Apprenticeships Funding

Steve Rotheram Excerpts

Tuesday 1st November 2016 Westminster Hall

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

It is a pleasure to serve under your chairmanship again, Mr Streeter. I congratulate my right hon. Friend the Member for Tottenham (Mr Lammy) on securing this important debate.

I am proud to be one of the few MPs currently in the House who completed an indentured apprenticeship. I remember being offered a place as an apprentice bricklayer as a teenager and nearly dancing with joy. Back then, an apprenticeship was very much something to aspire to. It was a path that people chose because they, and especially their parents, understood the brand. In many families, young people were told, “If you get an apprenticeship, you’ll always have a trade to fall back on.” However, successive Tory Governments devalued their reputation. It was the last Labour Government who breathed new life into apprenticeships, with capital support for new buildings and substantial increases to vocational funding models. The Government claim that they want to create 3 million apprenticeships by 2020. That is a laudable aim, but in this House I have repeatedly said that rather than having arbitrary targets on numbers, we need to assure quality. I do not want the House to get me wrong; if all the projected 3 million apprenticeships are at level 3 with a decent wage rate, I am in.

Faced with increased university tuition fee debt, young people are now choosing vocational routes into the workplace instead of academia, but the Tories have overseen one of the worst skills shortages in living memory. Research from the Liverpool city region apprenticeship hub suggests that the number of apprenticeship starts in Merseyside and Halton has fallen by almost 25% over the past five years. The Minister will know that construction sector output is vital to his Government’s macroeconomic policy; but the Union of Construction, Allied Trades and Technicians has warned that urgent action is needed to tackle the growing skills shortage, and the Construction Industry Training Board has forecast that the industry requires nearly 50,000 new entrants a year up to 2020. That far exceeds of the number of construction apprentices currently undergoing training, which is roughly half the figure given.

[Amanda Solloway (Derby North) (Con)]

As a member of the Business, Energy and Industrial Strategy Committee, I realise how important apprenticeships are. About three weeks ago in Derby we opened the National Construction Academy, which offers valuable, meaningful apprenticeships for that vital industry. Does the hon. Gentleman agree that the plans to extend that around the country are a good thing, and to be commended?

[Steve Rotheram]

I said earlier that it is question of whether the apprenticeships are proper level 3 ones— high skill, high quality, and in high-demand areas. I would of course welcome any initiative to increase people’s opportunity to get a proper job at the end of an apprenticeship programme. However, the Minister is presiding over an exacerbation of the problem and not tackling the fundamental issue.

In the Liverpool city region, the number of national vocational qualification level 3 apprenticeship starts last year was a fraction of the total needed simply to backfill the numbers retiring or leaving the industry. That simply cannot be allowed to continue. The Tories have a track record of failing young people from disadvantaged backgrounds. They scrapped the education maintenance allowance, trebled tuition fees and took away maintenance grants for university students and replaced them with loans, saddling the poorest with ever more debt. That tells us all we need to know about Tory ideology; they want the best only for the privileged few, not for the many.

Our devolution deal, with an area-based review for our city region, at least provides us with the opportunity to shape training better, on the basis of local need—if the Government grasp the nettle. At this point I should declare an interest. Devolving the skills agenda further would allow the incoming metro mayor to implement a skills strategy that would train the next generation of tradesmen and women, equipping them for the high-skill, high-paid, high-aspiration jobs that we need to build and sustain our future economic growth. However, central Government have not devolved apprenticeship funding and delivery and they have full control over the new apprenticeship levy that employers are obliged to pay if their wage bill tops £3 million a year. Will the Minister agree to meet me to discuss how the metro mayor of the Liverpool city region will be able, as it states on page 8 of the devolution deal, to

“collaborate to maximise the opportunities presented by the introduction of the apprenticeship reforms (including the levy) and work together on promoting the benefits of apprenticeships to employers”?

What exactly does he believe that collaboration between the Government and the metro mayor will entail? How does he envisage us maximising those opportunities? Does he agree that it is imperative that, following the upcoming spending and apprenticeship reforms, metro mayors have local control over and are directly responsible for apprenticeship funding and influence over the employer levy? If not, will he explain how he believes it is possible for a metro mayor to achieve improvements and address skills shortages locally without those powers? Apprenticeships must be at the heart of that strategy.

If we are to do that, we must also provide our young people with the proper advice and guidance to make informed decisions. It was an act of civic vandalism by the Government to dismantle the Connexions service when they came to power, which has left us with a system in which vested interests give partial advice to young people about their career options. If elected as the metro mayor for the Liverpool city region in May 2017, I intend to develop an independent careers and advice service that serves the best interests of all of the young people in our area.

Devolution provides us with the opportunity to make funding allocations based on the knowledge of local leaders across the city region, which is better than guesstimates from Whitehall mandarins. Will the Minister specifically address the points I have raised, unlike his colleague, the Minister for School Standards, the hon. Member for Bognor Regis and Littlehampton (Mr Gibb), who shimmied and sidestepped last week like Philippe Coutinho?