care about diversity, equality and disability and that should be an important hallmark of these bodies. If that amendment is not agreed, I am sure that if the Government saw a body set up that was not equal or concerned about diversity and disability, they would have the sense to step in.

[Lord Aberdare (CB)]

My Lords, I, too, have added my name to Amendment 11, tabled by the noble Lord, Lord Watson, and to the amendment to it, Amendment 12. I shall speak also to my Amendments 14, 18 and 21, which are mainly concerned with the overall coherence and effectiveness of the skills systems of which this Bill will be such a major part. Many aspects of that system lie outside the Bill as drafted, but are essential for it to achieve its aims, so Amendment 11 and my amendments seek to fill some of the more important gaps that need to be addressed in the Bill. Others will no doubt be covered in the forthcoming guidance for employer representative bodies, which I have been no more successful than the noble Lord, Lord Watson, in absorbing since I received it this morning.

The amendment tabled by the noble Lord, Lord Watson, lists a range of bodies whose views rightly need to be taken into account in LSIPs. My Amendment 12 adds two more categories to the list: bodies providing careers information, advice and guidance and independent training providers. I have previously expressed my view that the importance of high-quality careers guidance should be more explicitly covered in the Bill. Every LSIP should surely take account of the status of careers guidance provision in its area through drawing on the views of those responsible for it, including careers hubs and careers leaders in local education institutions. Seeking to ensure that all schools and colleges in its area are meeting the eight Gatsby careers benchmarks and complying fully with the requirements of the Baker clause as, I hope, amended by the Bill.

Given the importance of informing young people about their career choices and options early on, will the Minister tell us how the Government are ensuring that chambers of commerce currently delivering trailblazer LSIPs are engaging with local careers hubs to ensure that careers provision in schools is aligned with local labour market skills needs?

Could she also say whether there are any plans for a new careers strategy, to revive the terrific impetus provided by the previous one in improving the careers situation, and what the Government are doing to ensure that careers hubs will be an established part of the future careers landscape right across England, with sufficient funding to support careers activities in schools and colleges and enough qualified careers professionals to deliver them? Finding those professionals seems an increasing problem for some schools.

My Amendment 12 would also add independent training providers. I will spare noble Lords a repeat of my spiel on independent training providers, but I do believe that no LSIP can afford not to take account of their role in meeting the skills needs of its area.

My Amendments 14 and 18 seek to ensure that LSIPs take account of UK-wide standards developed by national employer groups, picking up on what the noble Lord, Lord Storey, said. Either of the two might meet the need, although the first relates to the actual content of an LSIP, and the second to the characteristics of the employer representative body which develops it. I apologise to your Lordships if this seems like trying to get two amendments for the price of one.

There will be many areas of technology where there is a pressing need for LSIPs to upskill and reskill the existing workforce in their area but there are no associated apprenticeship standards; for example, because they would not support a full year of study. Examples include some of the key green technologies, such as installation of ground source heat pumps or electric car charging points. In the absence of formal standards, LSIPs will need to assure themselves that training provision and assessment is of the right quality and meets agreed industry standards. This assurance could be provided by recognised national not-for-profit employer bodies representing specific sectors, such as the Energy & Utility Skills Partnership, again mentioned by the noble Lord, Lord Storey, for whose briefing I am grateful. I would welcome the Minister’s views on how this need might be met and whether she might consider establishing a reasonably short list of recognised sectoral employer bodies capable of supporting LSIPs in this respect.

Amendment 21 addresses a related issue. The Bill says remarkably little about accountability and reporting requirements of employer representative bodies, apart from developing their LSIPs in a form that the Secretary of State is prepared to approve and publish. Perhaps the Minister could say something about how the subsequent progress and implementation of the plans will be reported and monitored; how information from LSIPs across the country will be aggregated to assess their impact on national skills needs and objectives; and how the Secretary of State will determine whether the new arrangements in specific LSIP areas are working as intended, bearing in mind the point that noble Lord, Lord Adonis, and others have made, that chambers of commerce in England vary considerably in size, scope and capacity, and may not always be the right body to lead ERBs.

Amendment 21 addresses only one specific aspect of this broader issue of reporting accountability and two-way flows of information between local plan areas and the centre. The amendment would ensure that the Institute for Apprenticeships and Technical Education has access, via reports from ERBs, to information on the activities and outcomes of the upskilling and reskilling programmes being pursued through their LSIPs, to inform its own work in identifying and approving needed apprenticeship standards and other technical qualifications for the future.

I do not anticipate pressing any of my amendments to a vote, but if the noble Lord, Lord Watson, decides to seek the opinion of the House on his Amendment 11, I shall gladly support him.

[Lord Addington (LD)]

My Lords, if I may say a few words now, let me first say that I will speak to Amendment 26 in my name. It was originally in the name of the noble Lord, Lord Lingfield, who has just sent me a note saying that he wishes me well but he has an appointment he must go to in the City. All right for some, but it was his idea in the first place.

Anyway, I have a few comments about the clerical Bench’s series of amendments here. What I like about these is that when we deal with special educational needs, often it is as special educational needs going forward into the outside world. The fact is that talking about the employment gap for people with disabilities is something we should spend more time on and is sometimes a better way of looking at it to get clarification.

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[Lord Storey (LD)]

My Lords, apprenticeships have been a really important development, particularly for young people. We saw at the beginning of the development of apprenticeships how young people felt that this was an important way to develop their skills and career prospects. For young people, it meant no student debt and more experience—20% on study and the rest on practical training—but in recent years, we have seen a massive decline in apprenticeships for young people, not just because of Covid. Current rates of employer-funded training for 16 and 17 year-olds are at their lowest levels since the 1980s. Just 3% of young people took up an apprenticeship in 2020 and only 2% of those were employer-funded training: it is almost back to the future.

Obviously, the pandemic and staying in education has had an effect, but the IFS concluded that there are fewer policy reforms or initiatives to arrest that decline in work experience among 16 to 17 year-olds. That is the area that we need to talk about, to look at and to be flexible about. Apprenticeship, like other routes of technical education, suffers from entrenched negative perceptions, biases and stereotypes in comparison to an academic route. Apprenticeship providers of high quality that lead to high earnings and better employment outcomes need to be stressed.

The Government have set a target that all public bodies should take on 250 apprenticeships with no age bracket, but the National Audit Office report found that employers were simply using money on existing professional development courses. Will the Government look again at how those targets might be honed more to young people because there is no age limit on them?

Of course, experienced workers should upskill or retrain, but apprenticeships should be prioritised for young people. The Government should look at employers and at receiving funds from the apprenticeship levy, using a substantial part of it on young people who began apprenticeships at levels 2 and 3, before the age of 25. We now need to refocus on the under 25s. We need to be ambitious, particularly with how we use the levy. The LGA—I declare an interest as a vice-president —has asked for more flexibility, for example by allowing a proportion of levy funds to be used to subsidise apprenticeship wages.

As we have discussed before, any of the apprenticeship that is unused of course goes back to the Treasury. The Energy & Utilities Skills Partnership did a survey of its membership and found that 54% of the levy was unspent and going back to the Treasury. What a waste for the education sector and for skills and vocational education. Why are we allowing that to happen? We could unlock that logjam by ensuring that we use that money in more flexible ways—there are plenty of examples.

My amendment highlights the issue of young people from ethnic minority backgrounds, who, quite frankly, have not been taking up apprenticeship opportunities. We need to understand why, and how we can encourage them to do that. By being flexible, we can perhaps make that happen. I hope that Members will support this amendment.

[Lord Aberdare (CB)]

My Lords, I have added my name to Amendment 34 of the noble Lord, Lord Storey, because of the key role that apprenticeships have to play in meeting the UK’s skills challenges, as pointed out earlier by my noble friend Lord Bird. However, as it stands, the policy is not working as well as it should or could, as pointed out by the noble Lord, Lord Adonis, and indeed the noble Lord, Lord Storey.

I was about to regale your Lordships with the results of a survey carried out by the energy and utilities sector, but that has already been done on my behalf, so noble Lords will be glad to hear that my speech will be even shorter. However, this illustrates that greater flexibility in the use of levy funds could actually increase the use of apprenticeships to deliver competences needed in that sector, for example through supporting pre-apprentice training initiatives in schools to increase the diversity and inclusiveness of new entrants.

Extra flexibility might allow some of the available levy funds to be used for approved high-quality shorter courses—less than one year long—or for apprenticeship-related costs outside the training itself, which might help in the perennial challenge of encouraging smaller firms to offer apprenticeships. This simple amendment merely gives the Secretary of State the power to request a much-needed review of the apprenticeship levy to ensure that it is working effectively in terms of the level of funding available for different apprenticeship standards and the opportunity to link policy on the levy more closely to other aspects of the overall skills programme. Even if the Government do not accept this amendment, I hope the Minister may say something about how they will respond to the widespread perception that the levy as it stands is not playing as effective a part in addressing the skills challenge as it should.

[Baroness Chisholm of Owlpen (Con)]

My Lords, I am grateful for the opportunity to discuss apprenticeships. We have already heard from several noble Lords today about apprenticeships. They are at the heart of the Government’s skills ambitions—does the noble Lord want to speak?