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Mr. Andrew Lansley (South Cambridgeshire): If the Minister thinks that there is no correlation with the external assessment of key skills, will he look at an alternative interpretation of why the completion rate is not as high as it should be: the absence now of a realistic option for young people to go for other training? In effect, therefore, they are being given no choice but to go into foundation modern apprenticeships, which they probably have no realistic likelihood of successfully completing.
Mr. Lewis: I think that a combination of factors leads to non-completion, and we need to be clear about that combination. For example, undoubtedly, some young people and employers decide not to proceed all the way through because their relationship is positive and the young person is earning a salary—a decision is made that there is no need to complete the apprenticeship. However, we recognised that there was a gap, which is why we have introduced the entry to employment scheme. The hon. Gentleman may not be aware of that initiative, but this year a significant number of young people are choosing that option. They are the ones who are not ready to participate even in foundation modern apprenticeships. I would be delighted to furnish him with more details on the entry to employment scheme. It has filled the gap and addressed the problem that he rightly identifies: a cohort of young people who do not have the skills to enable them to commence even a foundation modern apprenticeship.
Jon Trickett (Hemsworth): I, too, pay tribute to the work that my hon. Friend is doing. In constituencies such as the one that I represent, a former mining area, with the lowest possible levels of education attainment, it is imperative that we get people to feel that high-quality, high-esteem qualifications are available as a route into work. However, does he not accept that we have mixed economy provision, which is complex and sometimes a bureaucratic nightmare? Will he address in particular the issue of blocks of money, which are made available by his Department for our institutions, being handed out, rather than subjected to competitive tendering among various providers? That is extremely unhealthy.
Mr. Lewis: The criteria must be quality and standards, and contractual arrangements must be made with those providers who can demonstrate that they have the capacity to deliver quality provision. In the context of modern apprenticeships, one of the criteria that we must set is that providers should support and achieve a much higher completion rate. Locality by locality, I expect local learning and skills councils to make decisions on contracting linked to standards, quality and clear outcome expectations. The reform of both further education and training provision through
the "success for all" reform and investment programme should get us to the stage that my hon. Friend wants us to reach.
Jon Trickett: It seems that in some areas we are in danger of creating a quasi-monopoly. I am thinking not only regionally and locally but nationally. Is there not a risk that we will put all our eggs in one basket, which does not necessarily drive up standards among provider institutions? Would it not be better to say that we will look for competitive tendering wherever that is feasible?
Mr. Lewis: We have made it clear that we see the mixed economy as part of the system that we wish to create in which competition exists between colleges and training providers in both the private and voluntary sectors. The central thrust of that system, however, must be quality. We know that, sometimes, competition is a powerful lever to guarantee quality. If my hon. Friend has some specific examples where he feels that monopoly provision is not supporting high-quality standards, I would be pleased to hear about them.
It is important to refer in the context of modern apprenticeships to the taskforce that has been created under the chairmanship of Sir Roy Gardner, the head of Centrica. Unfortunately, he is also the chairman of Manchester United plc—but that was not in the briefing when I agreed to his appointment as chairman of the taskforce. The role of the taskforce is not only to engage far more employers in offering places to young people on modern apprenticeships but to ensure that we have ready access to employers' views on where modern apprenticeships are working and where there need to be policy revisions to ensure that, sector by sector, we get the framework for modern apprenticeships right. Therefore, the taskforce is important.
On the point raised by the hon. Member for South Cambridgeshire (Mr. Lansley), some 50,000 young people are participating in the entry to employment provision to which I referred.
All Members will accept that financial support is a very important factor in the choices that young people make. That is why we are incredibly proud of education maintenance allowances, which will be available nationally from September 2004. However, it is also important that we look at all financial support being offered at 16 to 19, so that we achieve cohesion and incentivise learning. We welcome the Treasury-led review in this area, and we have a particular interest in the impact on family means-tested benefits when young people participating in a full-time vocational college course are in receipt of a training allowance. We must ensure that the financial regime supports our objectives by encouraging young people to stay on, rather than encouraging them to drop out into low-paid, low-skilled employment.
Laura Moffatt (Crawley): The Minister may be interested to know that the issues of quality and supporting students who go into further education, which we have already discussed, are very real ones for my constituents, especially the young people. Crawley college has just opened the Longley building, which is dedicated to construction services and will ensure that young people get the very best training. Such work offers them the prospect of support and superb training,
ensuring that our economy in the south-east is vibrant and healthy and can support all the industries that we so badly need. Does the Minister agree that we need to build up a picture involving all the relevant organisations—employers, learning and skills councils and colleges that are prepared to invest in their own buildings—to ensure that we can offer our students the very best?
Mr. Lewis: I agree entirely with my hon. Friend—it is essential that we tear down the barriers between the world of education and the needs of the labour market in every region and sub-region. Many colleges are responding by developing, through capital investment and revenue funding, provision that genuinely meets the skills needs of specific sectors and their regional and sub-regional economies. What is happening in the college mentioned by my hon. Friend is an excellent example in that regard.
We have also introduced foundation degrees. In 2002–03, 12,000 students were studying for such degrees; we anticipate that the number will increase to about 50,000 by 2006. In the recently published skills strategy, we announced a new entitlement to free learning for all adults in respect of the first level 2 qualification. We also announced our intention to lift the age cap on modern apprenticeships, and the creation of sector agreements, which will allow individual sectors to define the vocational courses that they will require to meet their future skills needs.
Central to delivering this extremely ambitious agenda will be our capacity to raise standards, to improve the quality of provision and to create a new culture of collaboration between institutions in every area. We now have 1,445 specialist secondary schools; by 2006, there will be 2,000. As Members are aware, specialisms include arts, business, languages, science and technology. The seeking of specialist status and the requirement for sponsorship and community engagement have built relationships between schools and employers that will offer new vocational opportunities to many young people.
Further education colleges and training providers are benefiting from the groundbreaking "success for all" reform and investment programme, which provides unprecedented levels of investment in return for a more demand-led, high-quality system. As was pointed out, we now have 251 centres of vocational excellence, and the number will increase to 400 by 2006. The centres are being developed in co-operation with employers, and subjects include construction, engineering, manufacturing, technology, information and communications technology, and tourism. Local learning and skills councils are conducting area reviews to ensure the right configuration of post-16 institutions, and to support progression and attainment in any community.
Mr. Allen: The learning and skills councils are obviously central to everything that my hon. Friend is trying to achieve, so will he ensure that they take into account the contribution that secondary schools can make? In my constituency, most kids see school finishing at 16. One way in which we can get young people to bridge into 17 and 18-year-old education is to have on-site—not comprehensive, but well defined—
facilities on each of the school sites. As I mentioned previously, some of the schools in my constituency do not achieve particularly high academic qualifications, but vocational education—perhaps sponsored by further education or badged by universities locally—could help youngsters to aspire to higher educational levels. Will my hon. Friend ensure that the Learning and Skills Council is fully aware that that is one possible route that it is able to fund?
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