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

Nusrat Ghani Excerpts

2nd reading
Tuesday 25th February 2025 Commons Chamber

Second Reading

[Madam Deputy Speaker (Ms Nusrat Ghani)]

The reasoned amendment in the name of Ian Sollom has been selected.

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[Bridget Phillipson]

My hon. Friend always champions the ceramics industry in his constituency. We have had many conversations on that topic, and he is absolutely right to put it into context. Skills England will benefit the ceramics industry and his constituents because we will be able to move much more rapidly to make changes to qualifications and training requirements in order to meet the needs of employers, with further flexibility, shorter courses, and foundation apprenticeships for young people for the chance to get on, including in long-standing traditional industries as well as in future jobs and opportunities.

The Bill is a crucial leap forward, bringing the different parts of the skills system closer together, and it paves the way for Skills England. It transfers the current functions of the Institute for Apprenticeships and Technical Education to the Secretary of State, not to exercise power from Westminster, but to empower the expert leadership of Skills England to drive the change we need. Bringing those functions to Skills England will place the content and design of technical qualifications at the heart of our skills system, where they belong.

Skills England has existed in shadow form since Labour took power and began the work of change in July. It set out its first “state of the nation” report into skills gaps in our economy in September. Skills England is moving ahead. The leadership is in place, and by laying the groundwork for a swift transition to Skills England, we are moving a step closer towards a joined-up skills system.

At its heart, this Bill is about growth and opportunity—growth for our economy, and opportunity for our people—and there is no time to waste. We need action, not delay. The people of this country need better jobs, higher wages and brighter futures; no more vacancies unfilled due to a lack of skills, no more chances missed and no more growth lost. We need change now, not change pushed back to some foggy future, so we are pushing ahead.

This is legislation that builds on what has come before but demands more—more cohesion, more dynamism and more ambition. That is how we break down the barriers to opportunity, that is how we fire up the engines of economic growth, and that is how we deliver the future that this country deserves—the bright hope that our best days lie ahead of us. I commend this Bill to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

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[Laura Trott]

I have huge respect for the hon. Gentleman and thought his earlier question was spot on. There is much that needs to be improved, but that is much less vague than Skills England, which is what we have in front of us at the moment. There are risks of distraction, with the time and cost involved in creating a new agency in the Department for Education. If the Government were serious about progressing quickly with the urgent strategic issues that I accept are needed in skills reform, the most effective step would be to build on the success of IfATE, rather than dismantling it. Instead, the Bill threatens to undo much of the progress made under successive Conservative Governments in building a world-class apprenticeships and technical education system. It is fiddling for no reason, change for no purpose and, as is so often the case with this Government, the opposite of what is required.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Education Committee.

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[Helen Hayes]

I thank the right hon. Member for his intervention. I was delighted recently to visit a school in my constituency, and a careers fair that gave young people the opportunity to meet many employers and providers of further education face to face, in order to give real meaning and reality to what such opportunities might provide in the future. It is important that young people have those opportunities.

Recently, I was delighted to visit the Lambeth college campus in Vauxhall, which is part of the Southbank University group, with my hon. Friend the Member for Vauxhall and Camberwell Green (Florence Eshalomi). We met young people engaged in cutting-edge training in robotics, renewable energy installation, dental technology and game design and production. They were being equipped with valuable skills to help them to access high-quality jobs, with the possibility, in some cases, of progressing their training all the way to degree level at the university.

The college is a good example of a strategic vision being applied to skills at a local level to ensure that employers’ needs are being met, and that the best possible opportunities are made available to young people, but not everywhere can benefit from such a strategic approach at present. I therefore welcome the Bill, which will formally establish Skills England. It is encouraging that this Government are giving further education and skills the strategic prominence they need, and seeking to establish an effective national agency to deliver a step change in the strategy that underpins our approach to skills and the quality and availability of training opportunities.

Skills England has been operating in shadow form within the Department for Education since July last year. Following the passage of the Bill, it will become an executive agency. This important Bill will work to underpin many of the strategic aims of the Government, including the delivery of economic growth, the skills to provide the additional 1.5 million homes that need to be built, and the skills to drive the urgently needed transition of our energy sector to achieve net zero, and the much-needed improvements in our national health service and in social care.

As the first Skills England report highlights, we currently have a fragmented and confusing landscape that lets down learners, frustrates businesses and holds back growth. The current system that the Government inherited has been badly neglected and urgent action is needed to deliver the change and scale of ambition required.

While I welcome the Bill, there are a number of issues on which I would be grateful for further clarity from the Government. The Bill does not provide a statutory underpinning for Skills England, meaning that the Secretary of State and future Secretaries of State can make fundamental changes to Skills England or close it down without the consent of Parliament. That calls into question the ability of Skills England to deliver a stable long-term underpinning of the skills system over a period of time. I understand the Government’s urgency, but it is important that in delivering this change Skills England is placed on a really solid foundation.

In order to be effective in delivering the skills system that our country needs, Skills England will need to have leverage with a number of different Government Departments beyond the Department for Education, yet the chief executive of Skills England is the equivalent of a director-level post in the civil service, not a director general, calling into question the extent to which appropriately senior people from across Government will be required to act on its recommendations and work in effective partnership. As the Bill progresses, the Government should consider the seniority of the CEO in that light.

Partnership working with key stakeholders outside Government, including training providers, trade unions, employers and devolved authorities will also be critical to the success of Skills England, but none of that is written into the Bill, and the ways in which Skills England will be held accountable for effective partnership working are unclear. Will the Secretary of State take further action to address that?

The impact statement for the Bill states that there may be a drop in apprenticeship starts while the Institute for Apprenticeships and Technical Education’s functions are transferred to the Secretary of State and then to Skills England, with a disproportionate impact on adult apprenticeships, disadvantaged learners and disadvantaged regions. Will the Secretary of State explain what steps she will take to minimise and mitigate that potential short-term drop?

The success of Skills England will depend on a series of wider factors that should be considered at the point at which it is being established. There is a significant issue with the funding of sixth form colleges, particularly around inequities in pay between teachers in schools and colleges, exacerbated by the failure to extend the recent pay increase to teachers to those employed by colleges. It cannot be right that a teacher in a college can be paid less than a teacher in a school sixth form for teaching exactly the same subject.

To drive parity of esteem between pupils following an academic route and those following a vocational route, it is important that sixth form colleges are able to both recruit and retain teachers. That means addressing the lower pay in sixth form colleges compared with schools, and the gap between teacher salaries and the salaries that teachers could receive in industry. It is a real problem for colleges seeking to recruit teachers of vocational subjects that those who have the skills to teach trade can often earn far more by practising that trade in the private sector. There is currently very little obligation on industry to release staff to deliver vocational education or to help to secure the pipeline of vocational teachers, including through post-retirement options. The Government should give further consideration to the recruitment and retention of high-quality teachers in the further education sector.

For some students in the further education sector, their school days have not been the happiest days of their lives. College or an apprenticeship should be the place where they start to find the things that they can excel at and where their confidence is built because they start to succeed. The importance of a functional level of English and maths is universally accepted and understood, so something is badly wrong in our education system when 38% of students do not achieve a grade 3 or above in English and maths at GCSE. The cycle of failure ends up continuing in the FE sector, which requires them to resit again and again. There must be a better way to ensure the functional skills in these subjects that employers need within further education, while enabling young people genuinely to succeed, build their confidence and thrive.

Finally, I will raise the issue of the huge differential in the information provided to sixth form students as they decide on their next steps after school or college—a point made by the right hon. Member for South Holland and The Deepings (Sir John Hayes) earlier in the debate. When meeting with skills providers and school leaders in my constituency recently, many participants highlighted how a move to university was often presented as a natural, secure step, with multiple options and a well-trodden path through the UCAS process, while vocational options, including apprenticeships and degree apprenticeships, were not presented with the same clarity or coherence, or even within the same timeframe. That makes it harder for teachers to advise their students and for parents to have confidence in pathways that may appear less predictable and secure. If we want to see true parity of esteem between academic and vocational routes, that needs to change, and I hope that it will be a priority for the newly established Skills England.

The Education Committee recognises the strategic importance of further education and skills, and we have recently launched a substantial inquiry that aims to understand how the further education system can better equip young people with skills and qualifications for a range of sectors experiencing labour shortages while opening up a wider range of opportunities to young people and mid-career switchers. We will make our recommendations to the Government in due course, and we look forward to playing our part in scrutinising the work of Skills England.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.