Apprenticeship Levy

Debate between Robert Halfon and Rupa Huq

Wednesday 22nd November 2023 Westminster Hall

[Robert Halfon]

That is a fair point. I just want to point out that many businesses not only support the levy and have used it effectively, but recognise the flexibilities that we have introduced. For example, Virgin has created an apprenticeship programme that attracted 500 engineering apprenticeships alone. I think the apprenticeship levy is like the Ronseal advert, which is one of my favourites: it does what it says on the tin. As I said, 98% of the apprenticeship budget was spent in the last two years. It is clear that employers understand this message well.

I know the value of apprenticeships to young people and under-25s. As I say, they continue to make up over 50% of starts, and just under 70% of starts are at levels 2 and 3. It is important to mention that we are spending billions of pounds not just on the apprenticeship offering and the 680 apprenticeship standards, but on skills bootcamps, T-levels and higher technical qualifications—all Government investment in skills.

The hon. Member for Feltham and Heston spoke about careers. We have introduced the Baker clause to ensure that schools encourage students to do apprenticeships. The awareness of apprenticeships in schools has now rocketed up, although there is lots more work to do. We have the apprenticeship support and knowledge, or ASK, network, reaching 2,300 schools and something like 625,000 pupils, ensuring that they know about apprenticeships. I visited the Oasis Academy to see that. We have also worked with UCAS to introduce the UCAS apprenticeship scheme, which will bring a dramatic transformation in the take-up of apprenticeships, because people will be able to access them when they decide to go to university.

Hon. Members have also spoken about apprenticeship achievement volumes, which are substantially higher than they were the previous year—in 2022-23, they are up by 20%—so we are doing a lot to drive up the achievement rate, which I know my right hon. Friend the Member for Suffolk Coastal cares about. We also have £7.5 million of investment in professional development to support the workforce.

My hon. Friend the Member for Stoke-on-Trent North talked about English and maths skills. He rightly challenged me, and if he does not mind I would like to challenge him back. I absolutely believe that people need basic English and maths if they are to do an apprenticeship. He wants that to happen in schools, and with the advanced British standard people will be learning English and maths till the age of 18, so we should have the same for apprenticeships. We should not say that one group of people does not have to do English and maths because it is too much of a burden, but that it should happen in schools, which my hon. Friend cares about. He will be pleased to know that we are increasing the English and maths funding rate for apprentices by 54% to match the adult education budget. That will kick in from January 2024.

I have talked about removing the regulation on small businesses. We have an expert provider pilot to allow the best providers to offer more support to SMEs. We have a transformation in degree apprenticeships. We created degree apprenticeships—those are my two favourite words in the English language. There have been 200,000 starts at levels 6 and 7 since 2014, and starts are almost 9% higher than last year. We are investing an additional £40 million to support more people to access degree apprenticeships.

The hon. Member for Feltham and Heston spoke about social justice, which is why I am such a passionate supporter of apprenticeships—it is what motivates me. We increased the apprenticeship care leavers bursary to £3,000 this August and, as I said, we give £1,000 to employers and providers who take up apprenticeships; that is very welcome.

I really hope the hon. Lady moves away from the policy that the Labour party announced on skills. As I said, you had a target of 50% of people going to university because Labour believed it to be the only route to success. That led to the growth of poor-quality university courses, although of course most of our universities provide excellent courses. That was all about quantity over quality. The DFE analysis has found that your apprenticeship policy would slash the number of apprenticeship starts.

[Dr Rupa Huq (in the Chair)]

Order. I am sure the Minister did this inadvertently, but we are always told to be very tough on people who keep saying “you”, as that is technically me. So just de-you it.

[Robert Halfon]

I beg your pardon, Dr Huq. I was talking about the Labour party, but I understand. I will follow your ruling.

[Dr Rupa Huq (in the Chair)]

Just call them the Labour party and depersonalise it.

[Robert Halfon]

DFE analysis has shown that the policy the hon. Member for Feltham and Heston is suggesting would reduce the number of apprenticeship starts by 140,000 per year, cutting them in half. The reality is that the moment the apprenticeship levy is diluted, there will be gaming of the system and much less spending on apprenticeships. The policy would undermine the apprenticeship starts that the hon. Lady says she is so keen to increase.

[Robert Halfon]

The reality is that if the levy is diluted and people are allowed to spend it on skills, there will be thousands and thousands fewer apprentices. As I say, I want the apprenticeship levy to do what it says on the tin: it should be a levy that supports the take-up of apprenticeships. I want to build an apprenticeship nation.

[Dr Rupa Huq (in the Chair)]

Order. Before we get into too much of a ding-dong, the Clerk is reminding me that the normal time has been exceeded. I know we are not up to the hour, but the Minister would usually be doing his conclusion by now.

[Robert Halfon]

The good news is that I will conclude.

I mentioned the advanced British standard, which will provide young people with knowledge and skills. That includes £600 million in investment over the next two years, much of which will go to support colleges.

In conclusion, these are exciting times for apprenticeships. Yes, we always have to look at our reforms and make sure things work, and I have listened to everything hon. Members have said in the Chamber today. However, it is vital that we give employers and providers the time and stability to deliver gold-standard apprenticeships across even more apprenticeships and that we offer a ladder of opportunity to every young person and to those who want to train and retrain throughout their lives.

[Dr Rupa Huq (in the Chair)]

I wanted to leave time for Jonathan Gullis—I will not repeat that joke for the third time—to conclude.