Apprenticeships: Government Support

Debate between Virginia Crosbie and Karin Smyth

Tuesday 24th January 2023 Westminster Hall

[Karin Smyth]

That is a subject worthy of a debate on its own. I spoke to one of the Minister’s predecessors, who was a nurse at one point, about that very problem. It is a thorny issue, but it is surmountable. We now have 130,000 vacancies. It is woeful and shameful, but this is preventable, as it is for sectors beyond the NHS. For example, if we are serious about tackling the climate crisis with high-skilled green jobs, we must cultivate the talents and skills of everyone to reach net zero. We cannot rely on those with a degree; we need more people. We need our education system to work for everyone and give people the options and pathways that work for them. Right now, it does not.

Apprenticeships give people things they need for a career in a way that no other path of study does. All of us are here today because we agree with the fundamental premise that they are flexible, agile, rooted in the real world and earned by experience. Each year, I am proud to run my own annual apprenticeships fair. A bit of a plug: my South Bristol Jobs and Apprenticeships Fair will take place next month at the South Bristol Skills Academy, which helps people in the area to match their ambitions and experiences with the needs of local businesses.

[Virginia Crosbie (Ynys Môn) (Con)]

I thank the hon. Lady for securing this important debate and for plugging her skills fair. I want to say a big thank you: diolch yn fawr. I held Anglesey skills day here in Westminster and businesses from all over Anglesey, including Babcock, Holyhead Marine and Mona Lifting, came to support it, and there were lots of apprentices from across the island. Does she agree that apprenticeships can be a key way of giving our young people the life skills with which to succeed?

[Karin Smyth]

I do. The fairs are uplifting experiences, and I am sorry that I missed the hon. Lady’s fair. Young people and businesses are so passionate about them, and I look forward to my seventh next year. It will bring together those businesses, particularly small businesses, that are desperately seeking new workers. In a prosperous city such as Bristol, it should not be so hard to match the desire and needs of businesses with the ambitions of local people. The Government need to get a grip and develop a proper plan to make apprenticeships work.

I know that the Minister has championed apprenticeships from his very first speech in Parliament, and that he is as passionate about the subject as I am. He was kind enough to visit my Bristol South constituency in 2019. I take him at his word that he wants to see more apprenticeships made available to more people, but he is the eighth person to be the responsible Minister in the last 12 years. The brief that has been merged, renamed, repackaged and passed around, I think, 13 times in the same period. His Government simply have not done enough over the last 12 years; the lack of focus has been matched only by the lack of funding. Despite what we in this room think, apprenticeships are the perennial afterthought. They are passed around in ministerial red boxes like a game of educational pass the parcel. I know that the Minister is happy to be left holding the prize, but that cannot of itself make up for the neglect that the sector has suffered under successive Governments for more than a decade. I am glad that he is in his place for the debate, but he knows that the Government need to do more. As he will have heard in his time as Chair of the Education Committee, employers report increasing skills shortages and decreasing numbers of young people leaving education with the skills businesses need. The Government have no plan to address that.

For all the Chancellor’s talk of skills, it is clear that under the Conservative Government there has been a marked decline in apprenticeship starts over the last 10 years. As a result, there will be thousands of young people whose talent has been squandered. I see that in my own constituency: 1,250 people started an apprenticeship in Bristol South in 2011, but by 2019-20, that figure had dropped by 40%. It is not just in south Bristol. Before the pandemic, apprenticeship starts were down 28% across the country for under-19s, and £330 million of unspent levy was sent back to the Treasury. Only one in five of the promised 100,000 new apprenticeships were delivered. According to Department for Education figures for the 2021-22 academic year, apprenticeship starts are down again by 4.8% compared with 2018-19, and the number successfully completing their apprenticeships has plummeted by 31.5%. Something is clearly very wrong.

Answers from the Minister’s own Department show that the number of young people not in education, employment or training is also going up. This is a pattern of failure over a period of time, and after 12 years the Government are clearly to blame. That is not a surprise to the Minister; he is aware of all the problems and challenges from the evidence given to the Select Committee. He has also heard the cries from businesses about the apprenticeship levy. Smaller businesses say that the new system has

“added to the barriers, complexity and cost of recruiting and training staff.”

Larger businesses report that,

“the inflexibility of the system has made it difficult to spend their levy funds…leaving less money available to pay for the training people need.”

As my hon. Friend the Member for Chesterfield (Mr Perkins) said, that is also writ large in the health service. As well intentioned as the levy is—we are all very keen to support it and make it work—it is clearly now broken. There are too few apprenticeships available and too few small businesses, which are the basis of my constituency, participating. Crucially, there are nowhere near enough level 2 or level 3 apprenticeships on offer.

I appreciate the work that has been done to improve the flexibility of the transfer system, which is a point that I raised with the then Minister in 2021. However, the numbers speak for themselves, and we should be terrified by what they are telling us. Some 12 months before the levy came into operation, 564,800 learners started an apprenticeship. A year later, that number had fallen by over 200,000. In the last academic year, the start rate was even lower. The figures are shameful. Some 200,000 potentially life-changing opportunities for young people—each one a real person with a real contribution to make— no longer exist. They are the people we see at apprenticeship fairs and the families we talk to in our surgeries. The story is even grimmer when we drill down and see 100,000 young people dropping out of courses each year.

The evidence shows that a growing proportion of apprenticeships are now being undertaken by older people, with businesses using their levy funds to train staff who are already qualified or established in their careers. That may be good, but it is not what the levy was designed for and does not help a young person to get that vital first foot on the employment ladder. It is not just young people who face difficulty as a result of the decisions of the Government. When the Minister was Chair of the Education Committee, it pointed out that:

“More needs to be done to support adult learners with special educational needs and disabilities”.

Again, I could not agree more.

The Minister will know that supported internships and apprenticeships are a crucial piece of the puzzle when helping learners with SEND to access work, but, to quote the Education Committee,

“these opportunities are limited, and support funding is insufficient.”

What did the Government plan to do about the crisis affecting apprenticeships? They set a target to have 3 million apprenticeships by 2020 in the 2015 Queen’s Speech—my first Queen’s Speech as a Member of Parliament. However, we know that apprenticeship starts have declined by over 40% since 2010. As with so many of the Government’s targets, I am not sure that that will ever be met.

The Government’s decision to put aside apprenticeships in the Skills and Post-16 Education Act 2022 suggests that they have all but given up on apprenticeships, and it tells me that the Government have a woeful lack of ambition for our children and young people. It was a missed opportunity for a Government who have consistently failed to match the rhetoric with action. I know that the Minister is an advocate of degree apprenticeships, which combine paid work with part-time study—we also heard about that from the hon. Member for Havant (Alan Mak)—and I was proud to talk to students in Exeter recently. I was deeply impressed by their tenacity and ambition. The Education Committee highlighted that degree apprenticeships are crucial for boosting productivity and widening access for students from disadvantaged backgrounds.