My Lords, I am glad the Labour Party intends to address this when it forms the next Administration—if it ever does—but it would have done better to have addressed it when it formed the last.
As far as evasion is concerned, there is no evidence that employers will seek to use this measure to, for example, claim that a large number—or any number—of their staff are apprentices who are not actually apprentices. They will be required to meet the conditions of the regulations. The regulations that we are setting out in secondary legislation will include, at the least, an accredited form of training—for example by the Skills Funding Agency or its devolved equivalents. Employers will need to be able to confirm to HMRC that the employee in question is indeed an apprentice. The conditions will be designed in such a way that it will be easy for employers to provide verification if asked by HMRC on a routine compliance visit. The bull point is that there is no evidence whatever, circumstantial or otherwise, that employers either have been or will seek to use this relief, or existing funding schemes for apprentices, to get an unfair benefit.
The noble Lord asked about definitions and why we have not included a definition of apprenticeships in the Bill. As I said, there is a definition of “apprentice” in the 2009 Act, which is the starting point for the definition that we propose to put into secondary legislation. We have to consult with and seek the agreement of the devolved Administrations, which will take a little time. There is also an advantage in
having an ability to amend the definition, which is obviously easier to do in secondary legislation, rather than in having a very detailed definition in the Bill.
We obviously share the noble Lord’s concern that the quality of apprentices and apprenticeships should be as high as possible, and we have worked very hard to ensure that. The principal way that we have been doing it is through supporting so-called Trailblazers, which are employer-led apprenticeship standards and assessment approaches. More than 1,000 employers, in more than 75 sectors, have been involved in those; 73 standards have been approved and published and more than 75 new standards are in development. These cover a wide range of sectors, from fashion to nuclear, law, banking and the Armed Forces.
The first apprenticeship starts under the new, improved standards began in September last year and the programme will continue. Our aim is that from 2017-18, all apprenticeship starts will be on the new standards. I hope that that will go some way to reassure the noble Lord that we are as concerned as he is to drive up the quality of apprenticeships so that young people—or indeed people of any age—taking part in them will get something of real value to themselves and to the economy more generally. I hope that I have been able to answer the noble Lord’s questions.