Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [HL]

Third Reading

Motion

Moved by

That the Bill do now pass.

My Lords, noble Lords will be aware that this is National Apprenticeship Week. There is much to celebrate and much to build on. It is therefore fitting that this Bill leaves this House this week. It paves the way for an ambitious new body in the skills landscape, Skills England, to build an apprenticeship and training offer that is fit for the future.

The Bill has benefited significantly from the scrutiny of this House, and I thank all who engaged with and supported it. I am particularly grateful to Peers from across the House who shared their insight into the skills system and underscored the importance of skills to growth and opportunity. I thank my noble friend Lord Blunkett, my first ministerial boss, for his advice and the wealth of experience that he brings to this House. I thank the noble Baroness, Lady McGregor-Smith, for her contributions to debate, but more importantly, for her invaluable work as the chair of IfATE in preparing for the smooth transition of its work and people into Skills England. I thank the Constitution Committee and the Delegated Powers and Regulatory Reform Committee.

The Government have a strong democratic mandate for reforming the skills system and establishing Skills England. It is heartening that, while we might not have agreed on everything, there is deep support for Skills England and its vital work from across the House, and I am grateful to noble Lords for their engagement in helping us to get the details right. I appreciated the considered amendments from the noble Baroness, Lady Barran, and the noble Lords, Lord Storey, Lord Ravensdale and Lord Addington, and our engagement with these Lords, as well as with the noble Baronesses, Lady Wolf and Lady Garden, and the noble Lords, Lord Aberdare and Lord Hampton. I am pleased that this House has recognised that the Bill is a crucial step towards a skills system fit for the future that delivers for our growth and opportunity missions.

As noble Lords are only too aware, significant skills gaps limit business growth and individual opportunity. Skills England must tackle these gaps and develop the skills we need for our future economy too. To do this, it will need to work with industry, employers and other key partners across the economy. I am delighted that the leadership of Skills England has been confirmed today, with Phil Smith appointed as chair alongside Sir David Bell as vice-chair. As the former CEO and chair of Cisco, Phil Smith will ensure that Skills England benefits from his experience and leadership in industry, particularly within a sector—digital and technology—identified as a priority for the Government’s industrial strategy.

Appointing this team shows how serious we are about the full and rapid establishment of Skills England. It has been operating in shadow form since July last year, and preparations for full transition are well advanced. I must be clear that delay, which this House considered on Report, would create additional uncertainty for employers, learners and IfATE staff, undermining the ongoing preparation for their transfer. Crucially, a delay to the full formation of Skills England would limit progress in tackling skills gaps to drive growth and promote opportunity; this is my prime concern.

My Lords, it is appropriate that during National Apprenticeship Week we are coming to the end of the first part of this Bill. It was one of those few Bills where it was a pleasure and a joy to be involved. Everybody wants the same thing—we have a few little differences but we all work together. I am particularly grateful to the Minister, who gave of her time enormously, which is much appreciated. Colleagues right across the House have all worked together in the interests of young people and the skills agenda.

On this side, I particularly thank my small but perfectly well-formed education team of my noble friends Lord Addington and Lady Garden, and Adam Bull in our Whips’ Office, who did incredible work. I do not particularly know the Bill team, but I am sure it did fantastic work. I thank everybody. We will come back to this, but I think the work that has been agreed will do a considerable amount to develop the whole skills agenda and the growth agenda in our country.

My Lords, I thank the Minister for her engagement throughout the passage of the Bill and her willingness to meet and discuss different aspects of the legislation. I am also grateful to all noble Lords who brought their expertise to our detailed deliberations and to those across the House who supported each other’s amendments in a truly collaborative way. My special thanks go to my noble friend Lord Effingham, who has given me great support throughout the passage of the Bill, and to Beatrice Hughes in our research team.

During the Bill’s passage we secured several important concessions from the Government, including a commitment to include wording that focuses on quality, value for money, efficiency and effectiveness in the framework document, mirroring the original IfATE legislation. We very much welcomed the amendments the Government brought forward on transparency and reporting.

Our concerns remain about the practical implementation of Skills England. We very much welcome the appointment of Phil Smith as chair of the agency and wish him every success. He clearly brings enormous experience and expertise to the board, but across the House we have flagged concerns about ensuring that the voice of employers remains central to the work of Skills England. I know the Minister has sought to reassure us on that point. We have also had very constructive conversations about the regional coherence of the proposed plans and, of course, the scale of the task that faces Skills England in co-ordinating work across Whitehall.

We very much hope that the Government will think hard about our amendment to delay the abolition of IfATE to give Skills England the time to set itself up for success. We also hope that the Bill will be accepted in its current form in the other place so that, in the nicest possible way, we do not see it again in your Lordships’ House.

My Lords, I thank the noble Lord, Lord Storey, and the noble Baroness, Lady Barran, for their responses. I certainly undertake to engage with the noble Baroness and others on concerns around delay. I am pleased that the Bill has the support of so many noble Lords.

As I said in my opening remarks, the Bill has hugely benefited from robust review and revision in this House, as have I. If there were an apprenticeship for being a Lords Minister, this would definitely have been a key element. I hope I have learned things that will help me as we come to the next Bill we will have the pleasure of taking through this House, which I suspect might take us slightly longer.

I hope that this Bill will have a swift passage through the House of Commons, and I thank noble Lords for their engagement.