Technical and Further Education Bill

Debate between Lord Watson of Invergowrie and Baroness Morris of Yardley

Committee: 1st sitting (Hansard): House of Lords
Wednesday 22nd February 2017 Grand Committee

[Lord Watson of Invergowrie (Lab)]

My Lords, as we embark on three days of Committee on the Technical and Further Education Bill, I must admit that I have been caught slightly unawares by the changed groupings that have been issued, further to those circulated yesterday. So I may have to edit as I go along on some of those to which I shall speak.

Be that as it may, the first group comprises Amendments 1, 4, 5 and 19—though not Amendment 17, as I had thought—and is mainly about the quality of outcomes. That concerns not only the input to but the outcomes of the apprenticeships that are a central part of the Bill. I say “outcomes” because outputs and outcomes are not necessarily the same thing, a point we want to stress with Amendment 1. Despite some progress in recent years, the situation for those young people who remain not in employment, education or training remains of some concern and we cannot be complacent about the job that still needs to be done to deal with many of the 16 to 24 year-olds in what is known as the NEET category.

As my noble friend Lord Hunt and I said at Second Reading, the focus for the Government’s target of 3 million apprenticeships must be high standards, not simply a concentration on meeting what was, after all, rather an arbitrary figure. Ministers must now choose either to honour their pledge to increase the quality of apprenticeship training or allow themselves to be consumed by the need to hit those targets. Last year the Public Accounts Committee emphasised the need for the Government to be unrelenting in their focus on the quality of apprenticeships and we believe that this is very much the key. While the temptation may exist to water down apprenticeship standards to hit the 3 million target, such short-termism would ultimately prove counterproductive. Unless there is an increase in quality, people will continue to look down their noses at apprenticeships and technical education when they should be viewed with the same respect as other forms of further education, such as university degrees.

Young people themselves are very keen to ensure that their apprenticeships are marked by quality. In last year’s Industry Apprentice Council survey, their main concern was quality because industry apprentices rightly see their apprenticeships as badges of honour—as, it is to be hoped, do their employers. It was satisfying to learn that nearly nine out of 10 level 2 and 3 apprentices were satisfied with their apprenticeships, but with such an increase planned it is essential that the satisfaction rate is maintained.

Given the new routes and standards for technical education and apprenticeship expansion, it is vital to track the outcomes for each group. The last two years’ apprenticeship evaluations showed small increases in the proportion that had completed their apprenticeships and were in work, but monitoring those trends is important. Related to that is monitoring progression and pay, which is not just important but very important. Apprentices have talked about a number of positive impacts in the workplace, but that does not always translate into pay or promotion benefits. Some 46% of apprentices received a pay rise after completing their apprenticeship and 50% had been promoted. Both figures represented an increase, and we certainly hope that trend will continue because it is important that young people who have worked hard to complete their apprenticeships are made to feel that it has been worth while. If they do not have that sense, perhaps because they feel that they have to some extent been exploited, demoralisation can set in, and that can dissuade the next cohort.

This issue was highlighted in last month’s report by the Low Pay Commission, which revealed that 18% of apprentices were being paid less than their legal entitlement. It is vital that these headlines do not act as a deterrent for non-graduate groups going into professions, and do not deter future young people from taking up apprenticeships. We believe that when the apprenticeship levy comes into force in April, tackling issues concerning exploitation should be a priority for the new Institute for Apprenticeships and Technical Education.

Preventing such misbehaviour will require a strong regulator with power to punish instances of non-compliance on minimum pay. I repeat: this is a legal entitlement and there should be no exceptions under any circumstances. I accept that the Government very much hold to that view and I am certain that the institute will be told that it is an important part of its operation. Without that, the potential for further long-term harm to the reputation of apprenticeships is considerable. Research undertaken last year by the Association of Chartered Certified Accountants showed that apprenticeships face something of an image problem among many 16 to 18 year-olds. More than half the young people polled thought that apprenticeship routes would lead to their earning less over the course of their careers than if they studied at university. Apprenticeships are still seen as the poor relation when compared to traditional forms of higher education. If the Bill achieves anything by helping to reduce that perception, it will, in that sense alone, have been something of a success.

The duties that we place on the institute by the amendment are not onerous. Surely the Secretary of State would expect nothing less than an annual report from the institute on the quality of outcomes of completed apprenticeships. My question is: why not include that provision in the Bill? It follows, particularly while the Government are in pursuit of the 3 million target, that Parliament should have the opportunity to receive and debate the report. If the Government are serious about quality trumping quantity—I have done it again and I no longer feel comfortable using that word; I should have said “quality triumphing over quantity”—we should ensure maximum transparency in that regard.

Those sentiments dovetail with our Amendment 4 on standards and are a natural fit with new Section ZA11 on page 22 of the Bill, which sets out how the institute should publish standards in relation to the 15 occupations highlighted by my noble friend Lord Sainsbury in his seminal report. It is, of course, important to differentiate between quality and standards—terms that are often wrongly used interchangeably. It will be for the institute to set and maintain standards, while Ofsted and, in respect of maths and English, Ofqual, will have the task of ensuring that quality is widely established and then maintained. It is to be hoped that all the organisations charged with oversight will not overlap too much. I say “too much” because some overlap is preferable to gaps being allowed to develop through which who knows what might fall. To a significant extent, this is a question of resources and it will be the Government’s duty to ensure that staffing levels and resources of other kinds are not held at levels that restrict the effectiveness of any of the oversight bodies, particularly the institute.

Some surprise has been expressed by organisations in the sector at what Amendment 5 is intended to achieve. Let me be clear: first and foremost, it is concerned with achieving the best quality of teaching in further education institutions. No one would gainsay that, but before one can claim quality, one must have a means of measuring it. That is not to say that no measurement is currently undertaken, nor have there been suggestions that teaching quality in further education is poor. However, the detail we have is less than is available in higher education and, as noble Lords will know, when the teaching excellence framework is introduced in universities, the level of scrutiny will increase. We believe simply that, warts and all, the use of some sort of metrics would be advantageous, and Amendment 5 is not prescriptive as to what they might be. We simply call on the Secretary of State to bring forward a scheme to be operated by the Quality Assessment Committee of the Office for Students to ensure good-quality teaching in the further education sector. We also advocate a simple pass/fail outcome, with no suggestion of the cumbersome and ultimately unhelpful gold, silver and bronze scheme suggested for higher education. This would assist in achieving consistent levels of quality, with a broader aim of allowing the sector to build a relatively focused group of qualifications that carry the recognisability and acceptance of GCSEs and A-levels. People know what they are getting with those qualifications and the ultimate aim should be for something similar to develop with technical qualifications.

Finally, Amendment 19 would require the institute to publish apprenticeship assessment plans for all standards. Recent analysis of real-time experience shows that number-crunching on the government figures published last October suggested that there are no approved awarding organisations for over 40% of learner starts on the new apprentice standards. That is surely a matter for concern, although moving from a framework to standards involves moving down a road that will not, by any means, always be smooth. But apprentices on the standards will have to face end-point assessments for the first time and those assessments have to be carried out by organisations that have been cleared for the task by government or Skills Funding Agency-registered apprentice assessment organisations. Is the Minister confident that this will happen and that it will happen evenly across the country?

There is a degree of uncertainty about how this will evolve and what role the institute will have in relation to, say, Ofqual. Because of that it is important that we have transparency on who is being cleared and who is doing the clearing. As this process strengthens and multiplies, as it needs to do to meet all the government targets, the Government will have to pay close attention to the issue of capacity; otherwise, they will find themselves in a logjam of standards approvals as early as the middle of next year. That is the point at which any Government of any political persuasion, when they have the Opposition and other stakeholders bearing down on them, might be tempted to cut corners. Clearly, we do not want to see that but, like other stakeholders, we want to see what progress is taking place in real time. That is why we have tabled these amendments. I beg to move.

[Baroness Morris of Yardley (Lab)]

My Lords, I was not going to speak this early but I support these amendments. The desire across all parties in the Committee to achieve high standards in apprenticeships is unquestioned. We know that is what needs to be done. We know that is what we have failed to do in the past. I think the jury is still out on whether or not the Bill will achieve that.

We know from experience that new structures do not always achieve the ends that we want. There is a real danger in politics that because structures are the things we can control, that is where we put our emphasis. It is the one thing we can do. We do not teach, we do not mark, we do not assess; we can give funding and we can build structures. Sometimes there is a danger that we persuade ourselves that as long as in our mind and on paper the structure looks right, all will be well and things will be delivered. The education system is littered with gaps between the intentions of the structures and the reality of what is being delivered to children and young people. If you look at any part of our education and skills system, nowhere is that more the case than in skills and apprenticeships. We do not have a strong basis on which to build. We are not building on a record of high standards.

To be honest, you have to be as old as I am to remember the day when apprenticeships were generally thought of by the public as being high-quality training that did young boys and girls good in terms of the opportunities they had for life. Anyone a bit younger than me has an impression of an apprenticeship as being second best, not wanted—perhaps okay for someone else’s child but certainly not for mine.

Throughout the Bill the testing of whether we have done enough to ensure high standards is crucial to what happens in the future. The Government have a real quandary about how to deal with it—whether to go for the 3 million target or for standards. I feel certain that at some point along the line those two really good ambitions—nothing wrong with either of them—will come into conflict with each other. It is important as we go through the Bill that we put in some measures to make sure we are monitoring the standards and outputs of these new structures that we are putting into place.

Amendments 1 and 4 do that. Why would we not want to know what is happening to people who have taken the initial apprenticeship route? Why would we not want to know what employers think of people they might recruit? Why would we not want to know what the students themselves thought of their apprenticeships? I do not doubt for a moment that the Government have plans for how to get that feedback. Indeed, I know that to be the case because they are not silly; of course they will want feedback.

My noble friend on the Front Bench made a crucial comment: this is as much about building trust with the public and the people involved in apprenticeships, both employers and users, as it is about anything else. It is not enough for the Government to collect the statistics and then amend structures or legislation on the back of them. This is not a highly charged Bill politically and there is a great deal of good will across both Houses of Parliament to make sure it succeeds. Our joint endeavour is to build confidence and trust among teachers, parents, employers and learners. Even if the Minister wants to amend it in some way, because we could have lots of arguments about the detail of the information to be collected, this is a reasonable amendment. Its aim and thrust would stand us in good stead in the Bill we are now considering and I support it.