Apprenticeships Funding

Robert Halfon Excerpts

Tuesday 1st November 2016 Westminster Hall

[The Minister for Apprenticeships and Skills (Robert Halfon)]

It is a pleasure to serve under your chairmanship, Mr Streeter.

I congratulate the right hon. Member for Tottenham (Mr Lammy) on securing this important debate and on the work he has done, but I was disappointed that he did not feel that it was right to mention the £13.4 million spent by the Government in his constituency on the new digital college, which I was proud to open with him only a couple of weeks ago; the 920 apprentice starts in his constituency over the past year; the Government’s doubling of apprenticeship spending to £2.5 billion by 2020; the 619,000 apprentice starts that we have had since May 2015; or even—dare I say it?—the record on people not in education, employment or training. The previous Government left us with 1 million unemployed young people. Between 2014 and 2015, the proportion of 16 to 18-year-olds in education or work-based learning increased to 90%, which is the highest figure on record, and the proportion of 16 to 18-year-old NEETs fell to 6.5%, which is the lowest rate since records began. I was also disappointed that the right hon. Gentleman did not mention the 500% increase in higher apprenticeships since 2010, the £7 billion to be spent on further education and training, and the extra incentives given to the frameworks. His speech was partial and disappointing given his record in standing up for apprenticeships and skills.

I congratulate my many hon. Friends, and hon. Gentlemen and Ladies of all parties, on their thoughtful speeches. My hon. Friend the Member for North Swindon (Justin Tomlinson) was a brilliant Disabilities Minister. We are very supportive of the work done by him and my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) to encourage more disabled people into apprenticeships. We fully accept their recommendations and we are implementing them.

On the levy, we are increasing the incentives to employers and providers by £1,000 each for those on a healthcare plan or those from care homes; specific disabilities providers will get an extra £150 a month, and up to £19,000 will be provided for adaptation. My hon. Friend the Member for North Swindon will know about the £2 million that we put by for support for mental health apprenticeships; that money supports roughly 2,000 participants. It is worth mentioning traineeships, on which something like 19.7% of those with learning disabilities are represented. That has not been mentioned in this debate.

I am very happy to meet with the hon. Member for Liverpool, Walton (Steve Rotheram), and I am meeting him on Thursday about another issue. There are no existing plans to devolve the levy funds to specific areas. We are creating a system that simplifies funding across England, making it easier for employers to navigate. We will be reviewing how the disadvantage funding works over the next 12 months.

There were some thoughtful speeches, including from the hon. Member for Glasgow North West (Carol Monaghan). I say to her and to the hon. Member for Motherwell and Wishaw (Marion Fellows) that the devolved Administrations will get a fair share, and we hope to make the announcement shortly. The hon. Member for Glasgow North West made important points about apprentices getting real jobs. It is good that 90% of apprentices stay in work. Surveys show that the satisfaction of those apprentices is incredibly high.

I could talk about many of the issues raised today, but in the time available I want to go through those raised by the right hon. Member for Tottenham and Labour’s Front-Bench spokesman, the hon. Member for Blackpool South (Gordon Marsden). Hon. Members have to see what the Government are doing in the overall context of the £2.5 billion increase by 2020. A huge amount is going towards increasing funding rates for STEM frameworks—that too was not mentioned by Opposition Members. Just under half of 16 to 18-year-olds will attract more funding thanks to the uplift in STEM frameworks. Huge amounts of money are going into support for disadvantaged apprentices, as was acknowledged by the right hon. Gentleman and others today. A significant amount is going towards helping small employers, as those with below 50 employees will pay no training costs at all. There are all kinds of other incentives. Some 25% of frameworks will be replaced by the new apprenticeship standards by the end of the year.

[Jim Shannon]

rose—

[Robert Halfon]

I am sorry, but I cannot give way because very little time remains.

More money will be spent on standards. A huge amount of money is going into the system to ensure that 16 to 18-year-olds and those who are socially disadvantaged are properly represented. Many of the frameworks that apply to adults are the same as those applied to 16-year-olds, yet the ones for 16 to 18-year-olds can cost double the amount. The surveys and the evidence show that they do not need to cost as much, and that, often, only a few hundred pounds would make a difference.

We are moving into a new world. The apprenticeship levy is changing employer behaviour. Businesses will choose different kinds of apprenticeships because of the move to standards, and would-be apprentices will choose different kinds of apprenticeships. The way the discussion has gone among some Opposition Members, it is as if we were comparing apples with apples. However, the world is changing and we are now comparing apples with pears.

[Mr Lammy]

Will the Minister give way?

[Robert Halfon]

I will not, because I only have a few minutes left to speak, and I think that the right hon. Gentleman had a fair crack of the whip.

We are putting a huge amount of money into FE funding, guaranteeing that £7 billion will be spent on FE funding and training. We have put money into a transition year and traineeships. Of those who do traineeships, 60% are aged 16 to 18 and 50% go on to get work, apprenticeships or education. Some £50 million has been spent on traineeships thus far—again, that was not mentioned in the debate.

Of course, we are doing a lot of work on welfare reform to help with jobcentres and so on. An enormous amount of money is going towards helping 16 to 18-year-olds and people from socially disadvantaged backgrounds. To use some frameworks as a way of saying that the Government are not helping the poorest is entirely wrong. I have five priorities for apprenticeships.

[Mr Lammy]

On a point of order, Mr Streeter. The Minister is reliant on the new standards, which only just over 3,000 apprentices have taken up. More than 99% are on the current frameworks, which is the subject of the debate, and the Minister has not addressed that at all. He is trying to hoodwink the House.

[Mr Gary Streeter (in the Chair)]

That is not a point of order. The Minister may continue.

[Robert Halfon]

The right hon. Gentleman should check his statistics. There have been more than 4,000 starts on standards, and 400 standards are in development. Many frameworks are going up, and we are putting a huge amount of money into uplifting the STEM frameworks. That is what employers want, and we are designing an employer-led system.

We are raising the prestige of apprenticeships, helping the socially disadvantaged, and introducing the levy to change behaviours and so that the cost is borne evenly throughout society. We will reach the target of 3 million; as I said, we have had 619,000 since May last year. We are raising the quality of apprenticeships through the Institute for Apprenticeships and through degree and higher apprenticeships, which many thousands of people have taken up.

The Government are transforming the country into an apprenticeship nation. I am proud of the work that has been done, and of the officials who have worked hard to ensure that we listen to employers, as we said we would when we first announced the levy.