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

Lord Bishop of Leeds Excerpts

2nd reading
Tuesday 22nd October 2024 Lords Chamber

[The Lord Bishop of Leeds]

My Lords, it is a great pleasure to follow the noble Lord, Lord Aberdare. I realise that I stand in the way of the maiden speech of the noble Lord, Lord Beamish, which I look forward to hearing shortly. I shall try to be brief.

I support the Bill in principle, and certainly the ambition behind it—and I certainly understand the logic behind it. A number of questions have already been raised about it that will need some careful addressing and answering if the House is to be confident about what is proposed. I want to focus on the FE sector, which has been facing some difficulty in recent years—facing the uncertainty while awaiting the outcome of the Government’s pause and review of level 3 qualifications, deals with FE pay being considered separately from the ongoing negotiations for the recently resurrected School Support Staff Negotiating Body, and faces up to the impact of sustained cuts and falls in funding in real terms. But FE is doing amazing work, particularly with particular sectors of our young people.

My questions relate to the move of IfATE into Skills England in relation to several issues. First, on young people, the apprenticeship levy has resulted in fewer young people undertaking apprenticeships, Young people in general, but especially those not in employment, education or training, form a demographic that stands to benefit immensely from apprenticeships, but it seems to me that we have seen a trend of employers choosing to spend their apprenticeship levy on older employees or career changers, as young people are sometimes perceived as harder to work with. How will Skills England incentivise the recruitment and training of young people through apprenticeships?

Secondly, on SMEs, small and medium-sized enterprises have not found the apprenticeship levy simple to navigate. It is much simpler for those with a turnover of more than £3 million a year, as they contribute automatically. Complexity and perceived uncertainty around a solution of co-investment has limited the take-up of apprentices by SMEs, which can disproportionately affect smaller or more rural communities, where larger businesses simply may not operate. How will the new structures around apprenticeships incentivise and support provision of apprenticeships by small and medium-sized businesses?

On the question of levels, the apprenticeship levy has had a much bigger impact on higher-level qualifications, such as higher and degree apprenticeships, and in turn therefore helps higher education institutions. But it is not improving the range and offer of courses available at lower levels, such as intermediate apprenticeships at levels 2 and 3, to anywhere near the same level. Arguably, that increases the options available to already more privileged or socially mobile apprenticeship candidates, while restricting the options available to those most in need.

I shall give an example to illustrate my point. There is currently a crisis in care. Statistically, care-experienced young people are far more likely to study at FE institutions than HE institutions. Given the weaker social fabric supporting them, and the complexity of transitioning to independent adulthood after 18, which is challenging enough as they leave the care system, these young people should be the ideal candidates for apprenticeships and the training and salary or wages that they provide. However, they are more likely to need to undertake a lower-level apprenticeship in the first instance, and are seen by some providers as harder to work with, as I indicated earlier, and are therefore doubly passed over in favour of older and more experienced candidates undertaking higher or degree level apprenticeships, for which a young learner may not be eligible, depending on their prior education. How will Skills England use apprenticeship structures and incentives to make sure that our apprenticeship structures and technical education are making the most impact for our most vulnerable young adults and learners?