Apprenticeships: Government Support

Debate between Philip Hollobone and Toby Perkins

Tuesday 24th January 2023 Westminster Hall

[Mr Perkins]

Okay. I thank the hon. Gentleman for that clarification.

Britain is not alone in having a skills or apprenticeship levy, but the way we handle it is quite unique. As a result, there has been a dramatic fall in the number of entry-level apprenticeship opportunities. Research by the London Progression Collaboration shows that since 2014-15, entry-level apprenticeships have fallen by 72%, and the fall in apprenticeships for under-19s has been as much as 59%, depriving many of those at greatest risk of falling into poverty from the opportunity at the beginning of their careers to get an apprenticeship.

The latest figures show that £3.3 billion in levy funds have been returned to the Treasury in the last three years. It is not only a scandal, but a huge act of collective self-harm. It is no wonder that the CIPD said:

“Apprenticeship Levy has failed on every measure and will undermine investment in skills and economic recovery without significant reform”.

I meet so many small business owners who would be keen to take on an apprentice, but are put off by the lack of available support and the bureaucracy.

There is a stark contrast between this Government’s approach and the approach of the Labour Government in Wales. My colleagues in Wales have led the way in creating apprenticeship opportunities, ringfencing an additional £18 million of funding to be invested in apprenticeships in the coming financial year. In a recent report, the renowned think-tank EDSK argued for the need to expand the traineeship programme to promote the supply of entry-level opportunities and clear progression routes into genuinely high-quality apprenticeships. After the Government’s recent announcements, which set out that they are seeking to reduce the number of traineeships —I have spoken today to an employer who told me that they will have to abandon traineeships because of the Government’s current change—

[Mr Philip Hollobone (in the Chair)]

Order. The hon. Gentleman has had 10 minutes; the Minister needs at least 10 minutes to respond, so he needs to draw his remarks to a close pretty soon.

[Mr Perkins]

I was just coming to the crescendo, Mr Hollobone. As I say, those from small towns or villages are less likely to find apprenticeships available. Those from black and ethnic minority backgrounds are less likely to be able to access an apprenticeship.

In conclusion, a Labour Government will take a fresh approach. We will ensure that all funds allocated for skills are spent on skills and that apprenticeships are promoted to all and recognised as outstanding opportunities for young people, with more SMEs supported to offer them and more colleges equipped to teach them.