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My Lords, I do my best in these questions not to give Ministers—particularly this Minister—a hard time. However, in my capacity as chairman of Make UK, which has 26,000 manufacturing companies, I speak to a lot of
employers. They find, first, that in the last year or so, they have been faced with energy costs that are twice as much as those of their competitors in Europe, and despite the Government’s announcement nearly a year ago of a reduction in those energy costs, they have not seen anything happen. Secondly, there has been an increase in national insurance, which is a big payroll tax, and thirdly, there is the bureaucracy and other things that come out of the Employment Rights Act. Given all this, how can the Government expect employers to employ more people?
My Lords, I do my best in these questions not to give Ministers—particularly this Minister—a hard time. However, in my capacity as chairman of Make UK, which has 26,000 manufacturing companies, I speak to a lot of
employers. They find, first, that in the last year or so, they have been faced with energy costs that are twice as much as those of their competitors in Europe, and despite the Government’s announcement nearly a year ago of a reduction in those energy costs, they have not seen anything happen. Secondly, there has been an increase in national insurance, which is a big payroll tax, and thirdly, there is the bureaucracy and other things that come out of the Employment Rights Act. Given all this, how can the Government expect employers to employ more people?
The noble Lord has raised a number of factors there, and I do not want to take up too much time in the House going through them one by one. For example, I have already talked about the Employment Rights Act and how that is about benefiting millions of employees. Also, to be absolutely clear, we are taking active measures on energy costs. We are working with Sir Charlie Mayfield to ensure that when people get work, they stay in work, and lots of employers are working with him. He is working with over 120 businesses, which employ 5 million workers, as part of the vanguard phase of his plan to ensure that we do not just get people working but keep them working. I understand the challenges that this Government face in fixing the mess that the previous Government made over the previous 14 years, but we cannot undo 14 years of damage in merely 18 months.
My Lords, I declare my interest as chairman of Make UK, which has 26,000 manufacturing companies that belong to it and is a major apprenticeship provider. As the Minister is very aware, because we have spoken to her on the subject, currently, apprenticeships in manufacturing are declining across the UK because of the big gap between the money that the apprenticeship levy provides and the actual cost of it, as well as rising employment costs. Given that the industrial strategy is committed to reversing this trend and increasing the funding bands, when will the Government follow through on their commitment, which is really needed for the youth guarantee scheme to be a success?
My Lords, I declare my interest as chairman of Make UK, which has 26,000 manufacturing companies that belong to it and is a major apprenticeship provider. As the Minister is very aware, because we have spoken to her on the subject, currently, apprenticeships in manufacturing are declining across the UK because of the big gap between the money that the apprenticeship levy provides and the actual cost of it, as well as rising employment costs. Given that the industrial strategy is committed to reversing this trend and increasing the funding bands, when will the Government follow through on their commitment, which is really needed for the youth guarantee scheme to be a success?
The noble Lord is right that I have been able to speak to Make UK about the important role of apprenticeships in delivering engineering skills for young and older people. I understand the concerns raised about the funding rates for engineering apprenticeships. That is why, as I said when I met Make UK, we will continue to monitor that in order
to ensure that they meet the costs of training. We will continue to find other ways to encourage people on to apprenticeships, such as removing some of the bureaucracy associated with them, supporting the reform of end-point assessment, and removing the requirement for separate maths and English qualifications for adults.
Examination of witnesses. Written evidence reported to the House.
Examination of witnesses. Written evidence reported to the House.