Mr Nigel Evans (Ribble Valley) (Con)
7. What additional funding for training his Department has provided to support unemployed people and people aged 16 to 24 to get into employment.
The Minister for Skills and Enterprise (Matthew Hancock)
We have record numbers participating in apprenticeships, new traineeships, maths and English training, which, with the record number of jobs, have contributed to a 98,000 fall in youth unemployment over the last year. We are simplifying vocational education and today publishing a simple slide showing young people their education options between the ages of 14 and 18.
Mr Evans
I have a BAE Systems plant at Samlesbury in my constituency, and my hon. Friend the Member for Fylde (Mark Menzies) has one in Warton. BAE Systems took on a record number of apprentices last year, giving young people an opportunity to learn new skills to use in highly paid jobs when they are later taken on. What are the Government doing to encourage many more smaller firms to understand that apprenticeships can also benefit them?
Matthew Hancock
I pay tribute to the work that BAE Systems does with its apprenticeships. It not only has hundreds of apprentices, many of whom I have met, but offers more and more higher apprenticeships, which provide the very best available training on the job. We have to make sure that smaller businesses get the message that apprenticeships can help them too; in fact, the majority of apprentices are in smaller businesses. We have made the apprenticeship grant for employers focused on smaller businesses to help them with the extra costs they have in taking on apprentices.
Mr Jim Cunningham (Coventry South) (Lab)
15. When are the Government going to put an emphasis on quality apprenticeships? Why do we need 47 different streams of funding for skills generally? When are we going to sort out on-the-job training from actual apprenticeships? Are the Government lumping on-the-job training into the figures for apprenticeships, when apprenticeships are totally different?
Matthew Hancock
No, the figures for apprenticeships show the number of apprenticeships. They also show that we are on track to achieve 2 million apprenticeships in this Parliament—in fact, figures published at 9.30 this morning show that there have been 1.8 million apprenticeships since the election. We are simplifying the funding structures and putting more money through employers, so that they can buy the apprenticeship training they need.
Kate Green (Stretford and Urmston) (Lab)
I believe that the Minister of State, Department for Business, Innovation and Skills, the right hon. Member for Sevenoaks (Michael Fallon), and I are both due to attend the Royal London Society for Blind People’s youth forum launch of “Let’s Work It Out”, which seeks to identify the barriers to visually impaired young people getting into employment. What more can the Government do to encourage employers to see the potential of visually impaired young people and to make them more aware of the technological assistance that can enable them to function in the workplace?
Matthew Hancock
Making sure that those who are visually impaired can fulfil their potential in the workplace is a vital part of the training we support. My right hon. Friend the Minister of State is the president of the organisation that the hon. Lady mentions. Apprenticeships are one option, and there are specific mechanisms to ensure that those who are visually impaired can complete an apprenticeship, but more broadly we need to make sure that the whole skills system works as much for those with disabilities as for those who are fully able.
Bill Esterson (Sefton Central) (Lab)
8. What assessment he has made of the effect of the Government’s policies on small businesses and the self-employed.
The Minister for Skills and Enterprise (Matthew Hancock)
The Government are making it easier to start, finance and grow small businesses. There are now 400,000 more small businesses than in 2010. The total number stands at a record 4.9 million, with a record 4.5 million people in self-employment. Yesterday, we introduced in the House the first ever small business Bill.
Bill Esterson
The Federation of Small Businesses index has highlighted that small businesses are still struggling to get the finance they need to expand—something confirmed by small businesses in my constituency to a very large degree. The FSB also calls for greater competition and choice in business banking. Does the Minister accept that the Government’s failed schemes, including Project Merlin and credit easing, have had no impact whatsoever?
Matthew Hancock
The hon. Gentleman was doing quite well until that last exaggeration. I certainly agree that strengthening access to finance is a vital part of securing our recovery, and of course measures in the Bill announced yesterday will help to do that, but according to the FSB, small businesses’ confidence is at a high since Labour’s great recession. Small businesses in the hon. Gentleman’s constituency are playing their part, because unemployment on the claimant count has fallen by 30% in the past year.
Nadhim Zahawi (Stratford-on-Avon) (Con)
Small businesses in my constituency and around the country tell me that the real struggle when they are supplying large businesses is payment terms. Does my hon. Friend agree that requiring large companies to publish their payment practices is an important step in helping to drive a more responsible payment culture between large and small businesses?
Matthew Hancock
I agree with my hon. Friend so much that we put such measures in the Bill we published yesterday.
Julie Hilling (Bolton West) (Lab)
I recently held a listening event for businesses across Bolton West. A major concern for them, and a definite barrier to success for micro-businesses, is business rates. As they have gone up by £1,500 already in this Parliament and by another £270 in April, will the Minister support a cut in business rates in 2015 and a freeze the year after?
Matthew Hancock
It is interesting to hear another Labour proposal that is uncosted and unfunded. We have instead taken action to reduce by £1,000 the business rates on retail premises. We are clear that business rates need reform, and that reform will happen, but what we need are sensible contributions to the debate, given the enormous hole in the public finances that we are still having to fill.
Mr Henry Bellingham (North West Norfolk) (Con)
9. What plans he has to encourage foreign direct investment.
Jack Lopresti (Filton and Bradley Stoke) (Con)
12. What support his Department is providing to apprenticeships.
The Minister for Skills and Enterprise (Matthew Hancock)
The number of apprenticeships has doubled and we are on track to deliver 2 million over this Parliament—this morning’s figures show that there are 1.8 million so far. It is all part of our long-term economic plan.
Jack Lopresti
I thank my hon. Friend for that answer. There are exciting plans to develop an aerospace apprenticeship training centre as part of the iAero proposals for the former Filton airfield land, which are being discussed by his Department and aerospace businesses in my constituency. Can he assure me of his support for those plans?
Matthew Hancock
I am enthusiastic about those plans. We are working closely with my hon. Friend and colleagues in the aerospace industry to see whether we can make them happen. The number of apprenticeships in Filton is up by 60% since 2010, so it is clearly a success story and we want to build on that success.
Andy Sawford (Corby) (Lab/Co-op)
13. What resources have been allocated for enforcement action against employers who do not pay the national minimum wage.
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jenny Willott)
The Government are committed to increasing compliance with minimum wage legislation. Everyone who is entitled to the minimum wage should receive it. Her Majesty’s Revenue and Customs has 173 staff dedicated to enforcing the national minimum wage, and the Government are already taking tougher action on employers who break the law. We have made it simpler to name and shame employers who do not pay the national minimum wage and have increased the financial penalties for breaking the law.
Andy Sawford
I thank the Minister for her response, but in Corby HMRC found that £120,000 was owed to local workers, and that was just on a three-day visit, so it was the tip of the iceberg and we need to do much more. Will she, in her last days in her role, leave a present for her successor by beginning a review into how local authorities could take a much stronger enforcement role? They currently enforce on planning, parking and environmental health, so why can they not have a role in making the local labour market work for people?
Jenny Willott
Clearly we feel very strongly that employers should pay the national minimum wage. People working on the minimum wage are, by definition, on the lowest incomes in society, so it is critical that everything is done to ensure that they are paid it. Every complaint that is made to the pay and work rights helpline is investigated, and where arrears are found they are paid back and employers pay a significant penalty. We are happy to work with any part of Government and any organisations that are keen to ensure that the minimum wage is paid. We will ensure that any complaints reported to the pay and work rights helpline are investigated.
Ian Murray (Edinburgh South) (Lab)
I pay tribute to the hon. Member for Cardiff Central (Jenny Willott), who has always been a very kind and effective Minister, and wish her well in her return to the dark arts of the Government Whips Office. Given that compliment, I am sure that she will wish to agree with me that any sanctions for non-compliance with the national minimum wage are ineffective without proper enforcement. Figures show that since the Government came to power the number of national minimum wage inspections is down by 60%, with only two prosecutions. That is hardly surprising, given that a recent answer she gave to a parliamentary question committed a budget of £9.2 million to enforcement, but the head of the national minimum wage enforcement unit publicly stated only last month that the budget is just £8 million. Just like the Chancellor’s hollow promise to increase the national minimum wage to £7, is this not just another example of the Government failing to stand up for the lowest paid against rogue employers?
Jenny Willott
I completely disagree with the hon. Gentleman. The enforcement action taken by HMRC has significantly increased the number of workers who are getting the wages they are due. Between 2009-10 and 2013-14, there was an increase of over 17% in the number of workers who were helped and were given arrears, and the amount that has been paid back has been increased significantly. In addition, we are increasing fourfold the penalty that employers have to pay, and we now have in place a very draconian naming and shaming scheme. That means that all employers who are found not to have paid the national minimum wage are put forward for naming and shaming, and, unless exceptional circumstances are involved, they will be named publicly. That is acting as a real disincentive to employers not to treat their staff fairly.
Neil Carmichael (Stroud) (Con)
14. What assessment he has made of recent trends in the level of manufacturing.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
16. What recent support his Department has provided to small businesses.
The Minister for Skills and Enterprise (Matthew Hancock)
The Small Business, Enterprise and Employment Bill builds on a record of 42,000 businesses helped to export by UK Trade & Investment over the past year and 15,000 small businesses supported by the growth accelerator scheme. As the Secretary of State said earlier, the number of start-up loans approved has reached 18,000.
Stephen Metcalfe
As my hon. Friend will be aware, large businesses still owe small businesses over £30 billion in overdue invoices. Only yesterday, a company in Basildon contacted me to say that one of Essex county council’s main contractors owes it well over £100,000 past the due date. Will he expand on how we will use the small business Bill to resolve this issue and pump billions back into the economy?
Matthew Hancock
The Bill contains two elements on prompt payment, the first of which is to increase the amount that Government pay quickly. BIS pays almost all its invoices within 30 days and the vast majority within five days. We will also bring transparency so that when small businesses enter into contracts with large businesses they know their payment performance and can negotiate on that as part of the contract.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
I am very grateful, Mr Speaker.
I am pleased that the Government have finally produced a Bill to deal with late payments to small businesses by large companies. It includes some of the recommendations from my inquiry last summer into late payments. However, it does not go far enough and will give little comfort to the small businesses whose viability is threatened. Why are these measures so timid?
Matthew Hancock
I pay tribute to the hon. Lady for the work that she has done on this subject. We consulted on all the potential options, including statutory maximums for payment terms. We put the consultation out with an open mind and a wide range of options. In fact, the small business groups that came forward with proposals in response to the consultation favoured transparency, not a statutory limit. We followed the evidence and the response to the consultation. Like her, I am determined to do everything we can to tackle this problem while not getting in the way of freedom of contract between businesses. We have taken these measures because of what the evidence demonstrated, and I think they will have a big impact. That is all part of our long-term economic plan.
Mr John Denham (Southampton, Itchen) (Lab)
T1. If he will make a statement on his departmental responsibilities.
Mark Menzies (Fylde) (Con)
T2. Fylde has a significant amount of advanced manufacturing companies, including BAE Systems and Westinghouse Nuclear Fuel. May we have an update on what steps are being taken to increase the number of highly skilled apprenticeships in the advanced manufacturing sector?
The Minister for Skills and Enterprise (Matthew Hancock)
Absolutely. Through the trailblazer process, we are putting employers in charge of the training involved in apprenticeships, to make sure that, in addition to the big increase in numbers we are seeing, we increase the quality of training so that all young people have the opportunity to use an apprenticeship as an alternative to university in order to reach their potential.
Mr Chuka Umunna (Streatham) (Lab)
Does the Secretary of State think it is acceptable for a Government Department to increase reporting requirements twelvefold for businesses?
Neil Carmichael (Stroud) (Con)
T7. Do Ministers agree that a central part of the long-term economic plan is the delivery of skills to the increasingly innovative and research-oriented manufacturing sector?
Matthew Hancock
Yes. As my hon. Friend may know, I am a fan of the long-term economic plan. In fact, I have found a copy in my pocket if he wants one. Skills are a vital part of our long-term economic plan, because there is no doubt that, if we are not only to maximise our economic capacity in the future, but to make sure everyone in this country fulfils their potential, we have to deliver on the skills that employers need.
Mrs Madeleine Moon (Bridgend) (Lab)
T3. Britain has a crisis in finding young people willing to study engineering, yet I have received an e-mail about a 19-year-old who has been offered a place on a pathways to apprenticeships engineering course. He will get access to £30 a week living allowance, but he will lose his unemployment allowance and he cannot access student grants. He may well not be able to take up the course. What are the Government doing to ensure that there is joined-up action across Departments for young people who want to study crisis employment subjects?
Matthew Hancock
I recognise the problem that used to exist. The introduction of traineeships has tackled that. It is now possible for someone to go on a traineeship while still receiving their jobseeker’s allowance, because we have tackled the 16-hour rule for traineeships. If the hon. Lady writes to me about the individual case, I will make sure it is taken into account.
Julian Smith (Skipton and Ripon) (Con)
At the Mighty Middle conference held by GE Capital and the Reform think-tank this week, mid-sized companies from across Britain were exceptionally positive about the Government’s long-term economic plan. What more can we do to celebrate and assist those mid-sized companies?
Grahame M. Morris (Easington) (Lab)
T4. May I draw the Minister’s attention to the excellent “The state of the coalfields” report produced by the Coalfields Regeneration Trust? The report has highlighted particular problems, including a legacy of high and persistent youth unemployment, especially in the NEETs group of those not in education, employment or training. I also draw to his attention an excellent organisation in east Durham, the East Durham Employability Trust. What additional support can be put in its direction?
Matthew Hancock
I have seen the report on the future of the coalfields. On the issue of NEETs, I would point out that yesterday’s figures show that the number of people not in education, employment or training is at a record low since the series of statistics began in 1994. I have no doubt that there is much more to do, because any young person not in education, employment or training is one NEET too many. The fact that the number of NEETs is at a record low shows that the economic plan is working.
Mr David Nuttall (Bury North) (Con)
On the issue of new EU legislation, does my right hon. Friend agree that it would benefit British business if the EU adopted the same one-in, two-out rule that the UK Government apply?
Andrew Bridgen (North West Leicestershire) (Con)
Will the Minister update the House on the progress made in tackling non-compliance by employers who fail to pay apprentices the rate they should?
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jenny Willott)
We wrote to the Low Pay Commission on its remit for next year. One of the things we have asked it to look at is the apprenticeship rate for the national minimum wage. We are aware that there are a lot of concerns, particularly about non-compliance in paying the national minimum wage for apprentices. The system is quite complex and often employers find it difficult to navigate. We have asked the Low Pay Commission to work out how the system could be simplified to ensure better compliance by employers.
Nick Smith (Blaenau Gwent) (Lab)
A recent Which? investigation found that ticketing companies can add up to 37% to the face value of a ticket for music and theatre events in booking and delivery fees. Given that the market is dominated by a handful of big players, is the Minister confident that consumers are getting a good deal?
Jenny Willott
We have done a lot of work on ticketing. As I am sure the hon. Gentleman is aware, we discussed this issue a number of times during the passage of the Consumer Rights Bill. The Department has been working with the Department for Culture, Media and Sport to look at the issue and a number of things are being done to try to tackle ticket touting, while trying to ensure that we still have a vibrant market so that individuals who buy tickets and want to resell them because they cannot attend an event are able to do so fairly and openly.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
Like a number of MPs, I have taken on an apprentice, something that has been recommended by the Minister, but as a small employer this has only been made possible by the Liverpool chamber of commerce, which provides all the training, development and support for James, my apprentice. Under his proposed reforms, how does the Minister expect MPs to take on apprentices and provide the same high standard of training and support and administer training budgets? How much time does he expect us to take on this?
The Minister for Skills and Enterprise (Matthew Hancock)
I am delighted to hear that the hon. Lady has an apprentice. I now have two apprentices and the House has an apprenticeship scheme that the Clerk has been instrumental in bringing forward. Under the new system we will make sure that small businesses and small employers, including MPs, can take on apprentices, and training providers will have a role to play just as they do now in helping with bureaucracy.
Matthew Hancock
I do not expect it to take any more time than it does at the moment and I am sure that it will be just as valuable for the hon. Lady and for other MPs as it will be for small businesses across the land.