Contribution
My Lords, I am pleased to speak in support of my noble friend Lord Blunkett’s important Amendment 31 on apprenticeships and the growth and skills levy. Although it is important that apprenticeships are available to all age groups, thus ensuring that lifelong learning plays a key role in skills development in the years ahead, I am particularly keen that more young people should see them as a first step on a career ladder. That is clearly set out in Amendment 31.
Unfortunately, the bright new dawn that many of us expected when the apprenticeship levy was introduced in 2017 has failed to materialise. Noble Lords will be familiar with the analysis commissioned on behalf of the Association of Colleges earlier this year, which showed —I think this was for 2022-23—that some 160,000 fewer apprenticeships were started than in 2017. You might ask “How on earth can that possibly be the case?”, but it is. That decline was particularly alarming because it disproportionately impacted on those most in need of training, particularly younger people and those from disadvantaged backgrounds.
There were regional aspects to it as well, because the decline was particularly prevalent in regions of the country such as the north of England, which traditionally had high levels of apprenticeships, and among SMEs. There are particular structural issues with the levy for SMEs, but that is for another day. That decline in the apprenticeship statistics must be reversed and returned at least to the pre-2017 levels, so I was pleased to hear my noble friend the Minister say on Second Reading that foundation apprenticeships are to be developed as an alternative route for young people who may have faced barriers in the past.
The noble Lord, Lord Storey, recounted how difficult it had been to get some of his amendments tabled, because the words “Skills England” could not be used. In today’s Marshalled List, any time that “Skills England” is mentioned it is in quotation marks. It is almost as if it is some soiled rag that needs to be picked up with a glove and held at some distance from your body. It is astonishing. Why should we be so afraid to say that, when we all know what we are talking about here? Let us just be open about it.
Critical to the effectiveness of “Skills England” will be the reshaped growth and skills levy. That must be released from the straitjacket of its predecessor, whose unspent employer funds reverted to the Treasury rather than being retained in the education and training budget. I think that there was some disappointment across the House that the Chancellor had nothing to say about the growth and skills levy in the Budget. I am at a disadvantage because I have not had the opportunity to look at today’s White Paper, to which other noble Lords have referred, but I hope that my noble friend might be able to say something about the growth and skills levy in her reply in respect of this amendment, regarding the scope and level of investment that it might enjoy.
This must affect local priorities, of course, which is why the amendment stresses the role of local skills improvement plans in delivering the co-ordination needed to plug the skills gaps. LSIPs already play a role there and I retain my belief that Skills England should be established as a statutory body, rather than an executive agency, the better to co-ordinate efforts across departments to ensure that we have the most effective approach and that we develop the skills that the country needs going forward.
That said, it is encouraging that Skills England, still in skeletal form, has already published its first report. Its title, Driving Growth and Widening Opportunities, is one that it must live up to. The report to Parliament outlined in Amendment 31 should further concentrate minds in the DfE to set out the direction being pursued and to provide a clear delineation of Skills England’s role in that, having been given those tasks and—I say this only to be helpful, I hope, to my noble friend the Minister—looking to the outcome of a buoyant skills landscape, which the Government and every noble Lord here today want to see emerge.