Skills: Importance for the UK Economy and Quality of Life

Lord Aberdare Excerpts

Thursday 9th May 2024 Lords Chamber

Moved by

[Lord Aberdare]

To move that this House takes note of the importance of skills for the success of the United Kingdom economy and for the quality of life of individuals.

[Lord Aberdare (CB)]

My Lords, skills are central to the future of our young people and central to the future of our nation. Every one of the main challenges we face depends for its resolution on our having the right skills, now and in the future. Yet it seems to me that we, including in this House, do not focus enough on how to develop, maintain and enhance the skills needed to achieve net zero; to become a science and technology superpower; to realise the potential of AI; to meet our energy needs; to defend ourselves in an increasingly fractious world; to improve the quality of our health and care systems; to build enough new homes; to upgrade our transport infrastructure; to support our brilliant creative sector; and to pursue numerous other aims. All of these depend on skills.

My belief in the importance of skills is partly personal. I emerged from a very privileged education with an Oxford classics degree, an impressive academic record, virtually no practical skills and little idea of what sort of career to pursue. I believe that we can and should do better for our young people. I am also struck by the contrast between attitudes to education and skills today, and the burning desire to improve themselves that led some 200,000 Welsh people to learn to read the Bible in the circulating schools set up by Griffith Jones of Llanddowror, in my home county of Carmarthen, in the 18th century.

I am absolutely delighted to have obtained this debate to explore how we can better meet our skills needs, and greatly look forward to hearing the contributions of all noble Lords who are speaking, not least the maiden speeches of the noble Lords, Lord Elliott of Mickle Fell and Lord Marks of Hale, and of course the response of the Minister. I am grateful to the House of Lords Library for its briefing for the debate, for additional research that Thomas Weston has done for me, and to the many organisations which have deluged me with helpful and insightful briefings, to which I fear I shall do less than justice in the time available.

Virtually every sector of our economy currently faces worker shortages; so-called skills-shortage vacancies have risen from about 91,500 in 2011 to over 531,000 in 2022—up from 16% to 36% of all vacancies. A recent British Chambers of Commerce survey found that 73% of organisations are facing skills shortages. We have stubbornly high levels of young people who are not in education, employment or training: 12% of young people, some 850,000, are NEET. At the same time, employers complain that young people leaving education lack work-ready skills: 60% of employers struggle to find the right technical skills and 50% cannot find the transferable skills that they need. UK productivity seems to be stuck in a rut and falling behind that of other countries. Teacher recruitment and retention is not keeping up with demand. We face a serious skills challenge.

What sorts of skills do we need? I know other noble Lords will talk about specific skills, so I will just outline some of the categories needed. First, all of us need basic skills, including literacy, numeracy, digital literacy and no doubt oracy, which had not been invented when I was at school—your Lordships may have reason to regret that. Literacy and numeracy are, rightly, required elements of the school curriculum, although the Education for 11-16 Year Olds Committee, on which I served, argued that there should be more functional alternatives to the current requirement to achieve a level 4 GCSE pass, which has a highly damaging effect on the subsequent educational progress of the one-third of young people who fail to attain it.

Secondly, there are specific work or job-related skills, including technical and practical skills, for which training may be delivered by FE colleges, independent training providers or employers themselves. The much-needed green skills belong in this category.

Thirdly, there are the skills variously described as life skills, soft skills or transferable skills. The Skills Builder Partnership identifies eight essential skills: speaking; listening; problem-solving; creativity; aiming high; staying positive; teamwork; and leadership. It has developed a universal framework resource for teaching and assessing these, which is being used in a growing number of schools. These are increasingly important in the modern world, in both our work and personal lives. They are also the skills which employers are crying out for most of all: 57% of employers say they value transferable over technical skills. Employers find that the education system prepares students well for academic progression, rather than vocational pathways, on which there is insufficient focus. Yet 98% of teachers recognise essential skills as important for their learners’ employment opportunities and 86% agree that the national curriculum should include them.

The Local Government Association identifies no fewer than 49 national employment and skills-related schemes or services across England. They spend an estimated £20 billion in total and are managed by at least nine Whitehall departments and agencies. The Minister will have a lot to cover in her response.

I will briefly mention three initiatives within the remit of the DfE about which I feel strongly. Apprenticeships are a key part of skills policy. The apprenticeship levy is an important means of securing employer funding for skills training. There has been a disappointing decline in apprenticeship starts in recent years—from more than 509,000 in 2015-16 to about 337,000 in 2022-23. I will highlight two concerns about the current system. First, the number of apprenticeships for young people aged under 19 has declined even more steeply—from more than 131,000 to less than 78,000, as has the number of entry-level—level 2—apprenticeships, which are most suitable for many in this age group. The levy, in effect, incentivises employers to offer more expensive higher-level apprenticeships, often to upskill or reskill existing employees. This is also important, of course, but the balance seems wrong and needs to be adjusted to ensure a greater intake of younger apprentices, especially at level 2.

Secondly, there is a long-standing need to reduce the barriers of cost, complexity and bureaucracy which deter small employers from offering apprenticeships. Many employers are calling for greater flexibility as to how levy funds can be spent—for example to cover other forms of accredited training. The Government have made some improvements, but take-up by SMEs is still much too low.

A successful skills system depends on the availability of first-rate careers education and information for everyone from primary school age to adulthood. Much progress has been made in recent years, thanks largely to the efforts of the Careers & Enterprise Company and other careers organisations. Some 92% of schools are now part of local career hubs. More than 3,000 careers leaders have been trained, and the average number of the eight Gatsby benchmarks of good career guidance achieved by schools has risen from 2.1 to 5.5 in the last five years. Encouragingly, schools serving the most disadvantaged groups perform above the average. There is still much more to do in improving the quality of careers provision and business engagement, especially at local level and outside schools, tackling barriers to progression into jobs, and firmly establishing careers education as the bridge between young people and business.

The Skills and Post-16 Education Act 2022 led to the creation of local skills improvement plans across all 38 areas of England—most of them are led by chambers of commerce—which set out actionable priorities to tackle local skills needs. My noble friend Lady Lane-Fox, who is the president of the British Chambers of Commerce, will talk more about them. These should be a powerful tool for understanding and addressing skills needs and opportunities across England. Perhaps the Minister could tell us how implementation of the plans will be monitored and assessed. Should there not also be an NSIP—a national skills improvement plan—to ensure that, taken together with LSIPs, they are meeting identified national skills priorities and that programmes at national and local government levels are effectively co-ordinated?

Later speakers will doubtless mention other skills-related government initiatives, such as T-levels, the lifelong learning entitlement and the advanced British standard. We will also hear about some of the Labour Party’s proposals, including for a national skills taskforce. My impression is that existing initiatives add up to rather less than the sum of their parts, rather than a coherent and comprehensive package for tackling skills needs. They seem fragmented and lacking clarity about how different schemes are supposed to work together.

There are also many excellent organisations outside government helping to develop young people’s skills. The National Citizen Service, along with the Duke of Edinburgh’s Award, recently launched a report in Parliament on the enrichment activities they offer. The Scouts seek to empower young people with skills for life. WorldSkills UK, which is this morning announcing the young people selected to represent Team UK at this year’s Skills Olympics in Lyon, described one of its aims as “championing future skills” and helping the UK become a “world-class skills economy” so as to remain globally competitive. I say amen to that.

This Government do not seem keen on strategies, but no well-run organisation of any size would be without a human resources strategy. We, as a country, need a skills strategy to fulfil a similar role. What might such a strategy look like? First, skills should be recognised as a priority for any Government—national, devolved or local—and every area of policy needs to include provision for developing required skills. Secondly, the strategy should be evidence-based, built on sound data about current and anticipated skills needs, shortages and opportunities. There needs to be a process for monitoring and reporting on implementation and progress.

Thirdly, the strategy should be comprehensive and joined up across relevant government departments—I mentioned the nine that have programmes in this area—and across the nation, taking account both of local plans and of regional and national priorities, and seeking complementarity with the devolved nations, from which there may be valuable lessons to be learned.

Fourthly, and very importantly, the strategy should be matched by an education system fully aligned with its goals at all levels from primary to tertiary and beyond. This must recognise and seek to meet the need for skilled technicians and tradespeople, as well as university graduates, and give all of them a strong grounding in basic and essential skills. It is high time for the holy grail of parity of esteem between academic and technical/vocational education to be seized—although I am not sure whether that is the right thing to do with a grail. Of course, the implications of a skills strategy for education deserve a debate of their own.

Fifthly, a strategy should incorporate measures to increase teacher motivation and recognition by allowing them greater flexibility, to teach in a way that best suits their own abilities, experiences and interests. Highly skilled, highly motivated and highly regarded teachers must be a central plank of any skills strategy.

Sixthly, employers must be deeply engaged, both in defining and in delivering the strategy, including by ensuring that their own skills needs are recognised, and through offering work experience placements and apprenticeships.

Finally, the strategy should be vigorously promoted and publicised to individuals, employers, teachers, schools, parents and everyone concerned with skills. Such a strategy should aim to raise skills much higher up the public agenda and recapture some of the passion for education and skills that drove the success of Griffith Jones’s schools. Developing and delivering it would be neither easy nor quick and would depend on attracting the co-operation and commitment of all parties with a stake in raising skills—which is basically all of us. It might be supported by a high-profile campaign to build enthusiasm for pursuing the skills that young people and our economy need and to incentivise and celebrate investment in skills. The DfE’s existing Skills for Life campaign seems lacking in ambition and impact.

I am conscious that I have barely scratched the surface of the issues we are debating. I have every confidence that subsequent speakers will fill many of the gaps. I hope that this House, with the benefit of all the wisdom and expertise that it embodies, will continue to work doggedly with government, education institutions, employers and others in pursuit of policies to make the UK a world leader in skills.

When Napoleon supposedly described us as a nation of shopkeepers, I believe it was meant more as a recognition of our commercial talents than as an insult. Now is the time to apply our talents to a new challenge—to show ourselves to the world as a nation of skills builders. I beg to move.

--- Later in debate ---

[Lord Aberdare (CB)]

My Lords, I have found this a thoroughly absorbing, enlightening and encouraging debate. I am extremely grateful to all noble Lords who have spoken, from so many different perspectives. I particularly look forward to hearing more in the future from the noble Lords, Lord Marks of Hale and Lord Elliott of Mickle Fell, following their splendid maiden speeches. I am also grateful to the Minister. I very much echo the tribute by the noble Lord, Lord Addington, to her knowledge and commitment to this area, and thank her for her characteristically comprehensive response to such a broad debate. I am certainly not going to try to summarise in any sense, but I very much look forward to reading it in Hansard. It has very much confirmed to me the importance of skills as an issue, the breadth of areas it covers and the scale of the challenges we need to address. It is much too broad for a single debate, so I hope we will have other opportunities to discuss it.

My noble friend Lord Clancarty spotted the fact that I had omitted “education” from the Motion. That was because I wanted to focus in particular on the skills aspect. Other noble Lords, including the noble Lord, Lord Addington, commented that skills are not taken seriously enough. It seems that for too long education has been a powerful horse pulling a rather ramshackle skills carriage, when what we need is for them to work in harness with other horses: employers, other departments, parents—all the groups we have talked about—and they should be pulling a first-class, golden carriage accommodating both education and skills. So I was very glad to hear the noble Lord, Lord Holmes, talk about a vision for skills, which perhaps is the design for that golden carriage that we need. This is an issue that I will certainly wish to push further, but I reiterate my thanks to all noble Lords for a really inspiring morning.

Motion agreed.

Higher Education: Arts and Humanities

Lord Aberdare Excerpts

Wednesday 1st May 2024 Lords Chamber

[Baroness Barran (Con)]

I am unable to give the noble Baroness a precise timeline, but the Government have already acted on cultural and creative education, for example through our investment in the institutes of technology: all 21 of these will be open by this autumn and seven are already working directly with creative, film and entertainment industries, addressing just the sort of cultural and creative jobs that I know the noble Baroness aspires to.

[Lord Aberdare (CB)]

My Lords, I declare my interest as a graduate in classics, or literae humaniores as they were called at Oxford. Studying classics can open doors to a vast range of knowledge and experience, including language learning; grammar and vocabulary; literature and history; scientific, botanical and medical terminology; arts, architecture and sculpture, so much of which is based on classical themes and models, as is classical music; and logical thinking, which is so important to digital technologies and coding and to other fields of activity. So what steps are the Government taking to promote and enhance continued teaching of classical subjects at university?

[Baroness Barran (Con)]

The noble Lord will be aware that the Government do not impose in any way on universities what subjects they should teach. The noble Lord has done a most marvellous marketing pitch for classics; I expect to see applications rise in response this autumn. But it is up to individual universities to decide. In schools, we have been encouraging the greater teaching of Latin, and certainly that is much appreciated by those students who benefit.

Independent Schools

Lord Aberdare Excerpts

Monday 18th March 2024 Lords Chamber

[Baroness Barran (Con)]

I think my noble friend is referring to children with special educational needs and disabilities. My understanding of the Opposition’s proposed policy is that children with an education, health and care plan would be exempt from the fees. However, my noble friend is right: there are almost 100,000 children in independent schools with special educational needs and without an education, health and care plan. This will push those parents into seeking an EHCP, with all the knock-on effects on local authority finances that we can see around the country.

[Lord Aberdare (CB)]

My Lords, what are the Government doing to try to close what seems to be an alarmingly growing gap between independent and state schools in the teaching of arts and creative subjects?

[Baroness Barran (Con)]

There are a number of ways in which the Government are thinking about this. A number of your Lordships, including my noble friend Lord Black, have pointed to the partnerships, and I know that many independent schools work closely with their state school neighbours to ensure that facilities can be shared and giant performances are put on. Our focus on a knowledge-rich curriculum, with breadth, and on our cultural education plan will contribute to this.

Education: 11 to 16 Year-olds

Lord Aberdare Excerpts

Thursday 8th February 2024 Lords Chamber

[Baroness Barran (Con)]

I appreciate how alluring it is to talk about some of the wider subjects the noble Baroness mentioned. As she knows, we are developing a cultural education plan that will be launched later this year, and I accept that things such as the IT curriculum maybe do not age as well as some other elements of the curriculum. But, in terms of the way in which we all learn, and children learn, the importance of putting down in our long-term memory a really rich knowledge base from which to apply those skills is critical, and we lose that at our peril.

[Lord Aberdare (CB)]

My Lords, this is National Apprenticeship Week, during which I have met a considerable number of young apprentices at parliamentary events. Not one of them claimed to have found out about their apprenticeship through their school. This surely reinforces the finding of the Education Committee that the balance of 11 to 16 education is unduly skewed towards academic subjects, rather than technical and practical ones. So what steps have the Government taken to ensure that schools make all 11 to 16-year olds more aware of the range of education pathways available to them, including those leading to apprenticeships?

[Baroness Barran (Con)]

The Government are very proud of their track record on apprenticeships. I hear the noble Lord’s reflections in terms of technical apprenticeships, but actually 70% of our economy is now reflected in the apprenticeship options, including our service sector as well as more traditional areas of apprenticeships. Thanks to amendments put down in your Lordships’ House, we are expanding the amount of careers education in schools to six days across a child’s secondary career.

Access to Musical Education in School

Lord Aberdare Excerpts

Wednesday 18th October 2023 Lords Chamber

[Lord Aberdare (CB)]

My Lords, I had not planned to speak in this excellent debate, introduced by the noble Lord, Lord Boateng. However, having chaired an online education conference on music education this morning, with speakers from schools, hubs and other music education bodies, I am grateful for this opportunity to speak briefly in the gap. I declare my interest as chair of a small classical music education charity. I will highlight three points which came across strongly, all of which have been echoed in the debate.

First, several speakers emphasised that delivery of the national plan and of the proposed realignment and reduction of music education hubs must address inequalities that arise from the widely varying needs of different local and regional areas. Schools in rural areas, such as Suffolk, disadvantaged by lack of local music resources or, indeed, scope for partnerships, face challenges which require forms of support from hubs that are different from those in better musically served urban areas. They also face extra costs, such as travel to music venues or events—it costs over £100 just to get there by bus—and greater difficulties in raising funds, whether from parents or from grant-makers like the excellent charity of the noble Lord, Lord Polak.

Secondly, hubs were seen as having key roles as champions of accessibility and inclusion and in promoting the partnerships which were such a crucial part of delivering music education, not least for special needs pupils. It was suggested that the national plan would benefit from having some more specific targets or outputs or, indeed, that core parts of the plan could even be made statutory.

Thirdly, one of the strongest common themes emerging—and, indeed, emerging this evening—was the need for a joined-up workforce strategy for music education and delivery of the national plan, consistent with the Government’s broader vision for the music and creative sector as a whole. Several speakers commented on what they saw as a mismatch between the ambitions of the plan and the ambitions of the DCMS strategy for the sector.

Many speakers raised issues of underrecruitment of specialist music teachers, of teachers leaving the profession early and of the pay and conditions offered to music teachers, making it less appealing as a career. There can be no effective music education without enough suitably qualified teachers.

Speakers at the conference radiated Lady Garden-like verve and commitment to delivering high-quality music education and addressing inequalities in access. They also highlighted many of the obstacles that we have heard about this evening. I look forward to hearing from the Minister how the Government seek to tackle those.

T-levels

Lord Aberdare Excerpts

Tuesday 25th July 2023 Lords Chamber

[Baroness Barran (Con)]

I do not recognise the examples the noble Lord referred to. When I talk to students who have done T-levels, they are evangelical about the value it has brought them and proud of their achievements and the quality of what they have learned. In relation to careers advice, in spring this year we made available grants of up to £10,000 per provider to boost careers guidance in schools and colleges, so all students have a good understanding of T-levels and their benefits.

[Lord Aberdare (CB)]

My Lords, what are the Government doing to encourage more small and medium-sized enterprises to offer T-level work placements, given that in many parts of the country placements in larger businesses may not be easily available and SMEs play a key role in many vital sectors of the economy, including the creative sector?

[Baroness Barran (Con)]

The noble Lord is absolutely right that we need a range of choices of placements, and that must include small and medium-sized enterprises. We launched recently an employer support fund, which will pay for legitimate costs employers incur in hosting placements. We believe that will be of particular value to small and medium-sized enterprises.

Lifelong Learning (Higher Education Fee Limits) Bill

Lord Aberdare Excerpts

Monday 10th July 2023 Grand Committee

[Lord Addington (LD)]

My Lords, I have added my name to the noble Baroness’s amendment. I have my own amendment in a similar vein in this group. It is probably about time that I reminded the Committee of my declared interests. I am chairman of Microlink PC Ltd, which supports those with disabilities, and president of the British Dyslexia Association.

The idea of reviewing legislation is sound, particularly so with this Bill because we all basically agree that it is the basis of a good idea; it is useful. It is fundamentally the fact that we are going to address skills in a more flexible manner. More importantly, the real revolution here is going down to level 4. This means that we are looking at a new structure for supporting people to get skills and make themselves more productive, blah blah blah. We have a structure going forward.

My amendment would add two big changes. One is on sharia law. We have spent a great deal of time talking about getting loans that conform to sharia law. We have a spent a great deal of time talking about it in Committee. A great many ideas have come up. There are people who have invested far more in it than me. I do not think that any of them are in the Room now; they are possibly sitting in a corner, quietly crying when it is brought up again. The fact of the matter is that we should have done something by now. It is not beyond the wit of man to do it, apparently, so why has it not happened?

On the second change, I have to apologise to the Committee because it has become one of the little bees in my bonnet: special educational needs. The Minister may have sneakily put in her previous response an answer to some of my concerns around whether the disabled students’ allowance will cover everything in the Bill. I take it that this Bill will expand the DSA down to cover all level 4 courses; if so, we will need a review to look at how it is helping and what it is covering. However, there are odd things about the DSA. A few years back, higher education institutions took over what had been the first tranche of it; that was providing information capture within all the institutions in which there was teaching.

I raised this issue at Second Reading. I understand that I did not get a response due to the scope of the Bill and the limits of time, but we will need to look at how that whole picture of support is worked in or, indeed, whether it does not need to go in. That would come as a surprise. Is it better to have individual support packages for those who have disabilities, for example, to capture what is said in lectures and transfer it to something that can be either read later on or played back? That is a pretty basic function of assistive tech. You get the information presented to you in a form in which you can absorb it.

I hope that the Minister will be able to confirm the comments that she made in her earlier answer and build on them here, as well as confirm that the structure—the institution itself—will bring this in. We are talking about a few microphones, digital recording and going back to platforms that are readily available now. They already exist. Half of these institutions, if they provide higher education, should be doing this anyway. The big difference is in whether they switch the machine on or off, depending on the course level. I cannot see why they would ever switch it off but, hey, I am here and they are there.

Could we have a few clarifications from the Minister about what we are doing and how we are going to observe information, store it and act upon it in the future? We need to do that in order to be sure of the areas that we are talking about. I do not think it would do any harm at all to take both lists and put them together. Please could we have answers?

With regard to both the amendments, mine and that of the noble Baroness, Lady Twycross, I would particularly like to know what we are going to do about sharia law, something to which we should have had an answer a long time ago. The cock-up school of history has probably been active here, but we can do something about it. Making sure that all the provisions of the DSA get in would put my mind at rest on this.

Having a very good system only for those at the top of the education tree by definition excludes quite a few. By bringing it slightly further down, you will expand the number of people who acquire qualifications, which means they will be financially independent and have a good standard of living. Surely that is not too much to ask of a piece of government legislation.

[Lord Aberdare (CB)]

My Lords, I support Amendment 7, looking to review how the Act is working. I regret that I was not able to speak at Second Reading.

I shall mention some specific issues that I hope such a review would include, reflecting some of the briefings that I and, no doubt, other noble Lords have received. The list of items to be covered mentions the provision of courses offered by higher education and further education providers, but nowhere in the amendment or indeed in the Bill is there any reference to independent training providers, one of my hot buttons. Yet ITPs are likely to play an important part in delivering LLE-funded courses and indeed modules.

There are two specific issues relating to ITPs. The first is that the process for applying for and gaining recognition as a provider in this field needs to be straightforward and efficient. It is good to see the idea of the third recognition route for providers via the Office for Students.

The second, which I suspect the Minister will have less flexibility in responding to, is that, for many of the courses they offer, independent providers have to charge VAT, even though FE colleges providing very similar courses do not, so there is a fundamental issue of fairness there. I know that VAT is largely untouchable, but the advantage of a review such as this is that it might highlight some of the impact of that competitive disadvantage.

The second concern that has been raised is the possible impact on creative subjects. They can be expensive to deliver, requiring extra resources and facilities, and are often seen as less valuable in the world of employment and work, although that is something I would strongly dispute. It would be welcome if the Minister could reassure us, or if the review could help to demonstrate, whether creative subjects are playing their fair part in terms of the courses being offered and taken up.

The third issue is a robust system of information, advice and guidance to support the LLE in general, both to ensure that young people—indeed, all people—considering taking up courses by using the LLE should be clear about what the opportunities, impact, risks and costs are, and to provide good information to potential providers. I am thinking specifically of SMEs, which, again, have an important role to play but may need lots of support and information in order to know how to play it.

That would all feed into the various uptake headings—the first three all relate to uptake by learners—so a review as proposed by the amendment would be really helpful in making sure that the aims of the Bill, and indeed of the lifelong learning entitlement as a whole, are being met. I hope the Minister will be able to tell us something about how the Government are planning to review these issues anyway with or without the amendment, but the amendment is a jolly good idea.

[Lord Willetts (Con)]

My Lords, I shall indeed ask some further questions of the Minister arising from the proposal in this amendment, because I think that it is aimed at learning as much as possible about this very bold initiative. First, following on from some of the points made by the noble Baroness, Lady Twycross, how will this scheme interact with employer spending? Clearly there are upsides and downsides. It is possible that the ability to spend some money from this loan alongside spending from an employer will make vocational courses and provision viable when they otherwise would not have been, and that is a good thing. On the other hand, there is the risk of some employers shedding their responsibilities and expecting an employee to use this loan scheme to finance training that they would otherwise have funded. It would help a lot of us if in her answers—they are always very helpful and informative—the Minister could explain exactly how the Government envisage they are going to monitor and manage that process so we know how we get the best possible outcome of the extra total spend on training and not the worst outcome, which would be the taxpayer simply picking up more of the bill with no increase in the total. Any indications on how employer spending might react would be very helpful.

Secondly, on the provision of courses offered by higher and further education providers, the Minister will know that I am interested in one possible use of this scheme being that at last we have a clear indication of public finance through loans for four years of higher education. Of course, that could be taken at different points over someone’s life in lots of different engagements with higher education, but equally, it could be four years in one go. If she could offer an indication of the Government’s support for that way in which students could benefit, it would be helpful.

I hesitate to add any suggestions of uncertainty when there is quite a lot of cross-party consensus on this issue, but it would be understandable if some people young thought “I don’t know how long this lifelong loan scheme is going to be around; if I’m currently eligible for it, I am going to take my chance now and get on with it rather than necessarily being confident it’s going to be around in 20 years’ time when I’m at a different stage of my career”. Being clear on the opportunity for people to take a four-year loan now would be helpful, and I hope the Minister can inform the Committee further on that.

Apprenticeship Levy

Lord Aberdare Excerpts

Tuesday 25th April 2023 Lords Chamber

[Baroness Barran (Con)]

I think the noble Lord would agree that this country needs to invest more in the skills of the workforce, both those entering the workforce and those currently in it. The last thing we need to do is cut back on the amount of funding going into apprenticeships. I remind the House that of the £2.5 billion last year, there was an £11 million underspend, so it was fully disbursed. We do offer employers flexibility; we are spending £550 million on skills boot camps for the kind of short courses to which the noble Lord alludes, as well as working in particular with the creative industries to offer flexible apprenticeships.

[Lord Aberdare (CB)]

My Lords, what assessment have the Government made of the results of initiatives to increase and broaden the take-up of apprenticeships, such as flexible apprenticeships, making it easier for small businesses to host apprentices, and levy transfer schemes, enabling larger employers to transfer unused levy to businesses in their supply chains? Given the seemingly limited impact of these schemes to date, what plans does the Minister have to increase the flexibility of the levy so that more businesses in more sectors, and especially SMEs, are able to make use of it?

[Baroness Barran (Con)]

I do not completely accept the suggestion that the noble Lord makes; 41% of all apprenticeship starts were in SMEs in 2020-21, up from 38% in 2019-20. We have a lot of initiatives. For example, we have lifted the cap on the number of apprentices a small business can take on. In the area of the creative industries, which I alluded to, we are expecting 1,500 apprenticeship starts through the flexible apprenticeship scheme.

Schools: Data, Digital and Financial Literacy

Lord Aberdare Excerpts

Tuesday 14th March 2023 Lords Chamber

[Baroness Barran (Con)]

I have heard of it, but I would also be delighted to meet them. Just to repeat, at the earliest stage, at key stage 1, the compulsory curriculum includes helping children understand how they make choices about how to spend, how to save and how to use money.

[Lord Aberdare (CB)]

My Lords, what steps are the Government taking to improve the balance between technical, academic and creative subjects in schools so that all pupils have the opportunity to pursue and develop knowledge and skills in the areas for which they are best suited, rather than being left behind if they do not achieve five good GCSEs?

[Baroness Barran (Con)]

I thank the noble Lord for the question. He is aware that the Government are very committed to improving the quality of our skills offer, hence the reforms we have made at level 3 qualifications and the introduction of T-levels. It is not just at schools: we are really stressing the opportunities for young people across a range of apprenticeships and other routes into the workplace so that they can realise their potential.

Young People: Skills (Youth Unemployment Committee Report)

Lord Aberdare Excerpts

Wednesday 23rd November 2022 Grand Committee

[Lord Aberdare (CB)]

My Lords, this is an excellent and comprehensive report, on which I congratulate the noble Lord, Lord Shipley, and his committee. Coming in at the tail end of the innings, I will just comment on some specific issues that resonate with me within the report’s very broad coverage.

Careers education, information, advice and guidance, which are not all the same thing, have made much progress over recent years, not least thanks to the efforts of the Careers and Enterprise Company and the National Careers Service. However, as the report notes, there is still a long way to go to assure truly national coverage, consistency and quality. The report, like much policy discussion, tends to concentrate on the education aspect more than on information, advice and guidance. Yet IAG, delivered by qualified career development professionals, especially through personal guidance interviews, should be at the heart of high-quality careers provision. Such interviews at present are often too few or too short to be fully effective. They fall well short of the recommendation of 45 minutes. One of my consistent concerns relates to the lack of investment in developing the careers development workforce to meet this need.

Another issue is whether schools have the funds to attract and retain qualified careers staff. I hear increasing examples of schools, colleges and National Careers Service providers struggling to recruit and retain qualified careers advisers. What plans do the Government have to address this, perhaps through bursaries or other support to gain the necessary qualifications? Careers leaders in schools are not necessarily qualified to provide IAG, so there needs to be proper funding for professional careers advisers who are. Performance against the Gatsby benchmarks for good career guidance is currently assessed by schools themselves. What plans do the Government have to introduce more rigorous external assessment of outputs—for example, based on the Careers Development Institute’s career development framework or the careers impact review being piloted by the Careers and Enterprise Company, or maybe through a careers guidance guarantee, as suggested in the report?

The report also highlights the crucial importance of work experience. Young people need multiple workplace experiences covering a variety of different business sectors and activities—whether they be talks by employers or employees, workplace visits, job shadowing or actual placements—and these must be of high quality. Meeting the requirements of the Baker clause in its latest incarnation should be an absolute minimum, and needs to be enforced, including through Ofsted inspections. I think it is extraordinary that government programmes such as Kickstart do not include careers support as an integral part. The noble Lord, Lord Watson, mentioned Sir John Holman. His recommendations were promised for summer this year; can the Minister tell us when those will appear?

The report rightly includes a substantial chapter on apprenticeships, making recommendations which I fully support. However, I am a little uncomfortable with the suggestion that any employer receiving levy funding should spend at least two-thirds of it on young people under 25 starting apprenticeships at level 2 or 3. There is certainly a need to increase such apprenticeships for younger people, but upskilling and reskilling existing older workers is also vital, and in some sectors and businesses may be a higher priority and more realistically achievable than taking on new, younger employees. Having said that, I fully support increasing the flexibility of the levy and providing mechanisms to encourage employers, particularly SMEs, to take on more younger apprentices.

The new flexi-job apprenticeships scheme is a welcome idea to make it easier for SMEs to take on and support apprentices, and I was delighted to host the launch of the Evolve flexi-job apprenticeship agency in the Lords in July. However, I worry about whether this will prove attractive enough to overcome the barriers facing small firms considering offering apprenticeships, not just the costs but the management time and effort required to support and oversee young apprentices and the bureaucracy involved. It would be a pity if this scheme followed previous initiatives, such as apprenticeship training agencies and group training associations, in having only limited impact.

One topic not covered in the committee’s report is the role of independent training providers—ITPs—in addressing youth unemployment. They are mentioned only once, and only in a quotation from a government report. Having run an ITP providing employability skills training—including via the Future Jobs Fund, which the noble Lord, Lord Knight, mentioned—for young Londoners, many of them at risk of becoming NEET, I know how important ITPs can be in providing training for people who might otherwise fall through gaps in the system and in meeting specific employer training needs that are not covered by existing FE and other provision. ITPs provide the training for some 70% of all apprenticeships, yet the views and capabilities of ITPs are often underrepresented in policy relating to youth employment and skills. I welcome the fact that AELP—the Association of Employment and Learning Providers—representing ITPs, has recently joined the Association of Colleges and City and Guilds to set up a future skills coalition to promote investment in skills, including a much-needed national strategy to support local, inclusive growth. I hope the Minister will engage with this new body in developing relevant aspects of policy on skills and youth unemployment.

Once again I congratulate the committee on this important report, and the noble Lord, Lord Shipley, on his passionate introduction to today’s debate. I also commend the Government, and in particular the Minister, on their and her commitment to tackling youth unemployment. The report, with its 88 recommendations, presents a substantial challenge requiring a change of mindset, as we have heard. Meeting this challenge is vital not just for young people in or facing unemployment but for our overall national growth and well-being.