---

Skills Base

My Lords, thanks go to the noble Lord, Lord Leitch, for this excellent report and for initiating today’s debate. I want to speak particularly about giving opportunities to young people entering the workplace, especially those who find the transition from school to work daunting. Much is made, rightly, of university education but it does not suit everyone, so there is a real need for training and, in particular, apprenticeships. There has been a significant improvement in the quality of apprenticeships, rising from 42 per cent being of high quality, as mentioned in the 2006 report, to 88 per cent in 2007. That is important, as it is that this fact is publicised so that both young people and employers are aware of the acceptability and quality of apprenticeships. However, there is a significant problem concerning the completion rate of apprenticeships, which remains at only 40 per cent. Last week, the Minister, in answer to a question of mine, accepted that there is concern over completion. He said that he is addressing that, which is encouraging; nevertheless, we have a problem. I feel—modestly, I hope—that a second point that I made has relevance. I asked the Minister whether he would consider some form of recognition for apprenticeships, such as a diploma or something of that nature. I have been notified by the Association of Colleges that a diploma will be introduced next year. It will recognise technical expertise and the value of skills within one-year courses on subjects such as construction, health and IT. However, there is still no formal recognition of the completion of apprenticeship schemes, which usually last for two years. What I am getting at is that apprenticeships should be recognised as a high achievement and that, in itself, would encourage more young people to stick the course so that they could feel proud of what they had achieved. Therefore, in talking about apprenticeships, we are trying to address the need that we have as a country to give our young people a real future. On the one hand, there is the need about which we have seen a lot in the media recently, such as that of young white boys and men who under-achieve. We also often hear about young black and particular ethnic groups who have difficulty in achieving and struggle to find their niche. Many in society have that problem. Therefore, a practical and efficient alternative needs to be provided. A key failure in the present education system is the lack of advice and guidance that young people are given regarding the alternatives to higher education and the apprenticeship system. Career staff do not always offer adequate or positive advice and guidance early enough to people for whom a vocational education route might be more appropriate. There is also the significant problem of the number of apprenticeships offered to people between the ages of 16 and 18. Many traders are unwilling to take on young adults who have just left school after completing their GCSEs due, sadly, to health and safety considerations but also simply because, rightly or wrongly, they believe that they are too young mentally to enter the workplace. Therefore, many young adults face doing menial jobs such as labouring until a company is prepared to take them on. What do the Government propose to do to overcome that sort of problem? There is a key financial problem in the current apprenticeship programme. It is attractive to young people to take a modern apprenticeship, as there is an income, although it is the minimum wage. The income is attractive but it should not be the basis of the apprenticeship. There is also no commitment in financial terms for the student to complete, other than the qualifications themselves, and many apprentices are not paid for their day release, for example, to complete the college course. This is a key factor why there is such a low completion rate, with apprentices leaving before they are qualified for higher paying occupations. The original scheme offered apprentices a bonus on completion. If they were reintroduced it may influence apprentices to complete their courses. I have deliberately concentrated today on apprenticeships and the need for them to be of high quality and to be recognised as such. Trade and engineering focused apprenticeships are traditionally what is spoken of, and still today are vital, but they are not the only apprenticeship route. I was very encouraged to read how the SkillsActive organisation has drawn attention to the apprenticeships in sports and recreation, health and fitness and outside occupations, my point being that this is an expanding area. Young people need to be aware that those apprenticeships are available for employment that they will often find attractive, inspiring and perhaps even enjoyable. It is hoped that there will soon be one young apprenticeship partnership in sport scheme in every county in the country. Can the Minister ensure that that will happen? I hope that as a result of the debate here today, we can see a real raising in the status for skill training, and real progress of the appreciation by business and young people, in particular of the worth of being trained for the job.