Public Sector Apprenticeship Targets Regulations 2017

Lord Storey Excerpts

Thursday 30th March 2017 Lords Chamber

[Lord Watson of Invergowrie (Lab)]

My Lords, I thank the Minister for his comprehensive introduction of these regulations. He has gone into considerably more detail than Mr Halfon did in the other place, and that is helpful. I will look with interest in Hansard at the amount of information on the different sectors that the noble Viscount outlined. It would probably be quite a surprise if I began by saying anything other than that we welcome these regulations and the aim of the Government that they seek to facilitate. The extent to which it is achievable may be slightly more problematic, but only time will judge on that.

As the Minister said, apprenticeships have a crucial role to play in ensuring that young people—but not only young people, of course—are provided with the ability to take up proper training that enables them to progress to well-paid and sustainable employment into their adult lives. The public sector clearly has a major role to play in that, and I welcome the fact that the Government have placed an onus on the public sector to play, and to be seen to play, its part in the long haul towards the target of 3 million apprenticeship starts by 2020.

On that point, I would ask the Minister to clarify the target for the four years spanned by these regulations. I listened carefully to what he said and I think I am correct in saying that he mentioned the figure of 80,000 each year, which he said reflected the public sector’s proportionate share of the 3 million target. We are slightly puzzled by that because those projections do not suggest that the public sector will be pulling its full weight towards the aim of 3 million. My understanding is that the public sector accounts for some 16.2% of the total workforce, yet the figure of 320,000 apprenticeship starts over four years represents around 11% of the 3 million target, and 16.2% of 3 million is almost 500,000. Perhaps I am missing something—the fact that there is a significant gap between the two figures suggests that I may well be—so it would be helpful if the Minister could explain why the public sector target is not more in line with that figure of 16.2%.

I was struck by the fact that the only government department excluded from these regulations is GCHQ. I can just about understand why that might be—although is it not rather a shame that there will be no openings for apprentice spies, albeit those who operate in front of a computer screen or in a darkened room wearing headphones? Just imagine the surge of applications for those apprenticeships, had they been available—or is it the case that they are available but the information is classified?

A question which the Minister might be more comfortable answering relates to the figure of 2.3% of a department’s or a body’s headcount being the target for apprenticeship starts. That figure is to be averaged over the four years beginning next month, which is not unreasonable as the target is unlikely to be achieved in the first year and perhaps also in the second year. If that happens, it is self-evident that in future years the figure will need to exceed 2.3% to achieve the average. Is the Minister confident that that will happen? If he is, on what basis does he have such confidence?

I will not repeat the argument made by my honourable friend Mr Marsden in the other place about the demands being placed on local authorities by the funding shortfall that they face. The Local Government Association estimates that figure at £5.8 billion by 2020. The Minister cannot deny that this will place many in a very difficult position when it comes to funding apprenticeships. Yes, most will be subject to the apprentice levy on the basis of their pay bill and will be able to draw from that pot—but the smaller ones will encounter real difficulties.

The Local Government Association has advocated that apprenticeships emanating in supply chains should be open to public bodies to assist them in reaching their target. The Government have changed their position—which I welcome—by allowing a figure of 10%, although that is said to be provisional, to be included. Can the Minister say how the figure will ultimately be arrived at? By that I mean: how will it be calculated? I believe that there is considerable potential for including supply chains, given the multiplier effect that they have.

In terms of social mobility, it is also to be welcomed that Mr Halfon, the Apprenticeships and Skills Minister, announced some £60 million this year for apprentices from disadvantaged backgrounds. Apprenticeships really can make a difference by giving young people opportunities that previously they were unaware of or turned away from. I look forward to hearing of at least a similar figure for the other three years of the scheme. In the meantime, as one who advocates moves that assist social mobility, the Minister will, I am sure, join me in welcoming the vote in your Lordships’ House on Monday on the Technical and Further Education Bill, which provided assistance for apprentices who might be dissuaded by families who stand to lose benefits if their son or daughter takes up an apprenticeship, when they would not do so had their offspring gone into further or higher education.

A similar situation was secured in that vote for care leavers in terms of bursaries. Both these measures will assist with social mobility and so, for consistency’s sake, surely the Minister can regard them only as positive developments. I trust that his colleague Mr Halfon will also adopt that view and will not seek to overturn the vote then the Bill returns to the other place.

Mr Halfon made an intriguing comment in the debate on these regulations earlier this week in relation to Schedule 2, excluding both Houses of Parliament. He mentioned that, although the ban on smoking in workplaces did not formally apply to the House of Commons, the Speaker had decreed that it does. Although I am not aware of the formal position in your Lordships’ House, I presume there must have been an equivalent decree by the Lord Speaker. So will the Minister say whether, although these regulations do not apply to your Lordships’ House, he would be in favour of seeking a means by which they could be applied? It would set an excellent example to other public bodies and there would be many opportunities for apprenticeships in interesting and fulfilling jobs within Parliament were that the case.

My final point concerns the gender balance within apprenticeships. It is widely acknowledged that 53% of apprentices are female, yet they tend to be in lower-paid sectors of the workforce. A year ago, in answer to an Oral Question in your Lordships’ House, the then Parliamentary Under-Secretary of State at the Department for Business, Innovation and Skills, the noble Baroness, Lady Neville-Rolfe, stated that since May 2015 there had been 366,000 apprenticeship starts in England and that, while a narrow majority were females,

“of the 74,060 apprentices in engineering and manufacturing”,—[Official Report, 14/4/16; col. 354.]

a mere 6.8% were female, while in ICT the figure was 17.5%. I doubt that those figures will have changed markedly in the intervening period, but these regulations allow the Government to lead by example and begin to turn them around, ensuring that young women are encouraged to apply for apprenticeships that both require and develop skills that involve the STEM subject areas. There is certainly a wealth of opportunity within the public sector for that gap to be addressed.

A year ago, the noble Baroness, Lady Neville-Rolfe, told noble Lords that only 26% of apprentices in her department were women. It would be both interesting and helpful if the Minister could tell noble Lords what the current percentage is within the Department for Education. His officials may have the figure at their fingertips—but, if not, I would be quite happy for him to write to me, including an outline of what specific plans his department has to ensure that it not only reaches a figure of 2.3% of the headcount as apprentices but indeed exceeds it. Can he say what the projected figure for the Department for Education in the first year will be?

I have posed a number of questions, not all of which the Minister will be able to answer in his reply, but questions of a wider nature will need to be resolved if the Government are to achieve the success that we on these Benches want to see in terms of a broad expansion of apprenticeships, not least in the public sector.

[Lord Storey (LD)]

My Lords, I very much welcome the statement from the Minister. We have seen a revolution in apprenticeships, which of course was started by the previous Government. While I am in favour of targets, they have to be sympathetic to the quality of the provision—I would much rather see quality provision even if we do not reach the exact target that we want.

I have four particular questions. Some of my other questions have already been asked. First, the Minister said that there were not going to be subtargets for people from different ethnic backgrounds—men, women et cetera—but I presume that if, from the information we get back, we find a lack of opportunities for, for example, young people from particular ethnic backgrounds, we might have to revisit that issue. Similarly, if we find a concern about the spread of levels of targets related to age, we might have to revisit that as well. So while I accept his comment about subtargets, we have to keep this under review.