Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [Lords] 2025-02-25

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The Secretary of State agrees that employers cannot spend the money from the apprenticeship levy easily and that too much is retained by the Treasury. Will she undertake to speak to the Chancellor to make it easier for employers to spend this money on training?

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While welcoming the commitment to skills, does the Secretary of State recognise that too often young people are advised towards academic careers rather than practical learning? This means there are many graduates in non-graduate jobs owing a lot of money with pretty useless degrees.

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During National Apprenticeship Week, my right hon. Friend visited Harlow College and agrees that to achieve new homes targets and get people off the streets into those homes, we need to train apprentices now. Does she agree Skills England can be part of this future?

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Does my right hon. Friend agree that a huge amount of the construction industry is made up of small employers who have been shut out by the apprenticeship levy approach, leading to a 50% reduction in SMEs offering apprenticeships? How will she increase the number of SME apprenticeships?

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In Stoke-on-Trent, 22% of young people are not in education or training. Can the Secretary of State set out how this Bill will help an organisation such as the Spark Group to tap into opportunities and spread their ability to help young people into well-paid jobs?

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I represent a coastal community that has been neglected for the past 14 years. My constituency's Bournemouth and Poole college is about to open a green energy construction campus in April, teaching solar, heat pump, and rainwater capture skills. Will my right hon. Friend join me in congratulating the college on this initiative?

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I visited South Thames college where I saw labs teaching the installation of heat pumps and other renewable technologies. The main challenge is finding staff to teach these classes and take on apprentices. What support will the Government give colleges for recruiting experienced individuals?

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The Secretary of State is speaking powerfully about Skills England. While I share her commitment, some believed that putting Skills England on a statutory footing as an independent body might have been better. Why has she taken this approach?

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How will Skills England support foundational manufacturing industries such as ceramics in Stoke-on-Trent?

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Does the shadow Secretary of State think that IfATE does not have many faults or should it carry on as is?

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How will the further education and skills sector break down barriers for young people?

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While acknowledging the importance of reforming skills delivery, the amendment seeks to decline a Second Reading due to concerns about Skills England's statutory independence and centralised decision-making. It also questions the abolition of the Institute for Apprenticeships and Technical Education without ensuring a legal replacement.

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The hon. Gentleman is making a powerful case for the independence of Skills England. He will know that Government Departments resist independence like most people resist disease, but his point is important because to get the kind of lateral action he describes in respect of the nuclear industry or other industries, it will be necessary for the body created to have a reach that Government Departments do not tend to have.

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The implication for standards development is also concerning. Where we have had employer-led trailblazer groups setting standards, the Secretary of State can now bypass employers entirely. In limited circumstances and for minor changes, that will have the benefit of speeding up the review process, which has been frustrating for employers. There are, however, no safeguards to prevent ministerial control becoming the default approach.

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I see that the hon. Gentleman has received the briefing from the Association of Employment and Learning Providers. He appears to be reading it virtually word for word; I do not know whether he contributed anything to the speech, but it has been very interesting to hear what he has said.

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The hon. Member and I share a county, and he will be aware that in a place such as mine, we have seen the decimation of level 2 and 3 apprenticeships. Does he not recognise that the biggest concern I hear from employers is that the current system is centralised and letting down working-class families in seats like mine? What they want is Skills England.

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I point out that I represent St Neots, which is not Cambridge, and many employers have spoken to me about their concerns about Skills England and the lack of clarity on its future.

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The Labour MP criticises the previous government’s performance on apprenticeship starts, noting a 16% drop between 2018-19 and 2023-24. He questions whether the current system can be considered unblemished.

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The Labour MP supports the bill's intent to streamline the system and address structural inconsistencies in skills training. He highlights Keltruck Limited’s success in Smethwick, which benefits from a high number of apprenticeships.

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Welcomed the Bill’s commitment to broadening educational opportunities, highlighting the importance of apprenticeships in rural communities like South East Cornwall. She praised local businesses such as Wildanet for their investment in training schemes and emphasised the need to support young people through education.

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Discussed the purpose of learning, emphasising that apprenticeships embody the goal of delivering personal fulfilment and fulfilling a social purpose by providing for economic needs.

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Does the right hon. Member acknowledge the important role that universities play in supporting technical advanced education? Does he also agree that, under the stewardship of the last Government, we saw a decimation of specialist careers guidance in schools?

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Is he advocating that trade unions should be involved in the new system?

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As I say, I am not an unbridled advocate of the Institute for Apprenticeships and Technical Education, which the Bill abolishes. I did not set it up during my stewardship. As I have already described, I would have preferred a different, guild-based model.

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Conservative Members are making quite the noise about IfATE’s independence, but I remind the House that this is a precedented move. The Conservative Government established the Standards and Testing Agency, which is currently the Executive agency and was formerly a non-departmental body.

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I am pleased to see that, with this Bill, the Government are taking action to ensure we get the right framework in place to shape our apprenticeship system.

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The Bill underpins the Government’s aim for apprenticeships not to be just for 18-year-olds fresh out of college.

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The Bill is an important step towards transforming our education ecosystem to become more agile and responsive. Local colleges are ready to deliver technical and vocational skills needed for transformations in digital, clean energy, and public services. They welcome changes to reduce bureaucracy and want further reviews of apprenticeship standards and funding bands.

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It is an honour to follow a passionate speech about apprenticeships but it would be nice to have more Opposition Members in the Chamber for this important debate. The debate has been stuck on the function of a body, rather than the purpose we are trying to achieve.

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The Bill will allow us to harness the talents of our young people through ambitious skills reform, but apprenticeship starts crashed under the previous Government. The new growth and skills levy will enable employers to access a broader range of higher quality training offers.

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The Bill is about delivering the step change in skills we need if we are to rebuild our communities and country. In towns like Weston-super-Mare, technical education and apprenticeships are fundamental to enterprise, prosperity, and economic independence for young people.

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The current system has significant issues such as unspent apprenticeship levy funds, a decline in SME apprentice starts, and low completion rates. What specific measures are being taken to address these problems?

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I welcome the Bill, which folds IfATE into Skills England to enable that integrated approach to support our labour market and economy. Can the Minister set out how the Government will ensure that the voices of SMEs will be heard, so that we get an apprenticeship framework that works for all types of businesses?

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One of the best commitments in this Government’s manifesto was to link immigration and skills policy in an effort to tackle the UK’s reliance on international recruitment. What steps will be taken to ensure that the quality and relevance of qualifications is maintained under the new framework?

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It is vital that the benefits of growth and training are felt equally across our country. The Government’s plan for growth recognises this and plays to our strengths, making us the second most attractive country to invest in globally according to a recent PWC report.

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Young people are being let down by a skills and training system that does not work for them. The Bill establishes Skills England, which will break barriers that have left entire regions behind.

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The establishment of Skills England is the first step towards improving and promoting vocational pathways by increasing the number of apprenticeships available, improving completion rates, increasing financial support, and enhancing course flexibility.

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I am proud to be a Derby MP and to represent a city with incredible engineering, manufacturing and technological expertise and skills. We make things in Derby... Under the previous Government, a third of UK job vacancies were a result of skills shortages, and the uptake of level 4 and 5 technical training in England fell to historically low levels.

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My hon. Friend is eloquent in setting out the skills challenges of the Black Country. My constituency neighbours hers, and locally 40% of jobs need level 4 skills, but only 16% of people have those skills. That is the challenge we face locally. Does she agree that Skills England should be set up and based in an area of the country that desperately needs a skills upgrade, such as the Black Country?

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I warmly welcome the Bill. It clearly demonstrates the Government’s ambitious commitment to training and apprenticeships. I will concentrate on the role that Skills England will play in aligning apprenticeship opportunities with the needs of local economies.

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Why is the Government reversing the direction on policy regarding apprenticeship length and independence from government?

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In 2011 the last Government set up the Standards and Testing Agency, whose predecessor was a non-departmental public body that became an Executive agency, like IfATE. Why was it okay then but not now?

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How will this new system be directed by the Secretary of State or by Skills England? Will it be set out in guidance?

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