My Lords, Amendment 47A requires that:
“In performing its functions in relation to technical education qualifications, the Institute must have regard to apprenticeships policy, including any future reform of the apprenticeships levy, in order to promote growth in apprenticeships opportunities.”
I believe that for many years, as a country and an economy, we have overextended educational qualifications and we have certainly underaddressed colleges. I hope that this Bill will be the catalyst that puts those things right. I agree with much of what the noble Lord, Lord Addington, had to say today. I view it as disappointing and shameful that the number of young people taking apprenticeships is now down to 160,000 in a year, and the Government have a tax revenue from the apprenticeship levy of £2.1 billion per annum.
Alignment on apprenticeship policy is needed urgently. This will be the third Bill extending the Institute for Apprenticeships and Technical Education’s remit—the first created it in 2016 and the second extended it to T-levels in 2017—but there is still a complex four-way relationship between DfE, covering oversight, funding, intervention and the provider side; Ofqual and qualification regulation; Ofsted, the inspector of the provider side; and the IfATE and the development of programmes and their regulation. The Government should set out their approach to the apprenticeship levy alongside this wider skills agenda.
If the apprenticeship programme is to function successfully, it needs to remodel itself, with the offer of secure ongoing employment to apprentices upon successful completion of their programme, training and studies. This would be along the lines of the support and training offered when selecting officer recruits into the services. They are appointed in advance of taking up university courses and are supported through their degrees on the basis that, post qualifying, they devote a minimum number of years’ work to those who have sponsored them. Effectively, for an apprentice, this system could mean guaranteed support through study, with guaranteed work at the end. Similarly, the employers get exactly what they want in terms of skills and, equally importantly, a real return on their investment.
I hear employers are becoming increasingly dissatisfied at paying the apprenticeship levy without any guarantee of securing suitable training staff. This is particularly so in the context of niche, high-end skills, since apprenticeship programmes are designed to suit the masses. What works in terms of the necessary skills base for an employee at Wimpey Homes will not work for a high-end and very exclusive building company that requires not just a standard brickie but a true craftsman. Approaching apprenticeships in the way outlined above, in a bullet point, would go some way to addressing this concern. SMEs in particular have an understandably jaundiced view of apprenticeships, where they have often been left to pick up apprenticeship unpaid training plans.
Community adult education is a key part of the post-16 education landscape, supporting many adult learners to progress towards qualifications or into work and bringing many social and economic benefits. This is not prominent in the Bill as drafted or the White Paper which preceded it. There is a risk that some of the key objectives of the Bill, such as supporting
adults to obtain level 3 qualifications, may not be fully recognised unless community adult learning is supported as well. It provides the stepping-stone for many adult learners returning to education and training.
There is a profound need to put right the balance between universities and colleges and to revive successfully the principle of apprenticeship. I hope that this Bill will be a major force towards achieving these things.