Oral Answers to Questions

Matt Hancock Excerpts

Thursday 18th July 2013 Commons Chamber

[Mark Menzies (Fylde) (Con)]

4. What steps he is taking to encourage traineeships.

[The Parliamentary Under-Secretary of State for Skills (Matthew Hancock)]

Following the spending review, we have extended the traineeships programme to young people up to the age of 24. Yesterday, we published the framework for delivery, and the first traineeships will start next month. We have already had strong interest expressed from employers such as Mercedes and Brompton Bicycle Ltd. We very much look forward to taking the programme forward.

[Mark Menzies]

Skills delivery is at its best when it is led by employers and by businesses. Can my hon. Friend assure me that that will remain the case throughout?

[Matthew Hancock]

Absolutely. It is vital to make sure that the skills system is focused on the needs of employers so that people who go through that system go on to get an apprenticeship and a good job. That is exactly what the traineeship scheme is designed to achieve.

[Sheila Gilmore (Edinburgh East) (Lab)]

The Government suggested that trainees might be eligible for jobseeker’s allowance while they are undertaking their traineeships. Has the Minister sorted out the details with the Department for Work and Pensions because, at the moment, someone studying for more than 15 hours a week would not be eligible for the benefit?

[Matthew Hancock]

The hon. Lady makes an important point because the link to the benefits system, particularly for those aged over 18 who are in traineeships, is vital. In the framework for delivery set out yesterday, she will have seen the details, ensuring that eligibility for JSA and eligibility to get a traineeship are aligned. Of course, with the introduction of universal credit and changes in the jobcentres, we are making it easier for people to get training while also looking for work. Work experience is a vital part of that and a vital part of traineeships.

[Dan Rogerson (North Cornwall) (LD)]

Employers are being encouraged to provide travel support for young trainees. Will the Minister look closely at the issue of young people living in remote rural areas, and ensure that they, as well as those who happen to live near their employers, are given fair access to traineeships?

[Matthew Hancock]

Not only will I look at that issue closely but I have already done so, because it is a vital aspect of traineeships. Traineeships are there because far too many people leave school or college without the skills that they need to secure a job or apprenticeship. Of course we are reforming the school system to sort out that problem, but we must also ensure that everyone has an opportunity to acquire the character traits and skills that they need in order to get a job, and transport is a vital part of the practicalities of making that happen.

[Graeme Morrice (Livingston) (Lab)]

5. What steps he is taking to protect the universal service obligation under plans for the privatisation of Royal Mail.

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[Mr Laurence Robertson (Tewkesbury) (Con)]

9. What recent assessment he has made of the take-up of apprenticeships.

[The Parliamentary Under-Secretary of State for Skills (Matthew Hancock)]

There were 520,000 apprenticeship starts in the academic year 2011-12. That is almost double the number in 2010. Our priority is to make apprenticeships both widely available and the very best quality, rooting out poor provision and enforcing a minimum duration. As we speak, 750,000 people are on an apprenticeship, which is a record: it is more than at any time in our history.

[Mr Robertson]

I am grateful to the Minister for that response. As he knows, I have a lot of engineering companies in my constituency, the largest being GE Aviation, which has more than 100 apprentices. Nevertheless, those companies find it difficult to recruit young people. Is the Minister satisfied that schools have adequate incentives to promote the concept of apprenticeship schemes, and will he consider awarding them recognition status marks for each apprenticeship that is taken up?

[Matthew Hancock]

We introduced a new duty on schools to provide independent and impartial advice in September, and Ofsted is looking at, and will report on, how well that is being implemented. I pay tribute to my hon. Friend, who brings together companies in his constituency to promote skills and working together, so that even though companies compete locally and nationally with their products, they come together on the skills issue to make sure that they give new skills to young people, rather than poaching from each other.

[Kerry McCarthy (Bristol East) (Lab)]

The Minister’s Department has found that one in five apprentices currently receives no training. There has also been a reported rise in employers’ non-compliance with the national minimum wage for apprentices. Does he agree that for apprenticeships to be of value, apprentices need decent training, and need to be paid a decent wage? What is his Department doing to ensure that that happens?

[Matthew Hancock]

Yes, I do, and we are taking action.

[Mr Robin Walker (Worcester) (Con)]

Will the Minister join me in welcoming the initiative of Worcestershire housing associations, which created an 18-to-30 apprenticeships and job fair, bringing together local employers and the National Apprenticeship Service? Does he agree that the huge increase in apprenticeship take-up is one of the reasons why youth unemployment in Worcester is down 30% from its peak under Labour?

[Matthew Hancock]

It is very good news that youth unemployment is falling—there was a 20,000 fall announced yesterday—but it is still too high, and there is still much more to do. I pay tribute to my hon. Friend’s work, and the work of others across the House, to make sure that apprenticeships and traineeships are available in future to help with that.

[Mr Gordon Marsden (Blackpool South) (Lab)]

Does not the Minister’s rhetoric on apprenticeships hit the buffers in reality? No amount of his crowing or tweeting alters the latest facts: there is a 13% drop in 16 to 18-year-olds starting apprenticeships, and a 6% drop across the board. He has failed to take up our plans to create thousands of new apprenticeships via Government procurement, and he has also failed to get a deal with Department for Work and Pensions Ministers. The Association of Colleges said yesterday that 14 to 19-year-olds taking up his new traineeships, so that they can move on to apprenticeships, are not likely to have any money to live on. When will he stop dithering and start delivering?

[Matthew Hancock]

We are delivering the new traineeships from next month. Given the need, after years of inaction, to bring together support for work experience and skills for those approaching the job market, I would have thought that the hon. Gentleman would welcome that. I would have thought that the Opposition would have supported the rise in the number of apprenticeships to record levels since the election.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

10. What the outcomes were of his Department’s summit meeting with payday lenders on 1 July 2013; and if he will make a statement.

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[Neil Carmichael (Stroud) (Con)]

13. What recent assessment he has made of the value of supply chains to the UK economy.

[The Parliamentary Under-Secretary of State for Skills (Matthew Hancock)]

In the UK and across the world, supply chains are diverse, complex and global. Their value is huge and their importance is vital. Support for supply chains is studded through our policy and underpinned by the industrial strategies.

[Neil Carmichael]

In contrast to the Labour Government, this Government are clearly doing something to build capacity in our supply chains. I welcome that and I see evidence of it in my constituency. May I stress the importance of making sure that supply chains are developed in our regions to ensure that we have a truly balanced economy, not just between manufacturing and services, but across our regions?

[Matthew Hancock]

Absolutely. I pay tribute to my hon. Friend’s work on promoting the importance of supply chains, not least because of the high proportion of manufacturing in his constituency. We will make sure that they stay at front and centre of what we do in the Department.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

One of the biggest infrastructure projects in this country over the next 20 years will be the construction of High Speed 2. That, through the supply chain, has potential benefits for businesses and workers not just along the route of HS2, but throughout the entire UK. What steps is the Department taking to engage in discussion with the Department for Transport to ensure that those supply chain benefits are indeed available throughout the entire UK?

[Matthew Hancock]

There are continual discussions between the Department and the Department for Transport about making sure that great benefits accrue not only when we build important infrastructure, but during its construction. We must ensure that there is good value for money, but value for money should be considered in the broadest possible sense.

[Martin Vickers (Cleethorpes) (Con)]

14. What recent assessment he has made of the prospects for economic growth in the Humber sub-region.

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[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

There is considerable concern among the further education college sector about the potential low take-up of the post-24 advanced learning loans and the impact that that will have on people’s finances. What assessment has the Minister made of this issue, and what help will he give to those colleges, if indeed there is such a low take-up?

[The Parliamentary Under-Secretary of State for Skills (Matthew Hancock)]

Since we launched the loans in April, there has been a robust take-up, and we are working hard to ensure not only that colleges are aware of the opportunities presented by loans to help over-24s to learn at higher levels, but that people are aware of the opportunities available to improve their skills.

[Mr Speaker]

Sir Malcolm Bruce—not here.