Small Business, Enterprise and Employment Bill

Lord Stoneham of Droxford Excerpts

Wednesday 14th January 2015 Grand Committee

Having both transparency and accountability would be no bad thing. It is the sort of thing that ought to be taken into consideration when the Government are looking at bids for any public contract. They should ask, “What is the track record of this company in relation to training and apprenticeships?”. That is the thinking behind what we see as an important part of encouraging small and medium-sized enterprises not only to participate in contracts but to ensure that they play their part in providing quality training and apprenticeships. I beg to move.

[Lord Stoneham of Droxford (LD)]

I am pleased to follow the noble Lord, Lord Young, as I have done on a number of occasions. This subject emphasises where this Government have built on the foundations laid by the previous Government. It is for the next Government to realise that these things take a long time to come through. There will always be things that we want to improve, one being, of course, that we want greater equality of training and apprenticeships for younger people.

I have had some experience both in the construction industry and in regeneration projects where we have linked contracts to training young people. That has been part of the deal and there have been great benefits as a result. However, the noble Lord, Lord Young, has raised the whole capacity issue. If we are seeking to improve skills in construction, manufacturing and engineering, we can help to do that through public contracts, and there is certainly a huge role in this for local employment partnerships.

However, there are things that the Government need to take into account when looking at these amendments. The first is that these deals must be appropriate and non-bureaucratic. We must keep it simple because as we have heard from the noble Lord, Lord Young, we will simply put off the smaller local companies—the locally-based contractors—that are probably in the best place to provide some of these openings. We have to keep it simple. We also have to match the commitment to technical education with academic achievement in our education system. That was the point that the noble Lord, Lord Young, was making. Finally, as we are looking to the next five years, we must particularly look at how we can concentrate more of these apprenticeship deals and opportunities on the young.

[Lord Cotter]

I do not wish to waste any time in the Committee, but I very much support what my colleague, my noble friend Lord Stoneham, and the noble Lord, Lord Young, just said about encouraging apprenticeships. I know that the Government are doing an awful lot to encourage apprenticeships, particularly in the small business sector, financially and otherwise. I ran a small business for a number of years before coming here and I would have needed a lot of encouragement to take on apprentices. In those days it was not so common.

This does not appertain to this Bill in particular, but there is a great concern about the attitude that colleges and schools have towards careers advice. There are well proven figures to show that people are often not given any option other than university. We need to help small businesses to take on apprentices and engage the colleges. My area has a very good local college that is doing an awful lot in that direction, and I would happily let the Minister know what we are doing in Weston-super-Mare, where I come from. I support what my noble friend and the noble Lord, Lord Young, said about the importance of helping small businesses to take on apprentices.

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[Lord Freeman (Con)]

I very much agree with the thrust of what the noble Baroness has just outlined but I think that one needs to go further, which is why I am a very strong supporter of Part 6 of the Bill, on education evaluation. The provision of guidance is important but to do that, one needs further information about what young students completing their courses at school, and even university, go on to do. Education evaluation as set out in Part 6 admirably explains how further information can be gathered. Currently, the information gathered is on academic and employment results for those leaving school at 16.

I speak as chairman of a charity, with more than 200 schools dealing with this issue of further employment for those who may not have had the best of chances in life and may not have achieved, at least early on in their education, the necessary qualifications. What is needed is evaluation at a higher level, if they go on to higher education at a university or to employment, of what has then been the outcome for those students. That in turn will relate to the advice given to children and parents as to which schools and courses to follow. That is why I very much welcome and commend education evaluation as set out in the Bill, which broadens what already happens.

[Lord Stoneham of Droxford]

May I briefly say that I share the thoughts of the noble Lord, Lord Freeman, and can extend them from my business experience? I have very little experience to give on the education side but, as a recipient of skills and as an employer, I have strong views on the development of the careers service. There is widespread criticism of the careers service throughout the business community, which is deeply sad. This reflects the fact that we still have a long way to go in developing partnerships locally, between local businesses and schools. We must make sure that these services are provided not just for the local school but in partnerships, so that access to the services is wider than it is to school leavers, and that we put much more emphasis on the merits of technical education rather than academic prowess. The Government are looking at this area but they need to give it more attention. We will be looking at how the thinking develops as the Bill goes through the House.

[Lord Nash]

My Lords, I am grateful to the noble Baronesses, Lady Jones and Lady King, for this amendment and for raising the important matter of careers guidance. I hear what the noble Baroness says about not carrying on the economic batting backwards and forwards. I am sorry to hear it, because I was rather enjoying it, but I agree that, in the interests of time, we should stop. However, I must point out that she did say that the Chancellor had failed to reduce the deficit and, of course, it is a clear and unquestionable fact that this Government have substantially reduced the deficit we inherited from the previous Government. We are absolutely committed, also, to ensuring high-quality careers advice and I hope to reassure the noble Baroness that sufficient action is in train.

The Government commissioned Ofsted in 2012 to carry out a thematic review to examine the impact of the statutory duty on schools to secure independent careers guidance during its first year of operation. Ofsted’s report, published in September 2013, found that only one in five schools ensured that all students in years 9 to 11 received sufficient information to consider a wide breadth of career possibilities. This is not surprising. The guidance on careers that this Government took over was in a very poor state: virtually nobody had a good word to say about the Connexions service, including Alan Milburn. That is why we put the responsibility for providing good careers guidance on to schools.

This, however, is only a very recent development and it is not surprising that it has not immediately transformed provision. We have debated careers guidance on many occasions and there seems to be a perception among some noble Lords that we should hark back to some former golden age of careers guidance, which I certainly do not recognise. Careers guidance in schools has, in recent times, been poor and we have taken strong action to improve it. However, in response to the Ofsted findings, we took action, including publishing statutory and non-statutory guidance, strengthening our accountability framework and reshaping the role of the National Careers Service.

The new statutory guidance, effective from September last year, provides a clear framework for schools. It recognises that face-to-face guidance delivered by careers advisers is an important element of a varied programme of high-quality support, alongside other elements including employer contacts, work tasters, mentoring and online provision. Of course, we know that a number of commentators, including McKinsey, have said that active engagement with places of work is of far higher quality than face-to-face career guidance for most pupils.

Improvements to the National Careers Service website and helpline have made it more accessible through a range of digital channels, including Skype, and mobile phone applications. There is new content on the website written specifically for young people. Youth charities and young people are informing further developments. We have continued to listen to a number of respected contributors in this area, including the Gatsby Charitable Foundation and the Education Select Committee of this House. We have listened to schools, colleges, employers, parents and young people themselves. I pay generous tribute to my noble friend Lord Young for his invaluable work in this area. His report, Enterprise for All, has informed our thinking about the way forward. All have made it clear that many schools and colleges still require additional support, so, on 10 December last year, the Government announced the establishment of a new employer-led careers and enterprise company, chaired by Christine Hodgson, Chair of Capgemini UK, who has a strong track record of developing young talent.