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Apprenticeships (EAC Report)

My Lords, I congratulate the noble Lord, Lord Wakeham, and the committee on an excellent report. It highlighted the many key areas that are in urgent need of attention. The committee found that while the UK has an excellent record in higher education it has a dangerously poor one in the provision of skills and in meeting basic needs in literacy and numeracy for those not choosing a path through higher education. Over a quarter of all employees—approximately 6.3 million people—have less than a level 2 qualification and almost 2 million employees have no qualifications. Of the 7.8 million economically inactive people in the UK working-age population, around 2.2 million people have no qualifications and approximately 3.7 million people lack a level 2 qualification. The Leitch review on skills found that over one-third of adults of working age in the UK do not have basic school-leaving qualifications and 5 million adults have no qualifications at all. I agree with the noble Baroness, Lady Garden of Frognal, who made an excellent maiden speech, that it is unacceptable that around 300,000 young people cannot access apprenticeships because they lack basic literacy and numeracy skills. While it is crucial that we do not lose sight of the need for young people to be properly skilled, what plans do the Government have to widen access to apprenticeships to adults? The report was clear that apprenticeships need to be demand-led with far greater input from employers and with emphasis being placed on the quality of the apprenticeship rather than on the quantity of apprenticeships. No one doubts that the Government have recognised the difficulties facing employers and the economy and the need for a skilled and qualified workforce to compete in an ever-competitive global market, but introducing initiative after initiative without appropriate monitoring or data collection has led to poor information about what, if anything, is working and where ongoing improvements could be made. There are a number of areas in the report that I would like to concentrate on, and I look forward to the Minister’s response. It is significant that the UK’s performance in improving skills after the age of 15 is worse than that of other OECD countries and significantly worse than countries such as Germany and Switzerland whose apprenticeship programmes are longer and more employer-led. That has resulted in the UK lagging behind in productivity and in poorer job prospects as the economy demands better qualified people to replace those retiring with lower skills. As has been recognised by other noble Lords, the report identified that in Germany and Switzerland almost all employers, parents and teachers are familiar with apprenticeship programmes. Students are prepared to think about occupational choice and the range of apprenticeships open to them. Around 75 per cent complete their apprenticeships in Germany compared with around 50 per cent in the UK. In Germany and Switzerland, employers are far more involved in the design of the training requirement for apprenticeships in their sectors. The process is managed through trade associations and other professional bodies. In evidence from the IoD, the committee was told that better involvement from employers in delivering apprenticeship would mean better input from employers. The IoD also stressed the need for progression from apprenticeship to advanced apprenticeship. However, due to lack of data, it is impossible to quantify exactly what percentage may want to continue to level 3 apprenticeships. Although the committee welcomed the Green Paper proposal that all satisfying the criteria for apprenticeship placement will, from 2013, be able to find a placement, there is a worry that the Government's introduction of a much wider variety of work-based training that comes with funding and accreditation will encourage employers to ignore the apprenticeship framework. The CBI has stated that take-up and completion of apprenticeships will improve if bureaucracy is reduced. Can the Minister tell the House why there was nothing in the Government's announcement on 16 November 2007 about cutting bureaucracy and enabling more employers to offer apprenticeships? Evidence from Connexions stressed the huge gap between what is taught in education and what skills at actually important in the labour market. The response from Connexions to the question, ““Are existing training programmes failing to provide young people with appropriate skills?””, was, ““Sadly, yes.”” It stated that existing programmes are not meeting the needs of young people and that entry-to-employment programmes were not organised, lacked discipline and did not prepare young people for the world of work. However, Connexions itself comes in for criticism in the report. It is criticised for failing to reach a great many of those who need its services. In evidence, Mr West said: "““I must say that it is in a state of disorganisation. I cannot give you chapter and verse ... but everyone I have met says that it is not working terribly well””." That is Connexions, to which young people look for advice for future career prospects. As my honourable friend David Willetts has said: "““The real problem in expanding apprenticeships is the limited number of employers who wish to take them on. They are put off by the costs and the bureaucracy, but there is nothing in this announcement to tackle that problem. There is another danger: that the Government may achieve their target by renaming existing provision rather than increasing it. That’s what they’ve been doing for the past 10 years. We need a better approach””." The Select Committee found that there was no information from the Learning and Skills Council on its most recent marketing initiatives. There are no records of the number of young people seeking apprenticeships. Therefore, it is impossible to know whether there are sufficient places to accommodate those wanting to apply. It appears that there is no one government agency that has sole responsibility for apprenticeships. Can the Minister confirm which department will take on the committee’s concerns? Does he agree with the committee that a unit that is designed to report to a Cabinet Minister on all matters to do with apprenticeships should be set up? The committee should be applauded for an in-depth report that has highlighted a huge failings in how apprenticeships are delivered, the muddled way in which the Government respond, the confusion within which employers, users and administrators are expected to work, the lack of proper co-ordination with other schemes and their impact on the apprenticeship programme. Where doubt has been expressed by some partner agencies about the ability of the SSCs to take on the greater responsibility of developing apprenticeships more closely with employers, the option of doing nothing cannot exist. A more co-ordinated approach must be guaranteed by the Government. There is an obvious need to get assurances from the Government that that will not become another headline-grabber that will disappear as quickly as it is initiated. As my honourable friend John Hayes said: "““We want to see the value of vocational training elevated within society. In any other field, if only half of those people in rolled on courses completed them it would be a national scandal—this is the case with apprenticeships and it is unacceptable. Apprenticeships must be the right vehicle for boosting skills in the economy and adding value to the organisation and individuals involved””." The noble Lord, Lord Dearing, made a most enlightening point when he was called as a witness to give evidence. He said: "““it is important to make the point that there is so much at stake it should be got right rather than done quickly””." Finally, we are to encourage, as in the case of higher education having a clearing house, a similar delivery unit be in place for those wishing to apply for an apprenticeship delivered by the LSC, as it is often argued that there remain some difficulties for those wishing to engage in apprenticeships in knowing how to and where to apply. I look forward to the proposed Bill. It is crucial that we get it right on how skills are delivered, and that those who need reskilling are provided with the appropriate vehicle through which they can properly engage with and meet the challenges that face us all in a fast-changing world. I agree with the noble Baroness, Lady Sharp of Guildford, that, thus far, the Government have disappointed in their response to the issues raised by the Select Committee.