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Mr. Simon: I am grateful to the hon. Gentleman for giving me the opportunity to clarify that point. The statutory certifying authority will be the chief executive of Skills Funding, but it is anticipated that he will delegate the practical delivery of the task to the chief executive of the NAS.
Mr. Gibb: As the Minister is amending the Bill so soon, why is he committed to giving that role to the chief executive of Skills Funding? Why does he not propose an amendment today to give the authority directly to the chief executive of the NAS?
Mr. Simon: Because it is not intended that the statutory authority should rest with the chief executive of the NAS. The statutory, legal, accounting authority is to be vested in the chief executive of Skills Funding. The day-to-day management will, in practice, be the responsibility of the chief executive of the NAS.
Stephen Williams: We will come on to certificates shortly. I just wonder, in this case, who will be the signatory on the certificate itself authorising the issue of the apprenticeship. Will it be the chief executive of Skills Funding or the NAS?
Mr. Simon: Off the top of my head, if we have a policy on the actual physical, graphic signature on the certificate, I am not aware of it. I suspect that that level of detail has not yet been determined and I will certainly undertake to check whether it has been. When it is ultimately determined, I undertake to write to the hon. Gentleman to let him know what has been decided.
The change will also ensure that such transitional arrangements are binding on an outgoing authority, which would not be possible under a simple designation in writing. Government amendments 153 to 156 are necessary to ensure the smooth operation of apprenticeships in Wales.
Amendment 188 is consequent on amendment 156. This is a purely administrative matter. Its effect will be that an order under clause 8 relating to the Welsh certifying authority will not be subject to procedural requirements in the Welsh Assembly Government.
Mr. Hayes: Before the Minister rushes on from amendment 152, he should appreciate that there is an argument that sector skills councils could be issuing bodies. Did he consider that and what representations did he receive about it? Amendment 152 effectively rules that out.
Mr. Simon: We considered that idea. As the hon. Gentleman knows, sector skills councils are currently issuing bodies. We have decided that in future, as the employer bodies, the sector skills councils will be responsible for defining and setting the apprenticeship frameworks and for determining the content of the apprenticeship. The National Apprenticeship Service, as the delivery agency, is the most appropriate body to issue the certificates.
Mr. Hayes: I am sorry to run with this important though detailed point, but the explanatory notes make it clear that sector skills councils are expected to develop frameworks for apprenticeships in conjunction with standard setting bodies. What does that mean in practice? As the Minister knows, sector skills councils are currently issuing bodies. The proposals will diminish their role, will they not?
Mr. Simon: No, there is honestly no diminution of their role. As I said in the evidence session this morning, sector skills councils remain at the heart of the skills system as the employer body. They will determine what goes into an apprenticeship framework at the hands-on, nuts-and-bolts level of substance and content. By having the certificates issued by the National Apprenticeship Service, there will be a single recognisable apprenticeship certificate rather than 27 different certificates issued independently by the various sector skills councils. As the hon. Member for Bristol, West said, we will discuss the details later.
Mr. Hayes: I understand that and it would be a good argument for having a National Apprenticeship Service with complete competence. However, as we described in this morning’s sitting, there is a marriage between the funding agency and the National Apprenticeship Service. It is not only the sector skills councils that have a hand in this, but the principal funding agency and the National Apprenticeship Service. Why can all of this not be done by the National Apprenticeship Service or the sector skills councils? Why do three organisations have to be involved?
Mr. Simon: I cannot agree that the sector skills councils and the National Apprenticeship Service do the same job. The National Apprenticeship Service is an arm of the funding body, which has the job of delivering apprenticeships and to drive the quality and take-up of apprenticeships in the skills system. The sector skills councils are the employers. The employers do a different job and have a different role. I do not think that they would want that role to be done by anybody else. They want to be at the heart of the system and to determine what goes into the frameworks. The National Apprenticeship Service will sit inside the Skills Funding Agency. It will be part of the funding stream and will issue a single, coherent apprenticeship certificate across the board for everybody.
Mr. Hayes: Can I have one last go at this in order to try to generate some light amid the heat? I am grateful to the Minister for giving way for a third or fourth time. Leaving aside the issue about sector skills councils and the National Apprenticeship Service, which I agree have different functions, and leaving aside the sector skills councils, which do it at the moment and will not do it in the future, what is the virtue in having the involvement of the Skills Funding Agency? Could the NAS have sat outside it, independent of that body? Is it not odd, to say the least, that what is essentially a funding body is involved in standards setting? Is it a standards setting body or is it a funding agency? I thought it was a funding agency.
Mr. Simon: The National Apprenticeship Service could have been located outside the SFA and we did consider that. The reason we decided to put it inside the SFA was to create a single body with four clear, coherent, identifiable customer gateways, two of which, for employers, would be Train to Gain and the NAS, to make a streamlined, coherent system. As it is, Opposition Members are criticising us adversely for creating too many bodies without sufficient streamlining. The proposed system has fewer bodies, more streamlining and more synergies; it makes sense to me. On the basis of those remarks, I commend the Government amendments to the Committee and hope that the hon. Gentleman feels able to withdraw amendment 15.
Mr. Hayes: I am grateful to the Minister for his remarks and for his courtesy in giving way on what is an important matter. It might seem arcane to the casual observer, but getting the relationships right—the lines of accountability, the reporting functions of the new bodies—will have a big impact on the success or failure of our shared ambition to grow the apprenticeship system. The anxiety I have is that, in an effort to create a new system, the Government have created a more complex, harder to understand, less transparent structure that is not going to be good for either learners or employers. That is at the heart of our complaint.
Our anxiety, reflected in amendment 15, relates to establishing whether the Government will charge. I am still at a loss—I hope the Minister might intervene—as to why this particular measure forms part of the Bill if there is no intention at all, at any point, to charge.
Mr. Simon: To be clear, there is no intention to make a general charge for the issue of apprenticeship certificates, as is currently done. The intention is that the cost of apprenticeship certificates will be subsumed in the programme budget, although it is thought that the NAS might, in future, wish to consider charging for duplicates—for copies of certificates that have been lost—in order that the administrative cost is kept within a reasonable limit.
Mr. Hayes: That is a helpful explanation. Essentially, although the clause ostensibly might be taken as a green light for charging, the Minister has assured us that there is no such intention and that it is there simply as a catch-all for, as he describes, lost or stolen certificates.
Mr. Simon: To restate my earlier point, there is currently a charge for certificates. SSCs are independent bodies which currently charge. Clearly, the right to charge currently exists. We are simply maintaining the current right to charge, although we are explicitly saying that we have no intention to charge other than, perhaps, in fairly exceptional circumstances.
Mr. Hayes: That is a useful and helpful assurance. As I said at the outset, this is a probing amendment. The Minister has given us the opportunity to explore one or two deeper and wider matters, particularly in respect of the Government amendment, which forms a part of the group. It has set the scene for a debate that I expect we will have throughout our consideration about whether the new structure is fit for purpose. Nevertheless, I take the Minister’s assurances in the spirit in which they were offered, and I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
4.30 pm
Mr. Hayes: I beg to move amendment 16, in clause 1, page 2, line 18, at end insert—
‘(f) that the person has undergone supervised training in the workplace.’.
The Chairman: With this it will be convenient to discuss the following: amendment 17, in clause 2, page 3, line 2, after ‘provide’, insert
‘provided that such evidence includes evidence of supervised training in the workplace’.
Amendment 47, in clause 25, page 11, line 33, at end insert—
‘(d) must specify that these requirements include some element of supervised training in the workplace.’.
Amendment 22, in clause 30, page 13, line 35, at end insert—
‘(e) that the employer agrees to provide supervised workplace training.’.
Amendment 48, in clause 80, page 50, line 6, after ‘agreement’, insert
‘that includes specific requirements for supervised training in the workplace,’.
Amendment 113, in clause 80, page 50, line 7, leave out subsection (b).
Amendment 49, in clause 85, page 52, line 13, at end insert—
‘(d) arrangements for courses of training at a college or other institution must include some form of specific training in the workplace.’.
Most people take that as read, but it is important that we are clear about it. Over time, some apprenticeships have become less work-related than we might wish. That is perhaps understandable, given the difficulties of engaging employers in particular sectors and parts of the country. It is certainly sometimes hard to get employers involved in the apprenticeship system. As an aside, that is why it is important in my estimation and that of my party to incentivise them to do so. However, we shall not discuss the glories of Conservative thinking on that subject but address the amendment specifically.
At no point in the legislation as drafted do the completion conditions specify work-based training, the key element of any real apprenticeship. Supervised work-based training should be part of all apprenticeship frameworks. Indeed, amendment 16 would add in clause 1 the requirement that
“the person has undergone supervised training in the workplace”.
The other amendments in the group follow in the same spirit. Amendment 17 makes it clear that evidence must include evidence of supervised work-based training where evidence of the appropriateness of an apprenticeship leads to completion. According to the explanatory notes, clause 2
“would permit the issuing of a certificate where persons have not entered into an apprenticeship agreement or where they have done the training for the principal qualification before entering into an apprenticeship agreement.”
The clause as drafted does not specify what evidence someone would have to provide before being issued with a certificate. It would be possible for a certificate to be provided without any evidence of training by an employer, as the principal qualification for many apprenticeships is an national vocational qualification, and NVQs can of course be studied at a college.
I do not want to exaggerate the problem, but I remain concerned that there are apprenticeships where the apprentice’s foot barely finds its way into the workplace. The lack of a workplace element in some apprenticeships, particularly a mentored workplace element, is an ongoing cause for concern. I know that the Government have focused on that and have offered assurances that they too believe that workplace training should form part of all apprenticeships, but in the spirit of integrity and straightforwardness that the Minister personifies and illustrated in dealing with the first group of amendments, he will acknowledge that that has been a worry for employers, Government and others. Apprenticeships taught in colleges without enough of the workplace element simply do not do the job that they are supposed to do. They do not equip people properly for the world of work or offer confidence to potential employers. In the end, they do not make people more employable, which has to be the acid test of an apprenticeship.
Mr. Hayes: Absolutely. My hon. Friend is right that most people’s vision of an apprentice is of someone learning their trade at the knee of an experienced craftsman in the workplace. However, in recent years, many apprenticeships have been virtual, involving little or no employer engagement. In some cases, employers provide little of the training that the apprentices they employ undertake, most of which is provided by a further education college or independent training provider.
That is not just my view. Two of the leading academics in the field, Professors Lorna Unwin and Alison Fuller, describe such schemes as “restrictive apprenticeships”. Other apprenticeships involve little or no time in the workplace, either in work or in training, as a result of branding training that is not in the workplace “programme-led apprenticeships”.
One of the doubts that the Conservatives have was articulated admirably by my hon. Friend this morning. In offering an entitlement, the Government could dilute the quality of the apprenticeships that are offered to meet the ambitious targets that they have set. If they aim to entitle everyone to an apprenticeship and set ambitious targets for numbers, there is an obvious temptation to rebadge all kinds of training as “apprenticeships”, to weaken and dilute the necessary standard and, in so doing, to damage the valuable apprenticeship brand.
The Select Committee on Innovation, Universities, Science and Skills expressed a similar concern when it scrutinised provisions for programme-led apprenticeships in the draft Bill, concluding:
“Business was clear that for ‘apprenticeship schemes to work they must be employer led’ and based ‘in the workplace to make them effective’...so called programme-led apprenticeships could provide a useful preparation for an employer-led apprenticeship but they are not apprenticeships within the meaning of the proposals in the draft Bill.”
Alison Seabeck (Plymouth, Devonport) (Lab): On employer-led apprenticeships, my local FE college in Plymouth believes that some of the group training schemes that it runs—they are not necessarily employer led, but they are popular with employers—do not diminish quality. Has the hon. Gentleman come across those schemes?
 
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