Apprenticeship Levy

Lord Storey Excerpts

Tuesday 25th April 2023 Lords Chamber

[Baroness Barran (Con)]

I do not completely accept the suggestion that the noble Lord makes; 41% of all apprenticeship starts were in SMEs in 2020-21, up from 38% in 2019-20. We have a lot of initiatives. For example, we have lifted the cap on the number of apprentices a small business can take on. In the area of the creative industries, which I alluded to, we are expecting 1,500 apprenticeship starts through the flexible apprenticeship scheme.

[Lord Storey (LD)]

My Lords, I thank the Minister’s department for always giving fulsome Written Answers. From Written Questions we can see that the number of young people not in education or training is largely static, although this year it is estimated to be 1,857,000. The worrying trend, however, is that the number of 19 year-olds is going down year on year and is at 22.4%. The Minister talked about skills, and the other worrying trend is that the number of those people doing intermediate apprenticeships is at its lowest level ever at 22.4%, while higher apprenticeships and advanced apprenticeships are at their highest level. This goes against the whole basis of why the apprenticeship scheme was set up by the coalition Government.

[Baroness Barran (Con)]

The apprenticeship scheme has two important objectives. One, as the noble Lord touched on, is to give young people a choice of opportunities as they enter their career—training, work experience and so forth. The other is to give our employers the skills they need in their workforce. The scheme is currently balancing those two things.