Trades and Apprenticeships

Just last week Labour announced its commitment to the 1.5 million new houses to be built, which I welcome; it is important for boosting the economy and it will create opportunities and jobs. However, to make that happen we must ensure that we have the apprentices and the workers in all the different sectors we have referred to. When it comes to apprenticeships, one company last week in the news said that to help to build those houses, 2,800 new plumbers would be needed. I will give some examples later on of some of the things we are doing across the water, but that figure perhaps tells us that, if we are going to build all these houses—again, I commend the Government for doing that—we must ensure we have the workers in place to do that, and apprenticeship opportunities must be part of that.

I know sometimes apprenticeships involve working out in the fresh air—that never bothered me, by the way, although other people might want to stay in an office—but, if people can get paid well in an apprenticeship and the number of years for apprenticeships is reduced from five down to three, people can get the qualifications early on and then start to earn. We do not want to decry young people; we want to encourage them and ensure that the apprenticeships come, that they do their three years and that at the end of those three years they are qualified and earning big money. With Labour’s commitment to 1.5 million new houses, the opportunity to earn big money is here now.

I would love to hear what the Minister has to say in relation to that and how the hon. Member for Portsmouth North will encourage people to take those jobs. I have listened to her comments in previous speeches where she has emphasised the necessity of tackling our skills shortages across the United Kingdom. She has spoken a few times in the debates she has been involved in about how we can do that through apprenticeships and dealing with skills barriers.

In Northern Ireland specifically, numbers of new participants in apprenticeships decreased by 12% between 2018-19 and 2022-23 and by 24% between 2021-22 and 2022-23. Those figures are unfortunately quite disappointing, highlighting that fewer young people are taking up apprenticeships as a form of education and employment. I suppose it depends on the society people live in; we in the Ards peninsula and Strangford see a tradition of building and house building and repairs, but across the whole of Northern Ireland apprenticeships are unfortunately decreasing.

In addition, participants who leave their course, either with or without leaving their framework, are known as leavers. The question that I want to focus on, and that the hon. Member for Portsmouth North focused on in her speech, is those people who start but do not finish apprenticeships. Perhaps the Minister has some ideas about how to encourage them to stay. I am very keen to hear what she has to say, because perhaps we can share her comments with those in Northern Ireland.

In 2022-23, 5,746 participants left ApprenticeshipsNI courses: 3,091 at level 2, 301 at level 2/3 and 2,354 at level 3. More than half—56%—achieved a level 2 full framework. That was six percentage points lower than in 2018-19, but 13 percentage points higher than in 2021 —again, that shows the need to be more focused. The figures show that thousands of people are leaving apprenticeship courses, and a further section of people complete only levels 1 and 2, and do not continue to level 3—level 3 is where the money is, guys! They need to be encouraged to focus, stay the course and do what they are asked to do, because at the end of that they progress to good, constant employment, which will be reinforced because of all these houses that are going to be built. We need to make apprenticeships accessible, encourage people to continue with their apprenticeships and increase financial support through the apprenticeship payment rate. We must give those workers the pay they deserve and highlight to young people that there are opportunities for career progression and stable, secure pay.

For many, working for someone else can be the start of having their own business. In the Ards peninsula, where I live, an incredible number of people have their own business as a result of starting out on an apprenticeship. I will give an example to show where the opportunities are. One of my staff members was having issues with her gas boiler last week. One of her children is asthmatic and must be in a temperature-controlled room; therefore, heating the house is incredibly important. She phoned every single gas company in the area to get a call-out, and only one company could get someone out in the morning. The engineer said that he was able to come out so promptly only because he had an apprentice. In other words, he had seen that it is necessary for young people to have apprenticeships, and that enabled him to do certain jobs and delegate others. That young fella was learning the trade and the business, and was at a stage where he could do some of the work. That took the burden off the single owner of the gas company, but it also gave an opportunity to that young fella, who one day, because there is demand for it, will have his own business and do well. So apprenticeships are an opportunity and they help businesses to grow.

Young people are under the impression that apprenticeships are only for skills such as plumbing, engineering, mechanics, electrical maintenance and so on—jobs that some see as male-dominated—but that is not the case. I am very pleased to say that we have a number of ladies who are progressing in construction. I understand that the business may be different, but there are opportunities for young ladies to involve themselves in any of those skills. They are more than capable of doing that, and I support them.

There are other sets of skills that young people can take advantage of, such as food and drink manufacturing, construction craft, sign making and print production. Some have done so and some will in the future. Our responsibility as Members is to ensure the correct provisions are in place so that people push themselves and stay in their apprenticeship. Sometimes they need to be encouraged, because the work can be hard or repetitive, but it is rewarding, and it can lead to employment and their own business further down the line. We must fix the wage and give them the working conditions they need to succeed.

I appreciate the hon. Member for Portsmouth North for bringing this issue to the House. It is time for the Government to focus on where the shortages are and how we can encourage young people to take these opportunities. There are so many young men and women out there who could benefit from apprenticeships, but we do not talk about the harsh reality that our completion rates are low and that a large percentage decide to leave. What can we do to make that better? I hope that the Minister will endeavour to deal with these issues, in parallel with her counterparts in the devolved nations. I always ask that, because it is important to recognise that, although we may live in different parts of this great United Kingdom of Great Britain and Northern Ireland, the things that confront us—this debate today—are salient to every part of every region. We want a strong apprenticeship system across the whole of this great United Kingdom of Great Britain and Northern Ireland.

All of us have a focus on certain elements of change, and I want to highlight a few areas that matter in my constituency. The first area is removing barriers related to English, maths and functional skills. We should allow flexibility on functional skills requirements, focusing on workplace-specific competencies rather than mandatory qualifications that block completion. I know from my conversations in Peterborough that that would be particularly important for construction, trades and other areas that we are talking about, where sometimes the competencies required are holding back young people who could flourish in those workspaces.

The second area is increasing the availability of level 2 programmes as a crucial entry point, aligned with local skills gaps and economic needs, particularly in sectors such as construction and healthcare, and for traders and small businesses. The third is providing fast-track options for those with technical certificates or prior experience, enabling them to complete apprenticeships faster. I would also like to see the expansion of degree apprenticeships, enabling more working-class young people to acquire skills in a paid job from day one.

At the end of the day, we cannot ignore the problems we face: poor skills, declining youth opportunities, stagnant wages and an over-reliance on workers from abroad. Some 11 million people of working age are currently inactive. That is a scandal, and it is the legacy of the last 14 years of Conservative Government. We all have a duty to turn it around by generating thousands more apprenticeships for young people, especially those under 25. That will be central, I believe, to the mission of this Government.

That brings me to my second challenge, which is a much broader one, about how we talk about apprenticeships. The topic of this debate, the perception of trades and apprenticeships, is central to that. We need to change the language, culture and approach to careers guidance and apprenticeships. I totted up the entries in a list I got from my office, and since I was elected, as part of my work on apprenticeships, I have met more than 100 businesses and learners from my constituency and more widely. Not one learner said to me that they started their apprenticeship because of help at school.

In our education system, we have a language for university but not one for apprenticeships. That cultural bias in our education system is holding young people and our country back. It needs to end. School are too often geared towards helping young people enter higher education. The language is about higher education: “What do you want to study?”, “Where are you planning to go?”, “Have you been to an open day?” We need a Government-wide and country-wide mission to change that—to make apprenticeships as important a choice as university for our young people. If we do not, we will fail.

As co-chair of the all-party parliamentary group on apprenticeships, I am working across the House to help find workable solutions to those issues. I am lucky enough to meet great employers and apprentices in Peterborough and around the country—particularly those in construction, which my hon. Friend the Member for Portsmouth North focused on so clearly. I have met with Laing O’Rourke on building sites in east London, with Travis Perkins to look at its work to support the trade, and with young people and construction workers in my own constituency. I know the will is there.

My dedication to apprenticeships is why I support the plans to get Britain working. It is why I welcome the youth guarantee, under which all young people will be offered the chance to earn and learn. It is why I will continue to campaign for an apprenticeship system that is fit for purpose—because apprenticeships are the lifeblood of decent work and growth in our economy, offering more young people a ladder of opportunity to the jobs of the future, and ensuring that our economy can sustain higher living standards through the right kind of skills training, which leads to economic growth.

We are committed to changing both the scope and perception of apprenticeships. Sir Martyn Oliver’s recent Ofsted report emphasised the transformative impact that apprenticeships can have, offering young people practical skills, experience and opportunities. Those milestones underscore an important truth: apprenticeships are not a fallback, they are a springboard to success.

The Liberal Democrats would create a new lifelong skills grant for every adult, giving them £5,000 to spend on approved education and training courses to gain skills for the jobs of the future. Our existing system is not set up for a world of work in which the skills we learn at 18 or 21 will not last a lifetime. How will the Minister’s plans for Skills England and reforming the apprenticeship levy yield better opportunities for apprentices in Wokingham, especially in the construction sector? Will the Minister commit to meet me and the companies that offer apprenticeships to discuss what they need from the Government to deliver better opportunities for apprenticeships in Wokingham?

Turning to the issue of recruitment and completion rates, there is a perception of trade apprenticeships as muddy boots and jobs for young boys. Through the work of Wokingham’s section 106 employment and skills plan, we hope to change that perception. Locally, 30 community skills events have been held to help break down the stereotype, including work experience, careers talks in schools and site visits. However, there are foundational issues with the existing structures that the Government need to address before firms can consider establishing apprenticeships.

Specifically, Wates Construction is currently managing the Gorse Ride redevelopment project in my constituency. It has highlighted a problem that similar and smaller subcontractors experience. They sometimes do not have the capacity to take on apprentices due to the value of the contract and the duration, where they may not be on site for long enough. Although shared apprenticeship schemes are great, they have to pay agency fees on top of apprenticeship wages, which makes it an unaffordable option. Can the Minister address the issues raised by Wates Construction about the affordability of apprentices? What more can be done to ensure businesses like theirs can take on more apprenticeships?

In the autumn Budget, we heard that the Chancellor is increasing the rate of pay for apprenticeships by some 18% up to £7.55 an hour. On top of that, the Government have raised employer national insurance contributions, and the threshold at which national insurance is paid has been lowered from £9,100 to £5,000 a year. It will be important to note how this cost squeeze will impact the number of apprenticeships that businesses are able to provide. We will follow and scrutinise that in the weeks and months to come.

I endorse what we have heard from so many Members this afternoon about the importance of apprenticeships, the incredible opportunities they offer to so many young people, the importance of issues such as transport, and the awareness and knowledge that both businesses and young people need to have. With that, I look forward to hearing from the Minister.

All Members will recognise the long and proud history of apprenticeships and trades in this country. Apprenticeships in England can be traced back to the middle ages when craft guilds were first established—they are part of our DNA. The first national apprenticeship system of training was introduced as far back as 1563.

Despite that long-standing history, especially in construction, it is concerning that, in recent years, we have seen declining apprenticeship opportunities in vital occupations such as bricklaying, plastering, plumbing and so on, particularly for younger people. It is of great concern that, following reforms of apprenticeships, including the introduction of the apprenticeship levy in 2017, apprenticeship starts by young people under 25 fell by almost 40% according to data published by the Department for Education. It is also concerning that so many workers and employers have told us they find it difficult to access the skills they need, particularly in critical areas such as construction trades.

The UK construction workforce is just over 2 million people, according to the latest figures from the Office for National Statistics. Despite an average of 38,000 vacancies advertised per month, almost a third of construction employers report that finding suitable skilled staff was their key challenge, as I have already mentioned. In addition, our labour market and skills projections suggest that between 2020 and 2035, we will need to work hard to make sure there are more than a million people to replace people in this sector.

We need reform of our skills system so that we are able to meet such demands. That is exactly what this Government are going to do, and have begun to do. It is clear that the skills system is fragmented and has lacked a clear plan, which has resulted in a lack of clarity around which sectors need prioritising and has led to a skills landscape that is confusing to learners and employers.

There has been lots of concern, as has been mentioned, about the drop-out rate of young people in apprenticeships. That is of course very concerning, and there are different reasons for those rates. Surveys have been done and people move on for many reasons, such as other employment or promotion, or finding the apprenticeship difficult. The situation is being reviewed and assessed.

The issues have been compounded by insufficient investment in skills, which has led to a decrease in adult participation in further education and training. To address that, the Government have established Skills England, a new body that will tackle skills shortages and support sustained economic growth. Skills England will help to ensure that the skills system is clear and easy to navigate for young people and adults, strengthening career pathways into jobs across the sector. It will increase the quality and quantity of skills development in the workplace. It will work together with combined authorities and other places with devolution deals, as well as other regional organisations such as employer representative bodies, to ensure that regional and national skills needs are met at all levels—from essential skills to those delivered via higher education, in line with the industrial strategy.

We have also set out plans for a more flexible levy-funded growth and skills offer, building on the current apprenticeship offer. I assure hon. Members that the Government are listening to employers. Employers have told us that the current apprenticeships offer is inflexible and that the system does not work for them. We want to support employers, not only in the trades, but in all sectors, to develop the skills that they need to thrive. That is why we have introduced a more flexible levy-funded growth and skills offer that will provide employers with greater choice.

As a key first step toward greater flexibility, we are introducing new shorter-duration apprenticeships and foundation apprenticeships, as employers have told us that not all roles or all learners need a minimum of 12 months’ training. We are responding to employers who have said that more support is needed to generate a pipeline of talent that can access occupationally specific apprenticeships, and we are exploring the best way in which shorter-duration apprenticeships can better meet the needs of specific sectors such as construction, where occupational competence can be reached in less than the current minimum duration of 12 months, or where individuals have relevant prior learning.

We will, of course, protect the elements that make apprenticeships work so well and ensure that they retain the credibility and prestige they hold with employers. Our new work-based foundation apprenticeships will focus on ensuring that training is directed towards real vacancies. They will provide young people with a broad training offer, with clear and seamless progression into their next opportunity, whether that is the next level of apprenticeship or other valuable occupational learning. We will work closely with employers and providers. The Government will make sure that we get this right.

I gently remind my hon. Friend the Member for Portsmouth North that the Chancellor set out in the Budget that the apprenticeship minimum wage will increase by 18% from April 2025, from £6.40 to £7.55 per hour. The median annual earnings for apprentices achieving a level 3 apprenticeship in the construction, planning and built environment sector in 2015-16 were £21,730 one year after studying, rising to £29,620 five years later. We will ensure that many more apprentices, including those in key trades, see those benefits in the future.

As my hon. Friend mentioned, small and medium-sized enterprises are a key area of interest. They are a driving force in the construction sector, playing an important role in providing local opportunities to young people, and we provide a range of financial support to help them to take on apprentices. For non-levy paying employers—they are likely to be smaller employers—we pay 100% of the apprenticeship training cost for young apprentices aged 16 to 21. We also provide £1,000 to employers when they take on apprentices aged under 19, in recognition of the additional support that younger apprentices may need when entering the workplace. Employers can choose how best to spend that, and they are not required to pay anything towards employees’ national insurance contributions for apprentices up to the age of 25.

I strongly encourage any young person to consider a rewarding career in the trades, whether that is as an electrician, scaffolder or plasterer. My hon. Friend the Member for Peterborough spoke so passionately about apprenticeships being an excellent entrance to jobs and occupations. It is a brilliant route for young people, and I could not agree with him more. The Government are really ambitious for young people, where it is right for them, to pursue apprenticeships, and it is our job to make sure that we give them every opportunity to do so. This Government are about breaking down barriers and ensuring that young people have those opportunities.

The Government have an ambitious plan for rebuilding Britain. We have committed to building 1.5 million homes in England to ensure that people have access to quality housing, and skilled trades are absolutely necessary if we are going to achieve that target. We are working closely with industry to ensure that we have a skilled workforce to deliver that commitment. Last month, we announced a £140 million package of industry investment to create 32 home building skills hubs in areas that need more housing. The hubs are an example of how sectors can use existing flexibilities to solve skills shortages and support growth. They will make use of existing flexibilities in our apprenticeship system to deliver fast-track home building training and apprenticeships for skills in critical demand for home building, including groundwork, site carpentry and bricklaying. The Government are committed to building on that type of innovation.

I am enormously grateful for the support that my hon. Friend the Member for Portsmouth North has given this agenda today and for all the very significant and relevant contributions. The hon. Member for Wokingham spoke about his local area and the support that is needed. He emphasised the decline in many of the apprenticeships that are needed for young people, and he asked for a meeting. I invite him to write in and I will endeavour to ensure that my noble Friend, Baroness Smith, will have a meeting for that very important discussion.

Hon. Members have raised some important concerns about skills shortages in critical trades, and about the perception of careers in those vital occupations. I am grateful for the considered contributions of everyone who has spoken. It is clear that there are widespread skills shortages in vital industries, such as construction. We will all need to benefit from young people being in those jobs at some point or other in our lives, and it is especially needed for our country when we are looking at growth. I have set out today how we will begin to tackle this issue, starting with the establishment of Skills England and by developing a more flexible and levy-funded growth and skills offer. Those actions will support employers and learners across the country in accessing high-quality skills training.

I thank the Minister for her contribution and commitment to people working in the trade sector, be that businesses, apprentices or future apprentices, through the changes that we have started, identified and hope to continue. I would like her to take back to the Department some points from today’s debate. To achieve the ambitious growth in house building targets that I am pleased the Government are pursuing, we must upskill, and vocational education must be central to that across the country. Broadening the pool of apprenticeships not only solves an important part of the skills gap facing several sectors—notably construction—but it unlocks opportunities for young people and those who want a career change.

We need more people to use the flexible apprenticeships that have been mentioned, and we need those to work for a diverse range of people. I was one of the first girls to take a GCSE in design and technology, which is why it has always been a big passion of mine. We need to look at what we are doing in our education system. We need a system that values all pathways equally, so that the young man from Springfield school is not unique in pushing himself into this career. We must celebrate and elevate this vital sector, showing young people, and those not so young wishing to change their career, the possibilities, the positivity and opportunities available. I thank everyone working in the sector who is doing that day in, day out.

Apprenticeships can lead to successful businesses, higher wages and skills to be proud of, and I would like to see our education system and society placing vocational training at the heart of its ambition. As I have said, and continue to say, if someone cannot see it, they cannot do it. I am pleased that the Government recognise that and are beginning to unlock and make improvements immediately.

That this House has considered public perceptions of trades and apprenticeship completion rates.