A route-map to Labour’s revolution in apprenticeships

Britain faces a stark choice: a race to the bottom in skills and wages or a race for the top in the demanding 21st century economy.

Fifty years ago, only 20% of young people left school with any qualifications at all.  Now the figure is 90%. Forty years ago, less than 8% of young people went on to university. Now the figure is nearer 50%. These are great, progressive achievements. But the success we have won for some young people should not blind us to the continuing challenges of others.

A year ago the Labour leader Ed Miliband highlighted the plight of the "forgotten 50%" of young people who do not go to university. He set up a Skills Taskforce, of which I am the independent chair, to suggest practical, deliverable solutions for these young people. Last month, in the first of three final reports, the Taskforce called on Labour to embark on a national mission to double the number of high quality apprenticeships.

Less than one in 10 employers offer apprenticeships in England, compared to three or four times that number in our main European competitors. And while the UK has are some exceptional apprenticeships – such as those at Rolls Royce, Siemens, Heathrow Airport and Transport for London – much of the recent increase has been in apprenticeships that would not be recognised in these countries. Apprenticeships should be a high quality training route into work for young people, but a shocking 70% of apprentices are existing employees, up from 48% in 2007, and 94% of these apprentices are over 25 years old. A fifth of apprenticeships last for less than six months and 20% of all apprentices report receiving no training at all.

This is bad for business and for the economy. Many employers say they cannot get the skills they need to succeed and in some sectors the lack of training has led to severe skills shortages. Most importantly, the lack of good training and work opportunities caps aspiration and prevents young people from fulfilling their potential.

The Skills Taskforce makes a simple proposition: it offers employers a 'something-for-something' deal.  Employers should be given more control over skills funding and standards, and in return should be asked to create more high quality apprenticeships in their sectors and supply chains.

Nearly half of employers say that the prospect of trained staff being poached by rival firms deters them from training employees. So the Taskforce also recommends asking business what powers they need to ensure they can deliver the expansion in apprenticeships we need to rebuild the economy, such as the power to introduce levies or training requirements. It should then be up to employers, working with other stakeholders at sector level, which of these powers they will use. The public sector can and should take a lead, through both its own provision – the current provision of apprenticeships in the public sector is unacceptable – and driving behaviour through procurement.

If this sounds ambitious, it should. If it sounds impossible: it is not. Continental systems, including the German and Austrian education and training systems, already do it. The challenges are not ones of principle, but of will, and the prize is considerable.

At the Labour Party conference, Ed Miliband took on the challenge to double the number of high quality apprenticeships and said he would give employers the power to call time on free-riding by competitors who do not train. Labour also committed to our recommendations to ensure that apprenticeships are gold standard qualifications that employers and young people can trust: Level 3 or above and lasting at least two years. 

This is a good start to a major transformational task. Britain faces a stark choice: a race to the bottom in skills and wages or a race for the top in the demanding 21st century economy. Britain must not join the race to the bottom. Our goal is to transform the opportunities available to young people through efforts to develop a high skill, high productivity economy.

Chris Husbands is the director of the Institute for Education and chair of Labour’s Skills Taskforce.

Ed Miliband speaks at the Labour conference in Brighton last month. Photograph: Getty Images.
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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage