Baroness Coffey (Con)

My Lords, I did not put my name to Amendment 102, because I do not agree with it entirely, for reasons I will set out, but the general approach is absolutely right. We do not need to get into the rights and wrongs of the apprenticeship levy and higher-level apprenticeships, particularly level 7, but it is important to recognise that the number of people starting apprenticeships—particularly down in levels 1, 2, 3 and perhaps even 4—is a challenge, and is holding young people back from getting into work. Indeed, it is not just young people, and that is my broader point: getting people—many of whom, for a variety of reasons, may have been out of the job market for a long time—into work. It is exactly this approach, through apprenticeships, which means that, usually for SMEs, the larger elements of the levy are not being used by the larger employers and are instead being used to help provide 100% of the cost in order to train people. There are a number of different factors there. People have talked about the different elements of costs. There is also the opportunity cost. It is important that employers get involved in identifying and helping the supply chain of their own workforce. I am sure I am not the only person who has been somewhere where I just got fed up doing the hard yards on training and the extra work, and, as I said, the opportunity cost, only for someone else to come along and poach that person, or for that person, once they had fully qualified, to leave. I have seen the frustration that this sometimes brought. One of the adjustments I would have made to this builds on the discussion about NEETs. The definition of NEETs is those aged 16 to 24. My suggestion is that the amendment be amended, to cover an apprentice who is less than 25 years of age at the time that the contract is signed. On the consideration of a probationary period, it is fair to say that people will want to give those new to a sector, and new to the world of work, more than a week or so to see if it is going to work out. There is a mixture of elements that need to be considered when people take on apprentices. One is their capability in work and college, and seeing how that evolves, because it is not always such a straightforward translation. Nor should apprenticeships be considered as work experience; they are proper jobs, admittedly a training job, and we should bear that in mind if we see a further drying up of apprenticeships. We can debate at other times how, sadly, unemployment seems to be rising, which I believe will be exacerbated by this Bill more generally, but the Government should be specific about how we give more people a chance. I know we will debate probationary periods in general later. Apprenticeships should not be seen as, “We will just see if they work out or not”. It is supposed to be more of a commitment. The Government could accommodate this. They will be aware that, already, on wages—if not some of the other rights—there is an apprenticeship rate which is not the same as the national minimum wage in the first year of an apprenticeship. There is already a precedent in legislation and practice that apprentices can be treated differently. I appreciate that people do not necessarily want two-tier elements like that, but we need to give special consideration to apprenticeships, recognising the special status they are given by the Government in contributions towards training and given the risk that employers may take on.