Education and Skills Bill

I completely endorse my noble friend’s remarks on the value of apprenticeships. This is why we have increased apprenticeship starts from 65,000 in 1997 to 180,000 last year, and are projecting the number of starts to grow to almost 210,000 by 2010-11. In 2007-08, we spent £624 million on apprenticeships, up from £532 million in 2002-03. That is a significant increase in funding. We project that the £624 million of 2007-08 will grow to £776 million in 2010-11—an increase of nearly 25 per cent. We are putting significant resources behind the overall expansion of apprenticeships. On the question of remuneration, apprentices aged 16 to 17, and those who are 18 and in the first year of their apprenticeship, have minimum weekly pay set at a level designed to ensure that they receive at least the same amount as those in full-time education or approved training who are attracting the package of EMA plus child benefit and child tax credits. This is the comparison that my noble friend was making. A recently published survey shows that, in 2007, the average net pay for apprentices was £170 per week. That is significantly more than the maximum package of support available for young people in full-time education or unwaged training, even if any reasonable wages from a part-time job are added in to the equation. However, we have asked the Low Pay Commission to review apprentice pay and the exemption from the national minimum wage. It has called for evidence on this issue and is due to report on its findings and make recommendations to Government by the end of February next year. I am sure that my noble friend will make representations himself to the Low Pay Commission, and we shall certainly draw the commission’s attention to this debate in your Lordships’ House. We would not wish to pre-empt the commission’s report by legislating in advance of that evidence and analysis.