Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [HL]

Lord Watson of Invergowrie Excerpts

Committee stage
Tuesday 26th November 2024 Grand Committee

[Baroness McGregor-Smith (Non-Afl)]

My Lords, I just want to give some context on IfATE being a statutory body, since I chair it. Statutory bodies take their responsibility very seriously when they issue reports to Parliament. First, when we go through that detail at IfATE annually, it is a rigorous and detailed process. It is absolutely evidenced and fact-checked. I would like to see that level of reporting, or even more, done in Skills England. I will not stand up and say that I am the expert on mechanisms, but I am concerned to think that that level and standard of reporting will not happen under a new, enhanced body.

Secondly, it is important that we do not lose sight, during the progress of the Bill, of what this transfer of powers is going to do. By transferring the powers of IfATE to the Secretary of State, we transfer the approval of technical qualifications as a whole—an end-to-end process that is understood and respected by employers and understood by colleges. Everyone must understand how qualifications will be arrived at and approved. I would like some assurances from the Minister that that process of end-to-end scrutiny with employers will continue and be enhanced in Skills England.

[Lord Watson of Invergowrie (Lab)]

My Lords, I am pleased to speak in support of my noble friend Lord Blunkett’s important Amendment 31 on apprenticeships and the growth and skills levy. Although it is important that apprenticeships are available to all age groups, thus ensuring that lifelong learning plays a key role in skills development in the years ahead, I am particularly keen that more young people should see them as a first step on a career ladder. That is clearly set out in Amendment 31.

Unfortunately, the bright new dawn that many of us expected when the apprenticeship levy was introduced in 2017 has failed to materialise. Noble Lords will be familiar with the analysis commissioned on behalf of the Association of Colleges earlier this year, which showed —I think this was for 2022-23—that some 160,000 fewer apprenticeships were started than in 2017. You might ask “How on earth can that possibly be the case?”, but it is. That decline was particularly alarming because it disproportionately impacted on those most in need of training, particularly younger people and those from disadvantaged backgrounds.

There were regional aspects to it as well, because the decline was particularly prevalent in regions of the country such as the north of England, which traditionally had high levels of apprenticeships, and among SMEs. There are particular structural issues with the levy for SMEs, but that is for another day. That decline in the apprenticeship statistics must be reversed and returned at least to the pre-2017 levels, so I was pleased to hear my noble friend the Minister say on Second Reading that foundation apprenticeships are to be developed as an alternative route for young people who may have faced barriers in the past.

The noble Lord, Lord Storey, recounted how difficult it had been to get some of his amendments tabled, because the words “Skills England” could not be used. In today’s Marshalled List, any time that “Skills England” is mentioned it is in quotation marks. It is almost as if it is some soiled rag that needs to be picked up with a glove and held at some distance from your body. It is astonishing. Why should we be so afraid to say that, when we all know what we are talking about here? Let us just be open about it.

Critical to the effectiveness of “Skills England” will be the reshaped growth and skills levy. That must be released from the straitjacket of its predecessor, whose unspent employer funds reverted to the Treasury rather than being retained in the education and training budget. I think that there was some disappointment across the House that the Chancellor had nothing to say about the growth and skills levy in the Budget. I am at a disadvantage because I have not had the opportunity to look at today’s White Paper, to which other noble Lords have referred, but I hope that my noble friend might be able to say something about the growth and skills levy in her reply in respect of this amendment, regarding the scope and level of investment that it might enjoy.

This must affect local priorities, of course, which is why the amendment stresses the role of local skills improvement plans in delivering the co-ordination needed to plug the skills gaps. LSIPs already play a role there and I retain my belief that Skills England should be established as a statutory body, rather than an executive agency, the better to co-ordinate efforts across departments to ensure that we have the most effective approach and that we develop the skills that the country needs going forward.

That said, it is encouraging that Skills England, still in skeletal form, has already published its first report. Its title, Driving Growth and Widening Opportunities, is one that it must live up to. The report to Parliament outlined in Amendment 31 should further concentrate minds in the DfE to set out the direction being pursued and to provide a clear delineation of Skills England’s role in that, having been given those tasks and—I say this only to be helpful, I hope, to my noble friend the Minister—looking to the outcome of a buoyant skills landscape, which the Government and every noble Lord here today want to see emerge.

--- Later in debate ---

[Lord Watson of Invergowrie (Lab)]

My Lords, I was just looking through my noble friend Lord Blunkett’s Amendments 28, 29 and 30, to which I added my name. I am sure noble Lords will be aware that, since Skills England was announced, the DfE has been using a pretty coloured diagram in five sections to describe the planned functions of the new executive agency. One of the sections says that Skills England

“identifies priorities for and shapes technical education to respond to skills needs”.

Having done that, it will need to update the necessary technical standards and work with sectoral industry bodies to develop them. Indeed, the Government will need to set out which functions currently with IfATE will be delegated to sectoral organisations and regional bodies. That is what Amendment 28 seeks to achieve.

My noble friend the Minister said in Committee last week that there needs to be “a sectoral approach” to the way that skills are developed across the economy. Of course, that is right. With that in mind, it is necessary that the Government’s plans for the powers that they anticipate will be required are set out, and this amendment would facilitate that.

Another of the sections in that DfE diagram says that Skills England will ensure

“national and regional systems are meeting skills needs”,

explaining that this will entail:

“Working with Mayoral Combined Authorities, Employer Representative Bodies, and other regional organisations to align national and regional systems with each other and with skills needs”.


All that seems fairly straightforward, but it is not clear how Skills England will achieve that without the necessary powers and some resources. We do not as yet know what these might be, so it is important that criteria for national skills priorities are set out and that the expectations of departments other than the DfE are made clear. My noble friend the Minister stated on several occasions how important the effect of joined-up government will be for the involvement of a wide range of stakeholders. Amendment 29 offers the opportunity for that to be spelled out.

Finally, there is more than a little uncertainty as to how the plethora of qualifications to be transferred will be subject to oversight. My noble friend Lord Blunkett has covered this, but I will simply say that qualifications at levels 3 and 4 are crucial in allowing young people the opportunity to build their skills in an environment in which they are not intimidated by unrealistic expectations or other barriers to entry, as has been the case too often with apprenticeships. The unfortunate tangle—let me put it no less kindly than that—that we currently have involving the introduction of T-levels and the consequent often rash and sometimes reckless defunding of some BTECs must not be allowed to happen with the transfer of the many essential qualifications validated by IfATE in its short lifetime.

[Baroness Barran (Con)]

My Lords, I will speak to my Amendment 27 and in support of Amendment 28 in the name of the noble Lord, Lord Blunkett. I start by noting that I support very much the spirit of the amendments in the name of the noble Lord, Lord Aberdare, and the aspiration of the amendment in the name of the noble Lord, Lord Addington, although I have a certain sympathy with the Minister in trying to actually deliver on that.

My Amendment 27—I thank my noble friend Lady Evans of Bowes Park for adding her name to it—aims to ensure that the Government’s strategy is up to date and relevant for local areas and that the Government do this by consulting the relevant bodies. I suggest local skills improvement partnerships and mayoral combined authorities although, in his Amendment 36B and his extremely helpful, clear and practical explanation of it, the noble Lord, Lord Ravensdale, raises the relevance of other groups and the importance of making sure that we do not miss out significant parts of the population as we try to aggregate and understand these local views.

What we are trying to do is to balance technical education qualifications that can be tailored, to a degree, and that best support the needs of a local area, with the ability to aggregate and use the data and intelligence from them to inform national policy. That needs to then feed into an ability for the Government and those to whom they devolve their powers to understand where providers are delivering efficiently on these plans and where they are not, identifying gaps and seeking to address them.

I also want to speak to the importance of the Government setting out how they intend to delegate these powers that are being centralised. As my noble friend Lady Evans said, what the Government talk about and what is actually happening in terms of centralisation rather jars, so I am glad that the noble Lord, Lord Blunkett, has brought this forward through his Amendment 28. I do not think anyone is suggesting to the Minister that this is an easy task—if it was easy, somebody would have cracked it already—but it is clearly a very important task and the more she can say about how these different groups will interact with Skills England and how there will be lines of communication from the local to the national and back again, the more confident the Committee will feel.