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

New Clause 1

Draft proposals for establishing new executive agency

“(1) Within six months of the passing of this Act, the Secretary of State must produce a report containing draft proposals for the establishment of a new executive agency, to be known as “Skills England”, responsible for the powers transferred under this Act.

(2) A copy of this Report must be laid before both Houses of Parliament.

(3) Within forty days of a Report under subsection (1) being laid, the Secretary of State must ensure resolutions are tabled, and moved, in both Houses of Parliament to approve the Government’s draft proposals.

(4) If the draft proposals are rejected by either House of Parliament, the Secretary of State must, within a period of six months, lay a report containing revised proposals before Parliament, and, within a period of forty days after laying the revised proposals, table a motion before each House of Parliament to approve the revised proposals.

(5) The Secretary of State may not establish an executive agency to carry out the functions transferred under this Act until it has secured, through a motion under subsection (3) or (4), the consent of both Houses of Parliament.

(6) If a motion under subsection (3) or (4) is approved by both Houses of Parliament, the Secretary of State must make an annual statement in each House of Parliament on the work of the agency.

(7) Within twelve months of a motion under subsection (3) or (4) being passed, the Secretary of State must lay before Parliament a report evaluating the effectiveness of the “Skills England” governance structure in delivering on the organisation's aims and objectives.”—(Ian Sollom.)

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

With this it will be convenient to discuss the following:

New clause 2—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 provision of degree apprenticeships in England.

(2) The Report must include an impact assessment of the removal of apprenticeship levy funding for degree apprenticeships.

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

New clause 3—Report on the impact on T levels—

“(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.”

New clause 4—Creation of Skills England—

“(1) A body corporate known as Skills England is established to carry out the functions transferred to the Secretary of State under this Act.

(2) At the end of a year after the passing of this Act, the Secretary of State must make regulations transferring to Skills England all the functions transferred from the Institute for Apprenticeships and Technical Education under this Act.

In considering the transfer of functions from the Institute for Apprenticeships and Technical Education, we face fundamental questions about the Government’s accountability and the future structure of our skills system. While modest in size, the Bill has far-reaching implications for that system, and for millions of learners and apprentices. It represents a significant centralising of power in the hands of the Secretary of State, without providing proper mechanisms for parliamentary oversight or accountability.

I have sat through many hours of debate on the Bill, during which Labour Members have extolled the virtues of Skills England, but let me emphasise again that the Bill does not actually establish that body, as many assumed that it would. It simply abolishes IfATE and transfers its functions to the Secretary of State, an approach that risks creating a governance vacuum in which there is no proper scrutiny or independent oversight. It is clear from the evidence received by the Bill Committee that I am not alone in having those concerns. The Association of Colleges, the Royal Society of Chemistry, the University of Winchester and the Institute of the Motor Industry all raised similar issues relating to governance and accountability in their written evidence submissions to the Committee.

As was noted by many on Second Reading, skills policy in this country has suffered from constant reorganisation and restructuring. The right hon. Member for East Hampshire (Damian Hinds) has reminded us several times that Skills England will be the 13th skills body to be established in 50 years. Given that history, employers, providers and learners desperately need stability and clarity. In its evidence, the University of Winchester warned:

“The transfer of power from IfATE to the Secretary of State for Education raises questions about the independence of the proposed Skills England regulatory body.”

Does my hon. Friend agree that the new clause would help colleges such as Bridgwater and Taunton college, the biggest provider of apprenticeships in England? Will he join me, and other Members, in encouraging those colleges on their path towards awarding their own degrees?

I entirely endorse what my hon. Friend has said, and I certainly encourage those colleges on their path. As I will explain, my new clause will enable Skills England to support them more fully.

Equally concerning is the need for effective cross-departmental co-ordination. Skills policy does not exist in isolation. Skills England needs to work with, among others, the Industrial Strategy Advisory Council on future workforce needs, the Migration Advisory Committee on reducing reliance on overseas workers, the Department for Energy Security and Net Zero on green skills, the Department for Work and Pensions on employment programmes, the Department for Science, Innovation and Technology on priority sectors, the Department of Health and Social Care on workforce planning, and, following the Chancellor’s spring statement last week, the new defence growth board on critical skills for our defence industry.