Apprenticeships

Debate between Max Wilkinson and Christine Jardine

Tuesday 4th February 2025 Westminster Hall

[Max Wilkinson]

Of course. An alignment of skills with the jobs need for the future is key in the apprenticeship sector. Flawed policy in the past means that there has been a clear drop-off in new apprentices in recent years. Just over 736,000 apprentices participated in an apprenticeship in the last academic year, which is a slight decrease of 2.1% on the previous reporting period. Apprenticeship starts overall have fallen by 170,000 since 2015-16, when the Conservatives started governing alone. The deal on offer is clearly not as attractive as it once was.

We need to recognise that apprentices have the same rights as other employees, but experience a large pay disparity compared with other workers. The national minimum wage will be £11.44 for those aged 21 and over, but for a first-year apprentice, the rate is much lower. Young people are not immune from the cost of living crisis and the disparity between those two wages might be a disincentive. Have Ministers considered whether it is and whether it might be putting young people off from taking up apprenticeships?

The Liberal Democrats would scrap the apprentice rate and instead pay apprentices more fairly. We must also reform the apprenticeship levy, which many Members have mentioned today. Employers tell us that it simply does not work and the House of Commons Library briefing shows that there are large underspends every single year. The amount of money being put aside to train young people is simply not being spent. The Association of Employment and Learning Providers says that the money is being raised for skills but not spent on skills, at a time when Governments—this one and the last—say they are keen to encourage businesses to invest in skills.

The Lib Dems would replace the broken apprenticeship levy with a broader and more flexible skills and training levy. We are pleased to hear that the Government want to abolish the apprenticeship levy and replace it with a new growth and skills levy under Skills England. That is a positive step. However, it is clear that there is still work to be done in establishing the new levy and Skills England to oversee it. I would appreciate an update from the Minister on where things are with that policy.

There is also a concern that careers advice systems are not being properly set up to advise people of the many opportunities in apprenticeships. If we are going to fill the skills gaps that we have discussed, alignment of careers advice with those gaps will be key.

We Liberal Democrats believe that apprenticeships have a much bigger role to play. We welcome the Government’s plan for changing the system. If we get the reform right, we will help young people and employers, too. Central to that will be finally getting rid of the failed apprenticeship levy, properly valuing apprenticeships and learning from best practice like that in my constituency and that of my neighbour in Gloucester.

[Christine Jardine (in the Chair)]

I call the Opposition spokesperson, Rebecca Paul.