Apprenticeships

Robin Walker Excerpts

Wednesday 4th February 2015 Commons Chamber

[Vince Cable]

Yes, I believe there are lot of good models of that kind, and I commend the one that the hon. Gentleman mentions.

That leads on to another issue that the shadow Business Secretary raised—devolution and how we capture decision making to a local level. He is right that we should have as much devolution as possible. That is what we are trying to do through the city deals and the local deals. There are many good models. Leeds is one, and Manchester is also getting off the ground. Sheffield is pioneering a lot of the local-level commissioning of apprenticeships that is particularly good for getting through to SMEs.

Devolution is not simply about local government or LEPs. One thing we had to do when I came into office was strip away some of the bureaucracy governing further education colleges as leading providers. We had to simplify greatly a very bureaucratic top-down system. Devolution is also about devolving to companies, and one of our major initiatives—employer ownership schemes and the trailblazers, which set industry-level standards—has reduced bureaucracy for small companies and helped them at industry level to formulate standards that they can use. Devolution is not just about local government.

[Mr Robin Walker (Worcester) (Con)]

Does the Secretary of State agree that LEPs can be great champions of apprenticeships when they are given the power to do so? Today, the Worcestershire LEP announced that the ambitious target it set itself of having 10,000 people participating in apprenticeships in the county by 2015 has already been achieved. Is that not an example of how by using the existing structures in our existing counties, rather than creating artificial regions, we can drive forward apprenticeships and skills?

[Vince Cable]

That is one of the examples. The LEPs have demonstrated the success of devolution and there are many other models. I know that my hon. Friend the Member for Eastbourne (Stephen Lloyd) has done brilliant work locally by simply working with local colleges and local authorities. There are many local examples and that is what we should be trying to achieve.

I know that you want to bring more people into the debate, Madam Deputy Speaker, so let me make two points in conclusion.

--- Later in debate ---

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Although I am speaking in part about an inquiry by the Select Committee on Business, Innovation and Skills that took nine months and made many recommendations, I shall try to keep my comments within the time limit.

I welcome the debate and the cross-party agreement on the importance of apprenticeships and the skills agenda. I find the concentration on figures and party-political point scoring, shall we say, about the number of apprenticeships supremely unhelpful in determining our skills needs and how we will meet them. The Government, to their credit, have been prepared to invest £1.6 billion in apprenticeships in the past financial year, but we have seen a fall in the number of starters. Notwithstanding the substantial increase in the number of apprenticeships overall, we know that the increase has been much lower in construction and engineering apprenticeships, which are incredibly important in the development of our economy.

If we take the education system as a whole and add in the money we put into the apprenticeships programme, we see that we are investing a huge amount of money but are not addressing the skills imbalance in the economy. I will single out two crucial areas in which we need to improve our performance if we are to address the problem. The first area is the education system, particularly the careers service in schools. Much has been said about parity of esteem, and I welcome the concentration by my hon. Friend the Member for Streatham (Mr Umunna) on reinforcing the status of apprenticeships, which is absolutely vital if we are ever to change the mindset in schools. If I have time, the second area on which I will comment is engagement with small businesses, but I will first talk about schools and the culture in the education system.

When the Committee visited Sheffield, it came across a very bright apprentice who had been offered a university place at school, but was virtually ostracised when he told the school that he would take an apprenticeship; he was not even invited to the school’s end-of-term event. That experience is reflected more widely. The Edge Foundation has said that 26% of those surveyed had been actively discouraged from becoming apprentices. I do not blame schools or teachers, because they are delivering on an agenda set by the Government. If the Government want to change the situation, they must set the agenda on Ofsted and monitoring to ensure that vocational training receives the same support and promotion in the education system as universities and A-levels.

[Mr Robin Walker]

Will the hon. Gentleman give way?

[Mr Bailey]

I will certainly give way to my colleague on the Business, Innovation and Skills Committee.

[Mr Walker]

I agree completely with the Chair of the Select Committee. I recently held an event in my constituency for apprentices to talk to school careers advisers. One thing that came across very strongly was that apprentices and their employers told careers advisers that people expected to increase their earnings in the long run by going for an apprenticeship. Careers advisers seem to start from a natural assumption that apprentices are paid less. Does the hon. Gentleman agree that that is one of the myths we need to take on? The long-term earning potential of apprentices is often much higher.

[Mr Bailey]

I entirely agree. For too long the careers service has been seen as a bolt-on to the educational process, as reflected in criticisms by the Education Committee and Ofsted. I am not satisfied that the guidance issued to schools in April fully addresses that issue. The ability to understand a student’s potential and to place them in the most appropriate skills setting is absolutely essential both to the individual involved and to the economy as a whole. That area of education is grossly neglected.

I want to move on briefly to small businesses. In my experience, blue-chip companies understand apprenticeships, deliver on them and play a vital role. However, our economy is dominated by small businesses—more than 90% of businesses are small ones—and it is generally recognised that that sector has the potential to increase employment. It is essential to get more small businesses to take on apprentices, but all too often they do not have the capacity, time or finances to train them in skills.

I accept that the Government have recognised the need for more employer involvement, but the latest statement on 13 January fell short of what small businesses need both in relation to the funding regime and the guidelines necessary for them to have the confidence to take on apprentices. There is a lack of clarity and too much bureaucracy, and the Government need to take a consistent approach to small businesses if we are to overcome the problem.