Apprenticeships

Part of the debate – in the House of Commons at 11:57 am on 10 March 2016.

Alert me about debates like this

Photo of Gordon Marsden Gordon Marsden Shadow Minister (Business, Innovation and Skills), Shadow Minister (Education) 11:57, 10 March 2016

I thank the Minister for limited advance sight of the statement. I suppose we should all be grateful, after the turmoil of yesterday, that it did not just turn up in manuscript.

What has turned up—if I can put it this way—is a dance of the seven veils. The Minister’s statement is simply a rehash of much of what was already said in the “English Apprenticeships” document. That is what concerns the sector: fine words butter no parsnips. The procurement rules he mentions are a pale shadow of what Labour proposed in its 2010 manifesto. Most crucially, there is no further clarity for universities, other areas and large employers about what their responsibilities will be. They want to know whether the levy will be extra money or a substitute for Government funding. Will it be extra resources or simply an Osborne payroll tax?

Will the Minister confirm how much he expects the levy to raise, and whether it will be more or less than the £1 billion he said he hoped to add to spending on apprenticeships in England? The Department was supposed to respond to the consultation on the targets for apprenticeships in public sector bodies by 4 March. Has it done so? When will he do so? There is confusion and concern among local government and others about who will be affected. Will he spell out in far greater detail how small and medium-sized enterprises will benefit from the process, and what does he have to say to the Chartered Institute of Taxation, which worries that smaller businesses will be unable to use their full £15,000 allowance?

The Minister has told us that he is evangelical about apprenticeships, but Members and the business sector want to know whether he will be too catholic in the definition. Perhaps he should avoid tarnishing his own brand by cheap politicking about the Labour Government, who set up both National Apprenticeship Week and the National Apprenticeship Service, and stop sounding like some old Soviet five-year planner on his tractor targets.

With concerns about the quality of these apprenticeships, will the Minister tell us who will supervise the operation of the apprenticeships levy? Will it be the Apprenticeships Delivery Board or the board of the institute for apprenticeships? What has he to say to the Chair of the Business, Innovation and Skills Committee, my hon. Friend Mr Wright, who, I am told, said this morning, “No one knows what the apprenticeship levy is going to look like. It’s coming in in a vacuum of darkness, and I am concerned that it’s just a numbers game.”

What will the Minister tell the Public Accounts Committee, which is so concerned about the direction of his Department that it has recalled the Secretary of State and the permanent secretary for a second grilling before Easter? Finally, perhaps he would like to tell us how he expects to deliver the 3 million target and implement the levy over a very short period with the number of Skills Funding Agency staffing down by 40% since 2011, more cuts to come and an accelerated decline in the number of people in the National Apprenticeship Service?