Apprenticeships

Steve Rotheram Excerpts

Wednesday 4th February 2015 Commons Chamber

[Mr Umunna]

I am talking about not doing away with the qualifications of levels 1 and 2, but calling those levels something different and maintaining the badge of quality for apprenticeships by having them at level 3 and above. That will bring us in line with many other European countries.

[Steve Rotheram (Liverpool, Walton) (Lab)]

My hon. Friend is absolutely right about protecting the apprenticeship brand. Level 1 is a pre-apprenticeship entry qualification. Levels 2 and 3 are recognised by the industry. A person cannot go on to a building site with a level 1, but they can with levels 2 and 3.

[Mr Umunna]

I agree with my hon. Friend.

I have already talked about compliance with the national minimum wage. To tackle non-compliance and non-payment, Labour would give local authorities new powers to investigate and enforce the minimum wage. Hopefully, that will reduce the 15% of apprentices—[Interruption.] There will be headlines about how I cannot pronounce the word “apprenticeship”. Perhaps I should go back to school myself, but, to be honest, people mess up my name all the time. But, yes, we should be giving local authorities more of a role in identifying companies that are not complying with the requirements under the national minimum wage regulations.

Finally, we will make it very clear that we expect Departments across Government to provide apprenticeship opportunities. If we are elected in 91 days’ time and I am given a job by Prime Minister Miliband, I will be working with colleagues in the Labour Cabinet to ensure that we increase the number of apprenticeship opportunities across Whitehall.

I am mindful of the time, Madam Deputy Speaker, so I will conclude. I do not think that there is a huge difference in views across the House, but it all comes down to competent, determined delivery of policy across Government. We are determined, across all Government Departments, to do all we can to reform and grow our economy. The provision of more and better quality apprenticeship is a key part of that and will help us to ensure that more people can achieve their aspirations and dreams. It is for that reason that I commend this motion to the House. I am clear that there is only one thing to do this May and that is to vote Labour.

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[Vince Cable]

The right hon. Lady is absolutely right. Level 2 qualifications are valuable in themselves, as she rightly emphasises, but they are also part of a progression route. Many people who do a level 2 qualification take a break before going back and doing a level 3. I hope that we have now clarified that level 2 is a part of apprenticeships.

[Steve Rotheram]

With regard to proper apprenticeships, it depends on what a person’s qualification is on entry. With a lower qualification threshold, they would do a national vocational qualification level 2, on the way to doing an NVQ level 3. It is not either/or; it is part of an apprenticeship.

[Vince Cable]

That is very helpful. The hon. Gentleman clearly speaks from experience and knowledge, and we respect that.

The figures are very clear: we have seen a big increase in volume and a big increase in quality. That did not happen by accident. It is important to talk through the constraints on the public finances that I inherited, and on which the hon. Member for Streatham elaborated with regard to the problems that will face the next Government. When I came into office, I was told that the previous Government had planned to cut the Department’s budget by 25% had they returned to office. That was clear and explicit. Indeed, we have had to confront that in office. Let us be clear that it would have been no different had he been doing my job.

The Department’s budget is dominated by two items: higher education, including teaching and student support, and adult skills. There are other, smaller items such as industrial support and science. We were therefore faced, in office, with some very painful and difficult decisions. The advice I got from the Opposition, in a particularly shrill and angry way, was that we must give priority to university undergraduates—future graduates. We did the calculations and found that had we followed the advice from the Opposition, and had we introduced the policy that I think—it is not totally clear—they are now considering introducing on tuition fees, we would have had to cut the adult skills budget by about 40%. Within that, we would have had to cut apprenticeships by even more, because, being of higher quality, they are more expensive than other forms of training. Apprenticeships, which the hon. Gentleman described as growing steadily throughout the time of the Labour Government, as they did, would have been emasculated as a result of the public spending cuts that I think his party would have made had it been in government, and that I was being advised to make.

I then made a decision, which I think was one of my better ones, to listen to the advice, to reject it, and to do the exact opposite. We took a serious political hit on higher education, but we did the right thing in ensuring that universities were properly funded and that we got a fair repayment system. We also made the decision to invest more, not less, in apprenticeships. That is how we have got to where we are, with not only the volume but the quality. That is because we followed up getting the volume by taking short apprenticeships of below one year out of the system; by significantly supporting advanced and higher level apprenticeships; and, perhaps most importantly—the hon. Gentleman did not mention this at all—by introducing employer ownership through giving business a greater say in how these funds are allocated. In all those ways, we have improved quality.

Let me deal with some of the other critical comments in the hon. Gentleman’s speech and motion. First, he quoted the figure, as he did when he was on television with me the other day, regarding what he calls the lack of formal training—[Interruption.] Indeed, there was a survey that suggested that some apprentices—

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[Steve Rotheram (Liverpool, Walton) (Lab)]

Like many hon. Members, in just 92 days I will have reached the end of my first term as an MP. In my mind, it is still inconceivable that I have made it from being an apprentice on a massive building site to being, well, an apprentice on a massive building site, and although my political apprenticeship is about to be completed, the Palace of Westminster is not a bad site to work on. When I walked through the gothic archway that leads to the Chamber for the first time, flanked on either side by the familiar green Benches that I had only ever seen on the telly, I thought that I would be the only brickie in Parliament. But no—not only is my hon. Friend the Member for Derby North (Chris Williamson) a former bricklayer, but no less than the Deputy Speaker himself is a time-served, trowel-carrying member of the building fraternity.

The Prime Minister was challenged by young people on the programme “Stand Up Be Counted”, and he said that although the apprenticeship wage is not that high, the training and experience that someone gets should lead to a good job. However, he did not say what he is doing to address the problem of wage rates. My party is right to advocate equality between an apprenticeship and an undergraduate degree, but there must be greater focus on training people for specific sectors where there is real employment growth.

The Construction Industry Training Board construction skills forecast predicts that the construction industry will need more than 200,000 entrants over the life of this Parliament. That is in part to cope with political priorities such as house building and road improvements, but also to deal with an ageing population in the work force, with many workers reaching retirement age. That means that an average of 40,000 construction workers will need to be trained each and every year. To put that in context, in the last financial year just over 1,000 apprentices completed construction apprenticeships.

Construction was hit hard by the global financial crisis and the Government’s austerity measures, and thousands of workers lost their jobs or were replaced by cheaper migrant workers. We have seen the continued casualisation of the industry, and the latest practice of umbrella companies top-slicing workers’ wages. That is why I am proud of the campaign led by my union—the Union of Construction, Allied Trades and Technicians—to stop quick-buck merchants and unscrupulous employers damaging the reputation of the whole industry in a way that puts off many young people from considering construction apprenticeships as an attractive employment option.

The situation is stark and a number of factors require addressing immediately. Careers advice is patchy at best, and we must get away from the perception that construction is just for low achievers. The gender imbalance is still acute. Out of the 13,500 apprenticeship starts last year, only 250 were female, and for the best part of a decade construction has not been an industry that guarantees secure employment.

Liverpool city council has a great apprenticeship model, should others be looking to replicate its success. However, unless the Government are serious about filling the considerable skills shortages that exist in the construction sector, it will be extremely difficult to deliver those infrastructure priorities and we will need to import increasing numbers of skilled workers from abroad.

I firmly believe that the Government can change the circumstances of ordinary people for the better, and if I am re-elected in a few months’ time and come back here, the Labour Government that we will form will give hope to a new generation that is looking for high-quality skills, training and employment in our costed apprenticeship programme. I hope I am returned to see it.