Apprenticeships: Levy

Lord Watson of Invergowrie Excerpts

Tuesday 13th March 2018 Lords Chamber

[Viscount Younger of Leckie]

My noble friend is absolutely right. I had not heard about this, and I will certainly follow up on the points that he has raised. The whole point of the apprenticeship scheme is that it is employer driven; it is what employers will need. The standards and quality are set by the Institute for Apprenticeships. We believe it is working well, but I will look into my noble friend’s points.

[Lord Watson of Invergowrie (Lab)]

My Lords, the noble Viscount the Minister should be aware that young people from low-income families are underrepresented in the apprenticeship programme. Some 13% of school children received free school meals last year; only 10% of young people starting apprenticeships had been on free school meals. One reason for that is that the Government still do not classify apprenticeships as approved education or training, with the result that the families of young apprentices lose the right to claim child benefit and tax credits. Last month at Oral Questions, I highlighted this structural barrier to the noble Viscount and asked him to speak to ministerial colleagues in the Department for Work and Pensions to try to make it more attractive for young apprenticeships to start. Has he done that, and if not why not?

[Viscount Younger of Leckie]

I can reassure the noble Lord that I have indeed done that. If he has not received a reply, and I am sure he should have, I will follow up immediately and make sure of that. Yes, it is true that some apprenticeships are on the minimum and I have no doubt that is a bit of a struggle. Having said that, many employers are paying more than the average, which is £6.70 an hour, rather than the £3.50 an hour that is now going up to £3.70.