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Skills and Post-16 Education Bill [Lords] - Sitting 3

02 December 2021

Proposing MP
Toby Perkins Lab
Chesterfield
Type
Public Bill Committee

At a Glance

Issue Summary

The amendment seeks to ensure that local skills improvement plans (LSIPs) give due regard to the decarbonisation strategy and require employer representative bodies to publish conflicts of interest policies. Toby Perkins discusses the need for greater transparency and clarity in the designation process of employer representative bodies. Toby Perkins discusses the importance of amendment 37 to Clause 2 and supports new clause 3 for annual reporting on employer representative bodies. Toby Perkins discusses the importance of annual reporting to Parliament for accountability of employer representative bodies (ERBs) under the Skills and Post-16 Education Bill. Toby Perkins discusses concerns over the Secretary of State's powers to designate employer representative bodies (ERBs) under the Skills and Post-16 Education Bill. Toby Perkins discusses an amendment related to the review of the apprenticeship levy and ensuring sufficient apprenticeships at level 3 and below. Toby Perkins discusses the decline in apprenticeship opportunities and its impact on young people under the apprenticeship levy. Toby Perkins discusses the importance of addressing youth unemployment through apprenticeships, criticizing the current funding arrangements for small organizations and the decline in apprenticeship numbers. The speaker discusses concerns about the apprenticeship levy and its impact on small businesses. The statement addresses issues related to the shortage of construction workers and the need for reforming apprenticeship programs. The statement addresses the success and challenges of apprenticeships under the current government, emphasizing increased funding and quality improvements despite criticisms. Toby Perkins addresses the Labour party's position on apprenticeships, emphasizing their importance for social mobility and criticizing the government's lack of intention to reform the apprenticeship levy.

Action Requested

The amendment proposes conditions for employer representative bodies, including a requirement to publish conflicts of interest policies and to consider national strategies such as the Decarbonisation Strategy in their plans. It also suggests aligning skills policy with national strategies across departments to avoid siloed approaches.

Key Facts

  • The amendment addresses local skills improvement plans (LSIPs).
  • It requires employer representative bodies to publish conflicts of interest policies.
  • The Bill aims to meet the UK's net zero emissions target by 2050.
  • The amendment seeks to specify certain conditions for the designation of employer representative bodies.
  • The Committee voted on the amendment, with 6 Ayes and 8 Noes.
  • New clause 3 proposes annual reports on the performance of employer representative bodies, including their role, accountability, cost, number, and impact on local skills improvement plans.
  • Amendment 37 was voted against by the Committee.
  • New clause 3 requires the Secretary of State to publish an annual report on employer representative bodies.
  • Employer representative bodies set out plans that local providers must respond to, but do not control budgets directly.
  • Toby Perkins argues for new clause 3 which aims to require annual reports to Parliament.
  • The proposal includes a statement from the Secretary of State alongside the annual report.
  • MPs would have a designated time in their parliamentary year to ask questions about ERBs.
  • Toby Perkins represents Chesterfield constituency.
  • The Greater Manchester Combined Authority is mentioned as having a strong sense of local priorities.
  • Clause 3 allows the Secretary of State to remove ERB designation with written reasons provided.
  • Amendments 11 to 17 were made to clarify which providers will be subject to duties related to local skills improvement plans.
  • The amendment would require the Institute to review the apprenticeship levy.
  • Perkins highlights the importance of apprenticeships as a vocational opportunity.
  • There is a lack of apprenticeship opportunities, particularly at levels 2 and 3.
  • Apprenticeship levy has led to a 35% reduction in apprenticeships from 2016-17 to 2019-20.
  • Number of apprenticeships for under-19s fell by 38%, from 122,800 in 2016-17 to 76,300 in 2019-20.
  • Small businesses with less than 50 employees saw a 20% reduction in apprenticeship participation from 2016 to 2019.
  • Chartered Institute of Personnel and Development described the levy as having 'failed on every measure'.
  • Construction Industry Training Board estimates need for 217,000 new entrants by 2025 to prevent growth slowdown.
  • Apprenticeship starts have fallen from 494,000 in 2016 to 322,000.
  • £250 million was returned to the Treasury in 2020-21 and £330 million in 2019-20 from the apprenticeship levy.
  • Amendment 32 seeks a review of the operation of the apprenticeship levy.
  • The apprenticeship levy affects 2% of all businesses.
  • £2 billion of apprenticeship levy funding was sent back to the Treasury unspent last year.
  • Small businesses have been excluded from apprenticeship opportunities since 2015.
  • There are 217,000 too few construction workers.
  • The government's programme is not adequately addressing the needs of SMEs and sectors like care that require a pipeline of apprenticeships.
  • A review by IATE is proposed to address issues with the current operation of the levy.
  • The Chancellor committed £2.7 billion annually by the end of the spending review period for apprenticeships.
  • In 2020 and 2021, level 2 and level 3 apprenticeships accounted for 69% of all starts.
  • More than 80% of 16 to 18-year-olds were participating in education or an apprenticeship at the end of 2020.
  • Independent organisations such as CIPD have described the apprenticeship levy as having failed on every measure.
  • The Government will not increase funding towards apprenticeships to reach the amount contributed in 2015 by 2025.
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