My Lords, apprenticeship quality is an issue that we are revisiting, as it was debated in Grand Committee. The argument was made very strongly by my noble friend Lord Stevenson, the noble Baroness, Lady Sharp, and the noble Lord, Lord Stoneham, and the provisions in Clauses 18 and 19, which set a target for the public sector, remain a matter of significant
interest for us. We accept the argument that the Government have made—that, if they are asking this of business, as a major employer the public sector should not be exempt. We further accept their argument that the public sector should not just be another employer but that it should be exemplary, leading the way in ensuring that it demonstrates the strongest possible adherence to the policy and implements it in a way to set a gold standard. We agree and, in keeping with that objective, this amendment seeks to ensure that the gold standard and the Government’s objective are properly reflected in the legislation.
Given the announcements today, I point out that local authorities should give careful attention to how they implement this commitment. It is not just the problem of having to deliver the level of restructuring required by the Chancellor, which might make it difficult in some areas to develop effective schemes, especially in places undergoing restructuring where management change might be present. Some schemes run by local authorities support those who cannot access apprenticeships due to weak literacy and other skills or learning difficulties. It would be tragic if such schemes that can never be delivered by business are cut as a result of the direct transfer of resource management away from these areas. I would be grateful if the Minister could say how existing schemes that provide skills and capabilities for people to access apprenticeships will be addressed in the implementation.
Amendment 55 amends the apprenticeship target so that it is no longer simply a numerical target but a target for high-quality and high-level skilled apprenticeships. The amendment suggests that there might be more return if the restrictions on statutory apprenticeships could focus on the higher-quality and the higher-skilled elements. In other words, they should be at levels 4 and 5 in the training schemes and not at levels 1 and 2.
Ofsted’s report on the state of apprenticeships, Apprenticeships: Developing Skills for Future Prosperity, which business agrees with, highlighted the value of quality apprenticeships as the route to the high-level skills that business and the economy need. The message in that report is the message that we are trying to drive home today—that there is a distinction to be made between the level of an apprenticeship and the quality of that apprenticeship. The report found that one-third of apprenticeships did not provide sufficient high-quality training to stretch apprentices and improve their capabilities. During inspections, apprentices were seen engaging in activities which had become so common as to be a deplorable cliché, such as making coffee, serving sandwiches or cleaning floors. These were accredited placements. That is exactly the kind of scenario that we predict will occur with the Government’s new target unless the quality threshold is strongly applied.
The noble Lord, Lord O’Neill, and the Minister, Anna Soubry, were challenged by the Business, Innovation and Skills Select Committee in another place earlier this month on how their work would ensure that apprenticeship starts counting towards the target were of sufficient high quality. Both said that focusing on the levels was not necessary; we do not agree.
The committee from all sides challenged the duo as to why the Government had not set a target for high-level apprenticeships at level 4 and above. One of the committee members encapsulated the issue in suggesting that all evidence presented to the committee in its inquiry had been that the emphasis should be,
“on quality not quantity—the only target you have is for quantity not quality”.
The Minister responded by saying that apprenticeships should be,
“quality-assured by virtue of the Enterprise Bill”.
However, I cannot really see anything in the Bill that assures such quality. I would be very grateful if the Minister could provide some clarity regarding the comments made in that evidence session, explaining how quality is assured in the Enterprise Bill for apprenticeships in the public sector. If it is not present in the Bill, I would be very encouraged if the Minister would confirm that we have ensured that Anna Soubry’s commitment is properly reflected in our amendment.
In Committee, the Minister mentioned a few steps that the Government have taken to improve the quality of apprenticeships, and I would like some clarity on those. One measure that she cited was:
“Short-duration apprenticeships have been removed from the system; apprenticeships must … last a minimum of 12 months”.
How does extending the length of the apprenticeship improve the quality? It could offer employers the opportunity to abuse the system further by offering low- quality apprenticeships with little learning opportunities for young people over a longer period of time. Was that the scenario addressed in the Government’s consultation on these provisions, and are there any safeguards in place to prevent that happening?
The Minister said that the Government were,
“introducing more rigorous testing and grading at the end of the apprenticeship to ensure that apprentices are reaching full occupational competence”.—[Official Report, 2/11/15; col. GC 283-4.]
Do the Government have any intention of piloting the programme in a few public authorities? Perhaps the test would help to estimate whether the apprenticeships on offer were successful or not.
The main argument that we heard in relation to the proposals in the amendment was that the Government are wary of the potential bureaucracy in the new arrangements and that there must be a balance. I searched for a copy of “Yes Minister” to help me to understand what that meant. Judging by the importance that the Government have placed on apprenticeships, I believe that they anticipated some level of bureaucracy in the delivery of this policy and that they have thought about what the border and membrane is between an acceptable and unacceptable level. There are many economic and social gains to be made by promoting apprenticeships, but that can be done only if they are of a quality by which young people can learn and become skilled workers. By prioritising the quality of apprenticeships, the contributions made to the public sector would far outweigh any of the anticipated bureaucracy. Indeed, productivity improvements in the private sector have been very encouraging, and there is no reason why such improvements could not be reflected in the public sector.
That is why we have tabled this amendment and have such a strong feeling on this issue. Apprenticeships represent barrier-breaking entry into industries that young people would otherwise not have a chance to work in. By undertaking high-quality and high-skill apprenticeships, they will be spending time in worthwhile employment, not wasting a year stacking shelves. I am sure the Minister will agree that that is not what the Government intend but, by simply imposing a target with few checks on quality, that is what is going to happen. For us, delivering quality is an essential part of the Government leading and establishing a gold standard. I beg to move.