Janet Daby

I congratulate my hon. Friend the Member for Portsmouth North (Amanda Martin) on securing this important debate. I thank her for speaking so passionately about the importance of apprenticeships as a route into the construction sector and many other vital industries. I will endeavour to respond to all the points she made. I would also like to thank the other Members that have contributed to the debate: my hon. Friend the Member for Peterborough (Andrew Pakes) and the hon. Members for Strangford (Jim Shannon), Wokingham (Clive Jones), and West Worcestershire (Dame Harriett Baldwin). Everyone across this Chamber cares about young people and fully accepts that young people need to be in apprenticeships, where that is suitable for them. If it is right for them, it is also right for getting the economy going and ensuring the growth in our country that we so desperately need. It is right that we put our efforts as a Government towards making sure that young people succeed in this area. However, I would also say that we have inherited a picture that is not as positive as the shadow Minister laid out. We know that around a third of vacancies in the UK are hard to fill due to a lack of skills in these sectors, with large shortages in construction and information and communications. Skills shortage vacancies make up a significant proportion of all vacancies in construction, information and communications, manufacturing and health and social work. We have actually inherited a picture where many companies and organisations are finding they cannot employ people because they do not have the relevant skills, and we have millions of people that need to be in work that do not have the skills for certain jobs where they could fulfil their potential. Between 2020 and 2035, the construction industry will need an additional 1,143,000 people in the workforce, in order to take account of additional workers and to replace existing workers. As Members have said, we really do have our work cut out for us. All Members will recognise the long and proud history of apprenticeships and trades in this country. Apprenticeships in England can be traced back to the middle ages when craft guilds were first established—they are part of our DNA. The first national apprenticeship system of training was introduced as far back as 1563. Despite that long-standing history, especially in construction, it is concerning that, in recent years, we have seen declining apprenticeship opportunities in vital occupations such as bricklaying, plastering, plumbing and so on, particularly for younger people. It is of great concern that, following reforms of apprenticeships, including the introduction of the apprenticeship levy in 2017, apprenticeship starts by young people under 25 fell by almost 40% according to data published by the Department for Education. It is also concerning that so many workers and employers have told us they find it difficult to access the skills they need, particularly in critical areas such as construction trades. The UK construction workforce is just over 2 million people, according to the latest figures from the Office for National Statistics. Despite an average of 38,000 vacancies advertised per month, almost a third of construction employers report that finding suitable skilled staff was their key challenge, as I have already mentioned. In addition, our labour market and skills projections suggest that between 2020 and 2035, we will need to work hard to make sure there are more than a million people to replace people in this sector. We need reform of our skills system so that we are able to meet such demands. That is exactly what this Government are going to do, and have begun to do. It is clear that the skills system is fragmented and has lacked a clear plan, which has resulted in a lack of clarity around which sectors need prioritising and has led to a skills landscape that is confusing to learners and employers. There has been lots of concern, as has been mentioned, about the drop-out rate of young people in apprenticeships. That is of course very concerning, and there are different reasons for those rates. Surveys have been done and people move on for many reasons, such as other employment or promotion, or finding the apprenticeship difficult. The situation is being reviewed and assessed. The issues have been compounded by insufficient investment in skills, which has led to a decrease in adult participation in further education and training. To address that, the Government have established Skills England, a new body that will tackle skills shortages and support sustained economic growth. Skills England will help to ensure that the skills system is clear and easy to navigate for young people and adults, strengthening career pathways into jobs across the sector. It will increase the quality and quantity of skills development in the workplace. It will work together with combined authorities and other places with devolution deals, as well as other regional organisations such as employer representative bodies, to ensure that regional and national skills needs are met at all levels—from essential skills to those delivered via higher education, in line with the industrial strategy. We have also set out plans for a more flexible levy-funded growth and skills offer, building on the current apprenticeship offer. I assure hon. Members that the Government are listening to employers. Employers have told us that the current apprenticeships offer is inflexible and that the system does not work for them. We want to support employers, not only in the trades, but in all sectors, to develop the skills that they need to thrive. That is why we have introduced a more flexible levy-funded growth and skills offer that will provide employers with greater choice. As a key first step toward greater flexibility, we are introducing new shorter-duration apprenticeships and foundation apprenticeships, as employers have told us that not all roles or all learners need a minimum of 12 months’ training. We are responding to employers who have said that more support is needed to generate a pipeline of talent that can access occupationally specific apprenticeships, and we are exploring the best way in which shorter-duration apprenticeships can better meet the needs of specific sectors such as construction, where occupational competence can be reached in less than the current minimum duration of 12 months, or where individuals have relevant prior learning. We will, of course, protect the elements that make apprenticeships work so well and ensure that they retain the credibility and prestige they hold with employers. Our new work-based foundation apprenticeships will focus on ensuring that training is directed towards real vacancies. They will provide young people with a broad training offer, with clear and seamless progression into their next opportunity, whether that is the next level of apprenticeship or other valuable occupational learning. We will work closely with employers and providers. The Government will make sure that we get this right.