Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 620 - 631)

TUESDAY 6 MARCH 2007

DFES

  Q620  Rob Marris: For us to understand.

  Bill Rammell: In terms of the learning opportunity that is available to the individual—

  Q621  Mark Hunter: Perhaps you can send us an idiot's guide.

  Bill Rammell: If you compare the situation today to, say, three or four years ago, the very clearly established entitlement to a Level 2 free qualification I think is robustly getting across to people. If you looked at the proportions who are aware of that today compared to four years ago, they have increased. Do we need to do more of that? Yes, we do, and that is why we are leading the national communications campaign; it is why the brokers are constantly contacting employers. I guess in summation I would say there has been a significant improvement but we undoubtedly have to go further.

  Chairman: We will be exploring this more with our next witness because there is considerable confusion particularly at the regional level about the overlap between various responsibilities.

  Q622  Rob Marris: You said a moment ago that apprenticeships are a key part of the way forward and you mentioned that about a third of them are in manufacturing. Our understanding is that the completion rate for engineering and manufacturing apprenticeships is under 50%. If that is right, why is that, because it is a lot lower than university degree courses, for example?

  Bill Rammell: It is. You need to see this as a time sequence. Engineering manufacturing mirrors this improvement. Completion rates for apprenticeships generally over the last five years have gone from 28% to 53% last year and 59% so far this year. That has been due to a very focused effort by the Department with the Learning and Skills Councils, with providers, to ensure that there is a quality product and that we help people through that programme; but part of what we are grappling with here is full employment. Somebody goes on to an apprenticeship programme, a job offer comes up somewhere else and they are attracted to take that as a short term route, thinking it is a better option for them. That is an ongoing challenge and part of what we need to get across to young people and adults is that what might seem a short term, quick fix, in the longer term, in terms of your interests, may not be the easiest route.

  Q623  Rob Marris: These are people who are halfway through an apprenticeship and what comes up appears to be a better job so they abandon the apprenticeship and go and do the other job?

  Bill Rammell: Yes. If you talk to providers and employers on the ground, that is often a facet of this. Nevertheless, if you look at those figures, 28% to 53 and 59% is a significant improvement because we have been very conscious of the need to drive up completion rates. We are now moving towards a position where we are heading towards the European average.

  Q624  Rob Marris: You also said something earlier which I confess I did not really understand. You talked about apprenticeships being employer led and demand led; otherwise, there is a risk there would be no job for the apprentice upon completion of the apprenticeship. I thought that was integral to what I understood an apprenticeship to be. I did the legal equivalent of an apprenticeship. It was called Articles. I did two years of Articles in a law office sitting at the foot of a master and then got a job at the end of it from that firm. How could you have an apprenticeship without significant employer involvement? I do not quite understand.

  Bill Rammell: In any apprenticeship you need employer involvement. The point I am trying to make is that—

  Q625  Rob Marris: Will it not perforce be employer led or demand led?

  Bill Rammell: It will, but it needs to be led by genuine demand. The point I was trying to make is if you simply expend 110% effort to encourage employers to commit to an apprenticeship even though there is not a prospect at the end of that programme that someone will move into a job, it is going to be less successful than if you are genuinely identifying those areas of industry where there is a flow through and a shortfall of skilled employees and the apprenticeship route can not only be about training someone but leading them into a successful career.

  Q626  Rob Marris: Why would an employer offer an apprenticeship like that? Would it be cheap labour? Why train someone to be an electrician for two years and say, "We do not have a job for you here now you are a full time electrician. Sorry"? Why would an employer go down that route? Is cheap labour still going on?

  Bill Rammell: There are financial incentives that we build into the system to encourage employers to engage but the point we are making is that we need to ensure that there is a quality product at the end of it.

  Q627  Rob Marris: Do all apprenticeships under modern apprenticeship schemes involve an employer, or am I missing something here?

  Bill Rammell: Yes.

  Q628  Mr Bone: Do you really think, Minister, that employers get any benefit from the cheap labour of an apprenticeship? Do you really think that?

  Mr Rammell: No, I am sorry, that is not what I was suggesting.

  Q629  Mr Hoyle: Can I just move on? Part of the key proposals of the Leitch Report is that the Sector Skills Councils should be able to control which vocational courses receive public money. We have received evidence from various groups including the chemical and pharmaceutical industries who claim that UK graduates in chemistry do not have the practical experience that is needed to work in those industries. The big question is: will the Leitch recommendation cover university courses that are vocational in nature? Where do you draw the line between vocational and academic courses, and what role should the employers have in the latter?

  Mr Rammell: Do we need Sector Skills Councils to be engaging with higher education and, frankly, vice versa? Yes, we do. If we are honest, the contact between universities and the Sector Skills Councils is variable and it certainly needs to improve. Do we need more joint initiatives through things like foundation degrees? Yes, emphatically, we do, and the Sector Skills Councils are going to be working with providers to develop those programmes. We have also got examples of working with Foundation Degree Forward, the body that promotes foundation degrees, and Sector Skills Councils in developing what are called foundation degree frameworks which help tailor a foundation degree towards specific sectors. All of that is positive. However, I am not advocating that we go as far as giving the Sector Skills Councils a veto on the higher education qualification. I say that for good reason: whilst I do not claim that universities in this country are perfect, I think that one of the things that has led to their strength is the degree of autonomy where the degree-awarding power comes through the privy council; they can develop their organisation according to their specialism, according to their mission. If you look at the international comparisons, our universities are regarded in much higher esteem than many elsewhere in the world, and it is that issue of autonomy that I think has very much led to that situation. So whilst we need much more evidence of universities moving towards businesses, and we will financially incentivise that, I am not convinced that you should go as far as saying, as the FSC says: "You can have that qualification; you cannot have that one".

  Q630  Mr Hoyle: Will there be extra funding going into workplace degrees?

  Mr Rammell: Yes, there will. My very clear view is that the big future expansion of higher education in this country is going to be in the field of work-based learning. We are already trialling a higher education dimension of the Train to Gain initiative. We have also, through the HEFCE grant letter, written to universities and said: "If you have initiatives, ideas, on a co-financing proposal to deliver higher education in the workplace with an employer, we want to hear from you".

  Q631  Chairman: Minister, we would love to have gone on. There are many other issues that have been raised in answers which we would like to have explored at greater length, but I think we have got what we needed out of this session. We are extremely grateful to you and to your silent colleagues for a very informative session. Thank you very much indeed.

  Mr Rammell: Thank you.





 
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