Apprenticeship Levy

Stephanie Peacock Excerpts

Tuesday 11th February 2020 Westminster Hall

[Richard Graham]

The hon. Gentleman kindly glossed over that. Some of the points he made about the flexibility of the apprenticeship levy are important, and I promise that I will come on to them.

In that debate—I have reviewed what I said then—all of us recognised that some work on apprenticeships had been done under the Government in which the hon. Gentleman served. There was no doubt about that, but we needed to put a rocket-boost into the system, and I think the figures confirm that we did, with 2 million apprenticeships being created between 2010 and 2015. Businesses and Government organisations, together with what the Government introduced by way of funding, made a huge difference. However, let us not go over that too much, because I want to see where we are today.

I will start with what the aims of the apprenticeship levy were. It is fair to say that the Government wanted to double the investment in apprenticeships, from roughly £1.2 billion to £2.5 billion, and at the same time deliver on their commitment in the 2010 manifesto to take the number of apprenticeships from 2 million to 3 million by 2020. Right at the beginning, there was also a quality expectation—an ambition to raise the level of the apprenticeships that were being studied for and to have more higher apprentices, who in turn would contribute to some sectors where we had and still have key competitive advantages—cyber and aerospace are obvious examples. In addition, there was certainly the implication of reducing the costs to the taxpayer by getting a greater contribution from the larger employers in particular.

[Stephanie Peacock (Barnsley East) (Lab)]

I congratulate the hon. Gentleman on securing this debate. The points that he has just made are really important, and I share his view of apprentices—until recently, I had a living-wage apprentice in my constituency office. However, when I met representatives of Barnsley College recently, they shared his views, but one of their concerns was that the apprenticeship levy is not benefiting the school leavers it was intended to benefit and that those who do benefit often are mid-career and doing things such as extra degrees, which is of course to be welcomed but is not what the levy was set up to do. I wonder whether the hon. Gentleman has any comments on that.

[Richard Graham]

That is an important point, and the hon. Lady anticipates what I was coming on to. I have had my own apprentice now for nine years; they do a level 3 business administration course, and there will be other Members here who employ their own apprentices. There is a question mark about whether those at the starting levels of apprenticeships have been supported as well as they could be through the apprenticeship levy.

Interestingly, when I arranged an interview between Business West, which effectively took over the running of apprenticeships from the chamber of commerce in Gloucestershire, with the previous Minister with responsibility for apprenticeships, she said very clearly that in terms of small and medium-sized enterprises

“it has been difficult for the non-levy payers, but we are now transferring them over to a new system which we do want to be simpler for them.”

The Minister who is here in Westminster Hall—the Under-Secretary of State for Education, my hon. Friend the Member for Chippenham (Michelle Donelan)—is not formally the Minister with responsibility for apprenticeships. Indeed, I believe it is true to say that there is still a gap in the Department for Education in terms of an actual apprenticeships Minister, which I hope will be filled soon through an appointment by our new Prime Minister. Nevertheless, I hope the Minister here today will be able to say a little about the speed of transferring the non-levy payers to the new system and how that has progressed. The previous Minister with responsibility for apprenticeships made her comments in July last year, so I hope there has been some progress in that regard.

However, just to respond to the point made by the hon. Member for Barnsley East (Stephanie Peacock), it is quite true that the numbers of level 2 and level 3 apprentices have come down sharply since the introduction of the apprenticeship levy, just as it is true that the numbers of levels 4 to 7 higher apprentices have risen sharply.