“(1) Within one year of the passing of this Act, the Secretary of State must publish a report on the impact of this Act on T-Levels.

(2) The report under subsection (1) must include—

(a) the involvement of Skills England in the administration of T Levels, including the curriculum and assessment methods;

(b) an assessment of the independence of the accreditation of T-Levels, specifically whether there has been any involvement of the Secretary of State in this process; and

(c) an assessment of the extent to which T-Levels are meeting local demand for skills.

(3) The report under subsection (1) must be laid before both Houses of Parliament.”—

Brought up, and read the First time.

I beg to move, That the clause be read a Second time.

With this it will be convenient to discuss new clause 5—Report on the impact on Higher Education—

“(1) Within one year of the passing of this Act, the Secretary of State must publish a report on the impact of this Act on the higher education sector in England.

(2) The report under subsection (1) must be laid before both Houses of Parliament.”

New clause 4 would require a report on the impact of the Bill on T-levels. We talked before about the measure in clause 8 to bring Ofqual into the regulation of technical qualifications, and the implication that that is focused on T-levels. I was going to say this anyway, but let me pause for a moment on that point about clause 8 and Ofqual—I have not seen from the Clerks to this Committee the letter that the Minister just referred to. I do not know whether you are about to guide us, Ms Furniss, about whether that letter has been made available to Committee members, but I may simply have missed it.

We do not think we have seen a letter yet.

The Minister said that the letter has been sent to the Chair, but the Chair says that she has not seen it.

The letter addressing the issues that the hon. Member for Harborough, Oadby and Wigston and the right hon. Member for East Hampshire have raised has been sent to Sir Christopher, your co-Chair, Ms Furniss, and I am sure it will be shared in due course.

It is a shame, as this is the last day of this Bill Committee. I do not know whether the letter could be produced before we finish today, but otherwise, those questions will effectively go unanswered because they have not made their way to Committee members. But this was a minor point about the interaction with clause 8 and the decision to bring Ofqual in potentially for T-levels, so I will turn squarely to T-levels now.

I was encouraged by the positive words about T-levels in the curriculum review, but it is very difficult to get a new qualification going, never mind a whole new system, which is what T-levels were intended to be in their initiation by Lord Sainsbury. After the big long debate on BTecs, Ministers in the end decided to add T-levels into the existing alphabet soup of qualifications rather than use them to replace and rationalise that system, which was the original goal of Lord Sainsbury’s project. I should declare an interest in so far as I worked on T-levels back when they were still known as Sainsbury routes. None the less it would still, despite the Ministers’ decision, be possible for them to grow and become a leading part of the system, but that would require a huge push from Ministers. It is difficult to get a new qualification going, never mind a whole new system, and it is much more likely that in the absence of a big push from Ministers that they will stagnate as an interesting, well-regarded and quality niche, but ultimately a small part of the system, which was really not what was intended.

For several years, the DFE has provided a 10% uplift to the funding rates for T-levels as a new qualification, but a couple of weeks ago the Government implied that they would stop doing that this year. They have not made a decision, and providers are now desperate for certainty on that issue. I ask the Minister directly to respond to this: will the 10% uplift be continued or not after this academic year? The sector is now making decisions about this, and urgently needs certainty. The Minister keeps saying that she wants to move fast: the providers, and I am asking her to move fast to give them the certainty on what the funding rate will be, and whether the 10% will continue, because if not, my strong sense is that many providers will conclude that it is not really a priority any more, and not worth the investment of time and resources, which are significant to get these things going. I hope the Minister can address that point, and I give her a bit of notice: will the 10% continue or not—yes or no?

The Government are notionally in a one-year “pause” on the move to replace BTecs, which should give the Government time at least to make up their mind on how they see the future of T-levels. If they want to preserve the option to be ambitious for T-levels, however, they need to keep supporting them now. Those of us who worked on their development and who still support them are not blind to the challenges. Although drop-out rates fell sharply in the last year, they are still high. Even though T-levels are meant to be a demanding qualification, we want young people to get to the end of them.

Although the huge element of work experience is a key advantage and attraction of T-levels to learners, it is expensive and hard to deliver, particularly in a way that is slick and gives clarity to students up front, rather than gives stress. I do not say this every day, but Gordon Brown was right to press the Government to be more ambitious here—

Hear, hear.

We do not always cheer Gordon Brown on the Conservative Benches, but on that occasion he was absolutely right. Lord Sainsbury, too, is right to want to be ambitious. A huge amount of thought went into T-levels over a long period and on a cross-party basis. They have great potential to rationalise the system and to do what politicians have said for decades they want to do, which is to create a prestigious and clear alternative to the academic A-level route. At the moment, however, T-levels are still a fledgling qualification. They have great potential, but they are in need of a lot of care and attention.

My worry is that, amid all the commotion and disruption caused by the transfer of IfATE staff into the Department, that attention will be lost at the critical moment in the development of T-levels. The looming withdrawal of the 10% compounds my worries that attention will be lost at this critical moment. Our new clause therefore aims to ensure that the spotlight stays on T-levels, so that they do not get lost in all the reorganisation, that we preserve at least the option for them to become a widespread and leading qualification on the technical side, and that we achieve Lord Sainsbury’s vision of a more prestigious and higher-funded set of qualifications, more intelligible to employers, and with simpler routes and much more work experience. There is so much potential in T-levels that it would be a tragedy if they got lost in this reorganisation. That is why we are moving the new clause: to ensure that we continue to closely monitor everything going on with them.

New clause 5 concerns higher education. The Government talk about Skills England bringing everything together, but as my right hon. Friend the Member for East Hampshire has pointed out, we can never quite do that—there are always other bodies and overlaps. In this case, for starters, we will have two continuing levy training bodies, the Construction Industry Training Board, or CITB, and the Engineering Industry Training Board, or EITB, as well as the many other bodies that my right hon. Friend mentioned—I am thinking about those involved in skills and supply, which includes the Migration Advisory Committee, as well as the workforce strategies of other Departments, such as the NHS long-term workforce plan, which spans technical education, higher education and apprenticeships.

The other big case in point, of course, is the overlap between the work of IfATE and the future Skills England, and the regulators of higher education. In our previous sitting, we talked about the welcome growth of higher apprenticeships and the Government’s imminent plans to axe them, which we are concerned about, particularly after so much work has gone into them. That is why new clause 5 would require a report on the impact of the Bill on higher education.

The Bill is about apprenticeships and technical education rather than higher education, but the two have become increasingly overlapping. The number of people on higher apprenticeships went up from a little over 3,000 in 2010 to 273,000 last year—a huge increase. For some universities, providing degree apprenticeships has become a very important part of their work.

I will not recapitulate the things I talked about in the previous sitting, but level 7 apprenticeships are a powerful tool to enable people to earn while they learn, and to allow employers the freedom to shape higher education to their needs. Employers are choosing—with their own money—to invest in level 7 skills. It would be false to assume that a reduction in funding here would lead to an increase in the lower levels. Contrary to the claims that are sometimes made, level 7 apprenticeships do not cater primarily to major corporations. Less than 10% of level 7 apprentices are in FTSE 350 companies. Level 7 apprenticeships in health and care are a hugely important part of the NHS workforce pipeline. In a previous sitting, I talked about how axing those apprenticeships would blow a hole in the NHS plan over the long term, equivalent to 11,000 senior nursing posts, but that would start right now, as there were 2,040 level 7 apprenticeships starts in health, public services and care in 2023-24.

The creation of the apprenticeship levy had two purposes: to stop employers that do the right thing and invest in their people from being exploited by employers that do not, and instead just wait to poach their staff once they are trained; and to make sure that employers drove and owned the system. Now that they do drive and own the system, we see that their revealed preference is to spend their money on higher and degree apprenticeships.

The growth has been spectacular. Between 2018-19 and 2023-24, higher and degree apprenticeship starts grew by 63%, while the growth in level 7 apprenticeship starts was even higher, at 105%. That growth was even faster in some critical sectors. Level 7 apprenticeships in health, public services and care grew 716%. Significant extensions occurred in construction, planning and environment, where they went up by more than 700%, and in digital technology, where they went up nearly 600%. Both are key skills areas for our economy and both are supposed to be key parts of the Government’s industrial strategy.

The Bill changes the balance between the voices of employers and the voices of Ministers. Degree and level 7 apprenticeships are a good example of how ministerial priorities can be very different from employer priorities. I will not repeat the criticisms from lots of employers that I read out in a previous sitting—I quoted the Institute of Chartered Accountants, the Chartered Management Institute, several solicitors’ firms and those providing higher apprenticeships into local government and the NHS. In this sitting, I want to look at the other side of the ledger and consider the impact on universities, which is the purpose of new clause 5.

I have said before that we would never accept the lack of independence for the academic side that the Bill proposes for technical education. We would not have Ministers setting the curriculums, specifications and exams for GCSEs and then taking on the role of Ofqual and marking their own homework. We would not allow the same for higher education either, in general, but there is a growing overlap between IfATE, which is to be centralised into the DFE, and higher education, which has all kinds of implications.

The context for higher education is a challenging one. The Government have increased fees, but wiped out the gains from that by increasing national insurance, meaning a real-terms cut in resources for universities this year. With widespread industrial action in the sector looming, the Government have also chosen this moment to dramatically lower the threshold for strike action with the Employment Rights Bill. To now axe level 7 apprenticeships, and potentially also level 6, would be very destabilising for universities and could whack institutions that have tried to do the right thing for their community and for those who do not traditionally go to university.

Sixty-six universities now deliver level 7 apprenticeship standards, and some have got really into it. Prestigious institutions such as Cranfield, a postgrad-only institution with deep industry links, will be hugely exposed if the Government wield the axe in the way they are planning—I suspect that level 7 accounts for a very large part of Cranfield’s UK students. Likewise, York St John University has something in the order of 100 level 7 apprenticeships. Other institutions that are heavily involved include the Open University, Manchester Metropolitan and the University of West London. Given the challenging context for higher education, which is partly a result of Ministers’ own decisions, axing these apprenticeships, which have become quite a big part of their work, could be very damaging.

Given that their action on fees, national insurance and strike action has been a connoisseur-level example of un-joined-up Government, I am not reassured that Ministers have thought through the implications of axing level 7 for higher education.

It is my understanding that the Bill, as unamended, does not preclude the continuation of level 6 and 7 degree apprenticeships. I speak as somebody who worked in the higher education sector before coming here and sees the value of them. It is my understanding that nothing in the Bill rules them out at this point.

The hon. Lady is completely correct; this is not the Bill that abolishes level 7 apprenticeships. However, according to Ministers, the Government are planning to abolish those apprenticeships, which I think is a shame. I think I detected a note of regret in the hon. Lady’s intervention, which I certainly share.

New clause 5 would require a report on the impact of the Bill and the actions of Ministers, through their centralisation of power, on higher education, given that there is now this overlap. Someone might think, “They’re looking at a Bill on technical education and apprenticeships. What’s that got to do with universities?” The truth is that it has quite a lot to do with universities, for the reasons that I have just set out. I worry that the Bill’s implications have not been well thought through.

Can the Minister assure us that she has thought this through? For example, can she tell us how much income universities would lose if the level 7 levy funding really is axed, as Ministers plan to do? How much would universities lose if level 6 levy funding is also axed, an option that Ministers are keeping open? I would love answers from the Minister on those questions today. If she does not feel able to give them, I would be very happy for her to write to me. We have tabled new clause 5 to ensure transparency, so that it is at the back of Minister’s minds that, as they take greater control of everything to do with technical education and apprenticeships, they are not just thinking about those things in their own right, although they are very important.

In encouraging the Minister to write to him about the effect of the level 6 and level 7 restrictions, will my hon. Friend also ask her to comment on the potential effect of those restrictions on schools—the sector for which the DFE is responsible—and in particular on the postgraduate teaching apprenticeship?

My right hon. Friend is completely correct. He will remember from the last sitting that I tried to lay out the incredibly damaging direct effect on our public services that the decision to axe level 7 apprenticeships would have. The most notable effect is on the NHS, where the doctor apprenticeship has already been axed—that is tragic and has left various people who were on it stranded. It will have a particular effect on advanced nursing, which is a critical part of the NHS long-term workforce plan, as well as management throughout the public services, including local government and the town planning skills that the Government claim are desperately needed.

Exactly as my right hon. Friend said, the implications are severe right across the public services, including teaching, where the DFE is the biggest user of this apprenticeship and the biggest beneficiary in the end, which is a terrible irony. That is why we bring have tabled new clause 5, so that we at least have transparency about the effects of Ministers’ actions, and we have it in the back of Ministers’ minds that they will have to explain their decisions, including not just their direct effect on technical education and apprenticeship funding, but their effects on the wider education system.

We have located the missing letter, which Members should all now have on their desks. I will suspend the sitting for five minutes while we try to digest it. If the shadow Minister, or anyone else, wants to come back in with something, they are free to do so.

Sitting suspended.

On resuming—

I am told by the Clerks that this is an unusual situation. I have to say at the moment that the letter refers to clauses that have previously been debated, so I will not be allowing a debate about it. That is for your information, which you could use on Report, if you chose, to raise the matter again. I do not want you not to have the opportunity to probe further. I call the Minister to respond.

I thank the hon. Member for Harborough, Oadby and Wigston for tabling new clauses 4 and 5 and his discussion of them. New clause 4 would impose a duty on the Secretary of State to publish a report within one year of Royal Assent, setting out the impact of the Act on T-levels. Specifically, the report would have to include information on the administration and accreditation of T-levels, and whether T-levels were meeting local demand in schools.

T-levels are indeed an excellent technical qualification for students after GCSEs; I concur with the hon. Member on that. On his question about whether the 10% uplift will be continued after this academic year, we will confirm that position in due course, and I will write to him on that point.

Thousands of T-level students have already gone on to jobs, apprenticeships and further study related to the subjects of their T-levels, and we continue to support the qualification’s growth and uptake. Indeed, three new T-levels were launched in September 2024. A new T-level in marketing will be available from September, and we will continue to support providers to deliver and upscale their T-level offers. T-levels are designed by employers based on occupational standards, and Skills England will continue the work that IfATE has been doing to set and maintain the high-quality occupational standards on which T-levels are built. Curriculum content and assessment methods are set by awarding organisations in line with these standards.

The Bill already contains a duty for the Secretary to State to publish a report setting out which of the functions being transferred are to be undertaken by Skills England and the impact on technical education and apprenticeships. The report will provide information on T-levels, given that they are an important form of technical education qualification. Ofqual is an independent regulator for technical qualifications, and is the only body with the power to accredit the qualifications. Through the Bill, we are reintroducing the potential for Ofqual to apply its accreditation power to technical qualifications, when the Secretary of State considers it to be appropriate. That will reopen the door so that the full range of regulatory options is available for technical education qualifications. That will help to ensure their quality and enhance confidence in them.

Fortuitously, Ms Furniss, we do now have an opportunity to ask about something in the letter, which the Minister is going through now. I am struggling a bit with this thing about, “If the Secretary of State deems it appropriate.” That is not because I question that judgment, but because I do not really understand what the intent is. What does the Minister believe will be the practical change that comes about as a result? For example, is it about more new qualifications coming in? Is it changing the balance between T-levels and other TVET qualifications?

My understanding is that there needs to be the option for Ofqual to decide whether to inspect certain technical qualifications and whether they should be accredited. That option needs to be available. At present, it has not been happening since 2002. We continue to support the growth and uptake of T-levels, in line with identifying skill needs in the economy. Skills England will gather and publish information about local skill needs. Skills England will also assess how far available provision, including T-levels, is meeting those needs.

I turn to new clause 5, which would impose a duty on the Secretary of State to publish, within one year of Royal Assent, a report on the impact of the Act on the higher education sector in England. Higher education providers play an essential role in meeting the nation’s skill needs and supporting the growth mission. Many of the jobs and sectors that drive economic growth rely on the skills delivered by higher education providers. It is therefore vital that Skills England works closely with and supports the higher education sector as it delivers each of its three key functions. Higher education providers have a deep understanding of local skill needs and growth opportunities. That provides a rich resource for Skills England to draw on, and it builds its authoritative assessment of skills needs in the economy.

I am hugely encouraged by the Minister’s recognition of the importance of these higher degree-level apprenticeships to the higher education sector. Will she undertake to write to me setting out what the impact on universities of ending level 7 apprenticeships would be? I mean primarily the financial impact, but also the impact on numbers of students. The information available in the public domain is somewhat patchy, so it would be incredibly helpful to have that at either the point the Government make a decision on level 7 apprenticeships or—even better—before. Will she write to me, so that we are at least on the same page about what the impact on universities of changes to level 7 would be?

I think the shadow Minister is well aware, having asked similar questions many times, that more information will be coming out from the Government.

Staying on level 7 apprenticeships, we are reforming apprenticeships, tilting the system towards young people in most need of developing skills and getting a foot on the career ladder. We are cutting through the red tape by removing the 12-month requirement, to support shorter-duration apprenticeships in key sectors. That flexibility will support apprentices in areas such as the creative industries, where training does not need to take 12 months and is currently putting barriers in the way of getting apprentices into key jobs. The Prime Minister also announced the development of new foundation apprenticeships, which will align to entry-level roles in key sectors and help to bridge the gap between employees, skills, staffing shortages and young people ready to begin their careers.

Higher education providers are an integral part of local and regional skill systems. They work closely with mayoral strategic authorities, employer representative bodies and others, so they will be important partners for Skills England as it works to ensure that regional skills needs are met and that national skills priorities are supported up and down the country.

As I have made clear, there are already plans to report on the work of Skills England. The report that the Secretary of State will be required to publish after six months with already cover higher education: it will be required to cover the execution of functions by Skills England that relate to level 4 to 7 technical education and apprenticeship delivery in higher education settings. Where relevant, the role of higher education in relation to Skills England’s functions will also form part of Skills England’s annual regular reporting on the skill needs in the economy.

Skills England’s published analysis and insights on skills needs in our economy will also include a focus on the extent to which provision is meeting higher-level skill needs. That will help to inform decisions on higher education policy and delivery. A separate one-off report on Skill England’s impact on higher education would therefore be a duplication; it would only repeat existing reporting arrangements and is therefore not required.

I was a bit disappointed that the Minister would not undertake to write or set out the financial impact on universities of ending level 7 apprenticeships. When I speak to people in higher education, they are extremely worried about that. For some institutions, it will be a damaging blow.

Numerous people, including those I have already quoted, have pointed out that although the Government hope that all this money will flow straight from level 7 to level 2 and 3 apprenticeships, that is very unlikely to happen; it is more likely that it will flow to level 6. It is clear from the Minister’s comments that they are keeping that in crosshairs too, and that they might axe it at some point. That would compound the damage in higher education and our skills system more broadly. I was disappointed that the Government do not want to set out that detail, but I am not surprised.

I was also disappointed that the Minister could not give us any clarity on the 10% uplift for T-levels. People in the sector who are delivering these great qualifications—the Government agree that they are great qualifications—are crying out for clarity. They are making decisions right now. The Government keep talking about how they want to move fast—“We are very dynamic and ambitious”—yet on the things on which the sector wants them to move fast, they are not moving at the pace that people on the frontline would like. That is a great shame.

Likewise, we see with the funding decisions on national insurance that technical education is once again being treated as a bit second class. Schools get a funding decision at least slightly before the start of the financial year—during which the national insurance increase will hit them—whereas those in technical education will have to wait a long way into the academic year, when they will already be paying out significant sums in increased national insurance, to find out whether there will be compensation and how much will be covered. As schools are discovering, that is often a bitter experience, because they find that they have been short-changed by the Treasury.

We will not press the new clause to a vote. We have had a good debate in Committee, and we have set out our concerns, which are pretty serious. I hope that, even if the Government do not change their mind today, we will at least have given Ministers cause to think about how Skills England will operate. If they do not listen to us, I hope that they will at least listen to some of the criticisms, which we have been reading out, from stakeholders in industry and education about the decisions that they are about to make. I hope that they will act on those concerns. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Bill, as amended, to be reported.

Committee rose.

IATEB06 University of Winchester

IATEB07 Skills Federation

IATEB08 ISC2

IATEB09 QA

IATEB10 University of Warwick