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

Pam Cox Excerpts

Committee stage
Thursday 13th March 2025 Public Bill Committees

[Neil O’Brien (Harborough, Oadby and Wigston) (Con)]

It is a pleasure to serve under your chairmanship, Sir Christopher. The Opposition have three main concerns about the Bill, which are all relevant to this group. First, there were good reasons why standards setting was put at arm’s length and closer to employers. As we heard from Members on both sides of the House of Lords, this Bill is a centralisation. Alongside other changes that the Government are making, it risks directly damaging the status of the qualifications.

Secondly, the Government are doing several things that will make it less likely that businesses will take on apprenticeships. Rather than fixing the problems, the Government are reorganising. Skills England will be the 13th skills body in 50 years. The Government are abolishing IfATE, which was created only seven years ago. This is yet more reorganisation, rather than focusing on the real issues. IfATE will now follow a long list of predecessors, including the Manpower Services Commission, the Learning and Skills Council, the Skills Funding Agency, skills advisory panels, the UK Commission for Employment and Skills, training and enterprise councils and more, into the lengthening history of skills acronyms. We have a bad history of institutional churn in this country generally, and particularly in this area.

Thirdly, we have real concerns that this reorganisation of the machinery of government will lead to harmful delays in addressing some of the most important strategic issues that we face. Those concerns are in fact borne out by the Government’s impact assessment.

As the Minister just said, the first three clauses are all about abolishing IfATE. Clause 1 introduces schedule 1, which transfers functions from IfATE to the Secretary of State. It does not transfer them to Skills England, but to the Secretary of State.

The words “Secretary of State” appear, amazingly, 90 times in this short Bill. That is one reason why the Bill has come in for criticism from a number of different sides of politics. Instead of setting up Skills England as an independent body, which is what a lot of people—including many in the Labour party—assumed it would be, it is going to be part of the Department for Education.

In its briefing on the Bill, the Construction Industry Training Board noted that this was

“contrary to the previous characterisation of Skills England that was outlined in the…King’s Speech…and contrary to the vision for Skills England to be an independent body, established in law, with a cross-governmental role”.

Obviously, those two points are linked. If it is going to be cross-government, it is easier for it to be independent of the DFE rather than part of one Department.

The CITB makes an important point. IfATE existed to serve all employers, both public and private, and across every Department. In contrast, Skills England will be firmly part of the DFE. The chief executive officer of Skills England will be a job share between the two civil servants who currently run the post-16 skills bit of the DFE.

Likewise, the Institute of the Motor Industry, representing employers and professionals across the UK automotive sector, says in its evidence to this Committee that it has

“significant concerns about the abolition of the Institute for Apprenticeships and Technical Education…and the transfer of its functions to Skills England.”

[Pam Cox (Colchester) (Lab)]

Did the shadow Minister note the submission from the Association of Colleges, which offered very strong support for the Bill? As it represents a large proportion of providers of this education, its views should be taken into account.

[Neil O’Brien]

I saw that, and I wonder whether the hon. Lady noted in that submission the organisation’s pretty strong criticisms of the Government’s decision to cut adult skills spending. That is an example of what I was just talking about. Instead of addressing the real issues, we have reorganisation. I was not going to bring up the document from the Association of Colleges, but I am glad that the hon. Lady has.

Let me return to the Institute of the Motor Industry. Its evidence states:

“Without dedicated attention to the unique challenges faced by the automotive industry, Skills England risks creating further disconnection between education policy and real-world workforce demands.”

It talks about the risk of losing employer-led standards:

“Transitioning to Skills England could introduce additional confusion and delays, undermining apprenticeship approvals and disrupting funding streams critical to maintaining employer confidence.”

In fairness, that is what the Government’s impact assessment said. It stated that the issues around transition are likely to lead to delays, which will have a real-world impact. I will come back to that point in a second.

The criticisms from different people in industry of the move away from independence and employer ownership —those two things go hand in hand—take us back to the origin of IfATE. It was set up alongside the introduction of the apprenticeship levy. It was, in a sense, a quid pro quo. There was employers’ money and, in return, employer ownership of the system, for the first time. The move away from this being something independent and properly arm’s length to it being run by a bit of the DFE, by just some DFE officials, is a move away from that sense of employer ownership.

--- Later in debate ---

Government amendment 1, which we will come to when we debate clause 11, seeks to overturn that short delay—only a short delay—that peers put in to allow for a more orderly transition, so that Skills England could at least get up and running in the Department before it attempted to onboard 200 new colleagues. I have seen many different machinery of government changes, and they always cause disruption.

[Pam Cox]

Will the shadow Minister acknowledge that an awful lot of preparatory work has gone on to establish Skills England already? Once the Bill goes through, we will be in a good position to set this up quickly.

[Neil O’Brien]

Sure. A shadow form exists at the moment, but that does not change the longer-term point that if we do not give it its own legislative basis and make it independent of the Department, all the criticisms and concerns about the dilution of the employer voice and so on still stand. I am not having a go at those who are setting up Skills England.

--- Later in debate ---

[Damian Hinds (East Hampshire) (Con)]

We are debating clauses 1 to 3 stand part and schedules 1 to 3. The Minister, in her opening remarks, talked a lot about the intention to create Skills England, how it will operate and so on. That is not in clauses 1 to 3.

The Bill is all about transferring functions from the independent Institute for Apprenticeships and Technical Education to the Secretary of State in central Government. Colleagues may have seen the, as ever, helpful and pithy descriptive notes from the House of Commons Library. Clause 1 introduces schedule 1, which will transfer statutory functions from the institute to the Secretary of State. Clause 2 introduces schedule 2, which will allow the Secretary of State to make schemes for the transfer of property rights and liabilities from the institute. Clause 3 will abolish the institute and introduce a schedule 3, which makes consequential amendments to the 2009 Act and other Acts.

The history of this sector is the history of many changes in the machinery of government and the creation of many quangos. There have been 12 in the past five decades. This one will be lucky—no doubt—13. My hon. Friend the shadow Minister helped us with some of the history and some of those previous bodies. I have a slightly longer list.

We have had industrial training boards, the Manpower Services Commission, the Training Commission, and the training and enterprise councils known as TECs—but those TECs were not the same as another type of TEC, the Technical Education Council, which existed alongside the Business Education Council or BEC in the 1970s. The two would merge in the 1980s to give us, of course, BTEC, the Business and Technology Education Council. There were national training organisations, the Learning and Skills Council, sector skills councils, the UK Commission for Employment and Skills, the Skills Funding Agency or SFA, which would later become the ESFA, or Education and Skills Funding Agency, and most recently LSIPs—local skills improvement partnerships—and IfATE.

[Pam Cox]

rose—

[Damian Hinds]

I have missed one!

[Pam Cox]

The right hon. Member has missed one: the Statute of Artificers 1563, known as the Statute of Apprenticeships. We have been trying to do this for many centuries, and it is only right that each generation tries to do so. We are still not getting it right for our young people, hence the need for speed.