Government Skills Strategy

Robert Halfon Excerpts

Wednesday 19th January 2011 Westminster Hall

[Robert Halfon (Harlow) (Con)]

First, I would like to register an interest. I have an apprentice in my office who is paid partly by a local businessman, Mr Dean Barclay, and partly by Essex council.

One good thing about skills and apprenticeships is that they are not a party political football. We may sometimes disagree on the right approach, but all sides of the House want to see more jobs for young people and an internationally competitive Britain. As a new MP, I know that many hon. Members care deeply about the problems of youth unemployment, and there are many others who know more about that issue than me.

However, when one looks at the manifestos, initiatives, Whitehall targets and, crucially, the Budget Red Books from the past 20 years, there is a clear conclusion—for decades, the focus has been university, university, university. Let me be clear: I am not anti-university. I was lucky enough to study at Exeter university, which I would recommend to any student. [Interruption.] My hon. Friend the Member for Bromsgrove (Sajid Javid) is present. He was at Exeter university at the same time.

The massive expansion in higher education has left us with problems. First, the poorest have not really benefited. The representation and likelihood of success at university remain highest among young people with wealthier parents, and lowest among those from deprived neighbourhoods. Young people from our poorest housing estates are still the most likely to drop out, take one gap year after another, defer enrolment, and switch, repeat or continually restart their course. Secondly, there is a skills deficit. For years, construction has represented about 10% of our GDP, but we have consistently imported much of that labour from Europe. We have created a rootless, undereducated and jobless generation of graduates who do not always have the right skills for our growth industries.

Finally, there is a NEET problem. Despite the efforts of the previous Government, the number of young people who are not in employment, education or training rose year after year. Between 2000 and 2010, the number of NEETs aged between 16 and 24 steadily increased from about 600,000 to more than 1 million. That was not a temporary blip due to the recession; it was a structural problem that got worse and worse. Research by Edge, the vocational skills organisation, shows that two out of every five teachers push A-levels as being the best route to university, and believe that vocational routes are a risk because they rule out university altogether. The research shows that apprenticeships are seen by many parents as a second-class option or a B-grade back-up for young people who cannot handle—or cannot be bothered with—writing essays. I believe that apprenticeships are a forceful answer to the problems of social mobility, our skills deficit and the rising NEET population.

[David Simpson (Upper Bann) (DUP)]

I congratulate the hon. Gentleman on securing this debate, and offer apologies to the Chair. The Northern Ireland Affairs Committee is sitting today and I must leave early to attend that. He mentioned the needs of young people. Does he agree that, although we can have Government strategies and 50,000 new apprenticeships, or whatever, we must also have universities and FE colleges that provide the right courses? There is no point in someone going for an NVQ in politics if they are going to be a mechanic. We need a cocktail of measures, and our universities and FE colleges must provide the right courses to benefit young people as we go into the economic revival. That will certainly help industry.

[Robert Halfon]

The hon. Gentleman has said in 20 seconds what I will say in about 20 minutes. I agree with him entirely and that is an essential part of the skills strategy. It is no good having courses and apprenticeships if they do not provide what business and industry need.

[Mr Jim Hood (in the Chair)]

Neil Carmichael.

[Neil Carmichael (Stroud) (Con)]

Thank you, Mr Hood. I have had more success in this Chamber than I did downstairs. In my opinion, it is critical that people are signposted towards the right kind of course—that is certainly the feeling I have found in my constituency. We need to increase the range of skills and the number of people interested in learning those skills, and we need businesses to support that thereafter. Does my hon. Friend agree?

[Robert Halfon]

I agree with my hon. Friend. Like me, he has a passion for apprenticeships and skills. I do not want to ruin the excitement and anticipation of my speech, but I am sure that he will be in full agreement with my later remarks.

I welcome the Government’s skills strategy document. I pressed for this debate, and I am grateful to Mr Speaker for allowing it. However, we must tackle two fundamental problems. First, apprenticeships must be a better route to university. Secondly, and perhaps most importantly, we must change the culture in which apprenticeships are regarded and increase the prestige in which they are held.

Pessimists today look at the rapid industrial growth of the so-called BRIC economies, and the fact that even Brazil might have its own space programme, although we do not. Many people worry that Britain is in decline, and see only an endless series of eurozone bail-outs, shrinking British tax revenues and our slow but inevitable slippage down the international league tables in skills and education.

Nevertheless, there are reasons to be cheerful. To paraphrase Golda Meir, “Pessimism is a luxury that no politician should allow himself.” The independent Office for Budget Responsibility forecasts that our economy will grow in real terms in each year of this Parliament, and there is growing consensus that vocational skills and apprenticeships will play a big part in that. We see a shift in attitude in the passion of the new crop of MPs for vocational qualifications. My hon. Friend the Member for Gloucester (Richard Graham) has just entered the Chamber. He gave a very good speech in a debate on that subject last year. We also see the commitment of the Minister and his team.

In 2011 we need, above all, growth, jobs, confidence and young people doing training that will provide them with opportunities for the future. Apprenticeships are about not only economic utility but social justice, and I have always believed that if we give young people independence, a work ethic and the chance to improve their lives, we give them freedom. I do not argue for more apprenticeships and better skills because of economic reasons; I argue on grounds of social justice.

Margaret Thatcher is not often remembered for her views on skills and vocational qualifications, but she said:

“A man’s right to work as he will, to spend what he earns, to own property, to have the state as servant and not as master—these are the British inheritance. They are the essence of a free economy... and on that freedom all our other freedoms depend.”

That, in a nutshell, is why for me, apprenticeships must be at the core of our education system. Young people deserve the chance of economic freedom as much as everyone else.

In the Government’s paper, we see that most forcefully in the plans to make all vocational training free at the point of access, with costs repayable only when people are earning a decent salary. That will help young people of course, but more significantly it will open up apprenticeships to single parents, back-to-work mums, jobless adults, the homeless, and ex-offenders who want to go straight. Those people may have huge potential, but often cannot afford the fees to retrain. They deserve the chance of economic freedom, too.

At the same time, not everything in the garden is rosy. As the Government’s skills strategy paper points out,

“Our working age population is less skilled than that of France, Germany and the US and this contributes to the UK being at least 15% less productive than those countries.”

That is why the Government’s new focus on apprenticeships and their expansion of adult apprenticeships by up to 75,000 is essential. That will lead to 200,000 people starting an apprenticeship each year by 2013-14—numbers that are beginning to approach the scale of A-levels. The Minister’s plans to enhance the level 3 apprenticeship by classing it as “technician level” will also help to boost its prestige. That is especially true if people know that they can become an apprentice not just in a trade, but in finance, media, hospitality, business and even politics.

The apprentice in my Westminster office, Andy Huckle, who is sitting right behind me in the Public Gallery, is combining a year in the House of Commons with a level 3 course in business administration, which is like an entry-level MBA.

[Mr Jim Hood (in the Chair)]

Order. I remind the hon. Gentleman that he is not allowed to refer to anyone in the Public Gallery.

[Robert Halfon]

My sincerest apologies, Mr Hood; I was not aware of that.

My apprentice is a great example of my next point, which is that apprenticeships can be well suited to academic students, who can go on to achieve at university. He is now applying for degree courses to start next year and hopes to study history at the university of East Anglia. That is why I welcome the Government’s intention to create “clear progression routes” from level 3 to level 4 and higher education. That will give people like my apprentice a chance to see a busy workplace, to make things happen in the real world and to get money in their pockets, without having to abandon all hope of taking part in the pub crawls, protests at Westminster and student politics that so enrich university life.

[Mr Andrew Smith (Oxford East) (Lab)]

I congratulate the hon. Gentleman on securing this important debate and I agree with the thrust of what he is saying. Does he agree that there must be a thoroughgoing effort with employers, taking account of the needs of employers, in order successfully to establish more apprenticeships? In my constituency, we have the excellent example of apprenticeships at BMW, which encapsulate the sort of progression route that he mentions. Indeed, the demand to get on those apprenticeships is terrific, with the number of applicants greatly exceeding the number of places. Is it not the case that we need more such employers offering those opportunities, which will benefit them as well as the economy and those who are taken on?

[Robert Halfon]

The right hon. Gentleman has a lot of experience in these matters; indeed, his experience is far greater than mine. I agree with him. There are two sides of the coin, and this push will not work unless businesses are incentivised and encouraged in more ways than one to set up apprenticeship schemes and to do the things that he describes.

[Richard Graham (Gloucester) (Con)]

Like the right hon. Member for Oxford East (Mr Smith), I warmly congratulate my hon. Friend on securing the debate and championing apprentices in this Parliament. It is very nice to see his own apprentice here. Could I just ask—

[Richard Graham]

Thank you, Mr Hood. Does my hon. Friend agree that a terrific opportunity is coming up in only a few weeks’ time, in national apprenticeship week, for employers to show their commitment, as he rightly says, to offering both economic opportunity and social justice to the young unemployed in our country by participating in that initiative? Does he also agree that what is being done in Gloucestershire, where we have the Gloucestershire apprenticeship fair, which will feature a keynote speech by the Minister responsible for apprentices, is exactly the sort of thing that should be happening throughout the country?

[Robert Halfon]

Yes. What my hon. Friend has just said, and particularly the fact that he has managed to secure the Minister responsible for apprentices for the event in his constituency, shows exactly why he is such a champion of apprentices. Something has come through to my office about MPs becoming apprentices for a day, and I hope very much to be able to do that during apprenticeship week.

I should also mention that my apprentice is partly funded by a local business man, who employs eight apprentices and 13 ex-apprentices in his construction firm. He wanted to support us because he was an apprentice many years ago. He is a real example of the social capital that can be built when employers take apprenticeships seriously, as the right hon. Member for Oxford East (Mr Smith) said.

The philosophical heart of the Government’s paper is that the world is too complex to be planned and delivered centrally. Hon. Members on both sides of the House will, I hope, welcome the new freedoms that the Government are devolving to further education colleges, with the simplification of budget lines and the reductions in audits and form-filling. Harlow college used to receive umpteen different ring-fenced types of funding for adult learners, all of which had to be monitored, with no flexibility to move funding between them. Now, there will be a single funding line for adults. It will be a much simplified system, with less paperwork.

At the same time, the quicker the Government can move to do the same for funding for 16 to 18-year-olds, the better. Harlow college at one time had 50 separate funding lines for 16 to 18-year-olds, all requiring separate reporting, which is bureaucratic insanity.

Possibly the greatest freedom that the Government are giving FE colleges—I am very excited about this—is the chance to bid for and run university technical colleges. The Minister is working closely with my right hon. Friend the Secretary of State for Education and with a former Education Secretary, Lord Baker, on their roll-out across the country. Like the old institutions that taught technical skills, although they will not be seen as second grade, university technical colleges will combine English, maths, information and communications technology and business skills with specialist subjects that require technical equipment—for example, engineering, product design, construction and environmental services. They will be part of the Government’s massive expansion in academies and, crucially, a conveyor belt to level 3 and 4 apprenticeships and higher education. As a major structural reform, university technical colleges tackle head-on the problems of low prestige and poor routes to university from which apprenticeships are suffering.

I have met several times Lord Baker and representatives of Essex and Harlow councils, Harlow college, Anglia Ruskin university and Pearson UK about the prospect of a UTC in Harlow. Lord Baker has visited Harlow college himself—as has the Minister—to try to bring that into being. Only last week, the Minister reminded us that Harlow college

“is an exemplar in so many ways.”—[Official Report, 13 January 2011; Vol. 521, c. 411.]

Under the principal, Colin Hindmarch, the college has been transformed from being at the lower end of the league tables to being nationally competitive. Indeed, it is rapidly becoming one of the best colleges in England. In terms of value added—how much a student improves between starting and finishing their course—it is one of the best places to study in the UK. I am delighted to tell hon. Members today that Pearson UK—a national firm based in Harlow—is examining how it could support the college’s bid for a UTC in Harlow, perhaps with an application later this year.

The former Prime Minister, Tony Blair, has argued that we have not really decided as a nation whether we want American levels of taxation or European levels of public services, but increasingly I think that that is a false choice. When the private sector makes a voluntary contribution to enhance a public service, it can result in the best of both worlds. As the Government’s strategy paper states, the cost of training

“should ultimately be shared between employers, individuals and the state to reflect the benefit each receives.”

So long as there is no barrier to access, such as up-front fees for courses inherited by the Government, sharing the cost is fair, as it recognises that education is both a private and a public good.

I clearly support the Government’s strategy on skills, but I believe that further steps need to be taken. I recently met apprenticeship organisations, from livery companies to UK Skills and from the Association of Colleges to Edge, each of which represents a different part of the jigsaw of occasional qualifications. We discussed the idea of establishing a national society of apprenticeships, even a royal society, similar to the Law Society or the British Medical Association—or, better still, the Royal College of Surgeons. I tabled early-day motion 587 in support of that notion and raised the proposal in Parliament. A society with membership benefits such as high-street discounts and social events would dramatically increase the prestige and culture of apprenticeships. The Minister will be aware that I have been holding discussions with relevant groups, businesses and student organisations for a number of months, and I hope that we and the Government will be making an announcement in the near future.

Secondly, last week I spoke to the Minister about the pioneering wage-subsidy scheme run by Essex county council, and asked whether the Government would consider encouraging other local authorities to roll it out.

[David Simpson]

I thank the hon. Gentleman for giving way a second time. He has hit upon a poignant matter: the incentivisation, if that is the proper word, of young people to go into apprenticeships. There needs to be some financial reward or incentive. In my constituency, 15 or 20 young people may start an apprenticeship course, perhaps at an FE college, but only five will finish it because the finance is not there. It is difficult to get companies to sponsor apprentices in the current economic climate.

[Robert Halfon]

The hon. Gentleman is exactly right. Part of the problem with people who want to do apprenticeships is that they cannot afford to do so. I am lucky that the apprentice in my office lives with his family; it would be much harder if he did not, as the apprentice wage is just under £100 a week. That is why we need a royal society of apprenticeships. That is why I am working with student organisations and others to bring about an incentive scheme. If we change the culture and prestige of apprenticeships, there will be a genuine substantial financial incentive for people to become apprentices. Another big problem relates to single parents wanting to do apprenticeships. The Essex county council scheme is specifically directed at such low-income groups, and it needs to be replicated.

I believe strongly that companies tendering for Government contracts should include a clause in their agreements that will boost apprenticeships. I suggested that Essex county council should consider including such a clause for its major construction projects. Today, I received confirmation that it is committed to making that happen; all who tender for major construction works with Essex county council will need to have an apprentice. That is an important step.

I turn to the question of EMA reform. A debate on the subject is taking place in the main Chamber as we speak, but I wish to discuss the matter with the Minister. A central aspect of further education is the affordability of studying, and getting young people not only to start but to finish their courses. I support reform of the educational maintenance allowance, as I accept that there are flaws in the current system. However, certain factors might affect students and apprentices, particularly those from deprived backgrounds. I shall use my local college as an example.

Nearly two thirds of learners at Harlow college receive the EMA, and 80% of them receive the full £30 a week. The college estimates that between 300 and 400 learners at Harlow—about 10% to 15%—depend on the EMA for lunch and dinner and for travelling to college. Those learners are the most vulnerable, from the poorest housing estates. The next tier is made up of a further 300 to 400 learners, another 10% or 15%, who are not the very poorest but are still from deprived backgrounds—people who strive and work hard. Without the EMA, they would need part-time jobs to increase their income significantly, but given the job market today that is not easy.

Harlow college is not stuck in the past, and it welcomes reform. It is not reactionary and does not represent what Tony Blair once described as the forces of conservatism. Whatever system we put in place, however, we must recognise the different financial positions of those two groups. I have discussed with the principal of Harlow college making the EMA, or a centrally administered college fund, dependent on improvement rather than attendance. It is something that he supports. We believe that learners should earn their money not simply by showing up, but by being punctual, behaving well, working hard and making good progress. As with apprenticeships, it would teach young people the work ethic. For level 3 courses, there are several value-added measures, including the key stage 5 achievement and attainment tables, that can be used at the end of a course to measure the success of tying EMA funds to achievement.

[Mr Andrew Smith]

The hon. Gentleman is being generous in giving way. He makes a good point. We could have a separate debate about the EMA; indeed, one is going on at the moment. He understands well the circumstances of the students and apprentices at his college. Does he believe that, under the Government’s proposals, there will be enough in the discretionary fund to incentivise and reward students, as he advocates?

[Robert Halfon]

I cannot answer that question because we do not yet know what the grant will be. I support reform of the system, but I want to ensure that those about whom I have spoken are not disadvantaged. As soon as I know what the grant will be, I shall be able to give a better answer.

Harlow College monitors the progress of learners every day on all the measures that I described earlier—attendance, punctuality, behaviour, work done and progress made. The Minister has a genuine passion and feeling for vocational education, and I hope that he will discuss the matter with his colleagues when considering reform.

The self-reliance, freedom and maturity that come from earning one’s own money are not to be underestimated. We have many reasons to be cheerful about the economy, and the Government’s skills strategy is a critical first step towards restoring the centuries-old British tradition of vocational training and manual craft. University technical colleges will accelerate the Minister’s efforts to improve the prestige and status of apprenticeships and to strengthen the routes from apprenticeships into higher education—especially if, as I hope, we have such a college Harlow. As I said, that is important for social justice, because apprenticeships are our best hope against the compounding problems of stalled social mobility, our skills deficit and our rising NEET population.

I sincerely hope that we can make progress in creating a society of apprentices, nudging other councils into adopting Essex county council’s pioneering wage-subsidy scheme, and creating an EMA system that supports the poorest and the most deserving. We must reward determination. One of my favourite books is “David Copperfield” by Charles Dickens. Although David starts off life being treated very badly by Mr Murdstone, he later finds an apprenticeship with a solicitor. Towards the end of the book, he says:

“I was not dispirited now. My whole manner of thinking was changed. What I had to do was to turn the painful discipline of my younger days to account by going to work with a resolute and steady heart.”

It was David Copperfield’s apprenticeship that transformed his life and circumstances. I know that that is what the Minister intends for our apprentices, and I look forward to his reply.

--- Later in debate ---

[Mr Marsden]

My right hon. Friend is right on that point. I shall spare the Minister’s blushes, but he has committed to continuing that process. Indeed, he emphasised that point from the floor when questions were raised about it at the conference of the Association of Colleges in Birmingham in November. The devil is in the detail, and the questions of how the aim is to be achieved within funding regimes through the Skills Funding Agency and how it relates to other possible views within the Government must be resolved. I have no doubt about the Minister’s personal commitment to proceeding with that aim, but my right hon. Friend has made a valid and important point.

The hon. Members for East Londonderry (Mr Campbell) and for Upper Bann (David Simpson) have made valuable interventions. They both made the important point that we should view apprenticeships, training and outreach work not only as economic activity but as a vital activity for social cohesion. I am particularly interested and impressed by what the hon. Member for Newton Abbot has said about the activities of her college in going out on to the street and trying, in the words of the Good Book, to compel them to come in.

There is a broader underlying issue, with which all of us have fought in recent years. It concerns not only the fundamental mission of further education colleges or apprenticeships, but how and where that mission is carried out. Some of the most valuable work that has been done via the splendid Blackpool and the Fylde college in my constituency has been done not on the main campus sites but in a city learning centre adjacent to one of the main housing estates. In reality, particularly in areas where people may be juggling two or three different types of job or responsibility, which is particularly true of women, the siting of, and immediacy of access to, training and further education matter a great deal. The hon. Member for Newton Abbot has discussed her constituency, and I am sure that what I have described is as true in rural constituencies as some urban ones, if not more so. Even in my constituency, some people on the estate who benefited from outreach courses would not have found it easy to get on a bus and travel 2 or 3 miles to take standard college classes. I entirely agree with what the hon. Lady has said, and I hope that the Minister will take that on board in developing future policy with colleges.

My right hon. Friend the Member for Oxford East (Mr Smith) has made valid and crucial points about how the skills strategy will fit with local enterprise partnerships, and I will return to that issue later. He made other key points that the Minister needs to respond to. The first is the concern that he expressed about skills shortages. That concern might seem perverse at a time when—let me put it bluntly—the demand for skills in the current economic situation is certainly not uniformly high. However, the truth is that even with modest growth generally and in certain areas in particular, because of the reasons that he gave, demographic changes will affect particular skill groups. We know from the Leitch report and various other things that we face a significant demographic challenge in the next five to 10 years, because the cohort of younger people available for skills training will reduce sharply. Of course, that will put even more emphasis on some of the points to which my right hon. Friend has referred. The comments that we have heard about skills shortages are significant.

I turn, with some gravity, to the Government’s skills strategy, on which I want the Minister to comment. Picking up my previous point about my right hon. Friend’s speech, the introduction of tuition fee-style loans for all those taking level 3 qualifications and the part-funding for a first level 2 qualification will seriously hit the strategy for retraining and reskilling older workers, if they are not handled carefully.

Questions have been put to the Department for Education and Skills and to the Minister himself about how much, under the current circumstances, colleges can be expected to charge when they increase fees for courses. I accept that we do not live, pace one or two things that have been said about the Secretary of State for Communities and Local Government, in a Stalinist “plan and provide” world. However, we need to have a little more assurance about the sums of money that people will have to borrow to fulfil a mainstream apprenticeship course. In an article in The Guardian at the end of last year, the Minister referred to a sum of about £9,000 over that period of study, but it would be helpful if he were to comment on the modelling by which the Government made that assessment.

Of course, if there is a potential impact of increasing fees, in terms of reducing enrolment, it will come at a time when colleges face a 25% reduction in the further education resource grant from the Department for Business, Innovation and Skills during the spending review period. Ministers have said that that reduction is nowhere near the “grim reaper” that has descended on the higher education sector, which is perfectly true. Nevertheless, that reduction and the potential impact of axing the EMA—both the Association of Colleges and the 157 Group have said that axing the EMA will have a significant impact on the number of people applying to college—mean that FE colleges may find themselves under real pressure as a result of Government decisions.

The Government have said that they want to get people back into work—how could we not want to get people back into work? However, the issue of how the Government expect to do that if they are going to remove the support for course fees from anyone who is not on active benefits is a live one. Even those claiming active benefits over the age of 24 will have to take out tuition fee-style loans to take level 3 courses. I have an open question, not a rhetorical one, about that issue; what incentive will there be for those people to take out a sizeable loan when there is no guaranteed income stream to repay it?

As has already been said and as—I am afraid—is the case with so many things that this Government are doing, they are in danger of wielding several sticks before offering a number of carrots. The fees for some level 2 and level 3 courses will be introduced as early as 2011-12 and the fees for the majority of those courses will be introduced in 2012-13. However, the Government say in their own statistics, which accompany the skills strategy, that they do not envisage the new loan structure being in place in full until 2013-14. That is one of the points that the Association of Colleges has raised in its briefing note to Members for today’s debate. However, the Association of Colleges has also raised the separate issue of the impact of the restrictions relating to benefits entitlement, which my right hon. Friend the Member for Oxford East has also raised. The Minister will know, because it was the subject of a question and answer session that he participated in at the Association of Colleges conference in Birmingham in November, that that issue is of great concern to colleges.

We support the Government’s aim to help more people off welfare and into work, and we understand the desire to focus efforts on those receiving active benefits. However, I remind the Minister that on a number of occasions he and I have talked about the importance of enabling skills to the life chances of people. There are real concerns, particularly in relation to some of the impacts of the restrictions on employment and support allowance, that, as I said earlier, people might find themselves being “nudged” away from participation in education and training rather than being “nudged” towards it.

Like me, hon. Members may find it curious that the Government preach localism, but that their new skills strategy effectively gives the power to set these plans nationally to the Skills Funding Agency. When we were in government, we talked about the crucial role that regional development agencies can play in this field. I also note, having heard the favourable comments that the hon. Member for Harlow made about the college in his own constituency, that Harlow recently opened a new £9.3 million university centre for higher education. Of course, that project, like the project in my constituency at Blackpool and the Fylde college, was partially funded by grants from the RDA. I am not here to argue the case for RDAs, but now that they have gone there appears to many people, including myself, to be a black hole in the connectivity of support for the successor bodies to the RDAs, including local enterprise partnerships.

Many business groups, including the British Chambers of Commerce, have commented on that lack of co-ordination between those in charge of skills policy and local enterprise partnerships. I remind the Minister that his colleagues in the Department for Communities and Local Government did not even put local enterprise partnerships in the Localism Bill when they introduced it, and they have resolutely refused, or at least been unwilling, to talk about establishing links in that respect.

[Robert Halfon]

I thank the hon. Gentleman for his measured and thoughtful remarks. Regarding RDAs, although it was welcome that part of the money for the college in my constituency came from the local RDA, at the end of the day that money is taxpayers’ money. That money does not necessarily have to pass through the RDA to reach Harlow college or Harlow; it could easily go through local councils or through the other mechanisms that he has mentioned. The support that Harlow college received is not necessarily a case for the RDA.

[Mr Marsden]

I was merely making an observation, and I was not saying that the RDA is the only mechanism by which this money can be redistributed. Of course, there were also other grants that contributed to the college. I was making the point that the RDA is a mechanism that supported that type of college development. Not only is the current level of economic activity across the country failing to replicate that support, but we do not even have secure promises about how local enterprise partnerships themselves will be supported and funded, so that they can provide similar support or access funding from the private sector. That is one of my concerns.

Finally and briefly, I turn to the issue of apprenticeships. The Government have been keen to trumpet the success of apprenticeships and their ambitions for them. I yield to no one in my delight that the Minister has made so many strong points about apprenticeships. However, we must remember that the pledge that there will be an extra 75,000 apprenticeship places applies only to adult apprenticeships. At a time when youth unemployment remains high and the Government have chosen to end schemes such as the future jobs fund and our September guarantee of a college place, training or a job for all those aged between 18 and 24, one must wonder what capacity there will be in business to provide these extra apprenticeship opportunities. Indeed, Members have touched on that issue in the debate today. Just as one can nudge people away from things as well as nudging them towards them, we need to take into account push and pull factors. It seems to me that no amount of ministerial criticism of Train to Gain can take away from the fact that axing the scheme leaves a serious gap in work-based training provision.

Finally, the Government are rightly putting an emphasis on level 3 money going in, but there is still a massive demand across the country for level 2 apprenticeships in leisure, tourism, catering and other applied service industries, and it is vitally important that they are not neglected. They need to ensure that they provide what employers want from apprenticeships, as opposed to what might fit their own agenda for the sector, however noble their intentions.