My Lords, I thank all Members who have been involved in the consideration of this Bill for being willing to meet with me and share concerns. I am glad that people have recognised that we have made progress as a result of that process.
I think that we all agree that effective skills provision is critical to boosting growth and spreading opportunity to all parts of the country. Through this Bill, the Government are taking steps to enable the rapid development and delivery of high-quality training aligned to current and future skills needs. For this to be possible, we need to ensure that the processes for developing and approving training are sufficiently flexible to respond to diverse and changing skills needs across the economy and the wide range of different occupational specialisms. This Bill, therefore, introduces specific flexibilities intended to make the system more responsive and more focused on the needs of employers and other key stakeholders.
For those who argue, quite rightly, that we should listen to employers, I say that it is precisely because of what employers have told us about the need for speed and flexibility that we have introduced the provisions in this Bill. As I tried to do in Committee, I also reassure noble Lords about the absolutely central role that employers will play in the work of Skills England. Building on the work of IfATE, employers will continue to play a critical role in the design and delivery of apprenticeships and technical education. It is crucial that those reflect the needs of employers and that employers have confidence in them. Skills England will ensure that there is a comprehensive suite of apprenticeships, training and technical qualifications for individuals and employers to access, all of which will be informed by what employers and other partners tell us that they need.
As I have said on several occasions about the functions that are being transferred, and in response to the points made by the noble Baroness, Lady Wolf, the default position will continue to be that groups of persons, including employers, are responsible for preparing standards and apprenticeship assessment plans. In other words, what is proposed in this Bill maintains the same focus on employers as in the original Act setting up IfATE.
What is more, we have the experience of how Skills England has been operating in shadow form. We have Skills England’s first report, which provided a very important springboard for Skills England to engage in further dialogue between employers, unions, providers, experts, regional bodies and the Government to interrogate, corroborate and build our shared understanding of what skills the economy needs. The assessment of skills needs, including the needs of employers in different sectors, will be continued in Skills England’s second report, which is due in early 2025. In every case that noble Lords have talked about, I am absolutely clear—and we have already seen evidence from Skills England—that employers, representatives of sector skills groups and employer representative bodies should be, will be, and are already being, engaged by Skills England.
The question is whether these amendments act against the wish of the Government, and, I believe, of other noble Lords, to ensure that we are doing this in the most speedy and appropriate way. It is vital that the Bill does not lose its ability to deliver this change—the change to be more responsive and more focused on the needs of employers and key stakeholders—by taking on amendments which will slow down Skills England and, in some cases, make it slower and more cumbersome, with more prior requirements than IfATE’s current processes. Any such burden would impact the wider skills system and hinder its contribution to the growth and opportunity missions that are important to this Government.
In Committee, during the debates on Clauses 4 and 5, noble Lords raised concerns about the membership of groups of persons formed to create standards and assessment plans, as has been repeated today. I outlined how, at present, there are no statutory criteria that prescribe the make-up of these groups. In other words, it is not the case that IfATE already has in legislation specific named representatives that need to form these groups. However, IfATE is under a duty to publish information about matters it will consider when deciding whether to approve groups of persons to develop occupational standards and apprenticeship assessment plans. In this legislation, that duty is being transferred to the Secretary of State unchanged. That level of transparency, because of this Bill and the transfer of functions, will be part of the functioning of Skills England.
Amendments 1 and 2 would, however, prescribe in legislation that a group of persons that prepares an occupational standard or an assessment plan must include a representative from an organisation that is the representative body for a sector. I spoke in Committee about the risks of introducing new constraints on the structure of these groups with criteria in primary legislation. They would make the process for forming groups slower and more onerous. I do not think it is in anyone’s interest—not least learners or employers—to incur such delays. They could prevent the membership of the group reflecting specific factors important for its work. To specify sector representative bodies or any specific member of the group of persons would prioritise certain people or bodies over the expertise of others.
Clauses 4 and 5 create a power for the Secretary of State to prepare a standard or an apprenticeship assessment plan themselves, where satisfied that it would be more appropriate for them to do so than a group of persons. In Committee, noble Lords expressed concerns about this new power and how it will operate—understandably, given the arguments that have been made. In previous exchanges, I set out why it is important that this additional flexibility is built into the system: to respond to the particular skills needs of different occupations. I also set out that, in practice, it will remain the default for groups of persons to prepare standards and apprenticeship assessment plans.
However, I recognise that this flexibility must also be balanced against transparency. In Committee and today, the noble Baronesses, Lady Barran, Lady Garden and Lady McGregor-Smith, and the noble Lords, Lord Aberdare, Lord Hampton and Lord Addington, all spoke on the clauses about the power for the Secretary of State to prepare a standard or an assessment plan. I listened carefully to the points made. As such, and in recognition of arguments put forward by noble Lords during the passage of the Bill to date, government Amendments 3 and 6 will be proposed today.
The amendments will create new duties on the Secretary of State to publish information about matters they will take into account when deciding whether it would be more appropriate for them, rather than a group of persons, to prepare occupational standards and assessment plans. These amendments will result in powers in the Bill being subject to equivalent transparency as powers being transferred to the Secretary of State from IfATE. To reiterate the point I made earlier, there will not be less statutory requirement for employer engagement in the Bill, but the equivalent to what is in the legislation governing IfATE.
The amended Bill therefore provides for consistent transparency throughout. It will mean that the Secretary of State will be under a duty to publish information on the matters that will be taken into account when making decisions in three areas: first, on whether to approve a group of persons to prepare a standard or assessment plan; secondly, on whether to approve a standard or assessment plan; and, thirdly, as a result of government Amendments 3 and 6, on whether it is more appropriate for the Secretary of State to prepare a standard or assessment plan, rather than a group of persons.
Amendments 4 and 5 would create that statutory duty on the Secretary of State to have due regard to the reasonable requirements of employers and those who may wish to undertake training when considering whether to approve occupational standards and assessment plans, where they have been developed by a group of persons. The Secretary of State is already subject to a general public law duty, which requires them to take into account all relevant considerations before taking decisions relating to the functions for which they are responsible. There is therefore already a requirement that, when executing the functions described in the Bill, the Secretary of State considers and balances factors such as those outlined in the noble Baroness’s amendment. In fact, the public law duty includes, but is broader than, the factors listed in the proposed amendment.
I recognised the concerns of noble Lords that we were more explicit about the aims, objectives and governance of Skills England. That is why I reference again to noble Lords Skills England’s first published report, the documents published and the exchanges made during the passage of the Bill, including the draft framework document that I shared with Members of the Committee who had particularly focused on this. The noble Baroness, Lady Barran, says that it is just a draft; it is, because the framework document itself needs to be approved by the board of Skills England, but it is a pretty full draft and very much aimed at reassuring noble Lords about the approach Skills England will take and the nature of the organisation, which is what I was asked for more information about. We have also been clear that a fundamental part of Skills England’s role is to ensure that technical qualifications and apprenticeships meet the needs of both employers and learners.
The amendments proposed by the noble Baroness, Lady Barran, are therefore well considered but, we would argue, duplicative of existing duties on the Secretary of State, commitments made about the purpose of Skills England, and the further evidence in additional information I have provided for noble Lords. The existing duty to take into account all relevant considerations will be fulfilled by Skills England and through the considered approach to create Skills England as an executive agency, which we will return to in the next group of amendments, when I hope I will be able to respond to some of the points made by the noble Lord, Lord Aberdare, as well.
I therefore hope that the noble Baroness, Lady Barran, and other noble Lords are reassured that her concerns are already addressed. I hope she agrees not to press her amendments, so that we can ensure that flexibility and speed of response to the skills challenges that our country faces and enable Skills England to start doing that as quickly as possible.