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

Lord Lucas Excerpts

Committee stage
Thursday 21st November 2024 Grand Committee

[Lord Hampton (CB)]

My Lords, I was at Second Reading. I am a teacher and an optimist, and I genuinely trust the Government. As the noble Lord, Lord Knight, said, we all desperately want this to succeed; we want the 13th iteration to be the Bismarckian iteration that actually cuts through and cuts down flab. We were talking about this and I said that it is like trying to amend fog. We have the sunshine coming through, but at the moment we cannot really see it.

Amendments 21 and 33 seem like a sensible idea because there is a real worry about something going into a government department. I will talk about my amendments later but they are all about scrutiny. There seems to be less scrutiny rather than more once something has disappeared into a government department, which is slightly strange. If we could get Skills England to being a statutory body, out in the open and with more scrutiny, people would have a lot more belief in it.

[Lord Lucas (Con)]

My Lords, I share many of the concerns expressed by noble Lords. The Bill should by no means leave the House in the state in which it entered it. It is important that whatever body Skills England occupies has a great deal more status than the Government have proposed. I just do not think that what they have proposed will ever work in Whitehall. We need to take more care with the preservation of the relationships that have been established by IfATE, which make it work so well. I do not see anything in the transition proposed here that does that and, as I said at Second Reading, I would like to know what is going to happen to the Careers & Enterprise Company.

[The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)]

I thank noble Lords for their broad enthusiasm for Skills England that we heard on this first set of amendments. I hope my response will reassure noble Lords not only that the intention behind the legislation is precisely to transfer functions from IfATE into Skills England—legislatively, that needs to be done via the Secretary of State—but that, furthermore, Skills England is already making an impact on the types of issues that have been identified in the debate. Legislation is important, but it does not always drive action. This Government’s absolute commitment to bringing the current fragmented landscape together has enabled us to make progress already, which I will outline for noble Lords.

The Institute for Apprenticeships and Technical Education has worked closely with employers to develop, approve, review and revise apprenticeships and technical qualifications. It is important to acknowledge IfATE’s achievements, most notably to develop and revise a suite of more than 700 high-quality occupational standards across sectors.

However, despite IfATE’s success in embedding employers into the processes for designing technical qualifications and apprenticeships, the wider skills system remains too fragmented and complex. It is insufficiently responsive to the present and future skills needs of the economy.

To address this fragmentation and unlock the potential for skills which drive growth and widen opportunity, we are creating a single organisation—Skills England. On the point sort of implied by some people that Skills England is, in some way, just a figment of Ministers’ imagination, I reassure noble Lords that it is not just the Department for Education; it is already operational in shadow form. Noble Lords may remember its announcement by the Prime Minister in July, which was one of the earliest actions of this Government. It is already driving change in the way that skills gaps are identified and how key organisations are working together to fill them.

On 24 September, Skills England published its first report, Driving Growth and Widening Opportunities, which provides an authoritative assessment of the key skills challenges that limit growth and opportunity, and an initial assessment of the skills needs in the economy. It also laid out its ambitions for the way in which it would operate, for noble Lords and others to read.

Over the coming months, Skills England will continue to work closely with government departments and relevant stakeholders to expand on the initial assessments of skills needs within 10 particular sectors, both identified in the industrial strategy and because they need quick action. Skills England will continue to develop a detailed, consistent approach to skills measurement and cement its position as the single authoritative voice on skills needs in the economy, which should be addressed to support growth and opportunity.

As I say, Skills England is already working across government. It is working with the industrial strategy advisory council to support the industrial strategy. Regarding when Skills England will broadly take on functions currently delivered by IfATE, it is our intention to lay commencement regulations promptly following Royal Assent to bring into force the provisions that transfer IfATE’s functions, along with its assets and liabilities. Skills England is already operational, and we are determined to ensure that there is no delay in enabling it to become even more effective.

The noble Lord, Lord Aberdare, referenced the Government’s post-16 education and skills strategy, which we are currently working on. I talked about the broad principles of the strategy at the Association of Colleges conference last week. We will publish a broad framework for that relatively soon, with further detail at the beginning of next year.

Skills England will provide an authoritative assessment of skills needs in the economy. It will then use those data and insights to develop and maintain a comprehensive suite of technical qualifications and apprenticeships. As I said, it is already working with key stakeholders to ensure that the identified need and available training are reflected in local and regional skills systems. In response to the noble Baroness, Lady Barran, who argued that it would be appropriate to run Skills England and IfATE concurrently, that would very much lose the benefit that comes from bringing those functions together so that the available training and qualifications that are developed exactly reflect the analysis that Skills England will be in a better place to do. Skills England will take on functions currently delivered by IfATE, delivering them alongside and in line with its broader strategic purpose. In doing so, it will ensure that the system becomes more responsive and better able to quickly and efficiently supply the skills most needed by the economy.

We intend to establish Skills England as an executive agency of the Department for Education. In our debates on the Bill so far, and in Amendment 33 in the name of the noble Baroness, Lady Barran, it has been suggested that Skills England should instead be established as a statutory body. I reassure the Committee that we have considered carefully the risks, opportunities and benefits of different models, to understand from the beginning how the organisation will be successful.

Thanks to the progress that IfATE itself has driven, the system for developing technical qualifications and apprenticeships has matured since IfATE was established in 2017. However, as I said, at the same time we have seen a growing severity in the skills challenges the economy faces. We need Skills England to be a different type of organisation, to support the Government’s growth and opportunity missions. Working as an executive agency, Skills England will balance on the one hand the need for rapid action and independent objective analysis of skills gaps and on the other—this was the point made by the noble Lord, Lord Johnson—proximity and clear links into central government to inform decision-making. This is an appropriate balance of independence and the ability to drive at speed what all noble Lords have argued is the impact that we need Skills England to have.

Skills England will, as with any arm’s-length body, be subject to the highest standards of governance and transparency, including any relevant requirements for review. I will come to some of the questions raised on that in a moment.

Clause 1 introduces Schedule 1, which transfers functions to the Secretary of State and will therefore enable Skills England to take on and deliver functions currently delivered by IfATE, alongside other functions as appropriate, in line with its strategic purpose. This will help address the fragmentation that is holding the system back and restricting improved workforce development and productivity gains.

Clause 2 introduces Schedule 2, which makes provision for a transfer scheme to transfer IfATE’s property, rights and liabilities smoothly to the Secretary of State. It will ensure functional continuity of property, rights and liabilities, including the many contracts that are critical to the operation of the skills system, and it will set a firm basis for the operation of Skills England.

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Moved by

[Lord Lucas]

17: After Clause 8, insert the following new Clause—
“Review: Chief Skills AdviserWithin six months of the day on which this Act is passed, the Secretary of State must lay before Parliament a review of the impact of this Act on the case for creating the role of Chief Skills Adviser, with responsibility for advising Government and reporting to Parliament on the state of skills needs in the economy.”

[Lord Lucas (Con)]

My Lords, I acknowledge that a great deal of the thinking behind Amendment 17 comes from the Edge Foundation. Skills England is a big change and a big opportunity. The Government’s ambitions to unify the skills landscape and respond to the skills need, which is very large and well acknowledged, will require impetus, which Skills England seems to have, but also connection—connection which allows competing interests, particularly between departments, to be resolved and common pathways to be evolved.

It does not seem to me that we can run a skills system by diktat. There is nothing about any department, except the Treasury, that allows it to impose diktat on others. My amendment suggests to the Government that they look at the success of the chief scientific adviser structure. Obviously, there would be the chief skills adviser in the DfE, but skills advisers should be in each department, as with the chief scientific adviser network. It is about evolving a combined understanding and having someone in each department for whom skills is their principal occupation, who has status in that department and who is intimately connected into the Department for Education’s network.

Every department has skills needs and its own understanding and ideas about them. Fragmentation impedes employer and provider engagement. Anyway, modern life needs cross-cutting skills and a lot of jobs require skills whose roots are in several departments, and these things need to work together. The Government’s missions are very much dependent on effective collaboration on skills.

Looking at the individual departments, we see that even within the DfE skills cross schools, FE and, notably, higher education. There is plenty of need for communication just within the one department. Having a chief skills adviser would help.

In other departments, one wishes that the Treasury would import some people who understand the real world a bit better, but it is also responsible for the evolution of skills in the financial and accounting space. Those are the kind of skills that spread into a lot of other careers.

The Foreign Office handles languages, history, geography and diplomacy. Diplomacy is not something that social media seem to cultivate; the Foreign Office must care where that skill is coming from.

The Home Office covers police and security but, above all, migration—bringing in the skills we have not generated here. I remember plenty of conflict with the Home Office in my 30 years here on whether particular skills would be allowed into this country and the speed at which that should be done.

The Department for Business and Trade obviously covers management and skills for business, but a huge skills effort is actively under way there under the heading of the industrial strategy. The people and skills division is trying to solve underinvestment in skills by industry and to improve management and tech use skills. A huge agenda is being actively pursued there, not as a subsidiary of the DfE but as a subsidiary of the industrial strategy.

The Department of Health and Social Care is a huge user of skills and a very big user of microcredentials. Really small bits of learning have evolved to be accepted by the particular employers at which they are aimed. When you have a bigger employer such as the Department of Health, that is really quite easy. So these skills qualifications are evolving in large numbers and at great speed not only in Health but in a lot of other departments.

DESNZ needs the green workforce, the MHCLG has construction and especially housing, DSIT uses the sciences, DCMS has creative skills, and the Cabinet Office needs skills for the Civil Service. If productivity is slipping back in the Civil Service, there is clearly a need for big skills investment. The MoJ needs legal skills and the Department for Work and Pensions is concerned with access to skills. What qualifications are available for people who are bottom of the heap when it comes to employment? The MoD has a huge range and depth of training, the DfT has skills from lorry driving to logistics, and Defra uses environmental skills.

Local government, through the LSIP network, has a real interest in how the skills agenda is delivered. The word I hear is that LSIPs have been a real success, as they are effective and flexible. It takes a couple of years for the DfE to evolve a qualification but LSIPs can do it in weeks, because they are so focused on the actual local employer need and work closely with a provider. The Minister for Women and Equalities brief is now in the DfE but it used to wander around Whitehall. It has a very strong interest in the skills agenda.

Every department in Whitehall is intimately linked to the skills agenda and needs to be bound to a common sense of progress. It is not possible to do that by pushing; it has to be by linking. A structure like that of the chief scientific advisers would help, and the DfE has experience of this. It has its own chief scientific adviser and a council of scientific advisers to go with it. This is a resource that the DfE is used to having.

By having a chief skills adviser network to feed into and get feedback from, the Government and the DfE will know and understand the skills challenges of all departments so that they can synthesise and co-ordinate. Individual departments would have immediate access to the DfE resource, so that they can plan and integrate. That would be a good way forward for a skills structure.

I would be very grateful if the Minister replied to the questions I asked at the end of my previous intervention. I have seen too many sets of relationships die when institutions change. Some of the sector skills councils had really good relationships with business and they were just trashed. Most relationships with local enterprise partnerships just ended; they went nowhere, because local authorities were not capable of maintaining them in the same way. I want to be sure that what IfATE has built will continue under the new arrangements. As I said, I would also be interested in how the Careers & Enterprise Company fits into this structure. I beg to move.

[Baroness Garden of Frognal (LD)]

My Lords, I added my name to the amendment from the noble Lord, Lord Lucas, on the importance of a chief skills adviser. As I have said before, skills always need advocates within government because it has a predominantly university-educated membership. This role could be key to ensuring that skills changes will be enacted by someone who can take a view over the country of which skills are in short supply in which areas and need local support. The network of skills advisers in all departments that the noble Lord proposes would be a great way forward, and I support the amendment.

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Having assessed the merits and risks of different models, we are not convinced, at this point, of the case for a chief skills adviser. It would be disproportionate to impose in statute the requirement to report on that matter. Instead, we should focus on the most pressing matters: making progress towards minimising skills gaps in our economy through the passage of this legislation and the establishment of Skills England. I hope that, with that assurance, the noble Lord, Lord Lucas, will feel able to withdraw his amendment.

[Lord Lucas (Con)]

My Lords, I am very grateful for that reply. I completely understand that this is a direction in which the Government do not want to take at the moment, but I cannot recall, in my unexpectedly long time in this place, seeing any structure like that of the chief scientific advisers that really enabled collaboration between departments. It gives each department a sense of ownership of the policy, that it is in some way its own, rather than something that some other department is trying to impose on it.

Looking at long-running problems, such as how to care for the elderly, we see that the inability to get a few government departments to work in collaboration with each other causes immense problems, such as bed-blocking in hospitals, and questions about whose budget something is supposed to be on. The difficulties of working cross-departmentally are legendary and real. Clearly, Skills England is setting out to have cross-departmental impact. I wish the Government great fortune in that, but I hope that, if things start to prove sticky, they will turn their minds back to doing something, perhaps within Skills England, to produce a structure that makes collaboration work. The more we can do that within government, the more we will solve some of the big problems that have proved intractable in terms of making government work well. I am happy to withdraw the amendment; I do not expect to be here to bring it back.

Amendment 17 withdrawn.