Chris Leslie, the shadow chancellor, supports the pay freeze. But his next boss disagrees. Photo: Getty Images
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Labour at odds over public sector pay freeze

Yvette Cooper, Liz Kendall, Andy Burnham and Jeremy Corbyn are all against the public sector pay freeze. But Harriet Harman and Chris Leslie both back the policy. 

Labour's leadership candidates have all announced their opposition to the continuing public sector pay freeze, putting them on a collision course with Harriet Harman, the party's acting leader, and Chris Leslie, the shadow chancellor.

Andy Burnham, the bookmakers' favourite, was the first candidate to rule out a continuation of the pay freeze, while Liz Kendall also confirmed her opposition to continuing pay restraint at a Q&A in central London this morning. The Kendall campaign believe that they can find the money to end the freeze through reducing the scale of British tax breaks - which currently stand at £100bn a year. 

Yvette Cooper believes that continuing the pay freeze - which has been in place since 2010 - will hit recruitment and retention. "Is the Chancellor really saying he can afford to cut inheritance tax for estates worth £1million," the shadow home secretary asks, "but the people who care for us and keep us safe should have to face five more years of real term pay cuts?" Cooper believes that a decade worth of cuts to public sector pay will do lasting damage to the quality and morale of public sector staff, and that, in any case, that the NHS is increasingly having to turn to more expensive agency staff to fill staffing gaps means the savings are void.

Jeremy Corbyn, meanwhile, is against cuts and will not be supporting the public sector pay freeze. That puts all four candidates in opposition to the policy position set out by Harman and Leslie.

In some respects, the fact that Harman will leave office when the new leader is elected on September 12 renders the row moot. However, Leslie, who is supporting Cooper's bid and is a longstanding ally of the shadow home secretary, was considered likely to remain in post as shadow chancellor should either Cooper or Kendall win the leadership. (Should Burnham win, Rachel Reeves is widely tipped to be appointed both his official deputy, and shadow chancellor, shadowing George Osborne both as Chancellor and as First Secretary of State.) His support of the pay freeze may imperil his chances of keeping hold of the role, or re-open the divides of the first phase of Ed Miliband's leadership, when he and Alan Johnson disagreed over the 50p rate and tuition fees. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics. 

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A good apprenticeship is about more than box-ticking

The political apprenticeships arms race, promising ever increasing numbers of apprenticeships but with little focus on quality, is helping nobody. 

The political apprenticeships arms race, promising ever increasing numbers of apprenticeships but with little focus on quality, is helping nobody. Playing a numbers game often means the quality and the personal touch that turns a placement into a career opportunity can be lost. The government has set a target of three million new apprenticeships by 2020. In London Boris Johnson set a target for 250,000 apprentice starts, but fell short by over 100,000. Both targets miss the point; any target should focus on outcomes, not just numbers through the door.

Policy makers need to step back from the rigid frameworks and see what works on the ground.  For me this involved eating a bacon sandwich, which is arguably a risky exercise for politicians.  I was seeing how the owner of the Bermondsey Community Kitchen and Café, Mike, has transformed the space above his café into a training kitchen teaching young unemployed people the skills they need to gain qualifications to work in restaurants.

The posters on the wall spell out the choices available to the young people. They make it explicitly clear that there is an alternative to a life in prison, which some of the trainee chefs have already experienced, with pictures of celebrity chefs including Jamie Oliver, Delia Smith and Gordon Ramsay outlining how they worked their way to where they are now. None of the young people have had an easy start in life. Barriers they face include autism, lack of literacy skills, insufficient funds to pay the fare to the café and criminal records. But Mike and the team running the kitchen are determined to give them the chances every young person deserves. From City & Guilds qualifications, work placements and ensuring they have a job at the end of the process, this is the type of grass roots project that the government could learn from. With two groups of eight students over three half days, this is skills training that is about as personal as it gets. The young people are enthusiastic about the course, the practical skills they are learning and optimistic about the future.

The project is funded partly through the café, but mainly through grants and donations (including pots and pans from Raymond Blanc and funding from trusts as well as the local council). Mike has plans to expand. He wants premises with space for a nursery so young mothers who might otherwise struggle to complete a course can attend, he has a vision for two or three more similar enterprises across Southwark. I have no doubt he will achieve this but the challenge for policy makers is making it easier for people like Mike who are delivering flexible qualifications and delivering better results. Bureaucratic processes, lengthy forms and refusals would have put less determined people off. As the funding for skills is devolved, there is both an opportunity and a challenge to look at how innovative models can be supported. Unless more is done to ensure groups that might be defined as ‘hard to reach’ get opportunities, there will always be significant numbers falling through the gaps in a sometimes impersonal system.

Over 60 per cent of the apprenticeships in London focus on low level qualifications with little prospect of employment upon completion. Many skills based apprenticeships fail to match demand, the booming construction industry for example is crying out for skilled workers and with all parties agreeing new homes are a priority its surprising to learn that in London only 3 per cent of apprenticeships are in construction.

Apprenticeships need to focus on leading to work, and work that is skilled and pays enough to live on. They should be about opportunity not opportunistic employers. In a report published in October 2015, Ofsted was critical of apprenticeships saying too many of them ‘do not provide sufficient training that stretches the apprentices and improves their capabilities. Instead they frequently are being used as a means of accrediting existing low-level skills, like making coffee and cleaning floors.’

The new apprenticeship levy charged to businesses with a wage bill over a certain amount could be a useful way of enhancing opportunities but the definition of apprenticeship needs to be refined. On a recent visit to the iconic Brompton Bikes factory, the London Assembly Economy Committee was told that although the firm has to pay the new levy as a result of its size, they have a bespoke way of training their apprenticeships so they have the skills to get jobs with Brompton Bikes at the end of the process. Because this tailored training doesn’t meet the narrow government criteria they aren’t formally accredited apprenticeships and thus Brompton are unable to claim any funding back from government despite their excellent work.

I am increasingly frustrated that the most exciting and inspiring projects I visit don’t always meet the criteria for funding. We are doing something wrong if people are asked to fit something that works into a form that meets criteria rather than rewarding their successes. Instead huge amounts of public money are being put into funding low quality low skilled apprenticeships that sometimes appear to be more about avoiding the minimum wage. This is not just a waste of money; it is a waste of the lives of the young people. As the Bermondsey fishmonger we bumped in to on the way out of the café told us, sometimes what works is smashing the box, not ticking the box.