Apprenticeships, Skills, Children and Learning Bill

My Lords, taken together, Amendments 190, 191 and 192 would mean that all training costs for adult apprenticeships at level 2, where this is the first level 2 qualification, and for those aged from 19 up to 25 at level 3, are met from the public purse, and would preclude employers contributing towards these costs. Apprenticeships offer an excellent route for adults aiming to improve their skills and employability. That is why we lifted the age restriction in 2007 to allow people aged 25 and over to access and benefit from apprenticeships, which was a first. This change enabled 27,200 people aged 25 and over to start an apprenticeship in 2007-08, which was up from 300 in the previous year. We are delighted that that trend has continued. As has been said, it has enabled a number of people to reskill. But there is a balance to be struck. We are trying to ensure that as many apprenticeships as possible are created for 16 to 18 year-olds, and I make no apology for that. It is vital that we get as many young people of that age range as we can on to a career path that we know will have a profound impact on their lives. I have described every one of those apprenticeships as a small beacon of hope for young people. Again, with our finite resources, we have recognised that investing in skills is a shared responsibility and we should not signal to employers that they should not be making an investment in skills. From all the feedback we receive we know that investment in training is positive; we know that firms that do not invest in training during a recession are 2.5 times more likely to fail; and we know that an investment in an apprenticeship is worth while in terms of retention and the contribution that people make to the company that they are employed in. As compared to the 16 to 18 year-olds, it is interesting that adult apprentices who have experience of the workplace typically complete their apprenticeships much faster than young people, in some cases at half the rate. Adult apprentices make a much more immediate contribution; that is why our policy requires that employers should contribute to the training costs of apprentices aged 19 and over. Currently employers make a contribution of around 40 per cent of the training costs for adult apprentices, increasing to 50 per cent in 2010-11. It is a reasonable proposition to make to an employer to take on an adult apprentice or to convert one of their existing employees to an apprenticeship, which happens in many cases, and we will meet 50 per cent of the training costs. That is a real bargain. We intend to use the regulation-making powers in Clauses 85 and 86 to reinforce this position by excluding persons who are studying for a level 2 or 3 qualification as part of an apprenticeship from these provisions and to ensure that we can continue to require employers to contribute. It is a fair and reasonable contribution and there is still a positive encouragement and inducement for employers. The figures speak for themselves. Even under the current funding arrangements there has been a significant increase in adult apprenticeships. Perhaps I may point out a slight correction to the noble Baroness, Lady Sharp, who I know is a stickler for accuracy. There has been a slight decline in the number of 16 to 18 apprenticeships, but not for two years; it is only in the past year. But if we look at what has happened to apprenticeships overall, I regard it, as I said, as a renaissance, from a situation in 1997 where the apprenticeship scheme was practically dead on its feet, with something like only 65,000, to the current situation where we have more than a quarter of a million, with over two-thirds completing. With that explanation and assurances, I hope the noble Baroness will feel able to withdraw the amendment.