My Lords, the Queen’s Speech promised that legislation would support a lifetime skills guarantee to enable flexible access to high-quality education and training throughout people’s lives. It therefore beggars belief that there is no mention of this flagship policy in this skeleton Bill; indeed, the Bill is silent on the value of qualifications below level 3 altogether.
At present, 13 million adults in the UK currently do not have a level 2 qualification—that is equivalent to GCSE—and 9 million adults lack functional literacy and numeracy skills, leaving them vulnerable to job loss and making it harder for them to secure work. DfE data has shown that the return on investment for qualifications below level 2 is higher than for level 3. Furthermore, lower level qualifications offer many adult learners a key progression route. Without adequate support through the adult education budget for these lower level qualifications in future years, many students will not be ready for and able to progress to levels 4, 5, 6 and up to degree level, which this Bill—or indeed, in the absence of the LLE amendments, its successor—is intended to support.
Amendment 60 in the name of my noble friend Lord Watson would seek to rectify this by placing the LSG on a statutory footing. It is also intended to address concerns that, at present, the LSG does not offer support for subjects outside a narrow band of technical disciplines. Consultation and regular review of eligible courses are therefore key. Our amendment also addresses concerns that the LSG appears to omit reskilling and second level 3 qualifications by retaining the equivalent or lower qualification rule. I will not repeat earlier speeches on the need for ELQ reform, but I urge the Minister to reconsider including flexibility for subsequent level 3 courses in the LSG to unlock retraining for even more people in an area where there is a demand for skills.
I also support Amendment 50, in the name of the noble and learned Lord, Lord Clarke, and my noble friend Lord Layard, which would ensure that the LSG
and support for courses below level 3 are placed on a statutory footing. Amendment 50 also encompasses apprenticeships, which provide an alternative for able young people to the traditional academic route. It would ensure that two-thirds of the funding is spent on under 25s; this is key to ensure they are properly targeted.
Moreover, as noted by many noble Lords, the sharp decline in apprenticeships is deeply concerning, with 2020 seeing the lowest number of 16 and 17 year-olds starting an apprenticeship since the 1980s. We have seen 189,000 apprenticeship opportunities disappear since 2017, which is why Labour has called on the Government to use unspent funds from the apprenticeship levy to fund 85,000 new apprenticeships for 16 to 24 year-olds, creating opportunities for young people to rebuild from the ravages of the pandemic. More than £1 billion in apprenticeship levy funding paid by employers expired unused between May 2020 and February 2021 alone. It is absurd that businesses are allowing hundreds of millions of pounds of levy funds to expire, when so many young people are unable to access a high-quality apprenticeship. Vast sums of money going unspent is a sign of a system in need of fundamental reform to make it work for learners and business.
Skills and retraining must be a vital part of our economic recovery. I hope the Minister is persuaded of the merits of placing the LSG on a statutory footing, especially given it has cross-party and sector-wide support. After all, it reflects the Government’s policy to try to address the skills gap in this country and to enable individuals to develop skills relevant to today’s and tomorrow’s labour market, in their area. This is an opportunity for the Government to show that levelling up is more than just a slogan or an addition to the name of a ministry.