Select Committee on Business, Enterprise and Regulatory Reform Minutes of Evidence


Examination of Witnesses (Questions 160-179)

MR DAVID LAMMY

9 OCTOBER 2007

  Q160  Mrs Curtis-Thomas: It is 10,000 extra apprenticeships for adults, that is, across the whole sector; and of course you have a tendency to recruit women into traditional women's sectors and men ditto. Are you going to set targets for the recruitment of women into STEM-related work, or STEM-related apprenticeships? That is crucial. Out of that 10,000 we may have just 50 places for women.

  Mr Lammy: No, is the answer. We cannot just have 50 places for women; that is a bottom line. We cannot be in the situation that we have been in in the past. I have seen the figures and they are not great when you look at the amount of women in construction or engineering—that is clear. There is a lot of work going on in the various sectors to change that. I was on the Olympic site with the ODA. I had a meeting with the construction industry the day before, and there is a clearly a will and a desire to change things. There are funds; there are pilots; there are projects; there is a desire to change the stereotyping. Crucially there is also in the ODA procurement contract an obligation to train, and they have issued their equality plan which means that gender is an important dimension of that. I do not think that we are in the situation that we have been in in the past where, frankly, there has not often been the will, there has not been the perception from employers, and there has not been the activity to actually change that. That is a different context. Alongside that in a broader more general way but crucially important is the work of the 25 Sector Skills Councils. We have said that we want to re-focus and re-license those Sector Skills Councils going forward; that is a big part of the new Department's mission, as it were, in relation to skills. Notwithstanding that, I am pleased that the Sector Skills Councils themselves, who are coming forward with their sector agreements, are prioritising gender equality within those agreements. Not all the 25 have come forward so far; we have got 13 of them that have come forward; but a significant number of them are saying that gender is important. One of the first questions I asked is: have we got women on the boards of our Sector Skills Councils? Who are the chief executives of our Sector Skills Councils? I am told a third of them are women. I have not met them all obviously in the first 12 weeks in the job. It is crucial that the sectors themselves, the employers themselves, are seeing this as a priority and raising their game. In construction they have a levy that they can use to good effect, and that is why projects like the Olympics are so important. We have got the biggest building programme in the country since the war; it would be unacceptable if, in that context, we look back in ten or 15 years' time with all these cranes across the country and we had not got women the training; we had not got women into employment; we had not made that difference. My answer to you is: no, that will not be the case; but I do not think we are in a case where we are prescriptive of employers and we are setting them targets. That is not the way we have been managing our Sector Skills Councils, and that is not the direction of travel.

  Q161  Chairman: Before we move on, you mentioned procurement contracts with the Olympics bid, something we are very interested in. Do you support extending that kind of procurement strategy to other public sector contracts in other areas, because you cannot have a "fairly unique" experience but it seems a bit of a "one-off" as we see it at the moment Would that be something you support, extending that model elsewhere?

  Mr Lammy: Certainly in my Department we have just done work on our Equality Impact Assessment and equality is one of the issues that we should have regard to in procurement. I am told by lawyers that there are technical rules about the way in which you have got to allow people to bid for contracts and other things; and you will understand that ministers usually are not engaged in who gets particular contracts and things; that is something you generally leave to permanent secretaries of departments. We have indicated a desire in legislation. We have done that. We have said to the public sector that they must have regard in terms of race equality and a public duty there and that applies in gender. I am hugely sympathetic to the reality that government departments and the public sector broadly procures massive activity of huge economic importance every year, and that there is huge leverage that we can exercise to ensure that women are getting access to skills, training and employment. We as a new Department want to ensure that we are reminding colleagues about that across the public sector. That is the strength of having a new Department; in the sense that I am sitting here as a Minister in a Department of Skills that can go beyond that in a way that perhaps could not have been the case in the past.

  Chairman: That is very helpful.

  Q162  Mrs Curtis-Thomas: Chairman, before we move on I would like to clarify that whilst that facility is available in contract, when that contract is being assessed it does not carry weight in that assessment. It is there as a desirable; it is not there are a core element.

  Mr Lammy: That is an important point. Are you talking about, for example, the contract that the ODA has just issued?

  Mrs Curtis-Thomas: Yes. It is there as a desirable but it is not there when you compare and contrast the contracts for placing. It is not weighted at all.

  Chairman: I think this is an area we would want to pursue further, I am sure.

  Q163  Roger Berry: Good morning, Minister. The review in April of the implementation of the recommendations of the Women and Work Commission said a fair bit about training. Just following on from what you have said already, it referred to a number of schemes—the London Olympics-related Level 3 pilots, the Skills Coaching pilots and the Women and Work Sector Pathways and so on. I would be interested to know about how successful you think these are proving? Assuming they are successful, is funding available to roll them out more widely?

  Mr Lammy: I think from what I have seen it is true to say that some of these pilots have got off to a slower start then certainly I would have liked. That perhaps has been because they really are cutting to the heart of changing employer practice. I do not want to evaluate the London Level 3 pilot before that should be the case, and I certainly do not think I ought to do that from this point sitting here. Having met 30 or 40 of the women in Islington who are, broadly speaking, in construction, building and painting and decorating, I thought it was hugely impressive and, clearly, it has changed their lives. Having spent some time with Karren Brady really proselytising about what we have to do for women in relation to skills and training, it is clear to me that there are huge things to do. As a London MP I know that too often black and ethnic minority women are some distance indeed from the labour market. It is not just about getting them into employment, and the employment lasting a few years and then goes; it is about embedding that. I would hope that this work continues, and that we are able to accelerate it even further once we have got that evaluation back. It cannot just be about the individual pilots; it has to be about the working practices of sectors themselves. Whether it is the construction industry, working with graduates and undergraduates to make sure that their qualifications are getting them jobs in the market, and their construction skills are doing that; whether it is asset skills, working with cleaners to get them up to higher levels so they can run their own cleaning business; the individual Sector Skills Councils have a job to do here as well.

  Q164  Roger Berry: You have mentioned some of the pilots and some of the schemes have got off to a slow start. I wonder if you could say a bit about the characteristics of those kinds of schemes and what have been the problems? Why do they stand out as being slow starters, and what is being done about it?

  Mr Lammy: They got off to a slow start but we are seeing pace and improvement. The London Level 3 pilot got 740 people who are participating. That needs to grow over the next period so that we get to hopefully up to 7,000 learners who have benefited. We need to see acceleration in that. We need to see the money spent and used properly. What the LSC has been keen to emphasise to me is that this work is about changing practice. It is about persuading employers that this is good for them, and that takes time—to find them and to place them. You want the pilot to succeed, so you want to place women into an environment that is going to work for them. You want employers to understand the flexibility that is there and how the money is spent and other things that have not been there in the past. At the same time outside of the gender issue, as it were, Train to Gain is a new programme full stop; it has only been running a year. Us putting in our money, about £440 million now and going to over £900 million by 2010, is new. We are asking providers; we have got new brokers; we are asking the system to adapt to a changed environment anyway.

  Q165  Roger Berry: Just so I am clear, I think what you are saying and I would like you to confirm whether this is correct or not, you keep emphasising "employers", is the basic obstacle not the people coming forward to participate in these schemes; it is not the resources that Government is providing,; the real challenge is to generate that change of culture by employers?

  Mr Lammy: Roger, you will forgive me, if I had opened with opening remarks what I would have said is that we have got a brand new Department, a Department dedicated to skills, that is able to work across the system, across Whitehall. We have made good progress in the last few years, but in terms of where we need to get to, to implement Leitch's ambitions by 2020, we have got a long way to go and a new Department needs to be there to drive that through. That means a culture change in this country. Anyone sitting at home is now watching adverts inbetween EastEnders and Coronation Street reminding them that skills are in their hands, telling them to ring up a number, that they can get skills. We are reminding employers through Train to Gain that we are serious about Level 2; that full subsidy is there for people who have not got Level 2 qualifications; and part subsidy is there available for beyond that. That is a huge culture change in this country. At the same time, who will be the beneficiaries of that culture change particularly? They will be people who have been traditionally left out of the labour market: women, a key component of that; black and ethnic minorities, a key component of that; but the list goes on. People with mental illness, people with disabilities, are fundamentally important in making that change. In a sense, when we talk about a "slow start" it is because we are only 18 months into this journey and a new Department enables us to accelerate this.

  Q166  Mrs Curtis-Thomas: The number of women who are taking apprenticeships are increasing but, unfortunately, there is a disproportionate increase in the number of women going into female segregated apprenticeships. In actual fact, it is quite counterproductive in terms of set stereotyping and reinforcing that. What progress has been made in developing a more flexible apprenticeship structure? What success has there been in developing a project-based structure? Why go for a project-based structure anyway?

  Mr Lammy: Why go for it? There has been good progress in the project-based structure which is now available across the piece for apprenticeships—that flexibility is there. You can do your apprenticeship part-time; you can pick it up; you can move from one employer to another. The framework for apprenticeships we have changed to ensure that maximum flexibility is there. You can change the framework; you still have to incentivise, encourage, persuade and remind employers that it is there and that it can benefit, for example, their female employees. I think that is the journey we are now on. For some it does mean changing practice and changing perception. I remember when I was a lawyer in a City law firm, and City law firms were talking about how we could have female partners, and in order to do that it required flexibility; it required part-time working; it required job-sharing. It has taken the City a long time to come up with the mechanisms to allow that to happen even though it is there in law. This is no different in a sense. We have taken on board the project-based arguments; we have taken on board the argument about making the system fully flexible. What we are doing is ensuring that our brokers in Train to Gain when they are speaking to employers are able to articulate these possibilities. I think where we are seeing progress, although this is only a year in, it is because brokers are reminding employers what is available; because Business Link is linked in and is reminding employers what is available, as well as the system driving change in design, driving change in the way that allocates money and the way that it pilots fully flexible projects.

  Q167  Mrs Curtis-Thomas: One of the reasons that people fail to complete their apprenticeship programmes, and particularly women, is that they do not get work-based opportunities. As much as I am cheered to hear your assertion that project-based apprenticeships is working —

  Mr Lammy: No, it is there across the system. You can do it.

  Q168  Mrs Curtis-Thomas: In terms of accessing it and making that available to women it is still a very long way off. What impact has this project-based approach had on the completion rates for apprenticeships for women?

  Mr Lammy: The story on completion rates as you know three or four years ago and certainly when we came to power was hugely problematic. Completion rates: 40% in 2004-05, rising to 53% in 2005-06. It looks like it is round about 60% this year with no gender differences on those latest figures, so that is progress.

  Q169  Mrs Curtis-Thomas: Is that gender differences over all sectors?

  Mr Lammy: I cannot answer that. I can certainly come back to the Committee on that.

  Q170  Mrs Curtis-Thomas: That is something I think we need answered, simply because if you disaggregated those figures you would find there is a disproportionate number of failures for STEM-related careers, than there is in the set stereotyped career path. I put it to you that what we are about here is trying to get more women into work, diversifying the range of opportunities available to women, and setting targets in relation to the successful completion of apprenticeships for women. I also applaud the sentiments with respect to the BME group and people with disabilities. It is absolutely vital.

  Mr Lammy: I am with you. That is the overall figure. I would expect to see, and would be staggered if I did not see, differentials between sectors as you indicate. As I say, this is very much in the mix in the apprenticeship review where we are looking at all of these issues. Your indication of targets is one of the things that is on the table. Mrs Curtis-Thomas: I think quite frankly, Minister, without targets you cannot get the Sector Skills Councils to respond because they need to have those to drive their employers.

  Q171  Chairman: I visited my FE college last week which had done a project analysing girls and young women not going into non-traditional areas. A number of factors were seen from the attitude of the tutors, their own tutors, to the attitude of others in their group, and to others on work placements—many of the factors that you might expect to be there. One of the things that the college principal said was that they would like to do some more diversity projects, particularly to get girls and young women into some of the more traditional areas, like taster courses, like women-only motor vehicle and bricklaying courses; but their funding at the college is such that it is tied in so closely to particular targets in funding for Level 2 courses et cetera that they cannot find any small pots of money that would enable them to do things which do not fit into those categories that would help them break down some of those boundaries. They are very keen to do it. I was told even just £20,000 for the college could help them do that but there is no access to such funds. Would you like to comment on that?

  Mr Lammy: I do not think the Committee would want us to back off our aspirations on Level 2. It is the case that there were many people doing short courses, some of whom did not get qualifications to speak for the time they had spent on that course, and many of whom were going round and round in circles with no progression. We are absolutely clear that the aspiration to get 80% of our population up to GCSE level is a noble aspiration and it is one we have got to stick to, and we have got to encourage providers and FEIs to help us deliver it. It is hugely important, I think, for social mobility and for aspiration. In the end it benefits women directly. At the same time within that we know, for example, that in relation to apprenticeships you have to provide tasters; you have to provide work placements. UKRC are looking at work placements for girls in the STEM subjects, I know, and have got some money and are doing that work. E-skills are working with 10-14 year old girls in schools with IT so that they can change the perceptions of young women wanting to go into the IT sector. Those taster courses are there. They should be there. There is funding in the system. I am hearing from some of the colleges that they want some flexibility. I have got to look to see how that money in the system is being spent. Again, part of our apprenticeship review will be to ensure that we are embedding in a bigger way that work that has got to go on pre-16, because parents have influence and have strong perceptions about what careers they want for their young girls; and we have to have employers in school working with parents to change those perceptions. You are right, we have got to have the funds there in the system to meet that need. I am happy to look at it but, at the same time, it would be wrong to back off the Level 2 aspiration, which is a fundamental to the skills agenda going forward.

  Q172  Roger Berry: Minister, earlier you touched on the question about the accessibility of training courses. As we all know, traditionally many training courses have been geared at young people who attend them full-time; and for people, for example, who have caring responsibilities the timetabling of this is wrong and the flexibility is not there. You were suggesting that there had been significant improvement in this. My question is: in Towards a Fairer Future we are told that the Government asked Ofsted to "consider the practice of a sample of adult education providers to establish the general picture of accessibility" with a view to using best practice guidelines 2007-2008; which sort of suggests to me that it has taken quite a long time to address this accessibility issue. Are we being to slow in addressing the needs of people with caring responsibilities or people who wish to combine various activities with some training? Is the flexibility really improving as we speak?

  Mr Lammy: Let me give you an example. I listened to some of the learndirect phone calls within the nextsteps programme, those are women who are often not in the workforce, who are very low skilled, who are ringing up; they are not just getting advice about what course they can take; they are getting advice about child care; they are getting advice about caring allowance and those sorts of responsibilities; what is in a local neighbourhood; how they can make that particular course a reality; and how they can hopefully make long-term employment a particular reality. That is happening. I am not going to suggest it is happening for all women with caring responsibilities; that is why the Ofsted work continues; and it is also why there is a cross-government review of carers which the Prime Minister has initiated, in which obviously my Department is playing a big part. I am obviously pleased that this is now firmly on the political agenda. There is a lot more to do in relation to this, I think; but I have seen evidence of good work going on that is helping these women come back into the labour market.

  Q173  Roger Berry: Is there anything you can say about the timescales in terms of particular targets for improvement?

  Mr Lammy: I am not sure I can. A point where there is both the Ofsted work and the cross-government review of the carers going on.

  Q174  Roger Berry: The Ofsted guidance will be published when?

  Mr Lammy: May I come back to you on that? Roger Berry: Yes.

  Q175  Miss Kirkbride: Are you aware of the social entrepreneurs' project "Women Like Us" and, if so, do you like it, and are you going to promote it?

  Mr Lammy: I am aware of "Women Like Us" because they are working quite a lot in North London and they are working in Haringey.

  Q176  Miss Kirkbride: Do you think this is a marketable way forward and how are you going to put it if it is?

  Mr Lammy: I think I have asked to go and see one of the projects. I have not been to see one of the projects. I do think that we have got to work with Social Enterprise. Rightly, much of your questioning has been top-down. What is the Government doing? How are you setting targets? Where is the money going? How are you making this happen? I have wanted to emphasise in some of my answers the key role of changing culture and employers. I think the other side of the coin is social enterprise such as Women Like Us. It is grassroots organisations on the ground and how we can support them. Phil Hope was in my job before this, he is now Third Sector Minister, so there is key partnership that can be done there to really help the Third Sector help us deliver this; and I think it is partnership that is not that different from the key role that unions have played in relation to the skills agenda. We have been able to give them extra funds, and we have seen the benefits because a woman on the shop floor saying to a colleague, "You can do this course" has borne results. We want to see that with the Third Sector and Social Enterprise as well. I will go and see Women Like Us and I will look across the piece at the organisations that are dedicated to gender and skills that are out there and are doing good work, so I am not just going to FE colleges and others. I am told that I can write to you on the timescales for the Ofsted practice and I will do that. Roger Berry: Thank you. Chairman: We look forward to receiving your letter and anything else you would care to share with us.

  Q177  Mrs Curtis-Thomas: Going back to the issue of Sector Skills Councils, which we started talking about earlier, we understand that eight Sector Skills Councils are using the money available under the Women and Work Sector Pathways Initiative to do things like identifying barriers to women's progression in their sectors, providing appropriate training and generally assisting women to progress in their careers. Firstly, I know this is a bit unfair but I would be interested to know which of those Sector Skills Councils we are talking about. It sounds interesting, but that is £10 million worth of government funding and matched funding by employers. Is that £10 million from both parties or is it a total sum, with £5 million coming from each or £10 million in total from each?

  Mr Lammy: It is £10 million of government money.

  Q178  Mrs Curtis-Thomas: With matched funding coming from industry. So how much industry funding have you attached to match that?

  Mr Lammy: May I come back to you on that. I will talk to you about the projects if you want me to talk to you about the projects. May I come back to you about how the money has been divvied up?

  Q179  Mrs Curtis-Thomas: The first thing I want to know is: that there are eight Sector Skills Council which have stepped up to the mark in relation to this particular programme, and which ones they are?

  Mr Lammy: I have the list in front of me. We have got Asset Skills, which I have mentioned already, and they are helping cleaners to level up their skills. We have got the automotive and retail recruiting a hundred women into customer services and giving them specific training so they can actually get qualifications. There is an area where there are many, many different qualifications, but qualifications that would help them move forward.



 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2008
Prepared 9 February 2008