Apprenticeships (Alternative English Completion Conditions and Miscellaneous Provisions) (Amendment) (Coronavirus) Regulations 2020

Lord Storey Excerpts

Monday 12th October 2020 Lords Chamber

[Lord Storey (LD) [V]]

I can imagine nothing worse than a young person who has managed to obtain an apprenticeship and is absolutely thrilled—the family are delighted—when, suddenly, along comes a terrible pandemic that completely destroys his or her opportunity. The noble Lord, Lord Kirkhope, is absolutely right that we need to realise how important a vocational education is and how important a role further education colleges play in vocational education, if we are to create the skills that we need. I am glad to say that government is now listening to this and, for the first time in a long time, action is being taken.

The people who will suffer most during this pandemic, other than those who sadly contract the illness, will be young people. The numbers of young people who do not have a job is increasing at an alarming rate. Of course we support this statutory instrument. As has been said, it will enable apprentices who, through no fault of their own have lost their apprenticeship, still to get that all-important piece of paper provided they have done 75% of the training. We know from the figures that the average duration of apprenticeships has increased from around 16 months in 2015-16 to around 20 months in 2018-19. A growing number of apprentices have completed most of their apprenticeship and, if they are made redundant, will still have more than six months or so before completion.

As we heard from the Government, and as we know, the Government have introduced the Kickstart programme, which offers subsidised six-month work placements for 16 to 24 year-olds. It is a very good programme, and I commend the Government on it. However, I have written to the Minister about eligibility for that scheme, which is for those in receipt of universal credit. Only a Jobcentre Plus can refer people to those opportunities.

My concern, which is shared by many youth organisations, is that 16 and 17 year-olds in particular, and to some extent those who have just turned 18, are unlikely to be on universal credit, even though they are NEETs, and do not engage directly with Jobcentre Plus. Kickstart would be a great opportunity for this age group, but they do not qualify. What is the solution? It is to remove the universal credit requirement for 16 and 17 year-olds and to enable local councils—which, by the way, have a statutory duty regarding NEETs—and other voluntary bodies to refer 16 and 17 year-olds to the programme.

It is also worth noting that the number of young people starting an apprenticeship has fallen to its lowest level in a decade, despite government cash incentives to encourage more businesses to take up the scheme. Of course, the decline reflects the hammering the job market has taken from the pandemic, with employers having to cancel or postpone apprenticeships since March.

In June, the Prime Minister promised an apprenticeship for every young person. This was followed by the introduction of a new payment of £2,000 to employers for each new apprentice they had under the age of 25. But, as Verity Davidge, director of central policy at Make UK, which represents engineering and manufacturing companies, said, the incentive was a “drop in the ocean” compared with the costs involved in taking on an apprentice. She also said that only 45% of manufacturers planned to offer apprenticeships in the next 12 months. The figure is normally 75%.

Finally, when we emerge from this pandemic we will have to take bold financial measures to ensure the skill shortage can be speedily addressed. This must include greater flexibility to use the apprenticeship levy on wider costs.