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In many respects, as the committee indicated, an apprenticeship should be the career of choice for many students. I was very taken by the evidence of Mr David Sherlock, the Chief Inspector of Adult Learning, when he spoke of his visit to Land Rover. I shall quote the paragraph, because it is very interesting. He said that Land Rover,
- “had not only a substantial apprenticeship scheme and a foundation degree scheme, but they got in kids for summer schools from the age of six for a couple of days to be involved in what industry was about, what Land Rover was about and so forth. They had then junior apprenticeships from the age of 14, kids coming in from school a day a week with the company taking all the responsibility for looking after 14-year-olds and the difficulties that are associated with that. By the time young people reached the age of 16, they were enthusiastic about the whole business of working in industry and they were aware of the status of it, they were aware that the experience could be just as enriching and exciting as going to university and they were fully signed up to Land Rover”.
That should be the experience of many of the 50 per cent who are failed by the system at the moment. The noble Lord, Lord Dearing, and I would like to see the development of skills academies for those post-14 because we feel that they could more easily lead to that sort of experience.
The Government are reforming the secondary school agenda, they are introducing the new diplomas, they are reorganising the careers service and they are backing the Leitch agenda, which puts employers in the driving seat. Can we be confident that they will now be able to achieve their goal and double the number of people in apprenticeships? The committee rightly expressed reservations about whether we are now in a position to enable young people to have the Land Rover-type experience. The Government response does not answer those reservations.
First, as the committee and others have pointed out, there are too many fingers in the pie. The responsibility is split. Now the Government have added to the alphabet soup—the LSC, SSCs, QCA, SSDA and so on—by splitting responsibility between two departments. The split is right down the middle, at the age of 19. Those who are under 19 are dealt with by DCFS and those over 19 are dealt with by DIUS. Who will champion apprenticeships in the face of competition from GCSE and A-levels and these new diplomas? The Minister said that he hopes that the diploma will become the qualification of choice for young people, universities and further education colleges seeking candidates for foundation degrees.
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Secondly, there are far too many initiatives and no coherent relationship among them. We have already instanced the lack of clarity between diplomas and apprenticeship qualifications. The major initiative now for employers is Train to Gain, with £500 million going in this year. By 2011, the figure will be £1.4 billion. Again, however, it is quite unclear whether Train to Gain comprehends apprenticeships. Indications are that it does not. In his evidence, the Minister stressed that Train to Gain is the upgrading of qualifications for those who are already members of the workforce. If an employer is to be paid for training an employee to gain an NVQ level 2 qualification but not for taking on an apprentice for training for a similar level of qualification, what incentive is there to take on an apprentice? Can the Minister clarify the position? The information issued with the draft legislation on apprenticeships indicates that there will be funding. If so, can the Minister tell us the answer to the question?
Thirdly, are the SSCs up to the job? One of the perennial problems with apprenticeships in Britain has been to get sufficient support from employers. Many see this as the classic example of the free rider. Employers are reluctant to spend money on training because they fear that they will lose their trained, skilled craftsmen to the unscrupulous employers who spend nothing and then poach from those who have spent, so we end up with no one being prepared to invest in training. This was the logic that led to the levy grant system, which was not popular, so instead we tried to develop institutions that instil a training ethos into employers. In the late 1980s, we had the local TECs and the NTOs. We then replaced those with the employer-led local LSCs and the SSCs. Now we have Leitch, the training pledge and Train to Gain, with the SSCs being elevated to a role where they are entrusted both with enthusing their sectors with a training ethos and with the role of setting and accrediting standards.
There are two questions to ask. First, are employers up to providing the training places? The noble Lord, Lord Layard, was enthusiastic about this solution, but experience shows that it is extremely difficult to gain training places from employers, even though they are key players. Secondly, as the committee suggested, there are problems relating to whether the SSCs are up to the role that will be imposed on them in both enthusing and accrediting. Some SSCs can and undoubtedly will live up to this role, but others may struggle.
Fourthly, there is the unclear role of brokers. This was one of the committee’s main criticisms, which has been mentioned by others. Then there is the problem of standards. The committee detailed the sorry story of the technical certificate, which at one point differentiated those with the ordinary NVQ level 2 from those studying for apprenticeship, but was then dropped in favour of the apprenticeship blueprint. But that still leaves the situation very unclear. It is not helped by the fact that, according to evidence, what constitutes a completed apprenticeship in one sector would be seen as only just the beginning of one in another.
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There surely has to be a clear framework on what constitutes completion at the different levels and incentives for young people and others to progress from one level to another. It is an indictment of the present system that so few progress to the advanced apprenticeship and from advanced apprenticeship to foundation degrees. We are told time and again that all will be solved by the new qualifications framework coming soon from the QCA, but it has been a bit like waiting for Godot. Can the Minister tell us when this new qualifications framework will be published? Will it be based on a system of credit accumulation and transfer, enabling those who are half way through a qualification to transfer to a new base if their work is moved? Will it link the SSCs and the new diploma framework?
The story told by this report is a sorry tale of government failures to develop joined-up, coherent initiatives, to think through the consequences of their actions and to carry them through consistently and with consistency over time. As always, part of the blame lies with the inheritance, but after 10 years that argument begins to wear a little thin and much of the inconsistency is of the Government’s own making. Now with the introduction of the new specialist diplomas in schools and with the Leitch agenda for skills dominating the industrial scene, it is argued that we are entering a new era. I have suggested that an apprenticeship ought to be the career of choice for many young people, as it is in Germany, the Netherlands and much of Scandinavia. Is that likely to be the case? Have the Government got it right? I very much doubt it. As I and others have suggested, there are still a lot of questions to be answered and far too many inconsistencies to be ironed out for us to be confident that the future is rosy for apprenticeships.
9.01 pm
Baroness Verma: My Lords, I congratulate the noble Lord, Lord Wakeham, and the committee on an excellent report. It highlighted the many key areas that are in urgent need of attention. The committee found that while the UK has an excellent record in higher education it has a dangerously poor one in the provision of skills and in meeting basic needs in literacy and numeracy for those not choosing a path through higher education. Over a quarter of all employees—approximately 6.3 million people—have less than a level 2 qualification and almost 2 million employees have no qualifications. Of the 7.8 million economically inactive people in the UK working-age population, around 2.2 million people have no qualifications and approximately 3.7 million people lack a level 2 qualification. The Leitch review on skills found that over one-third of adults of working age in the UK do not have basic school-leaving qualifications and 5 million adults have no qualifications at all. I agree with the noble Baroness, Lady Garden of Frognal, who made an excellent maiden speech, that it is unacceptable that around 300,000 young people cannot access apprenticeships because they lack basic literacy and numeracy skills.
While it is crucial that we do not lose sight of the need for young people to be properly skilled, what plans do the Government have to widen access to
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There are a number of areas in the report that I would like to concentrate on, and I look forward to the Minister’s response. It is significant that the UK’s performance in improving skills after the age of 15 is worse than that of other OECD countries and significantly worse than countries such as Germany and Switzerland whose apprenticeship programmes are longer and more employer-led. That has resulted in the UK lagging behind in productivity and in poorer job prospects as the economy demands better qualified people to replace those retiring with lower skills. As has been recognised by other noble Lords, the report identified that in Germany and Switzerland almost all employers, parents and teachers are familiar with apprenticeship programmes. Students are prepared to think about occupational choice and the range of apprenticeships open to them. Around 75 per cent complete their apprenticeships in Germany compared with around 50 per cent in the UK. In Germany and Switzerland, employers are far more involved in the design of the training requirement for apprenticeships in their sectors. The process is managed through trade associations and other professional bodies. In evidence from the IoD, the committee was told that better involvement from employers in delivering apprenticeship would mean better input from employers. The IoD also stressed the need for progression from apprenticeship to advanced apprenticeship. However, due to lack of data, it is impossible to quantify exactly what percentage may want to continue to level 3 apprenticeships.
Although the committee welcomed the Green Paper proposal that all satisfying the criteria for apprenticeship placement will, from 2013, be able to find a placement, there is a worry that the Government's introduction of a much wider variety of work-based training that comes with funding and accreditation will encourage employers to ignore the apprenticeship framework. The CBI has stated that take-up and completion of apprenticeships will improve if bureaucracy is reduced. Can the Minister tell the House why there was nothing in the Government's announcement on 16 November 2007 about cutting bureaucracy and enabling more employers to offer apprenticeships?
Evidence from Connexions stressed the huge gap between what is taught in education and what skills at actually important in the labour market. The response from Connexions to the question, “Are existing training programmes failing to provide young people with appropriate skills?”, was, “Sadly, yes.” It stated that existing programmes are not meeting the needs of young people and that entry-to-employment programmes were not organised, lacked discipline and did not
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“I must say that it is in a state of disorganisation. I cannot give you chapter and verse ... but everyone I have met says that it is not working terribly well”.
That is Connexions, to which young people look for advice for future career prospects.
As my honourable friend David Willetts has said:
“The real problem in expanding apprenticeships is the limited number of employers who wish to take them on. They are put off by the costs and the bureaucracy, but there is nothing in this announcement to tackle that problem. There is another danger: that the Government may achieve their target by renaming existing provision rather than increasing it. That’s what they’ve been doing for the past 10 years. We need a better approach”.
The Select Committee found that there was no information from the Learning and Skills Council on its most recent marketing initiatives. There are no records of the number of young people seeking apprenticeships. Therefore, it is impossible to know whether there are sufficient places to accommodate those wanting to apply.
It appears that there is no one government agency that has sole responsibility for apprenticeships. Can the Minister confirm which department will take on the committee’s concerns? Does he agree with the committee that a unit that is designed to report to a Cabinet Minister on all matters to do with apprenticeships should be set up?
The committee should be applauded for an in-depth report that has highlighted huge failings in how apprenticeships are delivered, the muddled way in which the Government respond, the confusion within which employers, users and administrators are expected to work, the lack of proper co-ordination with other schemes and their impact on the apprenticeship programme.
Where doubt has been expressed by some partner agencies about the ability of the SSCs to take on the greater responsibility of developing apprenticeships more closely with employers, the option of doing nothing cannot exist. A more co-ordinated approach must be guaranteed by the Government. There is an obvious need to get assurances from the Government that that will not become another headline-grabber that will disappear as quickly as it is initiated.
As my honourable friend John Hayes said:
“We want to see the value of vocational training elevated within society. In any other field, if only half of those people enrolled on courses completed them it would be a national scandal—this is the case with apprenticeships and it is unacceptable. Apprenticeships must be the right vehicle for boosting skills in the economy and adding value to the organisation and individuals involved”.
The noble Lord, Lord Dearing, made a most enlightening point when he was called as a witness to give evidence. He said:
- “it is important to make the point that there is so much at stake it should be got right rather than done quickly”.
Finally, we are to encourage, as in the case of higher education having a clearing house, a similar delivery unit to be in place for those wishing to apply for an apprenticeship delivered by the LSC, as it is
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9.10 pm
The Parliamentary Under-Secretary of State, Department for Innovation, Universities and Skills (Lord Triesman): My Lords, first, I sincerely join all noble Lords in thanking the noble Lord, Lord Wakeham, and the Economic Affairs Committee for a painstaking and helpful report. I will try to do justice to it. It is encouraging to know that it was the ninth report and that—taking these two points together—they have all been unanimous. I remember that the first report I did under the auspices of the TUC was carried by four votes to three with 12 abstentions. I am keen one day to emulate that level of success. I have also noted, as I am sure the House will have noted, a number of former apprentices in the House. I suspect that there are a great many more when we are all assembled together. Perhaps there are more in this House than in another place; that may well be true.
Much has been done over the past 10 years to develop the apprenticeship programme. The Government are now determined to accelerate the growth of apprenticeships and to continue to raise the quality of the programme. The point made by the noble Lord, Lord Dearing—that we must remedy something like 130 years of history—may be beyond what I can do this evening, but I will have a go. It is obviously important that this area remains under continued review and constant consideration, not because we need to keep reinventing things but because we cannot afford any further failures.
In July 2007 we published World Class Skills, setting out how we plan to improve the skills of our people in order to compete successfully in the global economy. Apprenticeships are completely vital—central—in the drive to do this. The Prime Minister described them as “keys to the future”. The noble Lord, Lord Macdonald, asked whether the current Administration will do better through the tripartite system. I believe that we will. Diplomas cannot and will not devalue, and must not be allowed to devalue, apprenticeships. The CBI welcomed diplomas for the role that they would play. It is right to say to the noble Baroness, Lady Sharp, that apprenticeships are a third route, and enjoy a considerable amount of employer support in their design. The specific question about the alignment of the different routes leads me to say that the sector skills councils have been involved in the development of the diploma partnerships and also the apprenticeship frameworks. This will provide the synergy necessary for the cross-over required if a young person wants to move from a diploma to an apprenticeship, and it ought to ensure that the routes are secure.
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The Government are committed to providing 400,000 apprenticeship places in England as our contribution to the overall aim of 500,000 apprenticeships in the UK by 2020. By 2013, all school leavers who meet the entry criteria will have the right to an apprenticeship if they want one. This brings me to the important and enormously thoughtful points of my noble friend Lord Layard. As part of our preparation for this, the Education and Skills Bill, which was published on 29 November, will amend Section 2 of the Learning and Skills Act 2000 to make it clear that the Learning and Skills Council is under a duty to provide proper facilities for apprenticeships for 16 to 18 year-olds. This is to ensure that apprenticeships are given explicitly equal legal status to other post-16 education and the options that there are in schools or in further education. My noble friend is right to say that we must deal with part-time modes of study because it suits employers and apprentices; it is vital to secure engagement, which is part of the formula; it makes sense of the extension of the education age to 18; and it encompasses the wishes of many people.
I return to the point about a dedicated service, which is under active consideration in the review. I am not able to comment on guarantees, but I am able to tell the House that I expect that the review will report by the end of this month. I hope that that turns out to be an accurate assertion. It will have to take account of the proper balance between on-the-job and off-the-job hours. I completely accept the argument which has emerged from all Benches that we are talking about a high-cost option. It is not a cheap option in any respect. Investment is basic. Should places be available, they will be funded. We are committed in the CSR and we are committed to doing this right the way through. On the question asked by my noble friend Lord Macdonald and the noble Baroness, Lady Sharp, we are committed to doing what it takes. There is no point in arguing that apprenticeships are an apex of skills unless we have something like a Rolls-Royce ambition for making sure that they are delivered.
Apprenticeships are crucial not only for the skills agenda, as the noble Lord, Lord Wakeham, rightly said; they also contribute to the development of a fairer and more inclusive society in which people are not left behind. They help people to secure a better future for themselves and, in due course, for their children. I completely and wholeheartedly agree that we cannot afford to waste anyone’s talent. I hope that some of the programmes running through schools—from Sure Start, at the beginning, to the one-to-one mentoring in numeracy and literacy announced by my right honourable friend Ed Balls in December—will make sure that people have immediate guidance all the way through the process of improving their abilities. These should make a difference.
My noble friend Lord Macdonald hit the nail on the head. Securing the future will rely on both universities and apprenticeships. I strongly support his points on women and ethnic minorities. I know that my right honourable friend John Denham has spoken on this point frequently and recently.
Perhaps I may go through some of the facts. The noble Baroness, Lady Verma, described some of the statistics from the past and the difficulties that they
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The noble Lord, Lord Wakeham, asked about the basis for the figures that I am quoting. The last published statistical report, for 2005-06, showed completion rates of 53 per cent for apprenticeships and advanced apprenticeships, but the latest management information figures that I have to hand, for 2006-07, show an overall rate of more than 63 per cent and similar levels for apprenticeships and advanced apprenticeships. I believe that these figures will be confirmed when the statistics are published in March or April. We will see when the figures are published, but I am reasonably confident that I am providing reliable information.
I think that the noble Lord, Lord Sheldon, was also concerned with the next point. As we looked at the rates of completion and the relatively rapid growth in the rates of completion, I was concerned to know whether it was roughly a straight line rate of growth, but I was told that it was relatively slower in the earlier years and that it picked up speed considerably. The curve looks more or less exponential now. I cannot say how long it will continue on that trajectory, but if it continues on the trajectory we expect, the reality is that the next 12 to 18 months should show considerable rates of improvement. I say to the noble Baroness, Lady Verma, that we will not be far adrift of Germany and Switzerland or the data that she introduced into this debate.
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