Thank you, Deputy Presiding Officer, and can I also add my congratulations to you on your new role, in an effort to curry some favour? [Laughter.]

I would like to take this opportunity to inform members about the Government’s plans regarding the recruitment of apprentices over the coming months. As my statement today will make clear, we are taking action quickly to deliver on our pledge for a 100,000 quality apprenticeships for all ages over the next five years. Apprenticeships in Wales are delivered on a flexible basis with people starting throughout the year, but by far the largest recruitment drive takes place in line with the school year. Therefore, changes will need to take place with immediate effect, so that an all-age approach can be applied to our apprenticeship contracts for delivery during the school year, which begins in early September.

As you will all doubtless already know, the apprenticeship programme performs very well. Completion rates are consistently over 80 per cent, with many of them up as high as 86 per cent. Feedback from employers and apprentices is positive and the quality of the programmes delivered is rated highly by external assessors. Given this good track record, I intend to keep my focus on quality. We are committing to a minimum target number of apprenticeships over the next five years, but I am not going to be drawn into making commitments to numbers that cannot be delivered, nor am I going to compromise our established record of high quality. I believe in meaningful training that supports career progression for individuals, increases productivity for employers and in turn meets the future skills needs of our country. Our procurement and contracting arrangements and our partnership working with providers has proven to be very effective in our drive to raise standards and deliver high-quality, meaningful training, and that will remain unchanged.

Over the next few months, we are taking action to engage with school leavers. An example is our ‘Have a Go’ programme, which gives young people the chance to use modern equipment and workplace technology in a safe and fun environment. This scheme will be expanded through joint working with schools, colleges, apprenticeship providers and Careers Wales. We have also made additional resource available to our apprenticeship providers to engage with employers and stakeholders to help them to be more aware of existing apprenticeship opportunities and new vacancies. These actions will ensure that school leavers, employees moving jobs and people returning to the labour market are aware of these openings and have plenty of time to apply for them.

I want to ensure that people of any age can benefit from the opportunities offered by the quality apprenticeships we offer in Wales, but in particular those trying to enter or re-enter the labour market. I also want us to build on our established record of high-quality vocational education and training with a growing number of higher apprenticeships. Our higher apprenticeships at level 4 and above provide us with a golden opportunity to develop stronger and deeper skills among our existing workforce, and also to provide employers with the skilled staff they need to boost productivity, innovation and overall business performance. Last year, we saw big increases in the number of higher apprenticeships in Wales—an impressive 22 per cent of all apprenticeship starts. As we increase the number of higher apprenticeships, we will continue to support the broad sector priorities set out by our regional skills partnerships in their annual plans and also the national priorities set by Welsh Ministers.

However, we do want to do more. We know there is a growing demand for us to expand higher level apprenticeships, particularly in professional science, technology and engineering sectors, as there is clear evidence of skills shortages in each of these areas. We believe we owe it to the people of Wales to strengthen progression to higher level skills; we need to work with our provider network to expand their capacity to deliver, including through Welsh-medium delivery.

In addition, we will continue to ensure that those groups currently under-represented are given equal opportunities to benefit from our programme, and we have appointed a quality champion specifically to take forward this work.

I am also exploring how we can increase degree-equivalent activity on the programme, and I will work with the outcomes from the Diamond review to encourage this development. To create a step change will involve new types of partnership working that include schools, colleges, work-based learning providers and the higher education sector. In turn, we will also need to review lower level apprenticeships, particularly where employers are not reporting skills shortages and there is a weak platform for career progression.

We have already asked sector skills councils to ensure that the learning content on our key apprenticeship frameworks is relevant to the changing needs of employers in different industry sectors in Wales. In undertaking this work, the sector skills councils will ensure that employers have a greater input into the design of our apprenticeship frameworks while maintaining a system that is flexible and responsive to the evermore rapidly changing needs of the Welsh economy.

We in the Welsh Government remain committed to the UK’s national occupational standards and the inclusion of qualifications in apprenticeship frameworks, as we know they provide skills that are recognised nationally and internationally.

Last year, the Welsh Government consulted extensively on aligning our apprenticeship model with the needs of the economy in Wales and the wider UK. We published our consultation responses in July 2015. Since that time, we have delayed publishing our apprenticeship implementation plan to provide us with an opportunity to properly consider the impact of the UK Government’s proposals for the operation of the apprenticeship levy in England, and associated changes to apprenticeship standards.

No-one in the skills arena can escape the issue of the apprenticeship levy. The levy is a matter of fundamental concern for the Welsh Government. Today, I regret to say that we still do not have complete clarity from the UK Government about how the planned apprenticeship levy scheme will operate in England and the impact in Wales. While things remain unclear, they should not and do not remove the need for us to seek greater certainty and to begin to plan apprenticeship provision here in Wales in more detail for the first and subsequent years of this new Assembly term.

The plans I am announcing today start the process of delivery on our pledge for 100,000 all-age apprenticeships, as outlined in the First Minister’s statement in May. They also support our longer term vision for how apprenticeships contribute to a more prosperous, more resilient Wales and a more equal Wales.

Apprenticeships are by far the most well-known and respected ‘earn whilst you learn’ option and the returns for individuals, employers and the broader economy are well documented. All-age apprenticeships, together with the all-age employability programme, are central to our proposed skills reforms. Apprenticeships are a proven route to sustainable employment and prosperity. The priorities I have announced today—a relentless focus on quality, opportunities for all, expansion of higher level skills and greater employer engagement—will ensure that this Government delivers on its pledge to the people of Wales.