House of Commons - Innovation, Universities, Science and Skills

Q 8 Clause 1(3)(b) states that "reference to a course of training for the principal qualification is to be read, in a case where the person has followed two or more courses of training for the principal qualification, as a reference to both or all of them". Is this a reference to the NVQ? Does principal mean "mandatory"? Does this have implications for which qualifications and how many will be funded?

Principal means the main qualification(s) that needs to be obtained under the apprenticeship framework. To the extent that completion of a course of training for the principal qualification is one of the completion conditions, it is mandatory.

Q 9 In Error! Reference source not found. the Committee asked about clause 1(3)(b) which states that "reference to a course of training for the principal qualification is to be read, in a case where the person has followed two or more courses of training for the principal qualification, as a reference to both or all of them". The Committee asked: whether this was a reference to the NVQ; did principal mean "mandatory" and did this have implications for which qualifications and how many will be funded? The Committee would be grateful for detailed reply to all its questions. In the answer supplied, what is the meaning and significance of the qualification "To the extent"?

The principal qualification referred to in the draft Bill will be the NVQ which is core to the particular framework. It is intended that the principal qualification will be specified in the apprenticeship framework. As we explained in our response to Error! Reference source not found., "principal" means the main course of training that needs to be undertaken, rather than mandatory. However, if a person wants to complete the apprenticeship and be issued with a certificate, they will need to complete the training for the principal qualification, and in those circumstances, completing the principal qualification is mandatory. This was what we sought to explain in the second sentence of the response to Error! Reference source not found..

The Government will fund all training for 16-19 year old apprentices and addition it provides funding for training, on a sliding scale depending upon framework, for adults. The funding is for the principal qualification and other training set out in the apprenticeship framework (for example, where there is training in relation to qualification for the technical skills separate to the NVQ; transferable skills and mentoring),

We hope that this response is sufficiently detailed, but please contact us if you have any further queries on this issue.

Clause 2

Q 10 Will the certificate only record the apprentice's achievement in relation to the principal qualifications? What about the other qualifications he or she will have achieved? What are the criteria by which a qualification will come to count as the "principal qualification"?

At the moment, the draft Bill does not require the qualifications obtained to be recorded on the completion certificate, however, it is intended that the completion certificate will relate to the achievement of the completed Apprenticeship, and the expectation is that it will include the relevant qualifications received. The criterion for a "principal qualification" is that it is the qualification that is central to the completion of the framework.

Clause 5

Q 11 Clause 5 deals with fees for issuing apprenticeship certificates. Individuals are not normally expected to pay a fee to receive their certificates. Who will pay the fees? Will there be any expectation that the apprentices will? If so, what is the rationale for this expectation?

The intention is that apprentices would not be charged a fee to receive their first certificate. However, we would want to provide for certifying authorities to be able to charge for a replacement certificate. It is intended that in these circumstances the fee is to be only the cost of supplying the certificate.

Clause 6

Q 12 Clause 6 states that the Secretary of State may make regulations about the supply of copies of apprenticeship certificates and that those regulations may authorise the certifying authority to charge a fee. This suggests that a fee cannot be charged without such a provision being made. However, it remains unclear whether these copies are anticipated as having some form of official format or status and whether, in the absence of regulations, a certifying authority is prevented from supplying copies of certificates if it wishes to do so. Why do the Departments think that it needs a separate regulation making power? Has it considered whether the order made under clause 4 which deals with fees for the initial issue of certificates could also deal with the issue of copies and the fees for them? If the intention is that copies can be issued on the request of someone other than the apprentice e.g. the employer, have the Departments considered any data protection issues in providing copies of the certificate to other people?

The intention is that the apprenticeship certificate should have official status as recognition that the apprentice has completed the statutory apprenticeship programme. The powers in relation to duplicate certificates cannot be dealt with by way of orders or directions under clause 4. We need to ensure that an apprentice will be able to obtain a duplicate certificate if the certifying authority that issued the original certificate has ceased to exist, in which case it would no longer be bound by any orders or directions under clause 4. We are considering issues about the transfer of data which will be needed in order to set up a mechanism for issuing duplicate certificates. The current intention is that certificate would be issued only on the request of the apprentice.

Clause 7

Q 13 Why does the description of what an Apprenticeship Framework should consist appear imprecise and not specific? Will Sector Skills Councils still specify the requirements for frameworks? What relationship is there between the framework and "apprenticeship standards" as referred to at clause 11(1) and the "Blueprint" referred to in paragraph 5 of Impact Assessment? Why is the Learning and Skills Council in charge of the latter? Does this mean just stating mandatory NVQs at Level 2 or 3 for funding purposes as happens now?

The description of the elements of an apprenticeship framework has been designed to reflect the need for each framework to reflect the requirements for that specific sector and occupation.

It is intended that Sector Skills Councils will approve the vocational qualifications for each sector that can be drawn upon by organisations wishing to offer apprenticeships. The Sector Skills Council will work with these organisations and support the development of frameworks, which the Sector Skills Council would consider and issue.

The core elements in every apprenticeship framework must be of a type set out in the specification of apprenticeship standards. It is intended that the specification should include a knowledge-based element; a competence-based element; transferable or "key skills"; a module on employment rights and responsibilities; set out key characteristics of an apprentice; minimum entry requirements; apprenticeship agreements and progression routes and minimum off-workstation learning time.

The Learning and Skills Council has responsibility for the apprenticeship specification as it will house the National Apprenticeship Service until (subject to the 4^th Session Bill) it will be housed within the Skills Funding Agency. The National Apprenticeship Service will have end to end responsibility for all aspects of the apprenticeship programme including the apprenticeship specification.

Q 14 Clause 7(1) defines a recognised apprenticeship framework as a specification of requirements at a particular level in relation to a particular skill, trade or occupation. Clause 7(2) sets out what must be stated in the framework, but refers only to the level and sector, not the skill. It therefore appears that the framework need not confirm the specific skill at all. Is this an inconsistency with the definition? Also, should the framework identify who the certifying authority is to which the apprentice will need to apply to get a certificate at the end of the course?

Clause 7(2)(b) does require that an apprenticeship framework must state the apprenticeship sector that includes the skill, trade or occupation. We would expect the framework to identify the certifying authority.

Clauses 8 and 9

Q 15 Clause 8 states that frameworks can be issued by the Secretary of State. In addition, clause 9 empowers the Secretary of State to authorise another person to do so. However, clause 8(2) appears to limit the power of an authorised person to issue frameworks only in the form of a draft which has been submitted to them, not to produce their own draft. Is this construction of the provision correct?

In World-class Apprenticeships, we proposed that the Sector Skills Councils would be authorised to consider and issue frameworks. Therefore, it is envisaged that Sector Skills Councils will be the persons authorised to issue apprenticeship frameworks under clause 9. It is envisaged that draft frameworks would be submitted under clause 8(2) by employers, training, providers and others—for example, Group Training Associations.

In a situation where there was an occupation that was not covered by a framework, the Sector Skills Council would work with the National Apprenticeship Service and others to commission the production of a framework. We agree that the effect of clause 8(2) is that an authorised person may issue a framework only in the form of a draft issued to it, and that this approach is now being reviewed in light of your question.

Q 16 If correct, this restriction appears to be inconsistent with clause 9(1) which is drafted more broadly in that this provision states that the Secretary of State may authorise another person to issue frameworks. This inconsistency appears to affect the provisions governing certificates and frameworks. Clauses governing both of these issues refer to "recognised apprenticeship frameworks", which are defined by clause 7(3) as frameworks which have been issued under clause 8. If the authorised person therefore issues a framework which is not in the form of a draft which has been submitted to it (clause 8(2)) then any apprenticeship agreement which is entered into using that framework may not be valid. It would assist the Committee to clarify whether clause 8(2) restricts the powers of the authorised person.

As we have set out in our response to Error! Reference source not found., we are intending to review clause 8(2) and 9 to ensure that an authorised body may also produce draft frameworks.

Q 17 The apparent limitation on the power could cause problems if it is contemplated that there will be an iterative process between the person who submits the draft and the issuing authority. Have the Departments considered whether it would be better to include a provisions similar to clause 13(1)(b), which allow modifications to be made to the draft submitted before it is issued. Or do they envisage that there will be repeat "submissions" of different drafts to take account of any comments that the issuing authority has on the content of the first draft?

It is intended that Sector Skills Councils would work with the bodies to develop frameworks, and that this would be a seamless process resulting in the production of a framework meeting the apprenticeship specification. In effect this should mean that we have a situation of repeat "submissions".

Q 18 In response to Error! Reference source not found. the Government stated that it was intended that Sector Skills Councils would work with the bodies to develop frameworks, and that this would be a seamless process resulting in the production of a framework meeting the apprenticeship specification. In effect this should mean that there was a situation of repeat "submissions". Will there be a time limit for this and will National Apprenticeship Service adjudicate in instances where employers or group training associations disagree with a Sector Skills Council?

Please accept our apologies for any confusion caused by our response to the earlier Error! Reference source not found..

The response should have said that it is intended that Sector Skills Councils will advise and work closely with employers and other bodies to develop frameworks, and that this would be a seamless process resulting in the production of a framework meeting the apprenticeship specification. This would be a more collaborative process and we would not envisage a situation of formal submissions. In this situation we would not see the need for time limits or for the National Apprenticeship Service to adjudicate.

Q 19 Clause 8(7) states that a framework may not be issued unless it meets the requirements set out in the specification of standards. Is this the only test required for the acceptability of a draft framework? Is not, what are the other tests?

The test referred to clause 8(7) is the only one which the draft Bill requires a framework to meet. We envisage that the Sector Skills Councils might apply other tests to ensure that the framework offers a high quality-experience for the apprentice, and that we avoid a proliferation of very similar Frameworks, where the content is adequately covered by those which are already approved.

Q 20 In response to Error! Reference source not found. the Government stated that the test that referred to clause 8(7) was the only one which the draft Bill required a framework to meet and it envisaged that the Sector Skills Councils might apply other tests to ensure that the framework offered a high quality-experience for the apprentice. What might these tests be, how do they relate to the apprenticeship specification? How is high quality experience being defined?

The Sector Skills Council should ensure that frameworks do meet the requirements set out in the specification of apprenticeship standards. It is intended that the Sector Skills Council will ensure that each framework supports its sector skills agreement, meets the needs of employers and apprentices in that sector, and that it provides a high-quality apprenticeship. We would define high quality as providing coherence between the various elements of the teaching programme and providing a significant increase in occupational competence and technical knowledge.

Q 21 It is unclear what the criteria are for the approval or refusal of recognition and hence for withdrawal of recognition under clause 8(6). This would be of importance in the face of challenges to refusals to recognise/withdrawals of recognition and if these were to be dealt with by way of judicial review, the courts would need to know (a) how much discretion there was meant to be (if any) on the part of the issuing authority to refuse to recognise a framework which in fact met the requirements specified by the specification of apprenticeships standards and (b) if there was intended to be such a discretion, upon what basis it is meant to be exercised. How does the guidance and directions issued by the Secretary of State under clause 9(3) fit in here? It would assist the Committee to have an indication of what the guidance or directions are meant to cover.

It is intended that the issuing authority should have discretion when issuing frameworks in order to maintain quality and relevancy, to maintain coherence in the frameworks available in the sector, to ensure that the programme did not fall into disrepute, and to ensure uniformity of standards.

This discretion would be exercised in accordance with public law principles.

It is anticipated that the guidance or directions would cover the matters that should be taken into account.

Q 22 In response to Error! Reference source not found. the Government stated that it was anticipated that the guidance or directions would cover the matters that should be taken into account. Is this guidance available, even in draft; can the Committee see a copy?

The guidance referred to will form part of the apprenticeships specification. A draft of this will be available early in 2009, before the Second Reading of the Bill. We will ensure that the Committee receives a copy.

Q 23 Is there any numerical limit on the number of apprenticeships in a particular area and a particular skill? For example, would it be legitimate for an issuing authority to refuse to recognise an apprenticeship framework offering apprenticeships for electricians in south London on the grounds that there are already enough places available through other electrician firms in that area? If there is intended to be a limit on the number of apprenticeships for any particular skill in a particular area, then it would assist the Committee to know how the firms going to get them are chosen and what means there are for changing these firms if, for example, the apprentices complain that they are being exploited. Is it the Departments' intention of the legislation that all issuing authorities act in the same way and set the same standards?

The decision whether or not to issue a framework will be made by the Sector Skills Council. The Sector Skills Council will be responsible for ensuring that there is not a proliferation of very-similar apprenticeship frameworks and for ensuring coherence in the frameworks available in the sector. However, Sector Skills Councils have no responsibility for funding and the decision to issue a framework would not mean that funding is guaranteed.

The National Apprenticeship Service has responsibility for funding places. It is quite possible at some future date, if the National Apprenticeship Service is very successful at stimulating apprenticeships, that there may be limitations on the number of places it is prepared to fund in a particular sector/region if the prospects of permanent employment are not there.

The successor arrangements to the current Approvals process envisage a coherent and consistent approach to issuing frameworks which comply with the revised specification of apprenticeship standards and bringing the existing frameworks into line over time.

Q 24 In response to Error! Reference source not found. the Government stated that the National Apprenticeship Service would have responsibility for funding places and that it was possible at some future date, if the National Apprenticeship Service was very successful at stimulating apprenticeships, that there might be limitations on the number of places it was prepared to fund in a particular sector/region if the prospects of permanent employment were not there. How does this square the apprenticeship entitlement for 16-19s? Has this implication for young people in rural areas and areas of the country with low/restricted levels of economic activity? Are there plans for alternative work-based programmes?

If, in such circumstances in future, the National Apprenticeship Service did need to limit funding to a particular sector/region the intention is that the entitlement would still need to be met, unless the entitlement in that sector or location had been suspended by the Secretary of State. It would not be in the best interests of the young people concerned to train them in sectors where there is no reasonable prospect of permanent employment.

Apprenticeships are one of the Government's preferred routes for young people into employment and there are no plans for alternative work based programmes.

We are considering what measures we might put in place to maintain our ambitions to expand apprenticeships during the current economic downturn. These include working with Sector Skills Councils to mitigate the effect of the downturn on specific sectors.

Q 25 Clause 8(2) makes provisions for "the authorised person". What are the criteria by which a person can become authorised?

It is intended that the Sector Skills Councils would be responsible for issuing frameworks.

Q 26 Clause 9(3) states that an authorised person, when issuing frameworks, must comply with directions and have regard to guidance issued by the Secretary of State. It would assist the committees if more information could be given on what kind of guidance it is envisaged would be issued and how this would relate to the specification of standards referred to in clause 11. Will the guidance cover procedures to be followed?

The directions and guidance issued by the Secretary of State under clause 9(3) would be in relation to maintaining quality, maintaining coherence in the frameworks available in the sector, ensuring that the programme did not fall into disrepute and ensuring uniformity of standards, and the procedures to be followed.

Q 27 Page 23 of the Explanatory Notes states that "organisations such as Sector Skills Councils and employers" can submit frameworks. Can individual employers go against their Sector Skills Council and create a different framework?

Individual employers can submit frameworks for consideration. However, Sector Skills Councils do have a role in ensuring coherence in their sector.

Q 28 Can the Departments clarify their response to Error! Reference source not found.? Is there a potential conflict of interest if Sector Skills Councils can submit and issue frameworks? If employers demand variety, how could a Sector Skills Council do anything other than agree?

It is intended Sector Skills Councils commission and draft the framework if there was a gap in the frameworks needed by the sector, and another organisation is unwilling to undertake this role. In doing so Sector Skills Councils will still need to ensure that the framework meets the apprenticeship specification and additional criteria referred to in the responses to Questions Error! Reference source not found. and Error! Reference source not found. above. We do not envisage that a conflict of interest will arise as the Sector Skills Councils are employer representative bodies and will be guided by employers in the sector.

Sector Skills Councils will need to balance the need for additional frameworks to meet specific needs of employers in their sector and ensuring that employers are neither put off nor confused by a number of very similar frameworks. Sector Skills Councils will need to work closely with employers to achieve this, and if necessary will need to dissuade employers from developing frameworks where this would lead to duplication or confusion.

Clause 11

Q 29 Clause 11(1) imposes a duty on the Learning and Skills Council to provide a draft specification of standards if directed to do so by the Secretary of State. The specification is needed in order for frameworks to be issued as clause 8(7) states that no framework can be issued unless it meets those requirements. Without frameworks, no agreements can be entered into. Why therefore is this duty conditional upon directions that may not be issued and what is the intended position if the Secretary of State does not issue any?

It is intended that the Secretary of State will direct the Learning and Skills Council to commission to provide a draft specification, setting out the requirements for the apprenticeship frameworks. If the Secretary of State did not so direct, the effect would be that Government funded apprentices would continue on an extra-statutory programme. We do not envisage a situation where such direction is not given, and will consider whether revision to the clause is necessary.

Q 30 Clause 11(2) places duty on the Learning and Skills Council to "consult such persons as appear to it appropriate". What criteria will be used to establish persons' "appropriateness"?

It is envisaged that the Learning and Skills Council would consult and take account of all relevant stakeholders, such as the Sector Skills Councils, or sector bodies, Ofqual, UK Commission for Employment and Skills, and the Learning and Skills Improvement Service.

Q 31 In response to Error! Reference source not found. the Government stated that it was envisaged that the Learning and Skills Council would consult and take account of all relevant stakeholders, such as the Sector Skills Council, or sector bodies, Ofqual, UK Commission for Employment and Skills, and the Learning and Skills Improvement Service. This appears to mean that the Secretary of State will commission the Learning and Skills Council to consult with stakeholders to develop the Apprenticeship Specification which will then have statutory status. Why are providers/colleges not included in the list of relevant stakeholders? In some cases, will it also be relevant to have professional body representation (for example, accountancy) to ensure apprenticeship has a firm place in the career progression ladder for those sectors?

The organisations listed in response to Error! Reference source not found. were intended to illustrate the type of stakeholders we will consult, it was not intended to be exhaustive. We would expect any consultation to include providers, including colleges, and professional bodies.

Q 32 Clauses 11 to 14 seem to envisage one draft specification of standards from the Learning and Skills Council, which can then be modified using clause 14 and brought into effect using clause 13. The framework could, however, only be recognised if it meets the requirements of the specification of standards. If an order has not yet been made to give effect to that specification, the framework can not yet be recognised. It would be helpful if this could be clarified.

The order to give effect to the apprenticeship specification would need to be made before an apprenticeship framework, meeting the requirements set out in the specification, can be issued.

Clause 12

Q 33 The draft Bill does not include any definition of Levels 2 and 3, as referred to in Clause 12 (specification of standards). Should they be defined?

The specification of apprenticeship standards will itself define what a Level 2 apprenticeship or a Level 3 apprenticeship is. The Explanatory Notes to the 4^th Session Education and Skills Bill will describe the levels envisaged for apprenticeships at Level 2 and Level 3.

It is that it is likely that the specification of apprenticeship standards will be similar to that in the current Blueprint. The Blueprint requires all Apprenticeships to lead to a package of qualifications and requires that:

— An Apprenticeship at Level 2 should comprise an NVQ at Level 2 and—either separately accredited, integrated in NVQ learning, or validated by equivalent prior learning—a Technical Certificate at Level 2 and Key Skills in Application of Number and Communication at Level 1, together with other qualifications appropriate to the occupation.

— An Advanced Apprenticeship at Level 3 should comprise an NVQ at Level 3 and—either separately accredited, integrated in NVQ learning, or validated by prior learning—a Technical Certificate at Level 3 and Key Skills in Application of Number and Communication at Level 2, together with other qualifications appropriate to the occupation.

Level 2 is equivalent to five GCSEs at grades A* to C.

Level 3 is equivalent to two A levels.

Q 34 Can the Departments clarify their response to Error! Reference source not found.? Equivalent in what way? How can this be known without UCAS[212] points being attributed?

In the response to Error! Reference source not found., the term equivalent was in relation to indicating the level of attainment, in terms of breadth and depth, of Apprenticeships at Level 2 and 3.

As the Department explained in response to Error! Reference source not found., while apprenticeship frameworks will not carry a UCAS tariff, the individual qualifications within it will.

Q 35 Clause 12(2)(b)(i) states that one or more qualifications must be held. It is not clear when this requirement applies. Is it at the start or the end of the apprenticeship?

The requirements set out in Clause 12(2)(b) relates to qualifications held at the completion of the apprenticeship.

Q 36 Clause 12 states that the specification of apprenticeship standards must specify the requirements for apprenticeship frameworks. It would assist the Committee to have a non-exhaustive list, to give some assistance in understanding what sort of requirements are envisaged.

The specification of apprenticeship standards requirements might be expected to include:

— a knowledge-based element;

— a competence-based element;

— transferable or "key skills" (literacy, numeracy, and personal learning and thinking skills);

— a module on employment rights and responsibilities;

— key characteristics of an apprentice;

— minimum entry requirements;

— apprenticeship agreements;

— clear progression routes;

— access to mentors;

— minimum off-workstation learning time.

Q 37 Can the Departments clarify their response to Error! Reference source not found.? Should this say qualification not element as the NVQ is still suggested to be a requirement?

The response to Error! Reference source not found. was intended to provide the committee with a non-exhaustive list of what the specification of Apprenticeship standards was likely to require. Attainment of the NVQ will be a requirement, and it is intended that completing the NVQ will mean that the "principal qualification" element is satisfied. However, in some existing frameworks, the NVQ would assess both the competence-based and knowledge-based elements of the apprenticeship; while for others a separate qualification of technical knowledge is required, and this is why we have referred to the knowledge and competence based elements.

Q 38 Clause 12(3) provides that "requirements as to standards of attainment may be specified with reference […] of qualifications or training". Why are the terms of specifying standards of training and qualifications so general?

Clause 12(3), in specifying the standards of attainment, needs to ensure that there is a degree of flexibility to allow for the programme to evolve and ensure that the qualifications remain relevant to changing employer needs.

Clause 14

Q 39 The Learning and Skills Council can only prepare draft modifications to the specification of apprenticeship standards if they are directed to do so by the Secretary of State. Why cannot the Council have a power to propose modifications?

This question relates to clause 14(1), which provides that the Learning and Skills Council must prepare and submit draft modifications to the Secretary of State if the Secretary of State so directs, and is similar to the point made in Error! Reference source not found.. We do not interpret this as preventing Learning and Skills Council from proposing modifications, however, we recognise that Bill does not require the Secretary of State to consider any modifications submitted otherwise than under clause 14. We agree that the Learning and Skills Council should be able to propose modifications for the Secretary of State to consider, and will review the wording in the light of the Committee's question.

Clause 15

Q 40 It is unclear how clause 15(2) is intended to operate. This clause appears to state that an order under clause 13 can provide for a framework to cease to have effect if it is a recognised framework agreement but does not meet the requirements of the specification of standards which is being given effect by that order. It would assist the Committee to have clarification.

Clause 15 is intended to provide for transitional arrangements when the apprenticeship specification is modified. The intention is that all existing frameworks continue, and the apprentices working under them complete their apprenticeships. However, these existing apprenticeship frameworks should be revised and brought into line with the new apprenticeship specification within a set period. Clause 15(2) permits exceptions to be made.

Clause 16

Q 41 The draft Bill only applies to apprenticeships in England (clause 16(2)(b) refers). Why has Wales been excluded, given that the Bill extends to England and Wales (clause 29)? Will there be any cross-border arrangements between England and Wales? For example, how will companies with businesses on either side of the boundary be treated?[213]

The Welsh Assembly Government is considering the application of the provisions to Wales. Currently, the Learning and Skills Council fund apprentices who live or work in England. There is a reciprocal arrangement with the Welsh Assembly who apply the same policy.

Q 42 Can the Departments clarify their response to Error! Reference source not found.? Will employers operating across the borders have to deal with two systems? To what extent will the Welsh Assembly Government be "allowed" to develop a different model?

It is for the Welsh Assembly Government to determine how the provisions in the Bill will apply in Wales and if they wish to develop a different model. Were this to be the case we would work closely with the Welsh Assembly Government to minimise confusion for employers. However, the Welsh Assembly Government Ministers have indicated that they would wish to consider the majority of the provisions in relation to Wales. We are working with them on how their wishes can be incorporated into the forthcoming 4^th Session Education and Skills Bill.

Q 43 Clause 16(5) appears to be intended to protect apprentices whose agreement does not meet the requirements in relation to frameworks. It seems to operate to protect those apprentices:

— whose current agreement refers to a framework which is no longer recognised;

— who have not yet completed the training for their principal qualification;

— who had a previous agreement under the same framework; and

— the framework for the earlier was a recognised framework.

Q 44 This therefore does not appear to protect those apprentices who have completed their training for their principal qualification. Is there a reason for this?

The intention is to offer protection to apprentices who change employers during their apprenticeship. We do not consider that this needs to cover those who have completed their training for their principal qualification as they are then eligible to apply for apprenticeship certificate.

Q 45 If the agreement is exclusively between employer and apprentice, what happens in cases where training providers are actually in control, rather than employers? There appears to be no reference to any responsibilities or duties in relation to providers. If this is correct, what is the reason?

It is envisaged that apprenticeship agreements would form a contract of service between the apprenticeship and the employer. While training providers can have significant role in supporting aspects of the apprentice's training, the primary relationship is between the employer and apprentice. The responsibilities or duties in relation to providers are an issue between the Learning and Skills Council and the training provider.

See also Error! Reference source not found..

Clauses 16-20

Q 46 The Explanatory Notes advise that the apprenticeship agreement will set out "both on-the-job training and learning away from the workstation".[214] How will "away" be defined and will a set number of hours be specified as one of the "standards" for apprenticeship frameworks?

We wish to clarify that the question that you have raised […] contains a quotation from paragraph 23 of the Explanatory Notes, and relates to clauses 16 to 20. In relation to your question about learning away from the workstation, we advise that the apprenticeship specification will give guidance on the requirements for learning away from the workstation, and set out a minimum amount of time for this activity.

Q 47 In Error! Reference source not found. the Committee asked about "on-the-job training and learning away from the workstation". In response the Departments advised that the apprenticeship specification would give guidance on the requirements for learning away from the workstation, and set out a minimum amount of time for this activity. Can the Departments outline the guidance in more detail? How, for example, will it be linked to the concept of training quality?

It is intended that the specification of apprenticeship standards will set out a reasonable absolute minimum for off-workstation learning time. This will help to ensure a fair and appropriate level of training across all apprenticeships. A draft specification is be produced for early 2009 in time for the second reading of the 4^th Session Education and Skills Bill.

The Apprenticeship Agreement will include expectations of learning away from the workstation that will be delivered. The pattern of release for off-the-job education and training will need to be agreed between the apprentice, employer and training provider. The amount of time required will depend on the individual apprentice's starting point. These arrangements will need to ensure that the apprentice can achieve the qualification or qualifications set out in the apprenticeship framework. We would want [to?] require every qualification in an apprenticeship framework to have been accredited by Ofqual.

Clause 17

Q 48 Clause 17 states, if an apprenticeship agreement contains provisions which conflict with the requirements of the draft Bill, then those provisions are not effective. This therefore means that, if an agreement is defective because it contains provisions which are incorrect, then the agreement is valid but those provisions are ineffective. If, however, an agreement misses out required provisions, it will be invalid as an apprenticeship agreement. Where would this leave the purported "apprentice"?

Where an apprenticeship agreement no longer meets the conditions of the apprenticeship programme then it has no effect. In this situation the apprentice can choose either to stay with the employer, or be placed with an employer who will meet the conditions.

Clause 18

Q 49 Clause 18(3) requires the employer to give the apprentice written notice if a variation to the agreement will result in it ceasing to be an apprenticeship agreement. Is this therefore possible without the consent of the apprentice, provided that written notice is given?

Changes to the apprenticeship agreement are possible only to the extent permitted by the general employment law. Clause 18(3) imposes an additional condition.

Q 50 Does this also mean that the power under clause 16(2)(c) cannot specify that an apprenticeship agreement must be allowed to run its course so that the apprentice has the opportunity of applying for a certificate? Have the Departments considered whether issues about the variation of the agreement could be dealt with in prescribing the form under clause 16(2)(c)?

The power in clause 16(2)(c) cannot be exercised in such a way as to affect the contractual status of certain provisions in an apprenticeship agreement (for example, to make them incapable of modification or ineffective). We did not want to prescribe conditions on employers as otherwise we consider that this possibly would deter employers from taking on apprentices. We should also recognise that some apprentices might fail to complete their apprenticeships, and in this situation the employer should be able to terminate the apprenticeship agreement.

Clause 20

Q 51 It is understood that clause 20 is not yet finalised, as DCSF has sought advice from the Legal Services Office of the House of Commons on the employment status of House staff. Due to the principle of exclusive cognizance, legislation does not apply to the House unless and to the extent that it is specifically stated as applying. It would therefore be helpful if the Departments confirmed how the draft Bill is intended to apply to the House.

The Joint Apprenticeships Unit is corresponding with the House authorities for their views on clause 20, and whether the provisions in the Bill should apply to House authorities as employer. We are hoping to obtain their agreement to extend provisions of the Bill to Parliamentary staff, and will revert to you once this matter has been clarified.

Clause 21: insertion of clause 3E into the Learning and Skills Act 2000

Clause 21 inserts new provisions into the Learning and Skills Act 2000.

Q 52 Clause 3E places a duty on the Learning and Skills Council to secure "sufficient and appropriate" (Foreword to the draft Bill) apprenticeship places. How will this be achieved? Will there be local arrangements through local Learning and Skills Councils to find places? Will Sector Skills Councils play a role? What is the role of the National Apprenticeship Service? How will the Learning and Skills Council's and National Apprenticeship Service's roles be differentiated? The Explanatory Notes to the draft Bill state that "ultimately", the National Apprenticeship Service, will take over from the Learning and Skills Council.[215] When will this happen? There appears to be no suggestion that employers (or their representatives) should try and expand demand, which appears to give the draft Bill a very top-down, supply-driven feel. What is the Government's response to this analysis?

The National Apprenticeship Service will be housed in the Skills Funding Agency, when that is established in April 2010. The responsibilities of the National Apprenticeship Service, local authorities and the Young People's Learning Agency were outlined in "Raising Expectations: Enabling the System to Deliver" published in July, on implementing the proposed education and training reforms.

The National Apprenticeship Service will work with local authorities and the Young People's Learning Agency to raise the supply and demand for apprenticeships. Boosting employer involvement is central to achieving the Government's ambitions. We will be working across the public sector to raise the supply of places to reduce the current gap.

The National Apprenticeship Service will be responsible for the national information and marketing service; and operate a national apprenticeship vacancy matching service to enable employers to advertise their positions to prospective applicants nationally, and will promote apprenticeships to individuals as a key carer [sic] route. The National Apprenticeship Service field force will work with employers locally and regionally to expand the number of Apprenticeship places.

There is a key role for employers and their representatives, such as the Apprenticeship Ambassador Network, to promote apprenticeships and expand demand amongst employers.

The Government recognises the importance to businesses of apprenticeships in increasing skill levels, as well as the individual apprentices, and are of key economic benefit to the country. This section of the draft Bill deals with the entitlement of suitably qualified young people to an apprenticeship place, and may have given the misleading impression that the apprenticeships programme is supply-driven.

Q 53 What will be the entitlement of those who are not British nationals to apprenticeships? Are there incentives or deterrents within the proposed arrangements for employers facing acute shortages of skills to seek potential apprentices from the EU or outside the EU?

The entitlement to an apprenticeship place extends to non-British nationals who live and are eligible to work in England. There are no incentives or deterrents for employers to recruit potential apprentices from the EU or outside the EU.

Clause 21: insertion of clause 3F into the Learning and Skills Act 2000

Q 54 Clause 3F provides for "election for an apprenticeship scheme" with a restriction by age to 16-19 year olds. Why are 19-25 year olds not covered by this provision? The Impact Assessment states that "this intervention" is aimed at young people up to 25 years of age.[216] Is there an inconsistency here?

Clause 3F is restricted to 16-19 year olds, because the clause gives effect to the entitlement of young people to an apprenticeship place. The Impact Assessment reference is to taking forward the proposals in World-class Apprenticeships.

Q 55 In Clause 3F the use of the term "scheme" appears at odds with the foreword to the draft Bill which uses "programme". It appears that the use of "scheme" may be a throwback to the Youth Training Scheme. Is this construction correct?

The use of the word "scheme" is more appropriate for statutory text and no throw back to the Youth Training Scheme is intended by the use of the word.

Q 56 Clause 3F also states that candidates must choose two "available sectors". Does this mean available locally or from the list of frameworks? The Impact Assessment says if apprenticeships are not available in some locations, then that it is an "unavoidable result of a training system that responds the needs of employers".[217] How will available be defined? Why is there no mention of programme-led apprenticeships in this provision? Where do Programme-led Apprenticeships fit?

The young person is entitled to select a first and second preference of Apprenticeship sector. Within each Apprenticeship sector there will be many different frameworks. The primary entitlement is to an offer of a place on an Apprenticeship framework in the first preference Apprenticeship sector within the young person's Travel To Work Area (TTWA). If the primary entitlement cannot be fulfilled because a place is not available, the entitlement can satisfied by the offer of a place in the first preference sector outside the TTWA within such an area as the Learning and Skills Council considers it would be reasonable for the Apprentice to travel (the "reasonable travel area") or by an offer of a place in the second preference sector either within the TTWA or the reasonable travel area. In certain circumstances, the Learning and Skills Council might reasonably conclude that the young person should relocate in order to take up a place, although we believe that this would only in exceptional cases. The apprenticeship entitlement is in relation to an apprenticeship place covered by an apprenticeship agreement i.e. having an employer and being employed. Programme led apprenticeships can be a useful preparation for this, and in certain sectors are necessary before an apprentice could be employed, e.g. in construction a short programme led apprenticeship could ensure that the young person is "site ready". Programme led apprenticeships are not apprenticeships nor are they counted as such in Government planning of the kind with which the Bill is concerned.

Clause 21: insertion of clause 3G into the Learning and Skills Act 2000

Q 57 Clause 3G states that arrangements must "relate to" the completion conditions. It would assist the Committee if this were clarified? Is it intended that sufficient provision must be made to enable each apprentice to satisfy those conditions?

In Clause 21(2) 3G(2)(b) "relate to" completion conditions means that the employment and training arrangements must have a sufficient connection to the apprenticeship framework to enable each apprentice to satisfy these conditions.

Clause 21: insertion of clause 3I into the Learning and Skills Act 2000

Q 58 Clause 3I to be inserted in the Learning and Skills Act seems to conflict with clause 12 of the main body of the draft Bill. Clause 12 seems to envisage that requirements such as are set out in clause 3I will be included in specifications made under clause 11.

Clause 3I sets out the requirements relating to the apprenticeship entitlement and it is not intended that they would refer to the apprenticeship specification.

Q 59 What will happen to the many apprenticeships (usually at Level 2) that currently do not set any entry requirements? Will they fall outside the requirements be to be classed as eligible for the entitlement at clause 21?

The requirements set out in clause 21 (2) 3I are the threshold that young people must fulfil before they can qualify for the Entitlement. They are not the requirements for entry onto the Apprenticeship Programme.

In practice, those apprenticeship frameworks that currently do not set minimum entry requirements would be available to young people who meet the requirements for the Entitlement.

It is intended that the specification of apprenticeship standards will require all frameworks to set out the minimum entry requirements.

Clause 21: insertion of clause 3J into the Learning and Skills Act 2000

Q 60 Clause 3J appears to state that GCSEs grade C or above in English or Maths are required to enter Level 3 apprenticeships. How will this affect current entry requirements in the sectors that currently do not specify them?

The requirement in 3J is for a functional skills qualification in English and mathematics and not GGCSE Grade C or above.

Q 61 In Error! Reference source not found. the Committee asked about clause 3J, which appeared to state that GCSEs grade C or above in English or Maths were required to enter Level 3 apprenticeships. The Committee asked how this would affect current entry requirements in the sectors that currently do not specify them. Would the Departments provide a detailed response?

The requirements under 3J apply specifically to the apprenticeship entitlement and it is not intended that they would refer to the apprenticeship programme as a whole. So the requirements set out in 3J would not affect the entry requirements to apprenticeships that currently do not require these. We refer you to the detailed response to Error! Reference source not found. below which considers the qualification levels in 3J.

Q 62 Clause 21 also introduces minimum entry requirements for Apprenticeships and Advanced Apprenticeships. First, one reading of the provisions is that the Bill provides that someone who has a Level 2 qualification (e.g. 5 GCSEs at A* to C) would be ineligible for a Level 2 Apprenticeship. For example, a young person who has achieved grade C GCSE passes in English, Maths, Design and Technology, Music and Geography, who wished to be an Apprentice car mechanic. The skills and knowledge needed for success as a car mechanic are very different from the skills and knowledge he or she has gained by studying for GCSEs. Would it be the case that this person could not enrol on a Level 2 Apprenticeship even if that was the only option currently available in his or her local area? Second, would the draft Bill create a "no-man's-land" between Apprenticeships and Advanced Apprenticeships? As drafted, this clause could be read as meaning that young people who held a Level 2 qualification and level 1 functional skills were ineligible for either an Apprenticeship or an Advanced Apprenticeship. Is this construction correct?

The requirements set out in clause 21 (see 3F(1)(c), 3I and 3J) determine the entitlement to an apprenticeship place for 16-19 year olds. They are not entry requirements for Apprenticeships. Taking the example in your question, a young person who had obtained 5 GCSEs at grade A* to C and who wants to do an apprenticeship as a car mechanic would be able to take an Apprenticeship at Level 2 or Level 3. However the entitlement to a place would only apply to an Apprenticeship at Level 3.

Clause 21 does not create a "no-man's land" between the apprenticeship scheme requirements for the entitlement to apprenticeships places at Level 2 and Level 3. As we have explained above, clause 21 does not set out the requirements for apprenticeships and advanced apprenticeships. For the purpose of the Entitlement, if a person held a Level 2 qualification and level 1 functional skills, they would be entitled to a Level 2 apprenticeship place (see 3I(1)( b)) or, alternatively they could study to obtain the "missing" functional skills qualification and meet the conditions for an entitlement to a Level 3 apprenticeship.

Clause 21: insertion of clause 3K into the Learning and Skills Act 2000

Q 63 Clause 3K allows for the suspension of the apprenticeship scheme. The apprenticeship scheme is not defined and the Explanatory Notes refer instead to an apprenticeship "Programme".[218] What effect will a suspension have?

The use of the term "scheme" in 3K relates specially to the apprenticeship entitlement, not the apprenticeship programme as a whole. The suspension of the "scheme" in effect would be the suspension of the entitlement in a specific area or sector.

Clause 21: insertion of clause 3L into the Learning and Skills Act 2000

Q 64 Clause 3L (read together with new section 3N(6)) provides that an affirmative resolution procedure will be required to make an order amending the age or qualification requirements of apprentices. However, no such procedure is required for an order suspending the entire scheme. Why are these provisions being viewed differently?

The reason for an affirmative resolution to make an order amending the age or qualification requirements of apprentices is that this would amend primary legislation and should therefore be subject to debate. It is envisaged that any order suspending the scheme or part of it would be in a response to specific economic conditions and, normally limited to specific geographical areas, which would be more appropriate deal with by negative resolution, limited to two years.

Clause 22

Q 65 Clause 22(5) deals with possible financial assistance. The clause does not state who will receive assistance and it is not clear which "persons" must comply with directions. For example, "persons" has been used in the draft Bill to refer to apprentices and to public authorities who are authorised to issue frameworks. Who will receive assistance and who has to comply with the directions?

The financial assistance would be paid to those providing services to support the national apprenticeship vacancy matching service.

Q 66 Can the Departments clarify their response to Error! Reference source not found.? Who are those providing the service to support the national apprenticeship vacancy matching service? And for what sort of services might they be paid?

A key element of the National Vacancy Matching Service is a national web-based portal for individuals, employers and providers to research, identify and act upon interest in becoming an apprentice (individuals) or offering an apprenticeship place (employers and their training providers). For the first time:

potential apprentices will be able to search, view and apply for apprenticeship vacancies; and
employers and training providers on employers' behalf will be able to advertise apprenticeship vacancies and then view and select from applicants.

CapGemini are the Learning and Skills Council's IT supplier and currently have five year agreement with the Learning and Skills Council to manage the LSC IT infrastructure; developments of IT solutions for the Learning and Skills Council such as the National Apprenticeship Matching service are contained within the provision of this agreement.

The agreement with CapGemini has the flexibility to access suppliers that bring with them expertise in certain markets .In the case of the National Apprenticeship Matching Service it is important that the Learning and Skills Council uses the experience of the "Apprenticeship on Line" system which has been piloted in three areas, including Hampshire. This system was developed and is supported by S-CooL. S-CooL and CapGemini have been working closely since March 2008 on the development of the national matching system, under a contract between S-CooL and CapGemini.

Q 67 The reference to the Secretary of State "providing services" appears inappropriate to describe the grant of loans or financial assistance. Further sub-paragraph (5) is limited to arrangements under subsection (4) i.e. where the Secretary of State provides services by getting the Learning and Skills Council or a local authority or some other person to do so. So it is not clear whether the grant is supposed to go to the Learning and Skills Council /local authority/other person or not i.e. does he have to pay them for providing these services. Clause 22(4) appears unusual in including (c) because it appears to envisage the Secretary of State to provide the services him/herself. Is this construction correct?

Again, the grant would go to those to those providing support to the national apprenticeship vacancy matching service.

Q 68 Can grants and financial assistance be given to employers? Is the Secretary of State going to have the power to subsidise the costs of employing an apprentice by giving grants to employers? It would assist if this could be clarified.

Under this clause it would not be possible to give grants and financial assistance to employers to subsidise the cost on employing an apprentice. However, the clause does not restrict payments under other provisions.

Clause 30

Q 69 Clause 30(4) states that the Secretary of State must take steps to implement part of the draft Bill by the day after the "school leaving date" for 2013. Bearing in mind that term dates differ in different parts of the country, this date is unclear. If "School leaving date" is a defined term elsewhere, should it be made clear?

"School Leaving Date" is defined in section 2 of the Education (School Leaving Date) Order 1997 for the purposes of section 8(3) of the Education Act 1996. It states that for 1998 and for successive years shall be the last Friday in June. This definition of "school leaving date" has also been used in clause 156 the current Education and Skills Bill, which is read as one with the Education Act 1996.

Clause 41

Q 70 The Impact Assessment refers to UCAS[219] points being allocated to "apprenticeships programme".[220] Why are they not allocated to individual qualifications? It also refers to "apprenticeship credit" linked to "skills accounts". How will they avoid the problems that affected training credits in the 1990s?

While an apprenticeship framework will not carry a UCAS tariff, the individual qualifications within it will. The Learning and Skills Council has been conducting a trial to determine a methodology of allocating UCAS tariff points to Advanced Apprenticeship frameworks, focussing on two frameworks—e-skills and engineering.

The design of skills accounts is taking very careful account of the lessons learnt from previous arrangements such as Individual Learning Accounts and training credits.

Q 71 Can the Departments clarify their response to Error! Reference source not found.? Regarding the first point about UCAS tariff, the answer appears to acknowledge that the draft Bill's wording (which refers to points being allocated to "apprenticeships programme") needs to be changed. Is this construction correct? To what extent will focussing the pilot on engineering be appropriate given that engineering apprentices study for BTECs[221] which are suitable for UCAS points? Should the Departments include one of the service sectors (for example, retail or hospitality) to establish how easy it would be to align their NVQs with UCAS points? Have the Departments considered an approach which would insist that the approval of all Advanced Apprenticeship frameworks should be conditional on them including qualifications that carried a minimum of 80 UCAS points (equivalent to 2 A levels at grade E) and so, hence, would automatically guarantee a platform for entry to higher education?

The wording referred to in Error! Reference source not found. is in the Impact Assessment for the Draft Bill. The intention is still to make it as easy as possible to progress from a Level 4 apprenticeship into Higher Education.

The initial pilots conducted have now concluded. These included engineering and IT advanced apprenticeships. It is true that BTECs do already attract UCAS points and the work was to map the content of the NVQ against the BTEC to arrive at a points allocation. Each element of the framework then has a points allocation and depending on the combination of NVQ and Technical Certificate an overall UCAS points allocation is arrived at. The work with UCAS to date has been to develop a methodology for attributing points to each element of the framework. This can then be applied to all frameworks. For some sectors it may be that work has to be undertaken to attain tariff points not only for the NVQ but also for the Technical Certificate, the results of which may mean that the whole framework may not attract enough points for direct progression into higher education but the SSC would need to be clear what additional learning may have to be undertaken in order to achieve entry to higher education.

Further work is currently underway to understand the implications of the change from the National Qualifications Framework to the Qualifications and Credit Framework and its impact on Apprenticeships and progression into higher education. We would want to consider carefully the potential impact of requiring Advanced Apprenticeships to include a minimum of 80 UCAS points against the need to ensure that the frameworks can be easily constructed to meet employers' needs.

MATTERS NOT COVERED IN THE DRAFT BILL

Functions of the National Apprenticeship Service

Q 72 The Impact Assessment states that that the "functions and duties of the National Apprenticeship Service will be laid out in law".[222] Does the draft Bill with the earlier 2000 Act provide the fulfilment of this undertaking?

The draft Bill contains the functions and responsibilities that are needed to give statutory force to the apprenticeship programme and to the young person's entitlement to an apprenticeship place. The draft Bill was drafted in line with the existing legal framework, as the draft the Bill could not pre-empt provisions which are properly for the 4^th session Bill as set out in Raising Expectations: Enabling the System to Deliver. In response to the public consultation on these changes, the Government has confirmed that the National Apprenticeship Service would be housed in the Skills Funding Agency and the 4^th session Education and Skills Bill will include the provisions necessary to achieve this.

Q 73 The division of labour between the National Apprenticeship Service and the Learning and Skills Council and when the former will take over (Explanatory Notes state 2009), the role and responsibilities of the National Apprenticeship Service. Will these be statutory?

It is intended that the National Apprenticeship Service will have responsibility for all elements of the apprenticeship programme, including those that currently are the responsibility of the Learning and Skills Council. The National Apprenticeship Service will be functioning by April 2009 and initially it will be housed in the Learning and Skills Council. Subject to the passage of the 4^th session Bill, National Apprenticeship Service will be housed in the Skills Funding Agency, when that is established in April 2010.

The National Apprenticeship Service will have the following roles and responsibilities:

Leadership of the development and delivery of the new National Apprenticeship Service;
Managing the Apprenticeship system as a whole;
Developing and managing the new National Apprenticeship Vacancy Matching Service;
Preparing and revising the specification of apprenticeship standards and putting to the Secretary of State for Approval;
Issuing of apprenticeship certificates;
Commissioning and funding of the apprenticeship programme;
Ensuring the availability of apprenticeship places;
Apprenticeship marketing and communications;
Boosting significantly employer engagement;
Addressing inequality - boosting participation of BME and disabled individuals and reducing the gender gap in some sectors;
Improving provider performance and capacity;
Data Collection and Management information.

It is intended that the responsibilities in terms of the specification of apprenticeship standards, issuing apprenticeship certificates, commissioning of apprenticeship places, and the apprenticeship entitlement should be statutory.

Q 74 It was stated [at the evidence session on 27 October] that the National Apprenticeship Service will not have a remit to look at quality[223] and it could be held that Ofsted is mainly concerned with ensuring a provider/employer's paperwork is correct. Who therefore will be responsible for quality beyond the initial design of the frameworks? In addition, Stephen Marston emphasised the increase in completion rates as a measure of quality improvement.[224] How can increasing completions be used as a proxy for increasing quality of apprenticeship training, as it could be argued that the improvement in completion rates is largely the product of local Learning and Skills Councils putting more effort into better management and monitoring of providers.

The National Apprenticeship Service will have responsibility for the overall management of the Apprenticeships Programme. The Department's response to Error! Reference source not found. in the first tranche of questions from the Committee set out the arrangements for assuring quality in the Apprenticeships Programme.

The role of Ofsted is not restricted to the checking of paperwork. It includes evidencing the quality of the learner's experience and outcomes for learners through interviews with learners and staff in a training provider, during Ofsted's regular, independent inspections. So it is a direct assessment of the quality of delivery.

The improvement in completion rates is a valid proxy for increasing quality, because it indicates a substantial rise in the proportion of apprentices and their employers who see the programme of sufficient value to be worth taking through to successful achievement of the framework. These comments were made in response to concerns that expanding the programme would be at the expense of quality, and were intended to illustrate the point that the Committee could take comfort from the evidence over the last few years of both an increase in numbers and improvements in quality. This response was in addition to those from Jim Knight and Lord Young that had outlined the other main components of the quality assurance approach, including the design and application of the blueprint and apprenticeship frameworks, Ofsted inspections and the Framework for Excellence.

Role of the Sector Skills Councils

Q 75 The Committee asked about the role of Sector Skills Councils. There are indications this may change, but, given the Sector Skills Councils play such a major role at the moment, the Committee may ask why their role is not discussed.

Sector Skills Councils are employer-led, independent organisations that cover a specific sector across the UK. Currently, Sector Skills Councils define apprenticeship frameworks for their sectors in accordance with the basic guidelines laid down in the national apprenticeship blueprint. The blueprint encapsulates the Government's apprentice and employer expectations of what an apprenticeship is.

Sector Skills Councils are, and will continue to be, key stakeholders in apprenticeship delivery. Currently, they work with Learning and Skills Council to identify specific opportunities for growth in apprenticeship volumes to meet local and national need and issue apprenticeship completion certificates at a fee.

It is our intention that Sector Skills Councils will approve Apprenticeship frameworks for their sectors which will be based upon updated national occupational standards. These would be included in the ready-made bank of qualifications, designed to meet the requirements of employers in each sector. In future, any organisation wishing to offer an Apprenticeship simply needs to submit to the relevant Sector Skills Council a short description of its plans, the qualifications and units it wishes to utilise, and how they meet the requirements of the strengthened Apprenticeships blueprint. Sector Skills Councils will provide support to employers to develop frameworks.

Sector Skills Councils will issue the apprenticeship frameworks. They will ensure that the each framework does offer a high quality apprenticeship and are responsible for ensuring coherence in the frameworks in each sector. This role is covered in Clauses 8 and 9 of the Draft Bill.

We intend to abolish the Apprenticeships Approvals Group and instead we plan a new alliance of Sector Skills Councils which will have take responsibility for monitoring standards to ensure consistency of standards in the approval and issuing of frameworks.

These changes will allow Sector Skills Councils to focus their activities more firmly on encouraging employers to increase the number of good quality Apprenticeship places, and they will be performance-managed by the Commission for Employment and Skills to raise awareness levels with employers.

Q 76 Can the Departments clarify their response at Error! Reference source not found.? The Departments state that the changes would allow Sector Skills Councils to focus their activities more firmly on encouraging employers to increase the number of good quality Apprenticeship places, and they would be performance-managed by the Commission for Employment and Skills to raise awareness levels with employers. Both the National Apprenticeship Service and the Sector Skills Councils appear to have separate responsibilities for the identification and management of occupational standards. Is there a potential conflict and confusion here? Which organisation is going to talk to employers (both nationally and locally) and how will employers be able to influence the framework/standards process?

We do not consider that there will be areas of conflict and confusion between the work of the National Apprenticeships Service and the Sector Skills Councils.

The National Apprenticeship Service has no responsibility for the management of occupational Standards. However, the National Apprenticeship Service field force could identify a gap in qualifications and/or apprenticeships frameworks. It would be for the Sector Skills Council to determine whether the gap needed to be addressed, and if appropriate to work with the employers in its sector, training providers and awarding bodies to develop additional qualifications or additional frameworks.

In our response to Error! Reference source not found. we detail the respective roles of the National Apprenticeship Service and Sector Skills Council for liaising with employers locally and nationally.

Employers will be able to influence to apprenticeship frameworks and the qualifications they contain by working with their Sector Skills Councils.

Q 77 There could be a small number of generic occupations that cut across several Sector Skill Council areas and therefore no single Sector Skills Council would have exclusive responsibility. In those cases, we would expect this framework to be developed by the interested parties, such as an employer or Standard Setting Body, in conjunction with one of the Sector Skills Councils. This Sector Skills Council would then have responsibility for issuing the framework.

On the issue of accrediting employers' in-house training as an apprenticeship it would need to lead to qualifications that have been accredited to the Qualification and Credit Framework and it would need to fit with the other framework criteria established in the specification of framework standards.

Role of training providers

Q 78 The Committee asked about the role and responsibilities of training providers including Further Education colleges.

The role of providers is to assist employers to deliver the apprenticeship frameworks. Providers support employers through the training process and by working with the employer and apprentice to agree a training programme and handle assessments and quality control. They can also help employers recruit suitable apprentices.

Q 79 Can the Departments clarify their response at Error! Reference source not found.? The answer states that the role of providers was to assist employers to deliver the apprenticeship frameworks. This answer marks out the UK as being different to many other EU countries where vocational educators and trainers would play a more central role in the design of apprenticeships and would be seen as part of a government-employer-provider partnership. Why has DIUS decided that providers should be seen solely as "deliverers" of the training component?

The Departments view providers as a key partner in the delivery of apprenticeships. Clearly providers will have a wealth of experience and expertise and this should be tapped when designing frameworks. The system does not preclude the provider base from devising and promoting apprenticeship frameworks where they identify a need. However, it is important that employers should be in the driving seat.

Employers should determine the design of frameworks to ensure they have a strong voice in the process and the apprenticeships they develop are fully suited to their needs. There will be close working relationships between the provider base and the employers they work with, and the Bill will not preclude a provider working with an employer to develop frameworks.

Education Maintenance Allowance

Q 80 The Committee asked about Education Maintenance Allowance.

The Education Maintenance Allowance is available only to 16-19s who are in non-waged learning. Apprentices are not normally eligible for EMA as they are in employment and in receipt of a wage from the employers.

Q 81 On Education Maintenance Allowances, can the Departments supply statistics on Education Maintenance Allowances, particularly to the number of young people who begin apprenticeships without employed-status?

Unfortunately, this information is not available using existing data. However, once there are unique learner identifiers in place, we will be able to cross match future learners to establish whether Education Maintenance Allowance has been claimed prior to commencement on Apprenticeship.

Range of qualifications

Q 82 The Committee asked about range of qualifications, an Apprenticeship would be expected to include, (e.g. Technical Certificate).

All Apprenticeship frameworks must comprise:

A competence based element
A knowledge based element
Transferable, or 'key' skills
Employment rights and responsibilities

For details of frameworks available see the Apprenticeships website http://www.apprenticeships.org.uk/partners/frameworks/apprenticeships/apprenticeships.

Advanced apprenticeships

Q 83 The Committee asked about advanced apprenticeship as a route to Higher Education.

Apprenticeship frameworks must contain information for apprentices on the pathway into Higher Education, and give details of additional qualifications necessary and the UCAS points of the qualifications in the framework.

Items in World-class Apprenticeships not covered in the draft Bill

The draft Bill does not cover all of the policy areas set out in the recent White Paper, World-Class Apprenticeships. In briefing on the draft Bill the Leader of the House has listed the points which were anticipated as possible contents of the draft Bill. Those which are not covered in the draft Bill are:

Q 84 (A) "a duty to promote quality in apprenticeship through, for example, strengthened inspection arrangements";

We have recently expanded the scope of the Inspections Strategy for the Further Education system to cover delivery of Apprenticeships. Inspections of Apprenticeship provision have begun and these have already weeded out weaker providers and increased the number of completions. In light of this development, we have looked again at this issue and concluded that we do not need to legislate for strengthened inspection arrangements specific to apprenticeships at this time. Promoting quality is described in the response to Error! Reference source not found..

Q 85 Can the Departments clarify their response at Error! Reference source not found.? Will inspection still be conducted by Ofsted or will the National Apprenticeship Service be involved in any way? The penultimate bullet point in the list given on Error! Reference source not found. for the National Apprenticeship Service's responsibilities stated the National Apprenticeship Service would be responsible for 'Improving provider performance and capacity'; how will the National Apprenticeship Service work with Ofsted to achieve this?

The inspection visits will be carried out by Ofsted inspectors. Where Ofsted judges an independent provider as overall inadequate, the National Apprenticeship Service will normally continue to contract with that provider—presenting it with the opportunity to improve. However, the National Apprenticeship Service will reserve the right to cease funding that provider without offering further opportunity to improve where there are concerns that the provider does not have the capacity to improve and as such it is not the interest of learners, employers or the public purse to continue to fund that provider.

Q 86 (B) "recognition of completed apprenticeship through, for example, license to practise arrangements";

We would expect that measures we are taking to strengthen the apprenticeship programme, including putting the programme on a statutory basis, will raise the recognition of the value of apprenticeships among employers and within sectors. The introduction of a license to practise has significant implications for wider general skills and employment policies. Therefore, before going down this route, we would want to consider fully the effectiveness of the current approach to increasing the currency of apprenticeships in each sector. We would also need to take account of the practices and labour market traditions in that sector and the need to avoid unnecessary burdens on employers.

Q 87 Can the Departments clarify their response at Error! Reference source not found., what does "putting the programme on a statutory basis" mean and how does it add value to the current situation?

The reference is in respect to clauses 1-19 in the draft Bill, which taken together provide a coherent legislative framework for the apprenticeship programme. This adds value to the current situation in the following ways:

It establishes that there will be an apprenticeship specification to set out the core components of an apprenticeship. This will ensure consistency and quality across all frameworks.
It establishes that apprenticeship agreements are required. These sets out the roles and responsibilities of all the parties involved in an apprenticeship and ensures protection for apprentices and greater clarity for employers. In addition it will clear up any misconception that may have put off employers, for example that an apprenticeship agreement is not a contract of apprenticeship (as recognised by common law) but is instead to be treated as a contract of service. A contract of apprenticeship is more difficult to terminate, and the damages payable for wrongful termination are potentially higher as they reflect the nature of the relationship.
The legislation ensures that the completion of an apprenticeship leads to public recognition that the apprentice has achieved a real tangible level of skill and competency in that profession. By defining in this way it allows for those apprentices who are not publicly funded to be recognised.
Finally, giving the programme legal status sends a powerful signal as to the importance of apprenticeships.

Q 88 (C) "duty on public bodies to offer apprenticeships"; and

We are looking to increase substantially the numbers of apprenticeships in the public sector, and we are working with bodies across the public sector to develop with them targets for increasing the number of apprenticeships that are both challenging and realistic. An initial requirement for this expansion is to ensure that appropriate and relevant Apprenticeship Frameworks are available. Work is in hand, in collaboration with each area of the public sector and the relevant Sector Skills Councils, to identify gaps and to ensure that apprenticeship frameworks are put in place where necessary. We will be monitoring progress and will carry out a review in 2011.

Q 89 (D) "amendment to minimum wage regulations on the current apprenticeship exemptions".

The Government has asked the Low Pay Commission (LPC) to look at the issue of the exemption of apprentices from the National Minimum Wage and to report in February 2009. We await their findings. The Government will consider and respond to LPC findings in due course. Any changes to National Minimum Wage legislation will need to take account of the LPC findings.

Without prejudicing the work of the Low Pay Commission, the Government announced in September 2008 that minimum Apprenticeship pay will rise from £80 to £95 per week from August 2009.

Q 90 Have the Departments considered any proposal to pay a bonus to employers on completion of apprenticeships and whether this could this be extended to encourage employment of apprentices after completion?

The Departments have considered a range of approaches to engaging employers. There are a number of issues around this specific proposal such as the danger of making deadweight payments etc. However, we will consider this proposal and others further in light of the current economic climate.

To count as an apprenticeship all apprentices must have a contract of employment and so are already employees. We would not necessarily see a role for Government in paying employers to keep on specific employees.

EFFECTS ON THE DRAFT BILL

Regional variation

Q 91 How much regional variation will the draft Bill allow? Would the arrangements allow, for example, apprenticeships in a region experiencing acute shortages in a skill to be condensed or varied?

The arrangements would allow flexibility in the delivery of elements of the Apprenticeship Framework. However, the Framework would still need to meet the requirements in the specification of apprenticeship standards and offer high quality training.

We would expect the National Apprenticeship Service to be responsive to the local / regional economic conditions ensuring there is a match between the provision being commissioned.

Incentives for apprentices to continue with same employer

Q 92 What incentives are there under the proposed arrangements for qualified apprentices to enter employment with the employers who provided their apprenticeships, in order to allow the employers to recoup fully their investment?

There is the expectation that apprentices would continue in employment with the employer who provided their apprenticeship. However, we would not want to impose conditions on either the apprentice or employer following the completion of the apprenticeship.

Redress where training is inadequate

Q 93 What will happen under the proposed arrangements in a case where an apprentice considers that he or she is not receiving adequate training? If the employer is in breach of contract, how will the apprentice enforce the contract?

The apprenticeship agreement would be subject to general employment law provisions. If the employer is in breach of contract, the apprentice would have recourse to seek remedies in the Employment Tribunal. However, we would expect the apprentice to raise the issue with the employer, training provider and the National Apprenticeship Service before needing to enforce the conditions by bringing proceedings under employment law.

Effects of the recession

Q 94 In the event of a recession in the economy, will employers be able to terminate apprenticeships?

Employers will be able to terminate apprentices in the event of a recession. Wherever possible, we would expect the National Apprenticeship Service to find the apprentice a place with another employer.

Quality of apprenticeships

Q 95 How will the quality of apprenticeships be assured?

Action to assure the quality of apprenticeships commences at the design and commissioning stages. The Learning and Skills Council sets minimum levels of performance (MLP) for all providers, which are expected to be achieved during delivery. The Learning and Skills Council monitors the performance of providers against these MLPs.

In addition, the specification of apprenticeship standards will set out the requirements that apprenticeships frameworks will need to meet. The frameworks will be drawn up using the Sector Skills Council bank of approved qualifications based upon the updated national occupational standards. In considering frameworks, the relevant Sector Skills Council will ensure that it meets the specification and that it offers high quality training.

The current Inspection Strategy referred to in response to Error! Reference source not found., is based upon proportionate inspection arrangements, which reduce the inspection burden for good and excellent providers, whilst focusing on providers who have poorer quality provision. The inspection visits and MLPs identify underperforming provision, and the Learning and Skills Council's planning and funding discussions with providers will be informed by judgements about the performance of provision.

From September 2008, the Learning and Skills Council is introducing a performance assessment and reporting framework (Framework for Excellence (FfE)) for post 16 providers. FfE will set standards of excellence and assess providers against these standards. Each year providers will be awarded an overall performance rating derived from performance indicators in 3 areas (dimensions): Responsiveness, Effectiveness and Finance. Apprenticeships success rates will be taken in to account when deriving the rating under the "Effectiveness" dimension. The Framework complements the wider programme of reform for achieving excellence in further education through the National Improvement Strategy, the Learning and Skills Council's intervention programme and indeed work that providers themselves will undertake in the spirit of self regulation.

IMPACT ASSESSMENT

Q 96 Will any duties or requirements by placed on employers to ensure that they offer full apprenticeships to all groups in society, particularly those which paragraph 20 of the Impact Assessment notes have been under-represented historically?

The Learning and Skills Council has responsibility for ensuring that apprenticeships are offered to all groups in society. No additional duties or requirements will be placed upon employers in this respect. However, employers will need to abide by the anti-discrimination legislation.

Q 97 How much capital to create Group Training Associations (paragraph 21 of the Impact Assessment) will be provided? How much of this will be ear-marked for SMEs?

The amount of capital available for Group Training Associations has yet to be agreed.

Q 98 What evidence is there to support the assertion in the Impact Assessment that Group Training Associations "can be very effective in providing 'critical mass' of atypical young people, so that apprentices from ethnic minorities, or female apprentices in male-dominated sectors can socialise and share in a training environment"?[225]

The report by the Institute of Employment Studies "Young Apprenticeships: Equal Opportunities" 2006 DfES report 428 identified the benefits of the "critical mass" approach, especially in terms of atypical gender. The Trade and Industry Committee "Jobs for the Girls" report 2005 identified the benefits of group/project-based approaches in the construction sector, while noting such approaches are not widely used in other sectors.

The 2005 Equal Opportunities Commission's investigation of occupational segregation report recommended project-based approaches and group training schemes to help address inequalities in Apprenticeships. Group Training Associations have consistently enjoyed above average performance at inspection (ALI/Ofsted Reports).

Q 99 Can the Departments clarify their response to Error! Reference source not found.? Can the Departments supply statistics on the numbers of Group Training Associations and their record on diversity?

The Learning and Skills Council's system cannot currently differentiate a Group Training Association from other providers or employers. As a result we are not able to provide statistics specifically on Group Training Associations in terms of the number and their record on diversity.

Due to this lack of available data we cited a range of research in response to Error! Reference source not found. that shows group approaches can have a positive impact on diversity.

Were the Committee to request it, a survey of Learning and Skills Council regions could be conducted to assess the impact of Group Training Associations on diversity in their regions. This would provide indicative information on this topic but it is estimated it is likely to take at least two weeks to obtain.

Q 100 When a Group Training Association organises an apprenticeship, is the Association the employer? How will this impact on the rights of the small and medium-sized enterprises (SME) and the apprentice?

There are a number of different group training association models. The traditional approach is that employers will pay a subscription fee to a group training association who will organise training on their behalf. In this case the SME is the employer not the Group Training Association.

However, there are other approaches such as the group apprenticeship company model successfully used in Australia and that we are trialling in London. In this case a group apprenticeship company recruits a large number of apprentices who are then made available as a flexible workforce to other employers for the work-based element of their apprenticeship. Host companies pay the group apprenticeship company a fee for the use of the apprentice, which comprises their salary plus a service charge. In return, the group apprenticeship company administers the payroll and provides the pastoral care, support and supervision of the apprentice. In this model the Group Training Association is the employer.

Regardless of the model used, the rights and responsibilities of the employer, training provider and apprentice will be set out in the apprenticeship specification.

Q 101 Where an apprenticeship is facilitated by a Group Training Association, is the apprentice an employee of the Association or the business where he or she spends most time?

As we set out in response to Error! Reference source not found. in the Committee's second tranche of written questions, there are different Group Training Association models. The traditional approach is that employers will pay a subscription fee to a group training association who will organise training on their behalf. In this case the SME is the employer not the Group Training Association.

However, there are other approaches such as the group apprenticeship company model successfully used in Australia and that we are trialling in London. In this case, a group apprenticeship company recruits a large number of apprentices who are then made available as a flexible workforce to other employers for the work-based element of their apprenticeship. Host companies pay the group apprenticeship company a fee for the use of the apprentice, which comprises their salary plus a service charge. In return, the group apprenticeship company administers the payroll and provides the pastoral care, support and supervision of the apprentice. In this model the Group Training Association is the employer.

Regardless of the model used, the rights and responsibilities of the employer, training provider and apprentice will be set out in the apprenticeship specification.

Q 102 When will details of the cost savings from the introduction of the National Matching Service be available (paragraph 26)?

We expect that details of the anticipated cost savings to be available in 2012.

Q 103 Can the Departments clarify their response to Error! Reference source not found.? Why cannot the National Apprenticeship Service report findings by April 2011?

The first year of operation for the National Apprenticeship Service will be 2009-10. Therefore, there will be a time lag for the LSC to collate data, take stock of the new system and build up a reliable evidence base with which to assess any potential savings. We will make every effort to ensure this is done in the shortest timeframe.

Q 104 Please supply the results of the cost study referred to at paragraph 28 of the Impact Assessment.

This study was undertaken by the Institute for Employment and the results will be published in November. We will ensure that the Committee receives a copy.

Q 105 Can the Departments supply a more detailed Impact Assessment for a sector such as engineering?

The available data would not support an equivalent study, along the lines of the overall Impact Assessment, to determine the net present value of the programme for engineering. However, the Institute for Employment's research we will publish in November will include cost benefits studies of apprenticeships to employers in seven sectors, including engineering.

Wage benefits

Q 106 The McIntosh 2007 study used as a basis for the substantial benefits attributed to the draft Bill acknowledges that its results do not control for higher wages due to ability differences (pp 28, 42). How has the Impact Assessment addressed the resulting uncertainty associated with the study's findings?

The McIntosh study controls for a number of factors in order to isolate the impact of apprenticeship on wages from other influences. To the extent that innate ability of apprentices is not reflected by other characteristics for which data are available, then some of the observed impact may be due to this and other factors than the apprenticeship training itself. Any remaining upward bias in the findings is addressed in the sensitivity analysis.

Q 107 Normally, in a labour market where supply exceeds demand, an increase in the number of skilled workers would create a downward pressure on wages. Assuming the proposed programme successfully creates many new apprenticeships places, what assurances can the Departments provide that the wage increases will similarly "scale up"?

Evidence from across all educational sectors shows that as skill levels have increased rapidly over the last 10 years there has been enough unmet demand for wage levels to be maintained. (Source: Jenkins et al (2007): The Returns to Qualifications in England, Updating the Evidence Base on Level 2 and Level 3 Vocational Qualifications. CEE Discussion Paper no. 89.)

Supply of apprenticeship placements

Q 108 How have the Departments estimated the increase in apprenticeship places (a total of 25,800 new places) used as a basis for the Impact Assessment calculations?

These figures are based on the growth in apprenticeships outlined in the Learning and Skills Council's 2008-09 Grant Letter and Statement of Priorities. This figure is then reduced to first and full apprenticeship achievements only and then further reduced to reflect a sensitivity analysis and as a prudency measure to give the total of 25,800.

As outlined above this figure is controlled and revised downwards to reflect sensitivity analysis and Impact Assessment best practice. Apprenticeships growth is currently being re-modelled as part of the 2009-10 LSC Grant Letter and Statement of Priorities.

Q 109 What evidence do the Departments have to suggest that this number of apprentices, capable of completing an apprenticeship, will seek placements over the next three years?

The Learning and Skills Council report "Research into Expanding Apprenticeships"[226] published in January 2008 cites strong evidence of unmet demand for Apprenticeships from individuals, with 25% of learners not able to find an employer or provider. This, the report argues, is strongly supported by case study evidence with colleges and training providers.

Q 110 There may not be a demand among employers for the increased number of apprentices. What tools will the National Apprenticeship Service have to ensure that there are enough apprenticeship places? What evidence do the Departments have that employers will be able to provide this many placements?

The National Apprenticeship Service, when it is in existence, will have a regional field force which will include a significant number of staff focused on working with employers to increase the number of employers offering Apprenticeships. The National Apprenticeship Service will develop an employer engagement strategy which will focus their engagement at national, regional and, in some cases, local levels to sectors and types of employers that have been identified through Regional Economic Strategies, Sector Compacts, the focus of Skills and Employment Boards etc. This will help ensure that their focus is on potential growth areas, sectors where there may be a current shortage of Apprenticeship opportunities and sectors which have signalled a desire for increase in training overall through their Sector Skills Councils. This includes a focus on the public sector and through public sector procurement activities in areas such as construction.

The purpose of the National Apprenticeship Service is to bring together in one place, support to help employers overcome barriers to engagement in Apprenticeship opportunities. With this focused support and increased awareness of the scheme, we expect an increasing number of employers to consider taking on an Apprentices.

Q 111 It appeared that the witnesses [at the oral evidence session on 27 October][227] suggested that the Government will largely achieve its aim to meet the new apprentice start target numbers and enable it to meet the statutory entitlement by pushing public sector employers to create apprenticeships and potentially. Is there a risk that this will create an artificial bulge not connected to employers' actual workforce/skill needs? What will happen to apprentices completing their programmes, if employers are unable to offer them jobs?

There are two elements to this.

Firstly, the role of public sector apprenticeships. We do not see public sector apprenticeships merely as a means of supplementing private sector apprenticeship numbers, to be increased or decreased as necessary simply to meet targets. There is no danger of an 'artificial bulge' as these public sector apprenticeships will be rooted in demand from public sector employers and focused in areas where apprenticeships can play an important role in upskilling and benefiting the public sector workforce. Thus those apprenticeships will be directly "connected to employers' actual workforce/skills needs, because employers in the public sector have those requirements just as much as employers in the private sector.

The focus on the public sector is a recognition that apprenticeships have not achieved the same penetration there as in some private sector areas. Apprenticeships offer a high-quality training course that benefits both learner and employer and leads to a real step change in skill level. These are outcomes we want in the public sector and could make a positive change in both training and service provision in areas such as NHS trusts, local authorities and central Government.

Secondly, the issue of apprenticeship employment upon completion. This Bill enacts the intention set out in World Class Apprenticeships that to count as an apprenticeship there must be a contract of employment. Therefore, an apprentice would already be an employee. We cannot guarantee that an employer in the public or private sector will be able to continue to employ an apprentice once they have completed their apprenticeship as this, quite rightly, will depend upon the employer's needs. However, we believe that the apprentice will be in a strong position to secure other employment given their apprenticeship qualification.

Evidence on rates of return for apprenticeships suggests this is the case. Research in 2007 compared apprenticeship rates of return to NVQ rates of return:

Advanced apprenticeship L3 35%

NVQ L3 13%

Foundation apprenticeship L2 39%

NVQ L2 9%

Q 112 Page 10 of the Impact Assessment notes that one of the key policy options recommended by World Class Apprenticeships is a targeted wage subsidy for employers who face particular problems with recruiting 16 to 18 year olds. Does the Impact Assessment account for the costs of targeted wage subsidies as envisaged by World-class Apprenticeships? How much will wage subsidies for small employers cost?

The Impact Assessment accounts for the costs of targeted wage subsidies. These costs were based on initial advice from the Learning and Skills Council. The precise final cost of these measures is currently being worked through as part of the 2009-10 Learning and Skills Council Grant Letter and Statement of Priorities.

Q 113 Can we have details and emerging findings and conclusions from the pilot wage subsidy programme for small businesses? How is the wage subsidy for SMEs work likely to operate?

We will be piloting wage subsidies, particularly focused on small and medium enterprises (SMEs) from 2009 onwards. The Learning and Skills Council will be inviting expressions of interest from SMEs for access to this support shortly.

We will trial a range of approaches to wage subsidy to allow us to assess which provides the greatest value for money and appeals most to SMEs. We will be exploring potential synergies between apprenticeship and Train to Gain wage compensation when we pilot wage subsidies in apprenticeships.

Q 114 What incentives will be provided to large employers? What costs are associated with these incentives, and how have they been incorporated into the analysis?

The Learning and Skills Council intends to work with large employers on a pilot which invites them to recruit more Apprentices than they need to meet their requirements. They will receive direct payment for this "over training". The aim of this activity is to improve the quality of the supply chain in a sector at large.

Q 115 The wage data underlying the cost-benefit analysis was collected during an economic boom (2004-05). What analysis, if any, has been done to explore the impact of an economic downturn on the benefits of the draft Bill?

No analysis has been carried out to explore this quantitatively. It is reasonable to expect that the economic downturn will have more impact on employment rate differentials than it will on wage differentials across qualification levels, and so holding higher level qualifications, apprenticeship included, will be beneficial to individuals in maintaining employment during the downturn. There may be larger employment effects in some particular industrial sectors.

Impact on business

Q 116 Page 11 of the Impact Assessment states that a new net cost study is currently underway and that results are expected by summer 2008. Are the results of this study available? If so, please provide this study to the Committee. How have the study results altered the Departments' estimates of the estimated net costs of apprenticeships to businesses?

The study commissioned by The Apprenticeship Ambassadors Network will be published in mid November and so has not been incorporated into the Departments' estimates. The study will be made available to the Committee on publication. It will look in detail at the financial investment made by employers across 6 industrial sectors, and compare that with the productive benefits they get back from the apprentice, both during and after the apprenticeship. We expect it will also give an up to date view on the wider benefits to employers from their involvement in apprenticeship, including through better recruitment and retention, and maintaining a skilled and motivated workforce.

Q 117 Please provide details of how the Departments arrived at their estimate for fixed costs (£200 million)?

This estimate is based upon initial advice from the Learning and Skills Council. This has subsequently been revised downwards. The precise costs are currently being worked through as part of the 2009-10 LSC Grant Letter and Statement of Priorities.

Sensitivity analysis

Q 118 What number of placements would the programme have to deliver in order to "break even"?

By way of illustration, taking the central estimates' assumption of individual NPVs[228] of £73,000 for Level 2 and £105,000 for Level 3, the policy would have to achieve additional success of, say, 2,000 Level 2s and 1,000 Level 3s in order to break even. Alternatively, using the more the pessimistic assumptions behind the lower bound estimates, an additional 3000 Level 2s and 1000 Level 3s would be required to break even.

Q 119 Please provide additional details of how the sensitivity analysis for establishing the lower bound for the "net benefit range" was derived.

The lower bound replaces the McIntosh individual Net Present Values (£73,000 and £105,000 for Level 2 and Level 3) with more pessimistic estimates, based on: only half of the estimated wage impact being due to the apprenticeship, and costs being 50% higher than estimated. Further, it assumes that, of the anticipated increase in participation on apprenticeship over the period, only half will be resultant from the additional costs associated with the policies in question and the rest would have happened without the policy change and should not be attributed as a benefit (rather than 80% assumed for the main estimate).

Equality impact assessment

Q 120 The McIntosh 2007 study shows that, while Advanced Apprenticeships yield a wage return for women, wage benefits may not be realised by women with Apprenticeships (p 45). Why is there no significant earnings benefit for women who complete Apprenticeships? Please elaborate on the Departments' conclusion that the Draft Bill will have a positive impact from a gender perspective, providing any calculations supporting this conclusion.

The estimates of net benefits in the impact assessment are for men and women combined. The McIntosh study produced many positive findings for women on apprenticeship: they are positive for women when Level 2 and 3 are taken together, and there is evidence of improvement over recent years. The estimates for women at Level 2 were also reported to be positive, although not statistically significant. The results for women were also more positive for government supported apprenticeship, than those for apprenticeship that were recorded by the survey as being outside of government support (sometimes referred to as trade, or traditional, apprenticeship).

Geographic extent

Q 121 Has the Impact Assessment only looked at the impact of the draft Bill on England, or does it include its benefits to Wales as well? If not, what are the expected benefits of the programme to Wales?

The Impact Assessment covered England only. It is up to the Welsh Assembly Government whether they would like to assess the potential benefits to Wales.

WALES: RESPONSES TO QUESTIONS POSED BY THE WELSH AFFAIRS COMMITTEE

Q 122 Are the statistics cited in the foreword to the draft Bill England-only?

Yes, the statistics relate to England only.

Q 123 The draft Bill applies to England and Wales (clause 29 and paragraph 6 of the Explanatory Notes). However in his written statement accompanying the draft Bill, the Secretary of State noted:

This draft Bill sets out the legislative framework needed to underpin our strategy to increase the number of apprenticeship places and strengthen apprenticeships in England.

Q 124 Should there to be greater clarity on the draft Bill's territorial extent?

The draft Bill applies to England only. The Welsh Assembly Government is considering the application of the provisions to Wales and has sent draft instructions for amendments to certain provisions of the Bill in relation to Wales. These will be considered for inclusion before the Bill is introduced to Parliament.

The extent of the Bill referred to in clause 29 relates to the legal jurisdiction which is England and Wales. England and Wales are one single jurisdiction. Even if the Bill only applies to England it is still England and Wales law which happens to only have effect (or apply) in relation to England.

We will look at how we can clarify this, possibly through the explanatory notes.

Q 125 Why is there no reference in the draft Bill and accompanying papers to the Welsh Assembly Government's Department for Children, Education, Lifelong Learning and Skills, Welsh Assembly Government?

As above, the draft Bill applies to England only. The Welsh Assembly Government is considering the application of the provisions to Wales and has sent draft instructions for amendments to certain provisions of the Bill in relation to Wales. These will be considered for inclusion before the Bill is introduced to Parliament.

Q 126 Why is there no reference to the Welsh Assembly Government's Skills that work for Wales Action Plan? (Nor is there a reference to the draft Bill in Skills that work for Wales.)

As the draft Bill applies to England only there is no reference to the Wales skills and employment strategy "Skills that Work for Wales". In addition, Skills That Work for Wales was published on 10 July 2008, before the publication of the draft Bill so there is no mention of the Bill in that publication.

Q 127 How will the content of the Bill be implemented in Wales, and by whom?

It is for the Welsh Assembly Government to determine how the provisions in the Bill which will apply in Wales would be implemented. Welsh Ministers will commence provisions for Wales.

Q 128 How would the Bill's provisions be financed in Wales?

Any financial implications arising from the implementation of the provisions of the Bill in Wales will be a matter for the Welsh Assembly Government.

Q 129 How have the DIUS and the Department for Children, Schools and Families consulted (or how will they consult) with the Welsh Assembly Government on the provisions of the draft Bill?

The Secretaries of State for Innovation, Universities and Skills and Children, Schools and Families wrote to the First Minister of the Welsh Assembly Government on 19 July to inform him of the publication of the Draft Bill. The Welsh Assembly Government have indicated that they would wish to consider provisions in relation to Wales for certain aspects of the Bill.

Q 130 Will there be any overlap in devolved and non-devolved education policy?

Education and Skills Policy in Wales is devolved to the Welsh Assembly Government. There may be some overlap in relation to the policy of clarifying the law relating to apprenticeship agreements, since employment law is not devolved to the Welsh Assembly Government.

Q 131 Does the draft Bill raise any cross-border issues—for example, labour markets which cross borders, employers which recruit from both sides of the border and ensuring that people get accurate information as to what is available, ensuring that colleges on both sides of the border have clear roles in the training aspects of apprenticeships (clause 16.2 makes it clear that it applies to employers "in England")?

The draft Bill is likely to raise cross border issues. Any such issues will be taken account of in the information and guidance materials issued in both nations.

Q 132 There are references in the draft Bill to "functional skills in English" (3J 5, 7 - Apprenticeship scheme requirements: interpretation). Are there any specific Welsh language issues to be addressed?

In considering the extent to which the provisions of the Bill will apply in Wales the Welsh Assembly Government will be taking into account the need to address any specific Welsh Language issues.

"CONVERSIONS"

Q 133 We raised Conversions and the Learning and Skills Council has already provided a useful note.[229] It would assist to have a further breakdown of the conversion statistics to differentiate between a) people who start an apprenticeship with the employer where they are already working; and b) people who switch to a new employer to start an apprenticeship.

The Learning and Skills Council provided information on conversions versus new starters that showed in 2006-07 77% of new apprenticeship starts were conversion and 23% new recruits. However, I[230] would re-iterate the point I made to the Committee and that the Learning and Skills Council made in their note that these figures are based on a proxy that defines a conversion as an Apprentice who was employed on the last working day before starting, and a new recruit as an Apprentice who was not recorded as being employed on the last working day before starting. This is based on self-declared Individual Learner Record returns.

As I set out in my response at the Committee, whilst a useful indicator this cannot be considered robust since an individual recruited with the intention of being entered onto an apprenticeship framework after serving a probationary period would be counted as a conversion. It should be noted that a probationary period is recommended practice. This is because the apprenticeship place combines a job offer with a training offer, and both employer and employee want to satisfy themselves that the job is right for them before a wider commitment is made.

As the Learning and Skills Council stated in their note this means "the percentage of new recruits is probably understated and the conversions are overstated using this definition".[231]

On the specific issue of differentiating between those who start an apprenticeship where they are already working and those who switch to a new employer to start an apprenticeship, we have no specific data given the constraints outlined above.

Q 134 Can we also see the case studies referred to in section 4 of the [Learning and Skills Council's] note?

The responses to Error! Reference source not found. and following provide details of how Tesco operates its apprenticeship programme.

The pattern of identifying potential apprentices from existing employees is more usual in the service industries, such as hospitality and retail, and this is where much of the recent growth in apprenticeships has come from.

Examples include:

Sainsbury's—with apprenticeship frameworks in food handling and manufacture such as bakery, butchery and fish.

Vodafone—has apprenticeship frameworks in call centres, covering both technical and interpersonal skills in handling customer enquiries or complaints.

These employers embed the Apprenticeship programme into their business by mapping the job role to the framework, and customising the delivery of the elements of training and assessment, which could be in the workplace, electronic or off-the-job. Often, employers use the fact that new recruits can undertake an Apprenticeship programme as a marketing tool to attract people into their business.

Some employers with "traditional" apprenticeship programmes such as BAE Systems also broaden out their apprenticeship recruitment to current and potential employees.

The large employers who do recruit straight from school tend to be in the engineering or construction sectors. Usually, there is an extensive period of off-the-job training, often full-time, in a separate training centre, academy or college, before the apprentice enters the workplace. Examples include British Gas, BAE Systems, National Grid, Landrover Jaguar and Rolls-Royce. These employers usually recruit their apprentices in cohorts of around 100 or more, once or twice a year. Often the individuals complete an induction with the business before starting the apprenticeship training.

Q 135 What proportion of those converting receive Education Maintenance Allowance?

All apprentices will be employees of their employer, therefore they would not be eligible for an Education Maintenance Allowance. If the question relates to those who received an EMA prior to starting their framework, we do not have this information available prior to 2007-08. It will not be possible to provide the information for 2007-08 until 2007-08 data is finalised. We will provide this when available.

Q 136 Can Table 5[232] to be broken down into frameworks?

Please see the annex which expands on Table 5 and now includes detail regarding frameworks undertaken by conversions and new recruits.[233]

Q 137 Why is information on average length of stay for conversions and new recruits not available?

This information was not available in the time frame requested for the previous note. This information is now available:

The average length of stay for "conversions" is 17 months. The average length of stay for new recruits is 23 months.

The note[234] cites Tesco as an example. It would assist to have answers to the following, please.

Q 138 How are the individuals selected (e.g. do they apply, if they are already with Tesco, are they put forward by supervisors/managers)?

Individuals must have worked for Tesco for six months before applying for an Apprenticeship position. Supervisors and managers are encouraged to identify potential candidates but the individual applicant needs to apply for themselves. Tesco advertise the scheme internally via posters and literature.

Q 139 How long is the probationary period and are they classed as apprentices from day one and at what point in the process are they formally registered as "apprentice starts"?

There is no probationary period on the apprenticeship programme (as all individuals must have worked for Tesco for six months before applying). Once accepted on to the programme they are classed as apprentices.

Q 140 If those converting are16 to 18 year olds, do they receive the Education Maintenance Allowance or does Tesco pay them a wage?

All individuals are paid a wage regardless of their age. Once employed by Tesco they remain on salary when taking up the apprenticeship position.

Q 141 If 19 or over, do they receive a wage?

Yes.

Q 142 What percentage progress on to a proper apprenticeship and what happens to those who do not?

All retail Apprenticeships within Tesco are currently at Level 2. Tesco intend to make Level 3 and above available in the near future. However, data shows that 50% of successful apprentices within Tesco progress within the business and are promoted.

Q 143 When does Tesco start drawing down government funding?

As soon as all eligibility checks have been carried out on the individual and they have completed their initial assessment.

Department for Children, Schools and Families and Department for Innovation, Universities and Skills: Joint Apprenticeships Unit

September, October and November 2008

211 Impact Assessment, para 5 Back

212 Universities and Colleges Admissions Service Back

214 Draft Apprenticeships Bill, Explanatory Notes, para 23 Back

215 Draft Apprenticeships Bill, Explanatory Notes, pp 24-25 Back

216 Impact Assessment, para 44 Back

217 Impact Assessment, para 47 Back

218 Draft Apprenticeships Bill, Explanatory Notes, para 36 Back

219 Universities and Colleges Admissions Service Back