Lifelong Learning (Higher Education Fee Limits) Bill
Monday 27th February 2023
(1 year, 9 months ago)
Commons ChamberRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for Education (Gillian Keegan)
I beg to move, That the Bill be now read a Second time.
Everyone has a different reason for being passionate about education, but most of us can point to that time in our lives which changed our lives: the excitement when maths began to make sense, the thrill when we found a subject that we really loved and were good at, or the pride that came when a life-changing teacher showed that he or she believed in us. I have spoken in this place before about my first moment of that kind, when my teacher, Mr Ashcroft, stayed late after school to help me take extra O-levels in engineering and technical drawing, which he continued to do for two years. His belief in me changed my life. Thanks to Mr Ashcroft, I was able to be accepted for an apprenticeship in a car factory, which was the golden ticket to a different life. But I have spoken less here about the second moment, and the third, and the fourth. I was lucky in that my education started there, but did not end there.
I have been lucky enough to benefit from truly lifetime learning throughout my jobs. I was able to go back and study in both my 30s and my 40s. From that, I have learnt a simple truth: offer people a hand up, and they will take it. However, while we excel at educating people in their younger years, too often we do not offer the same support once they are off the beaten track. Education is an opportunity—it is the ultimate levelling-up tool, the closest thing that we have to a silver bullet when it comes to improving lives—and it is always good to have more than one shot, as many things will change throughout our working lives. We have pledged to level up the country so that everyone gets the education that will enable them to seize the opportunities that come their way. I take that pledge extremely seriously, and that is why I am so proud to present this Bill to Parliament today.
Jim Shannon (Strangford) (DUP)
I applaud the Secretary of State for presenting a Bill which I think everyone in the House will welcome as a positive move. The Minister for Skills, Apprenticeships and Higher Education, the right hon. Member for Harlow (Robert Halfon)—who is sitting beside the Secretary of State—has often promoted young people whom I would describe as white Protestant males who do not achieve educational standards. He has frequently said that it is his purpose to make a difference. Is that also the purpose of the Secretary of State?
Gillian Keegan
Absolutely. I can assure the hon. Gentleman of that, as someone who went to a comprehensive school in Knowsley, a deprived white working-class area. Most of my schoolmates did leave school without many qualifications, and this is exactly the kind of opportunity that will be there for them many years later. They will be given that helping hand and, hopefully, take it.
Tom Hunt (Ipswich) (Con)
I, too, applaud my right hon. Friend’s educational support for people throughout their adult lives, but does she agree that it should also apply to those who are neurodiverse? People do not stop being neurodiverse when they leave school, which is why this support is needed throughout their adulthood.
Gillian Keegan
Absolutely. It is important that lifelong learning continues to be accessible to many people. Sadly, we have heard of cases where people are not diagnosed during their time in school, and it is even more important that those opportunities are always there for them.
The Lifelong Learning (Higher Education Fee Limits) Bill is one step further in our mission to revolutionise access to higher and further education with the introduction of a lifelong loan entitlement, otherwise known as the LLE. As the Minister for Skills, Apprenticeships and Higher Education, my right hon. Friend the Member for Harlow (Robert Halfon), says, the LLE will ensure that everybody has a flexible travel card to jump on and off their learning journey, as opposed to being confined to a single ticket. It is hard to overestimate the transformative effect that this legislation could have. Through the Government’s wider skills agenda, we have built the engine to help to transform our technical education system. We are doing this by expanding the number and quality of apprenticeships, by growing technical routes into work and by creating innovations such as boot camps. These reforms mean that the engine is ready, but it needs accelerator fuel and that is what the LLE is. It is the way we will deliver on a simple promise: if you back yourself, we will back you.
The Bill will adapt the student finance framework, making different types of study more accessible and more flexible. This is chiefly because it will enable meaningful fee limits to be set on periods of study shorter than a year. It will no longer be the case that the only ticket to further or higher education is through a three-year degree. Money talks, and there is often talk about parity of esteem. This system delivers parity of esteem. What this means in practice is that modules and short courses, as well as traditional degree courses, will be priced according to the amount of learning they contain. This will create a fair, more flexible system and go a long way to encourage more people into post-18 education.
Mrs Flick Drummond (Meon Valley) (Con)
We are talking about lifelong learning, but we are now expecting people to work until they are 67, so is there going to be an age limit on this loan?
Gillian Keegan
Subject to the consultation, there will be. I think that there are some age limits at the top end in the student loan scheme today.
Aaron Bell (Newcastle-under-Lyme) (Con)
My right hon. Friend was just talking about a fair price and a new method for calculating a maximum level for tuition fees. Does she agree that some people have been receiving higher education that has not been value for money over the past 20 years or so, and that this reform will make sure that people get what they pay for and get value out of their education?
Gillian Keegan
Yes, there have been occasions when some people may have felt that the value of the course they were on did not match the aspirations or expectations they had on their way into it. Obviously it can help if courses are shorter in length and there are more options to get to the career routes that many people are seeking.
As someone who studied part-time at college and at university I really appreciated the flexibility, but too often the system today tries to fit people into a box rather than adapting to their needs. That is why this legislation and the flexibility it brings will be of special benefit to students who need flexible study options—for example, those from disadvantaged groups or those who have caring responsibilities. Let me give some extremely practical examples. Take Alice, who is ambitious and wants to move into management but has not yet got the skills to do so. By using the lifelong loan entitlement, Alice can fund a module of learning to take that important next step, studying part-time so that she can stay in her job, earning while she is learning.
What about Ed? He has worked for the same company for 20 years and feels as though he is stuck in a rut and going nowhere. Luckily, Ed can use his LLE to enrol on a course that focuses on a growth area of the company he works for. He hops in and out of the training when he can and he is eventually able to break out of his rut and get himself promoted. Finally, Amy uses her LLE to study for a three-year degree to build a career in engineering, but because after 10 years in work, new technologies mean that she is not as skilled as she needs to be, she uses her remaining LLE entitlement to do a module that refreshes her skillset. She is then able to get a better job that makes use of that.
Mrs Drummond
What about carers? Will they still be entitled to carer’s allowance while they study?
Gillian Keegan
I am afraid my hon. Friend is a little ahead of me. This is a subject of the consultation, to which we will respond before Report.
Our education system should have this kind of flexibility at its heart, and through the LLE it will. The fee limits for all courses are currently set per academic year of a full course. Without action, the fees for modules or short courses could be set too high, which would put anyone who wants to study flexibly at a disadvantage, wasting our golden opportunity. It is the polar opposite of what the LLE should be trying to encourage.
This Bill addresses the lack of fairness in how learners choose to study, by introducing a new method for calculating fee limits. This Bill will do three key things. First, it will enable tuition fee limits to be based on credits, which are already a popular measure of learner time and will enable fee limits for all types of courses to be set consistently and appropriately.
Secondly, this Bill will introduce the concept of a course year, rather than an academic year. This will allow charges for short courses and modules to be set with greater accuracy. Finally, this Bill will allow the Secretary of State to set a cap on the total number of credits that can be charged for each type of course. This will prevent modules from being premium-priced.
Ultimately, this Bill will help to ensure that everyone, no matter their background or career stage, will have access to life-changing skills and training. The LLE will transform access to post-18 education and skills, and it will provide learners with a loan entitlement equivalent to four years of post-18 education, which is £37,000 in today’s fees. Learners will be able to use the LLE over their working lives. It will be available for both modules and full courses in colleges, universities and institutes of technology.
Aaron Bell
I welcome the commitment to four years because, to follow up on my earlier intervention, some people may feel that their three-year course did not set them up for the world of work as well as they would have liked. Does this mean such people will be entitled to one further year, with a loan, to reskill themselves to get the job they want?
Gillian Keegan
Yes, absolutely. That is why we sometimes see people take a level 4 or 5 apprenticeship course after completing their degree to get the skills that are useful in the workplace. Both full-time and modular options will be available.
The LLE will help people to get the skills they need for the jobs of the future, to build the energy resources, to lay the broadband fibre, to deliver the high-quality social care and to train the teachers and nurses we need. Some of us were fortunate enough to have the right opportunities at the right time, but others were not so lucky. That is what I want to change, because everyone should get that opportunity, regardless of where they are from, the decisions they have taken or even the courses they have chosen in the past.
We believe that the LLE will create a more streamlined lifelong funding system that benefits everyone—learners, employers and the economy. It is estimated that at least 80% of the workforce of 2030 are already in work today. They will need the opportunity to upskill and reskill over their career to progress and adapt to changing skills, needs and employment patterns. The LLE presents everyone with life-changing opportunities to get the skills training they need to retrain, upskill and progress.
I assure my hon. and right hon. Friends that we have consulted widely on how the LLE will work, who is eligible and how to support them. We are considering the contributions to this consultation, and we intend to publish a full response ahead of Report on the wider policy and design of the LLE. My hon. Friend the Member for Meon Valley (Mrs Drummond) has a great interest in this, I am sure.
As we move forward to delivery from 2025, we will continue to talk to representatives from across the education sector, as well as key delivery bodies, such as the Student Loans Company, to create a flexible and streamlined system that responds to the needs of the economy.
Too many businesses are struggling to find people with the right skills for their job vacancies, while school leavers and learners are often baffled by a skills system that is complex and bureaucratic. That means that companies cannot find the workers they need, people cannot progress and the country is stuck in a productivity quagmire. We have people who want to work and companies that want to hire them, but we need the LLE to ensure that the workers of today have the skills for tomorrow. We need learners to be able to upskill and retrain flexibly throughout their working lives as their circumstances and needs change. By offering funding for shorter periods of study, the LLE will help those who may have been put off studying because they thought the fees were too high or the living costs would be too expensive.
This legislation supports the Government’s pledge to introduce the LLE from 2025, building on the Skills and Post-16 Education Act 2022. It also furthers Sir Philip Augar’s independent review of post-18 education in 2019, which included the recommendation that the Government introduce a lifelong learning allowance. Through the LLE, we aim to introduce a more streamlined, efficient and flexible learning system that is fit for the future and brings further and higher education providers closer together. The LLE will transform access to post-18 education, presenting opportunities to retrain, progress and excel throughout an individual’s working life.
This Bill may seem small and technical, but its impact will be far-reaching. We need more coders, doctors, nurses, teachers, technicians and builders—more of most things—and I am certain the British people will answer the call, if only we give them the tools and training to do so. Establishing the LLE may be one small piece of legislation, but it is one great step for life chances and social justice. I am a Conservative because I believe in equality of opportunity—because I believe that what matters is where someone is going, not where they have come from. For that reason, I commend this Bill to the House.
Matt Western (Warwick and Leamington) (Lab)
It is a pleasure to follow the Secretary of State. I share a lot of her view on the importance of lifelong learning and how it transform lives, and the passion with which she spoke about that. The policy areas that unite us in this House are few and far between, but as she demonstrated in her remarks, the principle of lifelong learning elicits widespread support across the House. That is because we all recognise the transformational potential of education and the fact that it should not be capped simply by virtue of a person’s age or life stage. My view, and that of the Opposition, is very much that education is an investment not just in the individual, but in human capital and society, and, de facto, in our economy. We all probably know a Mr Ashcroft, as the Secretary of State was describing; we have all been touched by someone who felt that they should perhaps be widening their skillset through their lives or careers.
The world is clearly changing fast. With the fourth industrial revolution, net zero and changing demographics on the horizon, the need for a flexible multi-skilled workforce is more important than ever before. The CBI estimates that nine in 10 workers will have to retain and reskill by 2030 as result of the digital changes seen in the world of work. Likewise, the Climate Change Committee estimates that 300,000 additional jobs will be created if we are to meet our decarbonisation targets by 2030. Many of those jobs will require skills not yet being taught—or skills that perhaps should have been taught in recent years—if we are to catch up on achieving our objectives .
For too long now, the drive for more widespread adult education—lifelong learning and reskilling—has been, at best, lacklustre. The Government have sat on the sidelines and overseen a decade of decline in skills. On adult learning, for example, a survey by the Learning and Work Institute revealed that only one in three adults self-reports any participation in learning—that is the lowest in 22 years. Between 2009 and 2019, Government spending on adult education fell by 47% and, according to the Institute for Fiscal Studies, adult education and adult apprenticeships will still be 25% lower in 2024-25 compared with 2010-11.
We often talk about the lost decade of wage growth, and that is a fact, but it is pretty hard not to see it as a lost decade of skills growth as well. Indeed, the Learning and Work Institute quantifies that loss as up to 4 million learners, which is a pretty damning indictment of the Government’s skills agenda for these past 13 years. Indeed, part of the problem in recent years has been the lack of priority and focus in the Department, as deckchairs have been shuffled, reshuffled and shuffled again. The figures are well known. We have had five Education Secretaries in the past year, a succession of Ministers responsible for higher education and a seemingly constant shifting set of responsibilities between Ministers. There has been a fatal lack of consistency at the heart of the Department. It must be particularly challenging for the Secretary of State to be witnessing that at first hand. That may well explain why there is a widespread lack of awareness among employers of the Government’s skills reform programme. Four in five employers said that they were unaware of the Government’s plan to introduce lifelong learning entitlement.
Having listened to the Secretary of State’s opening speech, however, I note her determination finally to kickstart the lifelong learning agenda, and I commend her for the work that she is doing. I commend, too, the work of the Minister for Skills, Apprenticeships and Higher Education, both from the Back Benches and as Chair of the Education Committee. It was my former colleague, Gordon Marsden who, as MP for Blackpool South, really started this agenda, recognising the need for lifelong learning in the form of Labour’s Lifelong Learning Commission report in November 2019. Labour is fully committed to supporting the Government in delivering lifelong learning, continuing the important work that Gordon Marsden put together.
None the less, there remain some significant questions over the Government’s stated policy. In a slightly unusual way, what we have before us is merely a frame with no content—an exoskeleton without a body, as it were. The Government launched a consultation 12 months ago on how the lifelong learning policy should be framed, which included who should be eligible; whether maintenance should be provided; what courses should be covered; what courses should be exempt; what changes to the regulatory framework are required; what incentives, support and guidance are needed to encourage prospective students; how students can stack up their credits or modules; and how course quality assurance is monitored. However, despite that, the Government have failed to publish their consultation response ahead of introducing this legislation, denying Parliament the full picture when scrutinising the Bill—and that consultation closed 10 months ago, in May last year.
The Cabinet Office regulation rules, published in 2018, state:
“Government responses to consultations should be published in a timely fashion.”
Ideally, that is within 12 weeks—I guess that is three months—of the consultation. If not, they should
“provide an explanation why this is not possible.”
I ask the Minister this: why has the response to the lifelong learning consultation not yet been published? When does he expect to publish it, and what explanation can he give for the delay?
This is important, because this skeletal Bill’s skeletal impact assessment states:
“A full and detailed quantitative assessment of impacts on learners, providers, employers, the Exchequer and the wider economy and society is…not possible because of two key sources of uncertainty”—
namely, broader lifelong learning entitlement policy and behavioural uncertainty. The impact assessment goes on to say:
“As some aspects of the broader LLE policy are still in development, it is not yet possible to accurately estimate these familiarisation costs.”
As a cherry on top, we are promised that an enactment impact assessment will be published after the Bill receives Royal Assent. One would have thought that the two sources of uncertainty—broader LLE policy and behavioural uncertainty—would have been addressed by the consultative process and the learnings from the pilot programme. But no, for some reason those are being kept from this House. That may have something to do with the fact that only 33 applications for student finance were made for the Office for Students short course trial, which is widely considered to be a failure.
Call me old-fashioned—I have only been in this place for six years—but I prefer to debate the policy underpinning parliamentary Bills and their potential impact while we still have a chance to get it right. It is incumbent on all of us to try to deliver the best legislation. That is in all our interests, particularly given the unanimous support for the principle behind this Bill. Instead, we, the sector and prospective students are waiting on tenterhooks for the final publication of the consultation response before we can make any well-informed assessment of the Bill and how it will interact with the broader lifelong learning policy offer.
In anticipation of the Minister delivering the much-awaited consultation response in the coming days, I will move on to our concerns about the principles of the Bill as drafted and about lifelong learning policy. Given the importance of getting the lifelong learning policy right for boosting the UK’s economic growth, productivity and workforce potential, there remain significant questions related to the deliverability of this reform. The Minister is committed to delivering lifelong learning by the 2025 academic year. However, as he well knows, it takes a considerable amount of time to make changes to the student finance system, the admissions system and the design of new courses. As a fellow pragmatist, does he genuinely believe that it will be delivered by the start of the 2025 academic year, or will it be delivered in a limited form?
Delivering that could prove groundbreaking in changing the post-16 education landscape, and Labour would continue to tailor it if in government. To borrow a sporting metaphor, the pitch needs to be rolled. That includes the need for more clarity on who will be eligible. Universities UK, the representative group of 140 universities, has called for broad and consistent eligibility criteria to ensure that as many future learners as possible can upskill and retrain in the future. Given this Government’s previous form on proposals to limit access to higher education, whether directly or indirectly, what plans does the Minister have to extend this policy offer to as many people as possible, including those who are most hard to reach? Ultimately, as I have said, education is an investment in people. Therefore, the lifelong learning entitlement should be viewed through the lens of educational empowerment, rather than restrictively controlled and micromanaged. Many of us have concerns about how this is going to be managed and delivered, particularly through the OFS.
Given the scale of the challenge and the reforms to the student finance system, it is also important that the Student Loans Company is adequately prepared to deal with this new funding model. I, and indeed the sector, have noted that there is little to no information on the financial cost for the Government in the event that the Student Loans Company requires a redesign in any document attached to the Bill. That could be significant, surely. Given that the SLC funnels £10 billion-worth of public money into supporting students undertaking higher education courses, what assurances can the Minister give the House that adequate preparation has been carried out to ensure that the SLC is prepared for the coming change?
The Bill gives a surprising amount of power to the Secretary of State to decide what fee method applies, the type of courses and activities it applies to, and the maximum amount of funding available for each module or course. Understandably, that has raised eyebrows. With so much power in the hands of the Secretary of State, depriving Parliament of the ability to hold the Government to account adequately, there are few brakes to prevent them from unilaterally deciding to redefine the nature of a credit or a module, and to make compliance with that change contingent on future funding. I am sure that the sector would therefore warmly welcome greater clarity in the Bill on key concepts such as credits and modules. That would go a long way to assuage such concerns, whether or not they are well founded.
It is also widely recognised among providers that running modular provision is more expensive, not least because of the need to provide additional wraparound support, including onboarding, mental health support and academic writing support. Clearly, it is important that a minimum fee level is set to prevent students from being unfairly charged more for modular study than for a traditional academic year of study. However, in the light of the financial pressures on institutions, what plans does the Minister have, if any, to address the cost burden for providers delivering those courses? Failure to understand how that will work on the ground runs the risk of providers shying away from running such courses because of their prohibitive expense. The Government’s own impact assessment stresses as much, stating:
“Some providers could receive less tuition fee income per student if some types of learners that are currently studying longer courses instead choose to study in a modular fashion”.
It would be deeply concerning if the policy behind the Bill further eroded the financial sustainability of the sector, and damaging to the UK’s economic outlook if providers ended up opting out of modular study. It is therefore vital that sustainable and adequate funding be available to providers, and that fees be proportionate to a full qualification with support to deliver wraparound support and high-cost modules. That is also why consultation and dialogue with the sector are so important during the setting of fee limits. In that vein, what plans does the Minister have to ensure that, when setting those limits, the Secretary of State has properly consulted those in the sector charged with delivering this model of teaching?
Finally, let me touch on how the policy underpinning the Bill will engage with the current regulatory landscape. Sector bodies and universities are clear about the need to minimise additional burden. As a result, it is important that the Bill builds on existing regulatory and quality-assurance mechanisms. That is important for employer and student confidence in the system. It is somewhat ironic therefore that the Government are currently validating the de-designation of the Quality Assurance Agency for Higher Education from the Office for Students. That could leave a quality assurance black hole when we most need an experienced quality assurance body. I would be grateful if the Minister set out what plans he has to ensure that regulatory burden is kept to a minimum during the implementation of LLE, and how modular-based courses will be assessed for quality harmoniously across the sector.
Although the Bill is the flimsiest piece of legislation, we will not oppose it. We will wait for the Government’s response to the consultation. I urge the Government to publish the consultation document way before Committee stage, so that we have access to it and can properly scrutinise the legislation in the context of the consultation and the Government’s response. On that basis, we will not oppose the legislation.
Mr Robin Walker (Worcester) (Con)
I very much welcome the Second Reading of this important legislation and the broad principle of extending the Government’s support for further and higher education to more people through a lifelong learning entitlement. It is a pleasure to follow the thoughtful and constructive contribution from the hon. Member for Warwick and Leamington (Matt Western), who raised some genuinely valid questions. I am grateful to my right hon. Friend the Minister for Skills, Apprenticeships and Higher Education for the briefing he provided ahead of the debate to members of the Education Committee, which I chair.
The Bill is an important step in the journey to create what my right hon. Friend has often described as the ladder of opportunity, and it should benefit people across our country and at every stage in life. Making level 4, 5 and 6 qualifications more widely available, and encouraging HE institutions to offer greater flexibility to those pursuing them, are both worthwhile aims. This legislation, if done right, should stimulate greater competition and innovation in the market for lifelong learning. It has been welcomed by the Open University, which has been a pioneer in this space, and it has long-term potential to transform the skills landscape for learning through life.
I generally make it a rule not to bang on too much in this House about my predecessor but two as Member for Worcester—my late father—but I will make an exception in this debate. My late father, who never had the opportunity to pursue his studies beyond what we would now describe as level 2, set out an ambition in his Macmillan lecture about 40 years ago for people to be able to pursue education through their lifetimes. He envisaged a society in which people would be freed by the technological revolution then getting under way to pursue opportunities for education and advancement at any stage in their career. He summarised that opportunity under the heading “Athens without the slaves”—a piece of hyperbole that was much ridiculed at the time and that is commemorated in a lovely Times cartoon we have in the downstairs loo at my mother’s house—which I think recognises the intrinsic value of pursuing education.
My father’s was a generation in which higher education was a luxury withheld from the vast majority of the population.
David Johnston (Wantage) (Con)
I am very much enjoying hearing about my hon. Friend’s father’s views, and I look forward to reading his lecture. Does my hon. Friend agree that many people just do not appreciate education when they go through it the first time round, in the years to 16 or 18? They might have bad teachers, or they might have other things going on in their lives, and they cannot see the relevance of what they are doing in the classroom. Many people would like another opportunity at education later in life, which is why this Bill is so important.
Mr Walker
My hon. Friend is absolutely right: there are those who perhaps did not relish being in the classroom at the time. There are also those who go through their whole lives regretting not having had the opportunity to pursue further studies and feeling that they have somehow missed out on something. This Bill should provide a solution for both groups.
As I was saying, in my father’s generation, higher education was available to the few; it was a luxury withheld from the vast majority of the population. However, his generation also recognised that there should be no limits to where aspiration and hard work could take an individual. In his case, they took the lad who left school at 16 and who took his insurance exams while doing his national service to success in finance, politics, the Cabinet and eventually the House of Lords. However, he always recognised that, in missing out on the higher studies and university education that so many of his peers had enjoyed, he and many of his generation lost out on something of real value. He wanted to create the opportunity for people to study later in life, and to keep open the offer of vocational and academic study to adults throughout their lives.
Aaron Bell
Like my hon. Friend the Member for Wantage (David Johnston), I am very interested in my hon. Friend’s father’s reflections in his Macmillan lecture. Does my hon. Friend agree that, as we stand on the cusp of another scientific and technological revolution, with artificial intelligence, green jobs and so on, the need for lifelong learning is more urgent than ever?
Mr Walker
I do, and I think that that point has been well made from both sides of the House. With the fourth industrial revolution, there are opportunities for people to reskill—something that the Bill can well support.
The Bill has the potential to be an important step in recognising the vision my late father set out, ensuring that people like him in future generations have educational opportunities that were simply not available in previous generations. Allowing universities to spread the cost of a degree over more units and to have more flexible start dates should allow more people to pursue high-level studies flexibly and on a part-time basis. That, in turn, will help to meet the clearly expressed requirement from employers for more qualified people at level 4 and above.
Making the low-interest loans that are currently available to undergraduates accessible to more people in later life, and for a greater range of courses, should ensure that many more people have the opportunity to pursue studies at a stage in their career that might suit them. That would help people wanting to skill up in order to return to work, and also those for whom the only option for higher study is part time alongside continuing to work. Allowing units of progress on qualifications to be retained and transferred should allow more people to achieve higher qualifications over time than has been the case, and enable learners for the first time to lock in progress with their studies, in a way that was not possible under an all-or-nothing approach. My right hon. Friend the Secretary of State’s analogy of a travelcard, rather than a one-way ticket, is a very good one in that regard.
I recognise the broader range of skills challenges that we face—I perhaps expected to hear more from the Opposition on that topic. My Committee will shortly be publishing our report on post-16 qualifications, and I am also looking forward to supporting the work of the all-party parliamentary group for students on the cost of living for students, which is undoubtedly a matter of significant concern. However, I am strongly in support of what this legislation sets out to do, and of the drivers behind it. I do have a few queries, though, which I hope the Minister can answer fully in his closing remarks.
First, my Committee has recently heard from a range of organisations across the university sector with concerns about the burden of regulation they face from the OfS. I hope the Minister can reassure us that the requirements of the Bill will not be overly onerous and that, rather than increasing the burden of regulation, it will set out to create new freedoms for an independent sector to innovate and compete. Secondly, given that the scope of the legislation covers qualifications at levels 4, 5 and 6, what roles do Ministers envisage for the FE sector, and for partnerships between higher education and FE, as providers for lifelong learning under the new arrangements?
Thirdly and perhaps most importantly, given that the Government have consulted on the details of their proposals but have not yet responded to their own consultation, when can we expect to see the Government’s full response? I join the hon. Member for Warwick and Leamington in urging Ministers to bring that response forward before Committee stage, if at all possible. It would be very helpful for the House’s scrutiny of the Bill if it were able to see the details of that response and how the Bill will operate, rather than the framework itself.
However, the legislation is very welcome in its intent, and I look forward to the Minister’s responses to my questions. As Chair of the cross-party Education Select Committee, I welcome the Government’s intention to support lifelong learning by extending the benefits of student finance to more people. I look forward to supporting the Bill’s Second Reading.
Munira Wilson (Twickenham) (LD)
It is a pleasure to follow the Chairman of the Education Select Committee, the hon. Member for Worcester (Mr Walker).
Mr Deputy Speaker,
“adult education must not be regarded as a luxury for a few exceptional persons here and there, nor as a thing which concerns only a short span of early manhood, but that adult education is a permanent national necessity, an inseparable aspect of citizenship, and therefore should be both universal and lifelong”.
That is not a quote from one of the many briefings that was sent to me ahead of the debate. It comes from Arthur Smith, who was the master of Balliol College, Oxford, in his foreword to a report commissioned by David Lloyd George’s Government in 1919. This Bill is trying to fulfil an ambition outlined more than a century ago by a Liberal Prime Minister—one that, sadly, successive Governments of all colours have failed to deliver.
As we have already heard, there is consensus on all sides of the House about the need for a revolution in adult education. That cannot be understated, given the pace of economic and societal change before us. Research from the Confederation of British Industry predicts that, as a result of changes in the world of work driven by digitalisation and the transition to a green economy, 25 million workers will need to upskill by 2030, and 5 million will need to retrain completely. The 2022 business barometer, which was put together by the Open University with the British Chambers of Commerce, found that 78% of UK organisations suffered a decline in output, profitability and growth as a consequence of the lack of available skills.
Liberal Democrats see investment in education and skills not only as an investment in our country’s future, but much more than that. It is about helping people to maximise their potential, nurture their creativity and develop their interests and talents, so I share the Secretary of State’s ambition that, no matter a person’s background or what path they have trodden, we all deserve equality of opportunity. That is the reason I am a Liberal. The Secretary of State says that it is the reason she is a Conservative. Maybe we can hammer it out over a drink sometime, and I might persuade her to cross the Floor, because as we have seen, it was a Liberal Prime Minister who originally set out that ambition.
However, I fear that the Government’s investment in lifelong learning over recent years does not meet the scale of the ambition that the Secretary of State has outlined. According to the Institute for Fiscal Studies, total adult skills spending in 2024-2025 will still be 22% below 2009-10 levels. The number of students taking non-degree undergraduate courses at higher education providers fell from 330,000 in 2007-08 to 110,000 in 2021-22, most of whom were part-time learners. We are promised that the lifelong learning entitlement will change that, and that it will be flexible, unified and high-quality, with parity between technical and academic routes. We are promised that this Bill will underpin the LLE scheme by providing a credit-based method for calculating the fee limit for whole courses and individual modules. While I commend the Minister and the Secretary of State for their commitment to the cause, I agree with many of the comments made by the shadow Minister, the hon. Member for Warwick and Leamington (Matt Western), that it is plain to see that this Bill is not the century-in-the-making panacea we have all been waiting for.
Many questions remain unanswered in what the shadow Minister described as a skeletal Bill. First, we are debating the Bill in reverse. Parliament is meant to debate and approve the policy framework and then let the regulations deal with the technical details. This Bill does the opposite—it sets out the mechanism through which an LLE will be delivered without setting out any of the major policy decisions about how it will work. As we have already heard, the LLE consultation was published more than a year ago, but we are yet to see the Government response. The hon. Member for Meon Valley (Mrs Drummond), who is no longer in her place, asked the Secretary of State how old someone would have to be to access the loan entitlement. How will maintenance support work? There are no details in the consultation. Will the repayment terms for these loans be the same as for 18-year-olds going to university when many of these learners will have only 20, 15 or 10 years left in their working lives? Will the equivalent and lower qualifications rule be abolished?
Those are basic questions about the nature and structure of the LLE that the Government do not seem to be any closer to answering as yet, but they will make huge differences to the effectiveness of the programme. The lack of any detail on how to support students with living costs, particularly during a cost of living crisis, seems to me a significant oversight, which is made even more unforgivable by the fact that the Department is increasing undergraduate maintenance loans by just 2.8% next year, when inflation is running at more than triple that rate.
I question whether the Government have correctly identified the major problem they are attempting to address through this Bill, because I am not sure they have made the case that the LLE is something that aspiring learners actually want. The Department for Education sought to prove its concept by making student finance available for 104 courses, yet according to Wonkhe, just 26 of those courses are advertising a future start date and just 33 students have applied for student finance as part of that trial. That was backed up by a survey last year by Public First, which found that telling people about the LLE made no statistically significant difference to whether people would retrain. I do not believe that reveals a lack of demand for lifelong learning, but it does show a considerable lack of interest from the public in this mechanism for financing it.
The most commonly cited reason for not showing an interest in the scheme is not wanting to take on debt. Seeing as talking about our predecessors is in vogue, I will say that was the conclusion my predecessor, the former Member of Parliament for Twickenham, Sir Vince Cable, came to in 2019 when he commissioned an expert panel of university, college and adult education leaders to explore alternatives for financing lifelong learning. They found that most mature students have work, a mortgage or family responsibilities, and so are unlikely to be attracted to a scheme requiring them in effect to pay a higher rate of tax for the rest of their working life to participate in further study.
The commission recommended giving every adult a personal education and skills account—what the Liberal Democrats have nicknamed a skills wallet. The skills wallet is not about just bolting modular learning on to the existing higher education fees system, as this Bill proposes, but would offer central Government grants throughout life to incentivise learning at all levels and would leverage private and public investment from employers, local government and learners themselves.
The Government’s consultation says that a learner’s account will show their learning balance “like a bank account”, so why not operate it like a bank account with tax breaks to incentivise individuals to save for retraining? Many short courses are being paid for by employers, so why not make employers’ contributions as commonplace as a workplace pension? Local, regional and central Government could also incentivise retraining during a downturn or following the collapse of a large local employer by topping up the accounts of affected workers.
Tom Bewick, the chief executive of the Federation of Awarding Bodies said:
“The LLE Bill has the potential to be the most radical entitlement to adult education, skills…and retraining…ever introduced.”
But he goes on to say:
“Grants and maintenance support will also be required.”
I fear that the ambition of Education Ministers for the Bill and its scope have been shackled by the Treasury.
David Johnston
The hon. Lady is making an interesting case, but does she accept that some people do not want further or higher education and will not benefit from it? People talk about the archetypal bus driver who has not done such courses—of course, sometimes they will have—and ask why he should have to pay for other people to do them. I can see that the measure could be important for low-income families, but does she accept the principle that people who want to do the course should have to contribute themselves?
Munira Wilson
I see where the hon. Gentleman is coming from, but equally, we are ambitious about making sure that the whole population, or many parts of it, are reskilling and are ready for the jobs of the future, and for people from low-income backgrounds, loans are a real barrier to putting themselves forward for additional courses. The skills wallet, as in our 2019 proposal, would be a grant given at various points of someone’s lifetime between the age of 25 and 55, with top-ups from local or national Government or employers and some tax breaks to go with it. That is an innovative and pluralistic way of funding that ambition, particularly given the challenges that we face as a country to fulfil the skills that we need for us to thrive and grow, which seems to be a cross-party ambition.
I fear that the narrow scope of the Bill will prevent amendments that probe the big policy choices that await the Government before LLEs are rolled out in 2025, but I hope that Ministers will answer the following questions as the Bill progresses. Will the Secretary of State consider putting the notional hourly value of a credit in the Bill so that modules cannot be devalued by a future Government looking to save money? Universities UK and other stakeholders have raised concerns that clause 2 may allow the Secretary of State to set differential fees based on subject of the course. Ministers should bring forward amendments in Committee to ensure that that is not possible and protect universities’ institutional autonomy.
How will Ministers ensure that learners have access to high-quality careers advice before they get their loan entitlement? David Cameron promised Islamic-compliant student finance in 2013. It is unacceptable that, 10 years later, it has still not been introduced. Will the LLE also be blocked off to Muslim students? Will the equivalent or lower qualification rule be abolished to give learners more flexibility in what they study? Will the Government support the Liberal Democrats’ plan to restore maintenance grants so that university graduates from low-income backgrounds are not punished by having to pay back more of their loans for longer?
This is a pivotal opportunity to shape lifelong learning in this country, and it is desperately important given the digital and green revolutions that are already under way. If we want to ensure that we as a country are at the forefront of capitalising on these opportunities, we need to equip people with the right skills, so these plans need further thought and further detail. We will rue the day if, in another 100 years, Arthur Smith’s ambitions have still not been fulfilled.
Sir David Evennett (Bexleyheath and Crayford) (Con)
It is a great pleasure to be able to participate in this Second Reading debate. I should begin by congratulating the Secretary of State on her excellent speech, and on her passion for opportunity and excellence. I would also like to congratulate my hon. Friend the Member for Worcester (Mr Walker) on his speech, including his memories of his father. As someone who knew his father very well, and who went to some of his lunches when we had discussions about these sort of things, it brought back happy memories. [Interruption.] Ah, the Secretary of State is still here. I just wanted to say congratulations to her on bringing forward this Bill. I know she is passionate about opportunity, excellence and the fact that everyone should have a chance to develop themselves.
Many of us on these Benches have, over many years, been persistent in campaigning for lifelong learning and greater educational opportunities, irrespective of people’s backgrounds or situation. We have also praised our further education sector—the colleges—and I know the Minister for Skills, Apprenticeships and Higher Education, who is his place, has been a champion for the colleges. I believe that inspirational teachers, parents, role models, friends and school facilities are very important in encouraging young people, teenagers and people in their early 20s at college or university to go on and make something of themselves, but that is not enough. They need additional opportunities later on in life.
As someone who was a schoolteacher and subsequently, and more importantly in respect of this Bill, a college lecturer, I know from personal experience, as well as from constituency involvement, of the many students who, for many and various reasons, have not had the opportunity to continue in training, education or college courses. Their ambitions and their careers were stymied because they did not have that opportunity. When I was out of Parliament between 1997 and 2005, I was privileged to meet and to teach students at Bexley College, which at the time was led by the inspirational principal Dr Jim Healey. I taught women returners, the unemployed, those who wanted qualifications, those who needed qualifications to advance in their jobs and those who wanted to change careers. In particular, I was dealing with Institute of Personnel Management courses. They were good opportunities, but they were limited in scope—they did not go far enough—and now we are addressing that situation.
I would like to praise the Open University. I think we should do that, because it has done fantastic work in offering modules, degrees, courses and education at a high level with greater flexibility for students in relation to both age and time. However, this is not enough, and that is why we need other ways of ensuring that people obtain qualifications below degree level.
In today’s rapidly changing world, it is essential that we have a skilled, educated and motivated workforce to meet the challenges of modern Britain. We must never forget that we never stop learning—all of us, throughout life, are continuing to learn—particularly in the technological age we are in. When I left Parliament in 1997, we were still using electronic typewriters. We did not have computers or mobile phones, and it was a bit of a shock when I came back in 2005. Fortunately, however, I had been at a college, Bexley College, where I was able to do some courses, so I therefore understood and could do the basics. I still cannot type very well, but that is a different matter.
Aaron Bell
I am learning a lot about my right hon. Friend’s history, which I am finding very interesting. On Friday in the Chamber, we discussed the Employment Relations (Flexible Working) Bill, which the hon. Member for Bolton South East (Yasmin Qureshi) brought in. Does my right hon. Friend agree with me that these measures encouraging more mature students back into education go hand-in-hand with the reforms the Government are making to flexible working, which mean that people can continue to learn while they are earning and broadening their skills?
Sir David Evennett
I totally agree with my hon. Friend, who makes a very important point.
Lifelong learning is important; learning is not just for the young. Opportunities should be there for people to re-enter the world of learning and training throughout their individual working life. It is good news, therefore, that the Bill creates the flexibility for individuals to decide what and when they wish to study over their working life in order to progress their life, increase their skills and make something more of themselves. I particularly welcome the lifelong loan entitlement, as it will improve access to education and certainly accelerate the Government’s levelling-up agenda. Everyone should be afforded the opportunity to reach their full potential irrespective of their background or the lack of opportunity they had at school or college. People in established careers should also have an equal opportunity to pursue further studies. As a product of social mobility—like many colleagues on both sides of the Chamber—I am a firm believer that access to education should be fair and available to all who choose to look for and pursue it. The loan will enable those trapped in unemployment or low-paid jobs to undertake further study. That will improve their skills and employability, and their opportunities throughout life.
Research by Universities UK suggests that 35% of those who considered part-time education in the past 10 years did not enrol because of their personal life or their employment situation. We have to change that in modern Britain, and that is what the Minister, the Secretary of State and the Department are doing. My constituents in Bexleyheath and Crayford will be delighted to know that they can pursue further studies to suit their own pace, time and opportunities, without paying a premium for doing so.
I am keen for the simplification of the higher education system to enable wider and easier access. Research by the Department for Education suggests that the complexity of the student finance system and the difficulty in obtaining information for mature students are major factors that deter people from going back into study. The lifelong loan entitlement will offer a system that is easier to understand—my goodness, in today’s society, don’t we need things that are easier to understand, because of the complexities of life? [Interruption.] I see Mr Deputy Speaker is agreeing with me, and he is young by comparison. Things such as clearer detail on financial entitlements will no doubt encourage more people to study. I hope the Secretary of State will agree that to get the full benefit of the scheme, we must embark on an education and information campaign, targeting those who will find it of particular interest and benefit. It is no good thinking they will just find out; we have to go out there and sell it.
I am concerned, of course, by the skills gap that is plaguing our economy, particularly in this time of considerable economic challenge for our nation. In August 2022, the Federation of Small Businesses reported that 80% of small firms were facing difficulties recruiting applicants with suitable skills. As I go round my borough and constituency of Bexleyheath and Crayford, a number of businesses say that they cannot get staff who have the necessary levels of training or education. People do not have the opportunity to obtain further qualifications, and therefore those businesses cannot get the necessary skilled workforce.
We must endeavour to ensure that the UK remains an attractive investment proposition, with its skilled and talented workforce. I believe we have the people in this country, but they need the opportunity, training and skills development. We can then be No. 1 again in so many fields and be competitive across the world. We cannot afford to fall behind our counterparts, which is what we seem to have been doing. The lifelong loan entitlement will address that skills gap by enabling employees to continue to upskill as they progress through their careers.
For many, it may be more sensible to learn over a period of years because they have other commitments—families or other interests—in their lives. They may wish to develop practical experience first, and there is nothing wrong with that. People do not necessarily want to go on a three-year university course. They may not be ready for it or feel that the time is right. As our economy continues to shift towards greater automation, it will be crucial for employees to develop more technical skills. Low-skilled jobs will be those most at threat from automation, so we must equip those currently working in such jobs with the skills to ensure that they can thrive in an increasingly technological economy and society.
The Bill will be of huge benefit to all our constituents and all the countries in our United Kingdom, bringing the skills that employers want and that employees need. The result, hopefully, will be the happier and better paid workforce that we are looking for.
I believe, in all honesty, that the Government have done a considerable amount over the past decade or so and have a good record on education. I listened to the Opposition spokesman, the hon. Member for Warwick and Leamington (Matt Western), whom I respect. I always listen to him with great interest because he is measured and reasonable—though usually wrong. But he is a nice chap, and he put forward some thought-provoking ideas for us today. That is why the Bill needs cross-party support, including from the hon. Member for Twickenham (Munira Wilson) of the Liberal Democrats. I am not going to get party political—the Liberal Democrats always like to do that. We are trying to be constructive.
On technical education, over the last few years we have introduced T-levels, so that all people can access a world-class education. I did the old traditional A-levels. I enjoyed them and they suited me. As we have heard, I am not very good at technology. I do not think my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) will let me forget it. Nevertheless, young people can gain skills via the revamped T-levels. High quality is the key. Everything we do in education has to be high quality, not substandard. I therefore passionately support what the Government have done with T-levels, practical learning and industry placement. It is the best of both worlds.
Aaron Bell
On high quality, does my right hon. Friend recognise, from the independent Wolf review, that at least 350,000 young people were let down by courses that had little or no labour market value? That is what we need to change. As well as bringing forward lifelong learning, we need to ensure that all courses, whether for undergraduates of traditional age or older, offer value for money.
Sir David Evennett
Absolutely. I would also highlight the £490 million in extra funding that the Government are delivering to boost training and upgrade colleges and universities across the country. I must praise my own college, Bexley College, which has now merged into London South East Colleges under the successful and inspirational leadership of Dr Sam Parrett CBE. She is a brilliant and dynamic woman who is driving the agenda we desperately need. The Government’s extra funds will boost colleges’ training and upgrade colleges. This particular college is very good. It is an amalgam of several colleges in south-east London. There is a buzz and it is looking to the future. The traditional old-fashioned FE colleges were good in their day, but their day was yesterday, or even before that, when the father of my hon. Friend the Member for Worcester was in government in the 1980s. The Government are also investing £350 million to renovate further education colleges, which is welcome.
Mr Robin Walker
My right hon. Friend is making an excellent speech. I could not resist the opportunity to welcome the progress being made on new science and tech labs at Worcester Sixth Form College, which I visited just the other day. The college has been transformed by successive small investments under this Government, while under the Labour Government it got the promise of a complete rebuild under Building Colleges for the Future, which then got cancelled when they ran out of money for their programme. Is that not an example of how we can invest more effectively and productively for our college estate?
Sir David Evennett
My hon. Friend makes a brilliant point. I think we would all agree that what we need is upgrading and progress, rather than pie-in-the-sky ideas. We must get practical.
The other thing I want to highlight is that colleges in local areas should provide for local needs, boosting the skills that are necessary in that area. The skills needed in my area of south-east London are probably different from those needed in Worcester or in other parts of the country. The Bill creates a new duty for further education colleges, sixth-form colleges and designated institutions to ensure that the provision of further education is fully aligned with local needs and requirements. This is another way to ensure we have the employment and opportunities for young people and not so young people to make a real contribution to their community, and to strengthen the accountability and performance of local colleges and the businesses involved in helping the programme forward.
There is a lot to be pleased about in this small Bill, and I look forward to debating it in Committee if I am privileged enough to be put on it by the Whips, though I do not usually blot my copybook. We will discuss certain bits of the Bill and we will all have ideas for how to tweak it, but we must be grateful to the Government for putting forward an excellent, necessary and most welcome Bill that will support the introduction of a lifelong loan entitlement from 2025 and promote a culture of upskilling and retraining.
The Bill will help to open up higher and further education by introducing new methods and limiting the fees that can be charged based on credits. That is really positive, good news. Students will therefore be charged a proportionate amount depending on the number of credits studied, encouraging more people to study by taking advantage of the flexibility that the scheme will offer. We have seen flexibility in work because of covid and changing work patterns. Many people have found that to their liking, and many businesses have as well. Flexibility must be the word for our era, because it gives opportunity to so many more people.
Sir Julian Lewis (New Forest East) (Con)
I obviously welcome that the fees charged will be limited, but I presume that the colleges will be able to choose the packages that they offer, so is there a danger that they will be less inclined to offer modules if they cannot charge extremely exorbitant rates for them?
Sir David Evennett
I know that my right hon. Friend has a touch of cynicism. I am an optimist, and I believe that the colleges will want to take up the opportunity, because that will show the success of what they are doing. They are part of the local community, so they need to get real. We will have to discuss that point further. I encourage my right hon. Friend to beat the drum in the colleges in his constituency and to tell them that it is their civic or local duty—whatever we want to call it—to do these kinds of things. But we should be wary of what he says.
The Bill is the key to the Government’s skills revolution and it will support our businesses, long-term productivity and job creation. That is particularly important as we deal with the difficult times of the cost of living crisis and other things we will face in the future. We need to make the most of our opportunities. I welcome the Bill; I look forward to it passing into law and to the opportunities it will give so many people across our country for more studying, more career development, more skills and, hopefully, a more successful career.
Peter Aldous (Waveney) (Con)
I am grateful for being called to speak in this important debate. The Bill is somewhat technical in nature, but its objectives are to be welcomed and applauded. We need to ensure that its provisions are implemented as soon as practically possible and that, thereafter, they deliver the desired outcome. The Bill is vital to address the skills crisis that this country faces. Moreover, we need to ensure that people from all backgrounds and of all ages have every opportunity to realise their dreams and to pursue their chosen careers; that businesses of all sizes can recruit and retain staff with the necessary skills and expertise; and that the stubborn productivity gap that has plagued the UK economy for so long is at last vanquished and eliminated.
In East Anglia, there are exciting opportunities emerging in a wide range of new industries: zero-carbon energy production, life sciences, and food and agriscience. However, a skills mismatch is holding back those sectors, and if we do not address it, businesses will go elsewhere and we will have lost a once-in-a-lifetime opportunity not only to revolutionise the local economy for the benefit of local businesses, local people and local communities in East Anglia, but to benefit the whole of the UK, not least the Treasury.
I will not go into detail on the provisions of the Bill, because the Secretary of State has already done so. I shall focus instead on why the Bill is needed, why it is welcome and what more needs to be done if it is to have the desired impact. It is first necessary to put the Bill in context. In February 2018, the then Prime Minister, my right hon. Friend the Member for Maidenhead (Mrs May), announced a post-18 education and funding review. Sir Philip Augar’s report, which was published in May 2019, described post-18 education in England as
“a story of both care and”—
I am afraid—
“neglect”.
The Skills and Post-16 Education Act 2022 subsequently provided the framework for embedding lifelong learning in our tertiary education system.
The Government have quite rightly recognised the problem and the need for action. They are to be commended for introducing a comprehensive framework that can deliver much-needed reform, but I do feel a sense of frustration that the challenges are not being tackled more quickly. At times, I feel we need to be more radical and send a clear message to communities, people and businesses that wholesale change for the better is on the way.
Why is the Bill necessary? It is part of a drive to embed lifelong learning in our education and training system. The need for a lifelong learning culture is clear. Given the ageing population and the lack of people with the technical skills needed by employers, as well as technological change and the need to move rapidly to a net zero economy, we need every adult to have the capacity, motivation and opportunity to carry on learning throughout their life.
We have an ageing population. By 2030, the population aged 60 is projected to have increased by 42%, while the population aged 14 to 64 is forecast to have grown by just 3%. That has critical implications. First, people living longer might choose to work longer and must therefore be able to upskill and reskill. Secondly, those who are out of work might well benefit from accessing education and training to support them to be healthy and active in retirement. Thirdly, the pressure on public finances that an ageing population brings requires us to ensure that people of working age who are out of work or underemployed can upskill and retrain as quickly as possible.
We must address the challenge of climate change, which will lead to dramatic changes in the world of work. New and emerging sectors, jobs and working practices will require upskilling and retraining a very large number of people. The target of net zero by 2050 requires a radical shift in the response from our skills system—a challenge that I am afraid is not currently being met.
A fourth industrial revolution is taking place in information and communication technologies. Artificial intelligence, virtual reality and robotics are profoundly changing how people work, learn, communicate and live. That will require smarter and more agile ways of living and working. People will need higher, more specialised and socialised skills. As a result of the changes in the world of work driven by digitalisation, by the fourth industrial revolution and by the transition to a green economy, CBI research predicts:
“Nine in ten workers will need some form of reskilling by 2030”.
The Bill should not be considered in a vacuum or in isolation. If it is to be a success, it must form part of a comprehensive package of measures. Let me briefly list five of them. First, there is the need to ramp up participation in adult education. Since 2004 participation rates have almost halved, from 29% to just below 15%, which means that millions of people are missing out on opportunities to retrain and upskill for a new job or career and employers are unable to fill key vacancies. Secondly, there is a need to address the consequent low levels of employer investment in work for skills. While much recent reform has rightly focused on the role of employers in the skills system, there has at the same time been a decline in the amount of investment on the part of employers themselves.
Thirdly, we need to address the situation whereby the least advantaged suffer the most and have the least opportunity to advance. At a time when more jobs require education at level 3 and above, only 60% of young people reach that level by the age of 19, while 15% fail to reach level 2. The number of people taking higher and intermediate and technical college courses is lower than it should be, given both the current skills shortages and those that can be predicted owing to retirements and economic change in the coming years. Those who do participate are far more likely to be well educated and better off. The poorest adults, with the lowest qualification levels, are the least likely to access adult training, despite being the group that will benefit most. They must not be left behind.
Fourthly, there is poor co-ordination across the education system. Further education, higher education and apprenticeships are currently treated as distinct systems in their own silos, which makes it hard for employers and others to access the overall system. There is insufficient alignment across welfare, skills and economic strategies, and that needs to change. Fifthly and finally, there has been a neglect of level 4 and level 5 provision. Sir Philip Augar’s review notes that the small number of level 4 and level 5 students translates into persistent skills gaps at technician level. That gap, I am afraid, makes England an international outlier, with our numbers declining.
What else do we need to do? As I have said, the Bill is to be welcomed, for it has a vital role to play, but it is only one piece of the jigsaw. We need more detail on the lifelong loan entitlement ahead of its introduction in 2025. It has the clear potential to be a game-changer, introducing a stronger lifelong learning culture in England. However, there are issues of detail that need to be addressed, as well as wider issues relating to how it fits into the whole tertiary education offer, including further education and apprenticeships.
As the Bill progresses through Parliament, three big systems issues need to be borne in mind. First, there is a need to instil a new lifelong learning culture. Arguably, the biggest hurdle when it comes to the success of the lifelong learning entitlement will be the issue of how quickly a new culture of lifelong learning can be developed. Secondly, there needs to be clarity on the role of employers and how the lifelong learning entitlement will work with the apprenticeship levy. Employers are central to the working of the new system being developed as part of the Skills and Post-16 Education Act 2022, and it is important that they are fully involved in the development of the lifelong learning entitlement. Thirdly, there is a need for changes in regulations to develop a coherent post- 16 education and skills strategy that is properly aligned to wider Government policies, redressing the inefficient competition that exists across the system and setting out a co-ordinated approach to an expanded lifelong education service. This should include legislation to introduce a new tertiary post-16 commission.
In addition, I have two concerns that must be addressed when the Government publish their response to the consultation carried out last year that we have heard about. First, there remain questions about eligibility and who will be entitled to access the lifelong learning entitlement. This includes rules around equivalent or lower qualifications. Secondly, the matter of maintenance support needs to be addressed. The Government are still considering how maintenance support will be adapted for the lifelong learning entitlement. This will be crucial for mature learners, who often have family commitments and caring responsibilities.
As I have mentioned, there is a danger that the lifelong learning entitlement becomes something used by well-educated people to add a year after a degree rather than by people who do not yet have a level 3 education. The pathways from lower levels need to be strengthened with better funding and maintenance support at level 3 and below, with universal credit recipients being given every opportunity to access training without loss of benefits. It is important that the provisions of the Bill are accompanied by the necessary careers advice and guidance, so that those who need it most can take full advantage of the opportunities that will become available. A strategy is needed that sets out how the lifelong learning entitlement will fit into the careers advice and guidance for individuals to access throughout their lives.
If the Bill is to be successful, it must be accompanied by systemic change, and if the House will bear with me for a few minutes I will briefly outline what the ingredients of this change might be. They could include: a 10-year education and skills strategy; a new tertiary education system with a joined-up approach to regulation and oversight; the creation of a maintenance support system that enables everyone to have a fair and reasonable standard of living while studying training at college, across both further and higher education; the reform of the benefit entitlement system so that people who would benefit from attending college while unemployed do not lose out; and ensuring that the whole education and skills system is sustainably funded. For too long, the college system has been the Cinderella service of the education system. Significant improvements have been made, but more work is still required. Finally, we should have a support fund for providers branching into new resource-intensive areas at levels 4 and 5.
In conclusion—I think you will be pleased that I have come to this point, Mr Deputy Speaker—this Bill is to be welcomed, but it is only one part of a wide range of policies and initiatives that must be provided so that all people, whatever their backgrounds, are able to realise their full potential. If we do this, it will in turn enable businesses to prosper and allow the economy at last to move into top gear, eliminating that stubborn productivity gap. This is what is needed if we are to deliver sustained economic growth and meaningful levelling up. As the Bill moves forward, I would urge the Government to consider reasoned amendments—I know my right hon. Friend the Minister will do so—to quickly bring forward any necessary enabling and secondary legislation, and to work collaboratively, not only across this House but with universities, colleges, employers and, most of all, those people that we represent, to whom this Bill gives the opportunity to realise their full potential.
Aaron Bell (Newcastle-under-Lyme) (Con)
It is a pleasure to follow my hon. Friend the Member for Waveney (Peter Aldous) and to speak in what has been a very good debate. I thank the Secretary of State for her opening remarks. It is a shame that there are not more Opposition Members here, but it would be churlish of me not to acknowledge the speeches from the Opposition spokespeople, the hon. Members for Warwick and Leamington (Matt Western) and for Twickenham (Munira Wilson), who are no longer in their places. They both raised thoughtful points, as did my hon. Friend the Member for Waveney, and I am sure the Minister for Skills, Apprenticeships and Higher Education and the Secretary of State will have heard them and will consider what more we can do in Committee.
I also pay tribute to the speeches of the Chairman of the Select Committee, my hon. Friend the Member for Worcester (Mr Walker), and my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett). I look forward to hearing from my hon. Friends the Members for Wantage (David Johnston) and for Stroud (Siobhan Baillie) in due course.
As I said in my maiden speech, if I can remember back that far, education is
“the greatest tool of social mobility that we have.”—[Official Report, 20 January 2020; Vol. 670, c. 78.]
To echo the Secretary of State, I am a Conservative because I believe in equality of opportunity and in the famous ladder of opportunity that I am sure the Minister will mention in his closing remarks.
In my maiden speech, for which I believe you were in the Chair, Mr Deputy Speaker, I went on to talk about young people making the very best of themselves. In truth, I should have widened it out because it is not just about young people; everyone should have the opportunity to educate themselves. I understand that we cannot offer the LLE to, say, 70 or 75-year-olds because there would be no return on the investment, but I hope that 55-year-olds, or even 60-year-olds, might benefit from lifelong learning, because they still have so much to offer.
I spoke on Friday about an 82-year-old in Chesterton in my constituency who wanted to know whether there are opportunities for flexible working in Newcastle-under-Lyme, and I am sure plenty of older people are looking for opportunities not only for flexible working but to go back to college to get themselves more skills, perhaps while they are working. This Bill will go some way towards that.
I also said in my maiden speech that levelling up is about education, and not simply funding for local areas, although the funding I have secured for Newcastle-under-Lyme—more than £50 million for the borough from the future high streets funds and through the town deal—is incredibly welcome. I am glad the vice-chancellor of Keele University chairs our town deal board.
As I always say to schools, colleges, universities and businesses alike, levelling up is not simply about throwing in money, knocking down buildings, building new buildings and applying a lick of paint; true levelling up comes from the investment our businesses make, the investment we make in our public services and, most of all, the investment we make in our people.
That starts before school in the first 1,001 days that my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) talks about and continues through nursery, primary school and secondary school and into further and higher education, which is the point at which it often seems to stop. If people do not have the opportunity of a forward-thinking employer that pays for training, they often do not continue to grow their skills. They obviously gain experience, but they do not have the opportunity to go out and learn new skills that might allow them to take their career in a new direction. I particularly welcome the fact that the Bill offers the opportunity of lifelong learning to people who may have studied to some degree or who may have dropped out of university, so that they are able to go back and put right what they perhaps once got wrong, or once did not value as much. They will then be able to redirect their career and perhaps their and their family’s entire future.
For too long, young people have been encouraged towards unsustainable degrees. We have a fixed model, pushed under the Blair Government, of three-year courses that all charge the same fees. When that Government introduced tuition fees, the original idea was that different institutions would charge different amounts, but that is not how the free market resolved the problem. It was apparent that if a provider charged less than the maximum —originally £1,000, and later £3,000 or £9,000—it would be advertising itself as inferior, and no provider wants to do that because they all want to have the badge.
In practice, of course, there are inferior courses and universities that are not as good as others, yet people are paying the same for every course at every university. There is no proper market signal to young people as to what is valued in the marketplace and the world of work. The Bill introduces a new method to make sure that students access courses at a fair price, and pricing modules and short courses proportionately will go a long way towards getting the market signal out to our young people, and to older people who take advantage of lifelong learning, as to what is valued.
Sir Julian Lewis
I recall some of these debates and it was predicted at the time that the universities, in particular, would behave in precisely the way my hon. Friend has described. I am a little bit concerned about the people who did a course that was not really viable in terms of qualifying them for a practical career. How, if at all, will they benefit from this legislation, given that, presumably, they may have used up their three years’ worth of learning allocation?
Aaron Bell
I am not sure whether my right hon. Friend was in the Chamber earlier when I intervened on the Secretary of State on precisely that point. This comes with a four-year entitlement. It is not perfect and people will have used up entitlement; I discussed this last week in the Tea Room with the Minister for Skills, Apprenticeships and Higher Education, who is in his place. The flexible loan is worth £37,000 at today’s prices—four lots of £9,250. Those who did a three-year course and found it did not do much for them may have the opportunity to do a one-year course now. When people are a bit older and wiser, they can often get as much out of a one-year course when they really want to do it as they did in three years when they were at university and perhaps were too busy in the bar, on the football pitch and so on. I take the point made by my right hon. Friend the Member for New Forest East (Sir Julian Lewis) and thank him for sharing his experience of those debates from back in the early days of the Blair Government. However, I do think that the Minister and the team in the Department for Education have considered this point, and I think it is one reason why they have set this at four years rather than three.
I also welcome the investment we are making in skills training more generally, and I will talk a little more about that in a moment, because I want to speak about the further and higher education institutions in my constituency. I am lucky, as it is blessed with both a fine further education establishment, Newcastle and Staffordshire Colleges Group and, specifically, Newcastle College, and a higher education institution, Keele University. It is genuinely positive for the area, if not for my re-election prospects, that we have a university in my constituency. If we could make sure the next election takes place during the holidays, I would be extraordinarily grateful, although I know that is not in your gift, Mr Deputy Speaker. I always enjoy going to Keele University and speaking to the students, even if they do not always vote the right way at the ballot box. [Interruption.] I see the Opposition Whip, the hon. Member for Ogmore (Chris Elmore), heckling me from a sedentary position.
Keele University is very integrated now into Newcastle-under-Lyme, in a way that it has not always been, partly because of the involvement in the town deal that I spoke about earlier, with the vice-chancellor as the chair. As part of that, Keele University is going to be opening a digital society centre in the centre of Newcastle-under-Lyme. The science and innovation park at Keele is also a huge benefit to the constituency. We manufactured the vaccine on that park; the AstraZeneca vaccine was manufactured by Cobra Biologics, which has since been taken over. A number of small businesses are also going on there, through the Denise Coates Foundation, which has funded a school of management there. All of that is essential to levelling up, having more money in our local economy and more wealth generated locally and spent locally, supporting our high street and helping us to get the growth we want in our local economy.
I will speak a little more about Keele in a moment, but first let me speak about the Newcastle and Staffordshire Colleges Group. I am delighted to say that it is becoming an institute of technology—sadly, it is in Stafford, not Newcastle-under-Lyme, but that is by the by because it will be open to people from both areas, which are very much connected. Ours was the first FE college anywhere in the country to be rated outstanding across the board by Ofsted. I wish briefly to raise a point about T-levels with the Minister. I know that the college welcomed them, and it currently has 2,259 learners studying level 3s, mostly in applied general things, mostly on BTECs. That cohort is considerably disadvantaged compared with the one doing A-levels at the college; they are eight times more likely to have education, health and care plans, twice as likely to have a learning difficulty or a disability, and 33% more likely to be economically disadvantaged and in receipt of a bursary. The college has written to me as it has concerns about the transition to T-levels and the speed with which it is occurring, and I think there are a number of practical concerns. The college is very much in favour of what the Government are doing but it has a number of practical concerns. If the Minister would be willing to meet people from the college, either on a visit, which I know he would be keen to do, or virtually in the meantime, that would be welcomed by the excellent principal, Craig Hodgson, who has written to me about those concerns. I am very blessed to have that further education establishment in my constituency, as it is changing the life chances of many of my constituents. It is also well engaged with local businesses, as it offers apprenticeships as well. Having such a good further education provider in my constituency is a fundamental part of what will help to level up Newcastle.
Let me speak a little more about Keele University, which, as I have said, is also in my constituency. A total of 31% of home undergraduates are in receipt of financial support due to low household income. That places the university 27th out of 122 English higher education institutions, according to the Office for Students. It does very well on non-continuation—keeping disadvantaged people in university—but it acknowledges that it has more to do on attainment. According to the most recent figures that I have available, in 2017-18, only 14% were mature students, and the university wants to do more about that. I am sure that the Bill will encourage more people to study at what is an excellent university in Keele. It is so excellent, in fact, that it was voted Britain’s best university, as ranked by students. It has 96% graduate employability, which is very encouraging.
I will, if I may, briefly mention Staffordshire University, which, although it is in neighbouring Stoke-on-Trent, is attended by a number of my constituents. It has a different profile: some 24.5% of its students are in quintile 1of the income deprivation affecting children index; and 50.5% of its students are mature, of whom 35.5% are full-time—that compares with 21% nationally. The university is incredibly well set up to deal with lifelong learning. There are a number of disadvantaged people in Stoke-on-Trent who did not even get GCSEs, let alone A-levels or go to university, and I hope that some of them will take advantage of the opportunities that this Bill presents.
Let me cite some figures that were provided by UCAS, for which I am grateful, to give the overall picture in my constituency. In the last cycle, there were 730 applications to higher education institutions, 600 of which were accepted. Of that, 135 were studying locally, which I think is mostly at Keele. Those numbers are lower than average. I would like to see them higher, again, to see us do better, but 28.1% of those were aged 21 plus, which is above the latest national average of 23.8%. That is encouraging, as it shows that mature students in Newcastle-under-Lyme are already taking advantage of the opportunities through UCAS.
The Bill also sits alongside our record in education in general, and how we are using education to improve people’s life chances to help level up their opportunities and outcomes. I welcome T-levels, despite the aside from the college that I mentioned, because they are a technical qualification that will help people. They provide practical learning for those who do not necessarily want to study A-levels. We have also delivered lots of money on different fronts—£490 million to boost skills training and upgrade our colleges and university, £432 million of which will fund state-of-the-art university and college facilities at 100 providers, and a further £57 million will support 20 specialist higher education providers to deliver a wider range of specialist courses of the highest quality. We have invested £350 million in renovations for further education colleges across the UK. We have brought forward £200 million of that to renovate 180 providers. That means that colleges have started immediate work in repairing and refurbishing their buildings.
Importantly, given the context of Putin’s war in Ukraine, we have provided £500 million for energy efficiency upgrades for schools and colleges, which will help them to save on their bills. A primary school will receive, on average, £16,000, a secondary school, £42,000, and further education groups approximately £290,000 each, which is very welcome and will help to make sure that we have energy efficient buildings, saving ourselves and the providers money in the long run.
We have £3 billion in the National Skills Fund that we have established. That helps individuals and small and medium-sized enterprises to access high quality education and training. Although that is not completely in the scope of the Bill, it is important that we engage with businesses at every stage on what they want. I had representatives from businesses down here just last week to attend a roundtable meeting, and they told me that their two challenges are land and planning and then skills in the local population. Therefore, everything that we can do—whether it is through apprenticeships, through training on the job or through the opportunities that the Bill will provide for people to acquire new skills, possibly taking a year out and possibly while working part time—will be welcomed by businesses in Newcastle-under-Lyme.
It is not just money that we need. We are also requiring further education establishments to provide for local needs. The Bill creates a new duty on further education colleges, sixth-form colleges and other designated institutions to ensure that the provision of further education is fully aligned with local needs. That will be considered on an annual basis to strengthen accountability and performance, so if an area is falling behind, there will be scope for it to catch up. Finally, we need to reform initial teacher training in further education, which is part of the cycle that I spoke about earlier. We need the best quality teachers. At the moment the system is a bit too fragmented, so we need to make it easier to navigate and it needs to have high-quality, clear standards throughout. We need to ensure that public funding for teacher training goes only to high-quality providers following the standards that we and employers want to see.
In conclusion—I know that a couple of other Members wish to speak—as I said at the start, I believe in equality of opportunity and in giving people the tools they need to make more of themselves. My people in Newcastle are ambitious; indeed, all of our constituents are ambitious. They want to stretch themselves, learn new skills and make a better life for themselves and, above all, their families. As I have said, education is at the core of that. It gives people and their children the opportunity to make more of themselves, and this Bill is all about expanding that opportunity and making it available to more people—more than I considered in my maiden speech, to be honest. It will ensure that opportunities are available, with Government support and the help of teachers, lecturers and everyone else who works in the sector. I pay tribute to them, because they have been through a very tough time with covid and have had to work very hard to get back on track. This Bill will be a shot in the arm, giving them more keen students who have actively chosen to go back into learning. That is exactly what teachers and lecturers want—those are the people they want to work with. This Bill is about expanding opportunity, regardless of people’s background, previous educational history and age, and I commend it to the House.
David Johnston (Wantage) (Con)
It is a pleasure to follow my hon. Friends the Members for Newcastle-under-Lyme (Aaron Bell) and for Waveney (Peter Aldous). There have been a number of good speeches, but I was struck in particular by a couple of things said by my hon. Friend the Member for Waveney, who is no longer in his place. First, he spoke of FE having been a Cinderella service for a long time, and secondly, he addressed the risk of affluent people using the Bill’s provisions to get a qualification additional to those they already have. I will talk about the issue of access, which I think chimes well with my hon. Friend’s comments.
Before I entered this place in 2019, I ran charities for disadvantaged young people. Those charities pretty much worked with young people aged 16 to 25—a couple of them went all the way down to age 10, but the bulk of young people I worked with in the 16 years before becoming an MP were aged 16 to 25. I am therefore quite familiar with how the system pushes people to do three-year university courses at the age of 18. Indeed, they are set on that path before they even get to that point, because at 16 they have to choose the courses that will set them up for their desired university course. For example, if someone is not studying chemistry at A-level, they will not be admitted to a medical course. We put people on a narrow track at a very early age.
There are all sorts of debates about the international baccalaureate and whether we should study a broader range of subjects. If students are to follow the university track at 18, however, they have to pick subjects at 16, and school visits will often be to universities rather than to colleges and employers. The UCAS system—I am really glad that we are changing this—makes it incredibly easy for people in year 12 and moving into year 13 to apply to university. There is one form, on which they list five universities. The process could not be much simpler, although there are difficult things to do to put the form together. Everything says to young people, and to adults, “There is a slip road at this point, but if you miss your junction”—to mix metaphors slightly—“that is it. You will be set on an incredibly long road without the opportunity to come off at the next junction or go back and find that junction again.” That is what our whole system has done for a long time, and it has been quite instructive.
I do not say this as a criticism, but the two big influencers of young people—parents and teachers—reinforce that message. That is not a criticism, as I say, because we all have to do better in that regard. Parents often want their children to go to university, even if they did not go themselves. My parents wanted me to go to university, but I was the first generation in my family to do so. For many people, going to university is held up as the aspirational thing to do, and the alternatives are not seen in the same aspirational way, which they should be.
Most teachers did exactly what we are talking about: they got to 18, went to university, did a teacher training qualification, and joined the profession. So it is the thing that they are most familiar with, too.
Rehman Chishti (Gillingham and Rainham) (Con)
My hon. Friend makes an important point about the influencers —be they teachers or parents—who inspire individuals to go to university. A point that needs to be considered relates to the initial teacher training market review that the Department for Education has just carried out, affecting teacher recruitment. Twelve universities—including Greenwich University, which covers Universities at Medway, and the University of Durham—have been removed from teacher training opportunities, affecting more than 4,492 future teachers. If we are to inspire the younger generation to go to university, we need outstanding teachers and a spectrum of universities from across the country providing that training. Does he agree that it is absolutely right not only that we get the right teachers, but that such reviews take into account the excellent work already being carried out by teachers across those institutions?
David Johnston
My hon. Friend makes an important point. I do not know enough about why those universities have been removed, so I will not comment on that, but a point to which I will come later is the importance of outcomes for young people and adults. Whatever the qualification that they are studying, we have to judge the outcome that they go on to, rather than just saying, “Well, you have to go to university or you will have to do this sort of thing instead.”
Apprenticeships, as well as higher technical qualifications, which I know the Bill will enable people to do through the lifelong learning entitlement, do things that teachers and parents are not familiar with, which is quite important. My hon. Friend the Member for Waveney and others have talked about the importance of careers advice. The truth is that there are very few examples of good careers advice anywhere—be it in the state sector or the private sector, for the young or the old. A lot of our decisions are based on anecdote, or being told what not to do rather than what to do, without understanding the full range of available options. One thing that we have to do is to help parents and teachers understand the range of options that are available to young people. If they knew about them, they would probably be more open to promoting them.
Aaron Bell
My hon. Friend speaks with great authority on these matters. I completely agree with his point about careers advice. Does he agree that what is perhaps needed at the ages of 16 to 18 is better advice about what courses to take and what will open up the most doors? A lot of people aged 16 to 18 have no idea what career they want to take up. I know that I, for one, did not.
David Johnston
My hon. Friend makes another important point, and it leads me incredibly nicely to the point that I was just about to make.
I understand the motive behind the Labour party’s desire for 50% of young people to go to university. It was not a malign motive. Labour believed that that was aspirational and that it would help us compete, but it has clearly had a number of negative consequences. One of the most important—this goes to my hon. Friend’s point—is that we have told people, “The most important thing you can do is go to university at 18. It doesn’t particularly matter where you go to university or what you study. The most important thing is that you go to university, because we want all young people to go to university.” Thanks to a whole range of organisations, including the Institute for Fiscal Studies, which has done great work on this issue, we now know that people who graduate from a number of institutions will earn less than they would have done had they just got a job. In 2020, the IFS found that about 20% of people who go to university—one in five—earn less than people with similar grades who just get a job.
We might dislike that that is the case—we might wish that every university or subject gave people the same earnings outcome—but when I worked in this field, people could choose from 60,000 university courses, which of course do not all give the same outcomes. Certain universities—particularly Russell Group ones—give people higher earnings, as do particular courses, such as medicine, engineering and maths. The charities I worked with overwhelmingly supported disadvantaged young people, and the truth is that it is usually those people who do not get the advice they need and who pay large amounts for courses that do not add to their employability outcomes. They do not get good information, advice and guidance at a young age from school or from parents, in the way that a middle-class child might. That is one big way in which the 50% target has prioritised quantity over quality.
Sir Julian Lewis
I thoroughly endorse the direction of my hon. Friend’s thoughtful argument. Does he agree that, even at the Russell Group university end of the spectrum, there has been a serious issue with grade inflation? So many people—a large majority, I think—are now awarded first and upper second-class honours in institutions where, 20 years ago, one in 10 might, if they were lucky, have got a first-class degree, that it becomes difficult for employers to pick out people for the right reasons and for the right jobs.
David Johnston
I completely agree with my right hon. Friend. Part of the reason why that has happened is that young people feel, “I’m making an investment here. I’m paying £9,000 a year. I’m not doing that for you to give me a 2:2 or a third at the end of it.” There has therefore been this pressure on universities—often, unfortunately, with the threat of legal action from parents who can afford it—to inflate the grades people are given. This is another unintended consequence.
People will say, “Look, it’s not just about the money you can earn after your degree,” and that is the case, but because we as individuals are making that investment at that age, we understandably want to see an impact on our earnings. However, another problem is that lots of people will never pay back the money they have borrowed, and that is a huge liability for the taxpayer. Some taxpayers have been to university themselves, and some have not, but they will all incur this cost. We lend money to people to go to university, but if they do not earn enough to be able to pay it back, the taxpayer will not get a return on that investment. At the moment, we are on course for only a quarter of people to fully pay back their student loans. That is a huge amount that the taxpayer is investing unnecessarily in something that I hope we will change through this Bill.
As has been touched on, it is also the case that the three-year, full-time model for people aged 18 does not suit every young person. Lots of the young people I used to work with at the charities I ran had caring responsibilities, either for younger siblings or ill relatives. Perhaps a member of their family had unfortunately died, and those young people therefore had greater responsibilities, or they needed to work alongside study in order to supplement the family income. As such, again, we need greater flexibility, and that is before we come on to the technological change that we are expecting. We will see some of the most radical technological change that the country has ever known, and lots of the jobs that we train people for today will become obsolete. A person might make a decision at 18 about the particular course they want to study for a particular job, and in 20 years find that that job is obsolete and that they need to retrain for something else. That is why the Bill will be so important.
As an aside, lots of jobs should not need a degree anyway—we have slipped with the 50% target, I am afraid. In order to make the lives of employers easier, we have applied a higher and higher degree threshold to weed out people when we make selection decisions. If everybody has a degree, we end up starting to ask for master’s degrees, so we have entry inflation, not just grade inflation. Above all, that target has contributed to the disparity of esteem between academic and vocational courses. As has been touched on, this is a limited, smallish Bill, so giving people the equivalent of £37,000 in today’s money to enable them to train themselves across their lifetime, at some point in the future when they decide that they need to study for qualifications that they do not yet have, is so important for what we are trying to do: create that parity of esteem.
The Bill will promote lifelong and modular learning, and set limits on course and module fees based on credits. It will also achieve subtle things. Going back to the point about the whole system being geared towards one particular model, changing from an academic year to a course year is hugely important, because when everything is geared towards academics, we are continually reinforcing the message that the academic model is the only one for people.
We know that lifelong learning has a huge number of benefits. We know it will help with earnings; for some considerable time only about one in eight of the people who are in low pay have escaped that low pay a decade later. That has been true for decades, and part of that is about progression. By the way, that is partly the job of employers —they need to have good strategies for progression —but it is also about allowing adults to train in things they are not able to do, so that they can get more skills and therefore get more money.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I came into the Chamber after the hon. Gentleman had started his very good speech, so I hope he will forgive me. Is he trying to reinvent the individual learning accounts, which were an early attempt by Tony Blair’s Government to create that lifelong pattern of learning and open up opportunities? I was Chair of the Education Committee at the time, and unfortunately that Government found out very quickly that that scheme could be scammed, and it collapsed. Everyone said that the Government should have brought it back, even Mr Deputy Speaker, who used to be one of my students. Even he believed in that scheme, but it has never been resurrected.
David Johnston
I am grateful to the hon. Gentleman for his intervention. I am a politician, so I would never try to reinvent the wheel, but I think what we are trying to do in this Bill is learn from some of the problems that the Government at the time had with that situation, because lifelong learning is so important and people will need to retrain. People cycle in and out of work, and we will need to train people for jobs that none of us has even considered. Developed economies such as ours are historically bad at retraining people for new technology—it is not just a UK problem; it is a US problem too. All the developed economies find that difficult, so the Bill is an important way in which we can help people. That is before we consider the health and wellbeing advantages of lifelong learning, which are also well documented.
The Bill is set in the context of a couple of problems with which my right hon. Friend the Minister for Skills, Apprenticeships and Higher Education is familiar. One is access. It is still the case that access to certain universities is not what it should be. Disadvantaged young people find it difficult to get into certain universities, and we have to make better progress on that—some universities are still dominated by those from private schools, and that matters for everything we are training people for—and ditto the situation with international students. Some universities have made much better progress on getting international students rather than low-income students. They do that because it gives them a lot more money, but universities need to be making a good contribution to social mobility at home.
With this lifelong learning entitlement, I hope the Minister will, as with everything else, be applying two tests. First, what are the outcomes for people who undertake certain courses? I am agnostic about whether it is level 4 or level 8 and whether it is academic or vocational; the thing I care about most is whether the course helps someone get a better outcome than they otherwise would have had if they had not done that qualification. That unfortunately has not been the case with lots of the university courses that people have done at 18. The second test is simply this: do disadvantaged young people or older people who have been disadvantaged get their fair share of the courses that will really help them to have those better outcomes? Across degrees and apprenticeships, too often it is the most affluent and the most privileged who take most of the spaces on the things that will give the best outcomes. All that being said, this is an important Bill that is trying to get us to that parity of esteem, and I am very pleased to support it.
Siobhan Baillie (Stroud) (Con)
It is an absolute pleasure to follow my hon. Friend the Member for Wantage (David Johnston), who I genuinely believe could speak for an entire day on this subject and still enthral the entire Chamber. I completely love this focus on lifelong learning. Whether short courses, long courses or life-enhancing learning, it is hugely important not only to the individual, but to the country. I am pleased that we finally have a Government who are committed to all forms of learning, jobs and sectors. I give credit to the Department for Education and all the officials in the Box as well, because I know how hard they have been working.
I did not go to university; I left home at 15 and did not do particularly well at school. I got a job as a legal secretary, and then I worked my way up. I went to night school, carried on and qualified as a solicitor. I was quite embarrassed about all that. I did not tell anybody. I remember going out with barristers and their saying, “Just give this up. It is hard work. You are going to work all day and studying at night. You are teaching aerobics as well in the evening to pay for all the law school fees. That looks like hard graft, why don’t you just go to uni?” I used to fumble around and stumble in my explanation as to why I was learning in the way I was. That was because the entire country and the Labour party for a long time had focused very much on getting 50% of youngsters into university, and there was not a lot of chat about the rest of us.
We know that a lot of parents are often very supportive of further education colleges, but mainly for other people’s children, because many families, many schools and many quarters still consider that university is the only way forward. Let us fast-forward to me as a bright-eyed, bushy-tailed candidate in Stroud. I got chatting to those at the amazing further education college, South Gloucestershire and Stroud College. I spoke to people at all our secondary schools, and I met bright and ambitious young people. On the doorsteps, I kept meeting people who had qualified through further education colleges, and I was learning all the time about these great careers. Often they were running great big departments or leading the way in their individual industries, but they tended not to talk about how they had qualified, often because they had been written off by the time they had got into colleges. We drop that part of our lives.
I started bothering Education Ministers about further education and skills, and I started a campaign called #FEFriday. I basically bang on about further education every single Friday on all my social media. What I have learned from all that is just how valuable everything that goes on in our colleges is and how important our lifelong learning programmes are. I remind everybody that during the pandemic the professions that people missed the most were the chefs, hairdressers, childminders, those in beauty and those in construction. We should remember when we were not allowed plumbers in our houses, and how much trouble that caused. I absolutely welcome this Bill, the focus on lifelong learning and finding a way to support that financially.
Similar to other Members, I have questions for the Minister that I know he will deal with about the funding behind the Bill for our colleges and how much that will help them. They have a real crisis in recruitment. They are seeing other colleges and other sectors providing golden hellos and cash to recruit and retain staff, which FE colleges cannot offer. Similar to my hon. Friend the Member for Waveney (Peter Aldous), I am interested to see how this Bill works alongside the apprenticeship levy, which we could have another very long debate on, and how we are ensuring that we are seeing reforms.
I want to hear—not necessarily today—a little more about the polling and work that the Department has done to look into the perception of taking on more debt, because when I was growing up I did not want to get into debt. That is the reality for lots of people in my communities. That is why I worked to learn, and it is why I made sure I was teaching those aerobics classes to pay my fees.
Aaron Bell
Does my hon. Friend agree that some of the contributions about debt, particularly, I regret to say, from Opposition Members, have been very unhelpful? I have found that the best advice has often come from Martin Lewis, who is very widely trusted on these things. Going to university or taking on any course, as people could under the Bill, should not be seen as a debt in the traditional sense of the term; it operates for UK-based people much more like a graduate tax than actual debt, and that framing is far more important, because that will encourage people into learning, rather than discourage them.
Siobhan Baillie
My hon. Friend is absolutely right. When we look into how these things work, we see that it is not a debt, but very much an enabler. However, we know that many people feel that it is a debt. I want to understand how the Department has looked at this issue and how we deal with those concerns going forward.
In the final minutes I have, I want to make two separate points: first on green skills, then on employability. I wrote an article some time ago that set out and argued that net zero cannot happen without know-how, but we have effectively got a green skills emergency. There is a challenge to reskill those who work in existing industries that will be affected by the transition. Fossil fuel production in the North sea, for example, created skilled and well-paid workers who are sorely needed to make the transition successful, but they need to have a skills bridge to make sure they are being retrained for future industries. I am interested to know how the lifelong learning entitlement can help that.
The second issue with the skills emergency is educating our young people. We have a huge skills gap for our future workforce, which urgently needs closing. I did some work with the Chair of the Select Committee, my hon. Friend the Member for Worcester (Mr Walker) to create a nature GCSE and engage people. My main message to young people when I go into schools is, “Do not lie down on motorways or glue yourselves to stuff. Do your STEM subjects and make sure you are learning well, because if you become scientists, you will be fixing the environmental challenges that we have today, and you will be the saviours of our future.”
I encourage people to look at the Onward report, “Green Jobs, Red Wall”. I work closely with the Onward think-tank, and it is excellent. I will run out of time if I go through that report, but alongside the Bill, it is important that the Department for Education works with other Departments to ensure that the landscape is set up so that we educate, encourage people to gain skills and encourage people to take on more courses. However, unless we get the factories up and motoring and unless we get the seed investment into some areas of tech, the jobs will not be there, so I ask the Department for Education please to work with other Departments.
On employability, I started the all-party parliamentary group on the future of employability in direct response to the calls of employers in Stroud, which are echoed around the country, about recruitment issues; the calls of potential employees who are feeling burnt out post pandemic; the high number of people with mental health issues; and the millions of people on welfare. I have also been fighting the good fight on childcare, because we have a huge group of economically inactive people—mainly mothers—who are not working at full tilt.
I had been looking at the issue and I spoke to a good friend, Ronel Lehmann, who started an employment company called Finito. It is his job to get people work ready, so we put our heads together and started the APPG, because I passionately believe in the power of work doing good. I can see that thousands of people are no longer work ready, that many millions are not working at full tilt, and that people do not feel that they have a place in the workforce because they do not feel that they can engage.
All the evidence tells us that work is the fastest route out of poverty. It gives us a reason to get out of bed and it is good for mental health and for relationships. It is also good for children to see their parents have a routine and a sense of purpose. We do not always have to like our jobs—there are days, even though it is a great privilege to be here, when we do not like our jobs—but we have to send a strong message to the country that, “Work is good for you. Work will help not only you and your family, but the country.”
Having a focus on lifelong learning, on employability and on ensuring that we are getting people work ready and into a job—and that once they are in a job, they can transition into a more responsible part of that job or to a new job—is the quickest way for people to feel sustained and fulfilled. I look forward to working with the Minister, and I believe passionately in what he and the Secretary of State, who is now in her place, are trying to do. I am genuinely ambitious for every single person I meet, and I think the Front-Bench team from the Department for Education feel exactly the same, so I wish the Bill Godspeed and I look forward to making sure that it happens.
Mr Deputy Speaker (Mr Nigel Evans)
We now come to the wind-ups. I call the shadow Minister.
Matt Western
I have benefited from training courses and adult education throughout my career, as I am sure many hon. Members have. Although some of the skills that I developed may not have been directly relevant to my employment at the time, they proved incredibly useful later in life. Like the Minister and the Secretary of State, I am therefore a deeply committed believer in the power of lifelong learning.
I thank all right hon. and hon. Members who participated in the debate, although perhaps I will not refer to them all in my summing up. I was particularly interested to hear some of the historical perspectives from a century ago, or perhaps 40 years ago—certainly I remember Peter Walker from my youth. They give context to the fact that some of these challenges have been around for some time, and show how important it is that we address them collectively.
The hon. Member for Waveney (Peter Aldous), who is not back in his place, rightly raised the issue of productivity. I am particularly concerned about that and about how the performance of the UK economy has fallen back. As far as I am concerned, it is not a puzzle and there are easy ways to resolve it. The fact is, however, that our relative productivity is 20% behind that of France. He also raised questions about eligibility and maintenance support, especially for carers, which are concerns that the Opposition share.
I was interested to hear the discussion between the hon. Members for Stroud (Siobhan Baillie) and for Newcastle-under-Lyme (Aaron Bell) about debt. Of course, we have to put that in the context of debt for students being raised to £9,250, and the impact of that. We are now in a situation where maintenance loans are relatively frozen, which is frustrating, because it reduces the breadth and opportunity for people and reduces young people’s access to education.
The hon. Member for Worcester (Mr Walker) had certain queries and asked about the burden that might fall on the sector, which is a real concern that I also picked up on. The hon. Member for Twickenham (Munira Wilson) echoed my concerns about the mechanism of the Bill and the fact that there was no actual policy within it. She asked whether the Government would now abolish the ELQ rule, which is one of the many questions that we will put to the Government in Committee. I thank my hon. Friend the Member for Huddersfield (Mr Sheerman) for raising individual learning accounts. They were put forward by the Labour Government, but there were concerns and difficulties with them when they were introduced, because of some of the fraud that they led to.
As I alluded to in my opening speech, the need for lifelong learning is greater than ever. We have been on a slippery slope of economic decline for too long, with UK GDP per capita growing at an average annual rate of 0.5% in real terms between 2010 and 2021, according to the World Bank. The Labour party is resolute in its determination to reverse that trend, so much so that it is one of our guiding national missions. In that vein, we are prepared to support the Minister throughout the Bill’s passage, assuming that we see fuller detail in due course.
As I said in my opening remarks, however, there remain far too many gaps, questions and uncertainties at this critical stage. We have a frame, but the real work is yet to be done. In essence, it is a promise—not an empty promise, but a promise that needs substantiating. Many questions have been asked in this debate, such as about the fee setting for modules and courses; the quality and how the Government plan for that to be determined; and, in particular, the role that the OfS will have.
Many of those questions would be resolved if the Minister were prepared to finally publish the LLE consultation response. I raised many questions in my opening remarks that I very much look forward to hearing from the Minister about shortly, but my lasting message is to please publish the response to the consultation as a matter of urgency. I look forward to working with the Minister to flesh out this most skeletal of Bills, and I hope that we can work constructively in future.
The Minister for Skills, Apprenticeships and Higher Education (Robert Halfon)
I thank the shadow spokesman for the Labour party, the hon. Member for Warwick and Leamington (Matt Western), for the constructive way in which he has approached the Bill, and the shadow spokesman for the Liberal Democrats, the hon. Member for Twickenham (Munira Wilson). I knew Gordon Marsden well—he was my opposite number when I last held this post a few years ago. He is a good man and he knows the subject inside out.
The hon. Member for Warwick and Leamington asked about the consultation response. We have said that we will publish it before Report stage. He will know that it is not specifically aligned to the measures in the Bill, but about the wider policy of the LLE. He wants us to introduce the LLE at speed, which is exactly what we are trying to do, but we want to do it carefully and to make sure that we respond to the consultation following all the submissions that we had. As I say, it will be published by Report stage, if not before.
Matt Western
The Minister is a decent individual, so I ask that we have sufficient time to consider the response before Committee, given that it has been 10 months since the consultation.
Robert Halfon
I repeat that the consultation will definitely be ready by Report stage, if not before; I guarantee to the hon. Gentleman that it will be ready by Report.
The hon. Gentleman asked about fee limits. He will know that the Secretary of State can set fee limits as a result of the Higher Education Act 2004. The Skills and Post-16 Education Act 2022 built on that and allowed for flexible and modular learning. That legislation has long roots in the Augar report as well, so the Government have clearly set the direction of travel.
We will be having regular consultation with stakeholders as well. The hon. Members for Warwick and Leamington and for Twickenham asked about the hourly value of credits in the Bill. The Government feel that the number of learning hours in a credit is an area that should continue to be governed from a quality standards perspective, rather than from a fee limits perspective, and we have legislated accordingly. In the Bill, the credits are used to signify the total amount of learning time that a student would ordinarily be expected to spend to complete a particular course or part of a course. However, I can assure both spokespeople that further details on the number of learning hours associated with credits will be set out in the regulations. Where providers choose not to use credits in this way for certain courses, these courses will have the fee limit determined using a default credit value, but they will face no penalty or reduction overall as a result.
To turn to my successor as Chair of the Education Committee, my hon. Friend the Member for Worcester (Mr Walker) spoke quite interestingly about his father. I have read a book about his father, who was a very good man. My hon. Friend talked about the burden of regulation, and our intention is to simplify regulation, not to add to it. Of course, those institutions that offer the LLE will be registered with the OfS. He talked about partnerships between further education and higher education. I absolutely agree, and I think this policy will rocket-boost that. There are already examples, and I can give him the great example of Nottingham Trent University and the college in Mansfield. I repeat that the consultation will be ready by Report.
I have answered some of the questions of the hon. Member for Twickenham, but on the point about the equivalent learner qualification, I can only say that we will be able to tell her when the consultation has been published. However, I hope she will not be unhappy with that, and I appreciate her support. Again, on maintenance, I envisage a similar system to what exists now for the current student loan system, but the full details will be in the consultation on that.
My hon. Friend the Member for Waveney (Peter Aldous) made a very important speech, and he is passionate about further education and about championing it. He is absolutely right about employer investment. That is why we introduced the apprenticeship levy—it is not part of the Bill and it is separate, but it is very important—so that we would have business investment in skills. He talked about the disadvantaged, and he is absolutely right. They will be able to do modules and flexible learning, and they will have more access to courses they want to do than they otherwise would have had. One of the reasons for the decline in part-time learning is the three-year loan, and they will be able to do short courses or modules of courses. [Interruption.] Of course, I will give way. Sorry, I thought somebody was asking me to give way, but it was just my hon. Friend the Member for Lichfield (Michael Fabricant) being very noisy, as usual. I used to work for him many years ago, so I can say that. This will be published in the consultation, but the LLE, as has been highlighted, will concentrate on levels 4 to 6 and it will have a phased approach.
My hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) talked powerfully and spoke about good outcomes for students. Of course I will meet his new college group. On local business involvement in qualifications, that is entirely why we have the local skills improvement plans.
My hon. Friend the Member for Wantage (David Johnston) made a brilliant speech, as is his wont. He will know that we have introduced UCAS for apprenticeships and hope to expand that over the coming months and years. He is right that we should not just have been saying, “University, university, university”, but “Skills, skills, skills”.
I am delighted, as I say, by the positive response to the Bill. Universities UK has said that it is a welcome step with a more flexible system of opportunity at its heart, and I thank all Members who have spoken. As my right hon. Friend the Secretary of State mentioned, the Bill is a major step forward in our mission to revolutionise access to post-18 education and skills through the introduction of the lifelong loan entitlement.
I want to respond to an additional point about the number of adult learners. That number has increased by 4.3% from 2021-22 to 2022-23, and the hon. Member for Warwick and Leamington will know that many adults are now doing apprenticeships and different kinds of adult learning skills.
The Bill has just three clauses, but in supporting the LLE it will transform lives. It will transform the lives of working people on low incomes, it will transform the lives of carers who need to balance their commitments alongside study, and it will transform the lives of anyone who wants to upskill in their existing career or propel themselves into a new one. The LLE will enable access to modules and courses in a way that has not been possible before. It will provide individuals with a loan entitlement equivalent to four years of post-18 education to use over their working life. Regardless of background, income or circumstance, people will have access to a flexi-travelcard to jump on and off their learning as opposed to being confined to a single advance ticket. This is not just a train journey; it is a life journey.
The Lifelong Learning (Higher Education Fee Limits) Bill brings in the next piece of legislation to support delivery of the LLE from 2025. As my right hon. Friend the Secretary of State set out, the Bill has three core elements. First, it will enable limits for tuition fees to be based on credits. Currently, tuition fees are set for complete years of full courses only. This change means that short courses and modules will be priced appropriately in comparison with and alongside longer courses—for example, degree programmes.
Secondly, as was highlighted by my hon. Friend the Member for Wantage, this Bill introduces the concept of a course year. Currently, tuition fee limits are based on academic years of study. This change will allow fee limits to be applied more accurately to courses that are not aligned with traditional academic years.
Finally, this Bill allows for an overall maximum chargeable number of credits for each type of course. Currently, a maximum can only be set in relation to an academic year. This will prevent students being charged excessively for their studies. In sum, the Bill will lay the groundwork to ensure that fee limits are the same for a learner who completes a qualification by studying each individual module at their own pace as it would be for them to study a typical full-time course across three academic years.
Sir David Evennett
Does the Minister agree that the Bill will be transformational? By enabling people to change careers, change skills and develop talents throughout their working lives, it will make people’s lives better and their opportunities much greater?
Robert Halfon
My right hon. Friend, who made a brilliant speech, is absolutely right. We will also be resourcing this in the way that my hon. Friend the Member for Stroud (Siobhan Baillie) wanted with our extra spending on skills and further education colleges. I also thank her for her important speech.
Alun Cairns (Vale of Glamorgan) (Con)
Will my right hon. Friend give way? [Interruption.]
Robert Halfon
I just want to answer some other questions that the Labour spokesman asked first.
To be clear, as part of the pathway towards the LLE, the Government will stimulate the provision of high-quality technical education at levels 4 and 5 through the HE short-course trial that he talked about, with 22 providers. [Interruption.]
Madam Deputy Speaker (Dame Rosie Winterton)
Order. Could I ask Members to be quiet, because we cannot hear what the Minister is saying and he is not able to hear where interventions are coming from?
Robert Halfon
We will keep the student finance system under review to ensure it is delivering value for money both for students and the taxpayer. The forecast costs for the LLE, which the hon. Member for Warwick and Leamington asked about, will be outlined in a future spending review. He also asked about the QAA. It released a public statement in July 2022 requesting to step down from its position as the designated quality body. We are currently consulting on the de-designation of the QAA as required by the Higher Education and Research Act 2017. That consultation closes on 3 March.
Alun Cairns
I am hugely grateful to my right hon. Friend for giving way. Clearly, this is a devolved area of policy in the nations of the UK, but what discussions has he had with the devolved Administrations? Students from all parts of the UK clearly cross borders quite frequently, and there will be implications—not only for funding, but for a whole range of issues affecting those impacted by this Bill.
Robert Halfon
My right hon. Friend makes an important point. We will be able to explain further once the consultation paper has been published, before Report.
Mr Robin Walker
My right hon. Friend will know that the difference between the Report and Committee stages can often be a few days. Sometimes in this House it can even be a few hours. I am sure he will recognise that it would benefit the House enormously in its scrutiny if Members could have sight of the Government’s response to the consultation ahead of Committee, when we will debate the detail of the Bill. I know he cannot make that commitment right now, and I appreciate the commitment he has made to bring it forward before Report, but will he give every consideration to whether that response could be brought forward any faster in the passage of the Bill, so that the House can give the most effective and positive scrutiny to what, as we have heard today, is a good idea in principle? [Interruption.]
Madam Deputy Speaker (Dame Rosie Winterton)
Order. Once again, there are clearly important interventions being made. I am sure right hon. and hon. Members want to hear those interventions, and the answers as well. I urge all colleagues to listen to the remaining part of the debate. Even though there is an important statement coming, we want to hear the interventions and answers.
Robert Halfon
Of course I will consider the representations made by my hon. Friend the Member for Worcester and others across the House. We will try to get the consultation out speedily, but it will be published by Report.
Sir Oliver Heald (North East Hertfordshire) (Con)
Does my right hon. Friend agree that as we look to educate people perhaps in middle age into new skills and to improve their higher education for the future, it would be good to ensure that we get the sort of skills we need as a country, and to have a form of workforce planning? As we know, we are short of doctors and nurses, but there are others areas such as welders, life sciences and so on where we have great hopes and needs for future industry. Does he think there is a way of directing that sort of effort in a more planned way?
Robert Halfon
That is exactly what the Government’s programme is doing. We are investing in employer-led qualifications—that is exactly what this is about—and the LLE will enable many millions more people to have access to get on the skills ladder of opportunity.
Sir Mike Penning (Hemel Hempstead) (Con)
As people look to retrain in later life, can we ensure that our armed forces have the support they need after serving their King, Queen and country, if they need to retrain after they leave the armed forces?
Robert Halfon
The beauty of the Bill is that it will enable anyone to retrain and do long courses, short courses or modules at a time of their own choosing, building up credits along the way. Those who leave the Army will be able to do that kind of skilled retraining.
Gary Sambrook (Birmingham, Northfield) (Con)
Does the Minister agree that as well as the Bill and Government support, the £6.6 million of investment in Cadbury College in King’s Norton in my constituency will ensure that people have the facilities and resources to give people the skills they need for later in life—[Interruption.]
Madam Deputy Speaker (Dame Rosie Winterton)
Order. Once again it is getting very noisy, and we are not able to hear the Minister’s answers. I urge colleagues to listen to the answers that the Minister is giving.
Michael Fabricant (Lichfield) (Con)
On a point of order, Madam Deputy Speaker. I wonder whether you could make an inquiry into whether the loud speakers are turned up. Although there is some noise in the Chamber, it is actually rather quiet coming out of the speakers in our Benches.
Madam Deputy Speaker
I think the situation would be helped—I can still hear a lot of noise, even when I am speaking—[Interruption.] Perfect. I urge colleagues to keep the level of noise down, and then we will be able to hear what the Minister is saying.
Robert Halfon
I absolutely agree with my hon. Friend the Member for Birmingham, Northfield (Gary Sambrook). He has hit the nail on the head. On the point of order, it is never quiet when my hon. Friend the Member for Lichfield is in the House.
Finally, let me respond to one of the questions from the hon. Member for Twickenham regarding how the student loan repayment mechanism will work compared with now. We are building the LLE on a proven system, consciously designed both to support students pursuing higher education, and share the cost fairly with the taxpayer. Like the current student loan system, repayments will be linked to income not interest rates or the amount borrowed.
I am grateful to hon. Members for their contributions today, and I hope to have addressed as many points as possible. I reiterate the significance of this Bill. It is a further piece of the jigsaw of the transformative reforms that will improve our skills system and revolutionise how and when people can and do access study. That sentiment is echoed by the sector. Professor Tom Bewick of the Federation of Awarding Bodies emphasised the Bill’s
“potential to be the most radical entitlement to adult education, skills training and retraining (delivered at the point of need), ever introduced.”
The reforms are a step forward, providing everyone with a ladder of opportunity to get the skills, security and prosperity they need.
The Government are not only expanding high-quality opportunities, the rungs of the ladder, which encompass careers, quality qualifications, skills and lifelong learning, but through the Bill and the LLE we are building the top rung of the ladder—social justice—by expanding access to quality lifelong educational opportunities that for the most disadvantaged pupils will mean levelling up productivity and employment, improving the skills pipeline and supporting people into fulfilling and lasting careers. I know hon. Members will join me in supporting that greater flexibility in our post-18 education and skills system, removing barriers to ensure that everyone is empowered to access further and higher education when and how it suits them. The Bill will promote equality and access to education, whether students are undertaking a degree or a module of a degree, and I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.
Lifelong Learning (Higher Education Fee Limits) Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Lifelong Learning (Higher Education Fee Limits) Bill:
Committal
(1) The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 28 March 2023.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Proceedings on Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.
Other proceedings
(7) Any other proceedings on the Bill may be programmed.—(Mike Wood.)
Question put and agreed to.
Lifelong Learning (Higher Education Fee Limits) Bill (First sitting)
Tuesday 21st March 2023
(1 year, 9 months ago)
Public Bill CommitteesRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 21 March 2023 - (21 Mar 2023)
The Chair
We are now sitting in public, and the proceedings are being broadcast. I have a few preliminary announcements. As per usual, Hansard colleagues would be grateful if Members emailed their speaking notes to hansardnotes@parliament.uk. Please switch phones and electronic devices to silent. Tea and coffee are not allowed during sittings. Date Time Witness Tuesday 21 March Until no later than 9.50 am Universities UK Tuesday 21 March Until no later than 10.25 am Liz Bromley, Newcastle and Stafford Colleges Group; Alun Francis, Oldham College; Ellen Thinnesen, Sunderland College Tuesday 21 March Until no later than 10.55 am Julie Charge, University of Salford; Professor Sir Edward Peck, Nottingham Trent University Tuesday 21 March Until no later than 11.25 am Professor Sir David Bell KCB DL, University of Sunderland; Rachel Sandby-Thomas, University of Warwick Tuesday 21 March Until no later than 2.30 pm Confederation of British Industry; Association of Employment and Learning Providers Tuesday 21 March Until no later than 2.45 pm Sir Philip Augar Tuesday 21 March Until no later than 3.00 pm Association of Colleges Tuesday 21 March Until no later than 3.00 pm Dr Elizabeth Norton, Coventry University; Professor Sue Rigby, Bath Spa University
We will first consider the programme motion on the amendment paper. We will then consider a motion to enable the reporting of written evidence for publication, and a motion to allow us to deliberate in private about our questions before the oral evidence session. In view of the time available, I hope that we can deal with those matters formally without debate. The programme motion, standing in the Minister’s name, was discussed yesterday by the Programming Sub-Committee for the Bill.
Ordered,
That—
1. the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 21 March) meet
(a) at 2.00 pm on Tuesday 21 March;
(b) at 11.30 am and 2.00 pm on Thursday 23 March;
(c) at 9.25 am and 2.00 pm on Tuesday 28 March;
2. the Committee shall hear oral evidence in accordance with the following Table:
3. the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5.00 pm on Tuesday 28 March.—(Robert Halfon.)
Resolved,
That, subject to the discretion of the Chair, any written evidence received by the Committee shall be reported to the House for publication.—(Robert Halfon.)
Resolved,
That, at this and any subsequent meeting at which oral evidence is to be heard, the Committee shall sit in private until the witnesses are admitted.—(Robert Halfon.)
The Chair
Before we hear from the witness, do Members wish to make any declarations of interest in connection with the Bill?
David Simmonds (Ruislip, Northwood and Pinner) (Con)
I am an honorary fellow of Birkbeck, University of London.
Andy McDonald (Middlesbrough) (Lab)
I am an honorary governor of Middlesbrough College.
The Chair
We will now hear oral evidence from Professor Malcolm Press CBE, chair of University UK’s advisory group on the lifelong loan entitlement and vice-chancellor of Manchester Metropolitan University. Professor Press is appearing by Zoom. I remind Members that questions should be limited to matters within the scope of the Bill, and we must stick to the timings in the programme order that the Committee has agreed. We have until 9.50 am for this panel. Professor Press, could you please introduce yourself for the record?
Professor Press: My name is Professor Malcolm Press, and I am here in my capacity as chair of Universities UK’s group working on the lifelong loan entitlement. I am also vice-chancellor of Manchester Metropolitan University.
The Chair
You are very welcome, and thank you for your time. I am Judith Cummins, a Member of Parliament and Chair of this Bill Committee. We will take a series of questions from MPs. We start with our Minister.
The Minister for Skills, Apprenticeships and Higher Education (Robert Halfon)
Q
“A more flexible approach to higher education funding is right for learners, right for employers and right for providers.”
In what ways would greater flexibility in the student finance system be beneficial to students? How do you think the lifelong loan entitlement will encourage more part-time students to take up learning?
Professor Press: The flexibility is welcome. It will help people to align their study with the other demands on their life, both their personal life and their professional career journey. It will make a big difference. For part-time learners in particular, the maintenance elements are very welcome, and the removal of the ELQ—the equivalent or lower qualification—rule will also be helpful, since for some people that has been a barrier to learning, particularly later on in life.
Robert Halfon
Q
Professor Press: The response of universities is not just dependent on level 6 being introduced; it is dependent on programmes that are not HTQs—higher technical qualifications—being opened up. That will be the key thing. At the moment, you will find that universities that want to offer HTQs will do so, and we very much welcome that, but the majority of students at the majority of universities are not doing HTQs, so the long-term success of this will depend on opening up flexibility for regular degree programmes. That is where the big transformation will come.
Robert Halfon
Q
Professor Press: There will have to be, otherwise people will leave just with a series of certificates. The challenge is that employers will find it difficult to understand what those things mean. The lifelong loan entitlement provides an opportunity to build up micro-credentials and to stack them into qualifications, and that really matters. That will require collaboration between institutions, whether they are further education or higher education.
Matt Western (Warwick and Leamington) (Lab)
Q
Professor Press: I think the LLE will open up opportunities for part-time learners, and that is to be welcomed enormously. The unit of resource is fixed, as we know. You might come on to ask me about this, but the bit I find most difficult to understand is the difference between the credit-based and the fixed-mechanism methods of calculating the fee cap. I hope you will ask me a question about that; I think that needs a bit of clarification. However, the sector will continue to face challenges when it comes to delivering at quality, given that the fee cap is frozen. Nevertheless, the opportunity to open up learning to new groups of students is welcome, and will be beneficial to business and the country.
Matt Western
Q
Professor Press: As I understand it—forgive me if I have got this wrong—it is up to the Secretary of State to decide which method will apply. My understanding of what the Bill is trying to do is this: in a sense, we should enable any credit to be costed at a credit fee’s cost, and it should be up to the providers to assess whether there is demand and supply—a demand for the learning at credit level—and whether, if that is opened up, businesses and employers will want to recognise the value of that. At the moment, it feels like a slightly false divide, and it leaves the decision as to what can and cannot be offered in a modular way to the Secretary of State. That is how I have understood it, but if I have got that wrong, I apologise.
Matt Western
Q
Professor Press: For modular learning that is purely attendance-based, yes, I think you are right. I think it will be easier to operationalise in places such as Greater Manchester, and I suppose part of the learning that we will get as the LLE is phased in is an understanding of the obstacles that might exist. Then perhaps we can work out ways of addressing those in areas where there is not a large cluster of HE and FE providers. Of course, the largest university in the country is the Open University, and I think we have to think more flexibly about either blended or digital learning. There may be opportunities for institutions that are not clustered in the way that they are here in Manchester to take full advantage of partnerships.
Matt Western
Q
Professor Press: I would, because I think we should focus on the outcomes for learners, rather than the inputs to the learning.
Sir David Evennett (Bexleyheath and Crayford) (Con)
Q
Professor Press: Those are great questions. I really do think it is exciting, because it provides learners with the opportunity to study in a different way, and the more we can do to encourage people to focus on their professional development, the better it will be for our businesses and employers across the country.
The key challenge, I think, will be around the information, advice and guidance that people get about what the opportunity is, particularly for adult learners, who may not be in institutions that are used to providing that sort of careers guidance. That will be a particular challenge for any institution. Who is responsible for doing all of that? There will be many partners responsible for doing that, and that really does matter.
The challenges for my university—I am answering as vice-chancellor, rather than as a UUK representative—will be the mechanics of how we do all this. We are used to recruiting, admitting, onboarding, educating and supporting with pastoral care students who come mostly for three or four-year programmes. We will have to evolve ways of doing that for students who come for 30-credit—or multiple 30-credit—modules. There will be an additional cost of doing that, so we will need to work out what we can offer that can be delivered sustainably, given the cost base. That means that there will need to be a sufficient supply of students wanting to take a particular module, and a demand from the workplace for those students to achieve a successful outcome. We will look very carefully at what we offer. This gives us a chance to tailor our provision to local demand from employers. It is not without its challenges, but it is an exciting prospect.
Sir David Evennett
Q
Professor Press: That is exactly right. I will not digress too much, but in Manchester we have an organisation called the Oxford Road Corridor, which is the businesses and employers on the Oxford Road; they include my university and the University of Manchester. We are already looking at what Manchester Met and the University of Manchester can offer together to support the other members of the corridor, which are the Manchester University NHS Foundation Trust, Manchester City Council and some private businesses, and to encourage local people to upskill. We are already trying to work together, and this makes it easier because it provides a mechanism and a funding stream that can assist with that.
Mr Toby Perkins (Chesterfield) (Lab)
Q
Professor Press: Our university does not offer higher technical qualifications, and we do not validate providers that deliver HTQs. At the moment, the provision is targeted at a particular group of learners. Once it opens up in 2027-28, it will provide significant opportunities for both new and current learners who might want to space out their learning in a different way. My understanding—again, forgive me if I have misunderstood—is that this will develop slowly while we work out how we can operationalise it, and then there is a point at which it can open out and support many additional new learners.
Mr Perkins
Q
Professor Press: While local employers will not provide the courses, there is not much point in us putting on modular learning if there is not a demand for the students who have gained that learning. We are a large and accessible provider of degree apprenticeships, and we work with over 500 employers in thinking about what sort of apprenticeships to run. I will be thinking about extending engagement with our apprentice employers, so that we can have the same sorts of conversations about putting on modular learning. It is through the providers that the employers will have the opportunity.
Dan Jarvis (Barnsley Central) (Lab)
Q
Professor Press: In Greater Manchester, we have a civic university agreement between the five higher education providers and the Greater Manchester Combined Authority. We work very closely together. The proposed legislation gives us the opportunity to align much more closely what we can provide and the sorts of skills that the combined authority wishes to deliver, because of the benefit there will be to local businesses and employers. I am very positive about working with the combined authority. The key thing to note is that the relationships are good, the conversations take place and people know one another. That builds trust and confidence and enables us to have the right sorts of conversations that deliver positive outcomes.
Matt Western
Q
Professor Press: I have not done the modelling and am not sure whether anyone else has yet, but there will be an additional cost from doing this. It is clear that that is bound to be the case. If people are taking, for instance, four 30-credit modules rather than one level 4 or 5 programme, there will be onboarding and exiting costs associated with the student four times over compared with just once. As you will appreciate, Matt, universities spend a lot of time, effort and money on inducting, familiarising, briefing and onboarding students. We would have to do that every time a new student came to study a 30-credit module.
There will also be the costs and complexities associated with the production of the certificates, and if credit transfers were to take place with other organisations. It is going to be costly. I do not know what the exact costs are, so I am sorry but I am unable to answer your question in a quantitative way.
Matt Western
Q
Professor Press: It would depend on whether a student is a returning student or in a new body of students, and on their particular needs. Some students will benefit from this. Thinking particularly about our local context, something like half our students here at Manchester Met are the first in their family to come to university, about a third of them come from families with parental incomes of below £25,000, and about a third are from black, Asian or minority ethnic communities where they had other responsibilities, such as working or care.
We put a lot of effort into supporting these students. We put millions into our student hardship fund to help these students. There are all sorts of other complexities in addition to the technical aspects, including onboarding and those types of things that cost universities money. We invest in our students because we believe in their futures. It is much more complicated than a simple “three times” or “two times” kind of numerical argument. I am going to have to go away and do some work on that.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
Q
I am interested in what you were touching on in respect of the wraparound pastoral care that you offer students. I studied my masters over three years, part time at the University of Sussex, but I was a student throughout the whole of it, so the university was able to offer that wraparound care. In a modular system, in which people pay for modules and may come back in a year or two, how will you be able to offer that continuing care? Even if they have breaks of only a few months, they might still need some kind of care as a student. Have you considered how you would organise that?
Professor Press: Every university will have a different answer to that. My university provides close care—
The Chair
Professor Press, I am sorry but, given the constraints of time and the fact that we have many other witnesses, I am afraid I have to end your session there. I thank you immensely for taking the time to give evidence to our Committee.
Examination of Witnesses
The Chair
Q
Ellen Thinnesen: Hello everyone. My name is Ellen Thinnesen and I am chief exec of Education Partnership North East, which includes City of Sunderland College, Northumberland College and Hartlepool Sixth Form.
Alun Francis: My name is Alun Francis and I am the principal and chief exec at Oldham College.
Robert Halfon
Q
Alun Francis: I am really sorry; I cannot hear the question. The sound is really poor.
The Chair
We will pause while the sound is sorted. I am very sorry. Alun, can you rejoin on Zoom? Apparently that will get rid of the glitches.
Robert Halfon
Q
Ellen Thinnesen: Ideally, if this works and drives forward a cultural change, it would certainly allow greater upskilling and retraining. For example, I know a young student who left the forces and wanted to get into the renewable energy sector. He was not able to gain any higher technical qualification experience and balance the demands of his job at the same time.
On the one hand, this will bring great benefit to students, whether they are from a disadvantaged background or not, but I am concerned about the ability about some of the students my college teaches and supports—64% are from disadvantaged backgrounds—who will need substantial careers advice and guidance to understand, for example, how you would stack credits in order to achieve a full qualification.
We also need to understand how employers will respond to this. Over a number of years there has been a significant decline in employer investment in delivery. I am concerned about how employers will be held to account to ensure that they do not continue to pass that cost on to employees who, through a credit-based system, would be entitled to their loan. I hope that helps.
Robert Halfon
Q
Ellen Thinnesen: I think there is a significant amount of benefit to having what will essentially be a portal for students to log on to and see what their account is showing, and for them to be able to utilise that account over the years they have available. Some thought needs to be given to quite a significant number of people who do not have easy access to the internet, phones and IT equipment. Therefore, I take you back to the importance of strong, comprehensive investment in careers advice and guidance.
Robert Halfon
Q
Do you not think that good employers will welcome this? We know that there is often not as much investment in training as they would like, but now students will be able to access short courses and modules, rather than having to do long courses. As you know, they will also have 12 entry points, rather than just four, throughout the year, which will make a difference. It may actually be that employers think this is a good idea and that a lot more employees are trained and retrained in the skills that employers need.
Ellen Thinnesen: I agree with you, actually. I think, from both an employer perspective and a further education college perspective, that it will allow greater agility to be able to meet the changing skills needs that are required. In Sunderland College, for example, we are evolving quite rapidly into electrification, but it is currently incredibly difficult to respond with agility and at pace in relation to the technical skills training needs that are required.
I do think we should be very careful, because the devil is always in the detail. We know that the Learning and Work Institute reported that employer investment in skills has fallen by 28% in real terms since 2005. We need to be really careful, as we culturally drive this change, that factors such as that are taken into account.
Matt Western
Q
Ellen Thinnesen: That is a big question, and there are a number of answers to it. First, being very clear about what a credit is and what a student can expect to receive in that module—that credit—of learning is incredibly important. We know that the current system sets out the direct learning per credit that a student can expect to receive, as well as the demands on their indirect study time. We know that in the current system, as a student, you can go to two different but similar higher education providers that are delivering very similar modules. What you get in direct and indirect learning can vary considerably within that offer. So in the first instance, the publication of clear information for students about credits and what they can expect to receive in that module in teaching and learning is really important.
A significant amount of work needs to happen in colleges on the continued quality assurance of modulised study. For example, in a college, if we are to quality assure the teaching and learning, we will pay a visit to that programme to assess how well academic standards are being delivered. The quality of that provision to students becomes incredibly difficult and the logistics increase significantly when modules are happening across a year at any given time.
Matt Western
Q
Ellen Thinnesen: My personal and professional opinion is that it should. If we are defining fee limits attached to credits, it is really important to communicate to a student what a credit means. Essentially, a student wants to know a number of things. First, how much is this going to cost me? Secondly, what will I have to expend in effort and energy to complete this module? Thirdly, what will I get for that module and those credits from the institution that I am choosing to go to? So transparency about the relationship of credit to fees, and of credit to module content and what is expected within that, is very important.
The Chair
Q
Alun Francis: Apologies, everyone, for the technical hitch. I am Alun Francis, the principal and chief executive of Oldham College.
The Chair
Again, you are very welcome. Liz, are you on mute?
Liz Bromley: My apologies—technical glitches endlessly. Apologies, too, for being late, which was another technical hitch. I am Liz Bromley, the chief executive of NCG, which is a conglomeration of seven colleges spread out across the country. I am sorry to have delayed you.
Brendan Clarke-Smith (Bassetlaw) (Con)
Q
Alun Francis: I think all these things will take a little getting used to. The FE sector, certainly, is a very flexible, agile sector, and I think people will get used to it. The more important questions will be about the standardisation of the credits, which Ellen has already talked about, so that learners know what they are getting and paying for. That needs to be absolutely transparent.
It is also important to say that in these technical areas there is a big difference between what learners pay for here and in a traditional degree, because some degrees are positional goods—they are paying for the credential as much as the content—but in these qualifications they are paying for the content. Learners therefore need to be clear that what they are getting is what it says on the tin. The other aspects, I think, we will just get used to.
Liz Bromley: I think it is going to be tricky. You will all be aware of industrial workforce relations at the moment, and one of the biggest gripes of the University and College Union is about workload. While we in management and leadership roles might say, “This is something that we can work through—we can make it work and we can make it student first,” I think there will be significant resistance from some elements of the workforce, who see the downtime in the summer as part of their right, dare I say.
Yes, technically, it absolutely can be done. Universities in the country are offering multiple entry points during the year and delivering them perfectly effectively, but I think there will have to be a cultural transformation which, given that further education has been reclassified, may well be more of a hill to climb than we might wish.
Brendan Clarke-Smith
Q
Ellen Thinnesen: You may be aware that colleges currently submit their data via something called the ILR—the individualised learner record—which is a piece of software that we use across the sector. That software allows us to submit data returns in an academic year. Obviously, with the implementation of credits, and a course year, that would require a change. The college systems will enable that to happen because we are able to adjust the years of start and end dates within our academic year returns.
The consequence of that, around the course year, will be in relation to the greater requirement regarding data management and monitoring, which is quite substantial. There will be hundreds and thousands more entries for students studying on credit-based provision on a college’s ILR data return.
Matt Western
Q
Liz Bromley: I think that employers are learning that they have a much more proactive role to play with the further education sector now, as we have moved towards local skills improvement plans and working with employers to deliver the right qualifications to deliver the skills that they need. I think that that is another conversation as part of this journey.
I am a great supporter of the principles of this Bill in its entirety. Flexibility for the learner, lifelong learning and smaller bites of learning? Absolutely. However, as I think you would expect, I am almost always focused on, “Well, where is this going to be difficult to implement?”
I suppose that my nervousness is about employer engagement. The good employers will see it as a real opportunity to enable their workforce to better themselves educationally, to give them time off to help them do that, and perhaps to co-fund some elements of the module. It will be great. They will work with the colleges and the universities, and it will fly. Where you have less scrupulous employers, I can see this as a really good opportunity to shift the burden of paying for continuing professional development from the employer on to employees, who may wish to better themselves and therefore take out a loan.
Again, it goes back to giving IAG—information, advice and guidance—to the student but also to the employer, to ensure that nobody is exploited and the qualifications that come onstream in the pilot phase will demonstrably have an impact for the employer and for employees who are developing themselves while working and learning.
Robert Halfon
Q
Alun Francis: Thank you, and thank you for coming to visit us; it was a very enjoyable visit. We see this as part of a package of reforms. Just to give the context, Oldham is an extremely deprived area. Nearly 80% of our learners come from the bottom 20% of deprived boroughs. The level of English and maths on entry is one of the lowest in the country. We do not have a big private sector economy. That all sets the context in which we work, and different colleges will have different contexts. It is important to say that.
I think that we see this as part of a set of reforms that help to rebuild the opportunities for those who do not want to, or cannot, follow the route to university at 18 or 19, which has almost become the default route for higher skills. What we have seen is the collapse in that period of part-time learning and the old HNC/HND route. These are all parts of the process of rebuilding that.
There are issues. The point was made very well about where the balance will lie in whether the learner or the employer will pay for higher skills, but we see this as an important way of opening up people’s choice when coming back into learning. There is an issue about the balance between these routes and the workplace routes of apprenticeships and the levy—for SMEs funded through other means. We believe that a significant number of adults want the choice to come back into learning—perhaps after having a family or other gap, or having done some low-skilled work and now wanting to improve their skills—and traditionally we have offered them foundation degrees or degrees. This allows us to offer them a wider variety of choices, and we think there is demand for that.
It will take time for the market to grow. It is not a quick hit. It needs good information, advice and guidance. People need to know with confidence that what they are paying for is worth the loan. That is why sorting out the credits and engaging employers, so they know they are getting qualifications that are worth it, is of absolute importance. Addressing those three issues will make this work best, but I do think there is demand. We have a significant number of adults who do not want to or cannot go back to university for the full three years. Without this approach, opportunities will not be open to them. It is much more difficult than we imagine. While this approach will not solve the whole problem, it will help to solve a considerable part of it.
Robert Halfon
Q
The Chair
Given the pressures on time, may I ask questioners and witnesses to be brief?
Ellen Thinnesen: I think it will make a substantial difference to disadvantaged students. For example, many of our disadvantaged students have caring responsibilities or are single parents, so to be able to attend education and study flexibly, on a credit, modularised basis, will make a significant difference. Removing the equivalent level qualification regulation is really important, because many of our disadvantaged students have progressed into higher education but, unfortunately, have obtained HE qualifications that are not relevant to the technical careers that they want to go into. This measure allows those students to go back and retrain, upskill and relearn.
Liz Bromley: I endorse everything my colleagues have said. One of the greatest disadvantages that disadvantaged students have is lack of confidence—you know, they say, “Families like ours don’t go to university.” This is a wonderful opportunity to build up confidence that they can access the system and understand how it works. It helps them manage this notion of terrible debt because they can do it on a much small scale. While concurring absolutely with everything my colleagues say, I think this is just as important for young people as for those who are reskilling or coming back later in life. The phasing is really important, because it is part of getting their confidence built up at levels 4 and 5. It is a great way to enter the HTQ market, and that is the basis on which young people, as well as reskillers, can think, “I’ve done this. I could top up and get a full degree. I am in one of those families who can achieve.” I think that is terrific.
Lloyd Russell-Moyle
Q
Liz Bromley: One of the biggest challenges that my colleagues and I face is that we have a finite amount of resource and it has to be split between pay costs and non-pay costs. I think in the implementation of the system we will incur significant non-pay costs in terms of our systems and administration, to get all the points that Ellen referred to about the ILR and the data collection correct. That will have a knock-on effect on our ability to raise pay.
We already have a real challenge in attracting people from industry—the industry experts—to come and teach, because they can earn so much more in industry. What would be wonderful—I would say this, wouldn’t I?—would be an injection of funding to see this through so that we can improve pay and address the workload issues. I think that would cause the workforce to embrace this far more willingly.
Lloyd Russell-Moyle
Q
I wonder about the modulisation discussion we have been having, and employers. I am supportive of the measures, as I have heard you are, but is there a danger that employers push staff members to use their credits, and then when staff members actually want to make a career change their credits have all been used up because the employer has forced them to do modules that, really, they should have paid for? Should there be some provisions in the Bill to make it clear that credits are personal and should not be used for in-work professional development? Is that possible?
Ellen Thinnesen: This is one of the areas that I am concerned about, knowing a number of employers that I work with, the constraints they are under and what they have done with their own professional development budgets. I would need to go away and think about that, but in the same sense I encourage you to think about it and explore the problem in a little more detail, because I do think it needs some consideration.
Lloyd Russell-Moyle
Q
Alun Francis: I am with Ellen on this: I have not thought it through sufficiently to give a really punchy answer to your question, but I do think it is a concern. It is about the balance of who should pay for training. It feels like there is the potential for it to skew perhaps too much towards the employer encouraging learners to pay for training that the employer could pay for. How we police that, I do not know. There is a variety of things that we might explore in more detail, but I cannot give you a really clear sense of how we would solve that problem right now.
Sir David Evennett
Q
Secondly, you highlighted how hard you have worked, Ellen, to reach the disadvantaged, and I am sure that your two colleagues are doing the same. How are you doing outreach to those who are in employment to let them know what you offer?
Ellen Thinnesen: In terms of the work we do with employers to help them to understand what is available, which I think is what the question was about, in a college such as mine, and I know in many other colleges, we employ business development teams—essentially employer liaison personnel—whose entire job is to work with employers and help them to understand how they can translate their workforce development needs into workforce solutions and upskill and reskill their workforce. That is easier for larger colleges such as mine; I can flex funding and use it in creative and different ways. We go back to the underfunded nature of colleges and the impact on smaller colleges, where it is incredibly difficult to do that.
On outreach, we employ a significant number of school liaison personnel, who are out working on a daily and weekly basis in schools giving careers information, advice and guidance, and delivering training to school teachers and staff. Again, I am able to do that, as I am sure Liz is in Newcastle College Group, because we are large enough to be able to reconfigure our budget to invest in resources such as that. Again, for smaller colleges, that is not always possible.
For example, my college merged with a sixth form in 2017, which now benefits from that service. Prior to the merger, it would never have been able to deliver that type of infrastructure to enable employers to understand what they need to do and what is available, and to enhance outreach.
Sir David Evennett
Q
Ellen Thinnesen: For example, at Sunderland College, we have established a partnership with Sunderland City Council and the DWP, and we co-locate with the DWP. When a service user comes in to job-seek, the college is sitting side by side with the DWP and is able to provide that line of sight to educational routes. Similarly, we are working with employers and the workforce. We do a lot of workforce analysis.
Sir David Evennett
Q
Alun Francis: indicated assent.
Liz Bromley: indicated assent.
Sir David Evennett
Q
Liz Bromley: FE colleges are absolutely part of the community. We have so many ways to engage with everybody in the community, from refugees to 16-year-olds and 60-years-olds who are looking for a change of career. We are absolutely embedded in our communities in ways that sometimes universities are not because they have a more global outlook. We have to be very fleet of foot. We have to use digital media, paper-based media, posters and, most of all, the art of engagement through conversation, which we do very well.
Alun Francis: I absolutely endorse what Liz just said. I will just add a couple of very quick observations. First, the way colleges work with employers to design and deliver curriculums is one of the most misunderstood parts of our job. We need to have more investment in doing that better. Under devolution, the Mayor’s role can be very strong around convening powers, but the key to getting the skill system working well is the partnership between employers and providers, and FE colleges are key to that.
I will give you a very good example, which relates to the question that one of your colleagues asked a few moments ago about phasing. We endorsed phasing because it allows us to grow the capacity to do this well. In Greater Manchester, all 10 FE colleges have been collaborating for over 18 months, supported by the skills development fund, to develop the new higher technical qualifications in digital, and we are now moving on to the structure. That is a really good example of how colleges have worked together, and engaged employers to come up with a product that we think will be very attractive for learners. We have collectively built our skillset, and we have supported that with marketing and so on. As you described, we will make that qualification work really well. That is a methodology that I think other colleges will emulate and copy.
Investment in the capacity of colleges to work with employers and the workforce issue are the two big challenges around this curriculum reform. Those are the two that we find hardest.
Andy McDonald
Q
Liz Bromley: I think there will be a significant administrative burden. There is every time you change. For me, the big one will be the change of the academic year to a course year. Every time you change something that changes the way we collect and report our data, the way we admit our students, the way we provide the support that they need on their journey to education, you increase the administrative burden. It sounds like a constant whinge, but in practicality I have worked in both universities and colleges, and it is always the infrastructure that supports the delivery of the core product of education that costs the money and takes the time. So yes, there will be an additional administrative burden that will be expensive, but we will get there.
Andy McDonald
Q
Alun Francis: I think it depends on how big the administrative burden grows, because the bigger it gets, the more that might be a challenge. For me, it is difficult to say what that will look like now. There will be a change. I can also see some positives, though, in some of the changes around the course year. Some staff will prefer not to have an academic year—our apprenticeship teams already do not have an academic year. There will be pluses and minuses on that side. For me, the model—
The Chair
Order. I am afraid that that brings us to the end of the time allocated for the Committee to ask questions. Before we move on to the next panel, may I thank our witnesses on behalf of the Committee for your evidence. Thank you ever so much.
Examination of Witnesses
The Chair
We will now hear oral evidence from Julie Charge, chief executive and director of finance at the University of Salford, and Professor Edward Peck, vice-chancellor and president of Nottingham Trent University. The witnesses are appearing by Zoom, but Sir Edward Peck is not yet with us, so please bear with us and we will interrupt proceedings as we did previously. We have until five to 11 for this panel. Could you please introduce yourself for the record, Julie?
Julie Charge: Good morning everyone. My name is Julie Charge. I am the director of finance and the deputy chief director for the University of Salford.
Robert Halfon
Q
Julie Charge: The terminology of credit is something that is familiar to students in terms of understanding credits, but there is probably more work that we would need to do to link credits to what they might see as an overall course. Generally, when students are thinking about their degree, they are thinking about a period of time and the content of it, and not necessarily the link between the work effort and the credits themselves.
Robert Halfon
Q
Julie Charge: It is the connectivity. Students will be familiar with modules as part of something that, when they are applying, they see described to them in a range of different ways. There is therefore some work that we as a university would need to do to make it easy for them to understand the relationship between the module of the course that they want to participate in and the credits.
I think there is another aspect here, which is that, again, as a university, we link hours to credits. If we can link all those things in a way that gives much more clarity for a student, by saying, “This is the undertaking in hours, which equates to number of credits, which is therefore part of a module, and the module then builds up your course,” that clarity will help with that sort of common understanding.
Mr Perkins
Q
Julie Charge: Probably a combination of both. We did the pilot on short courses. It was a very small sample size in terms of the take-up, but 40% of the applicants and those who went on to do the short course were in the 26 to 30 age group—and it was a combination of retraining after some initial work or an initial degree, and some initial training. Then we saw a different group: the other big group, who were retraining and upskilling, was aged 36 to 40. Of that group, some were continuing their studies, but the majority were external and returning to do that training. I cannot comment on whether there was unemployment, but there were certainly two big groups, in terms of age profile, that were returning to do the pilot course with us.
Mr Perkins
Q
Julie Charge: No—of the people who took part and were recruited to that course, 50% took up the lifelong learning loan entitlement.
Mr Perkins
Q
Julie Charge: I think there is some way to go to understand how that transfer will work in practice. Having a commonality of modules and credits per module helps with that level of understanding, but in terms of the qualifications that go alongside that and the end result, that is unclear at this stage. Further work would be needed to work out things like who the awarding power would be for a course set up in such a way.
There are also some other points regarding the outcome of the course. I will just reflect on what we have at the moment with a three-year course. As you work through your levels—through levels 4, 5 and 6—the complexity obviously builds, in terms of your learning and understanding. Therefore, when we work through this, we would need to be assured of the level of work and the level of learning that is occurring through those years, in order to be assured that at the end the student can be awarded at the right level, and we can maintain that quality.
Mr Perkins
Q
Julie Charge: This could absolutely play into an apprenticeship arrangement. Again, if we as an institution can think a bit more creatively about how we could do that, it would align quite nicely with the degree apprenticeships that already exist. It would need a bit of work, but that could sit alongside. Again, it is really important to reflect on trying to make it as easy as possible for students to understand their options and the outcomes—what this leads to for them; it will be important to join some of the dots, with a wide range of skills routes they can take. This is about making it easy, having clarity, and students understanding their outcomes.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Q
Julie Charge: If I go back to the experience that we had of trialling the short courses, it is possible to set this up. The administration is slightly more complex. It does not sit comfortably within an individual module or modules, because that is not how universities work. We have a three-year degree; a number of costs are included to support students during that period, and some modules are more expensive than others. There is some work here.
One of the learnings was not so much about the marketing, but about the understanding of what was available and ensuring there was enough knowledge in the marketplace for people to understand what they were coming into. In terms of cost, it is possible to do that, but there is something about the messaging of what is on offer, and making that clear for prospective students.
Gill Furniss
Q
Julie Charge: Again, speaking for my institution, we do an awful lot of work with industry, so we are very linked to industry. Going back to the trial, this was very welcomed among employers—that constant reskilling. That is particularly because a lot of the jobs that we are training and upskilling our students for do not exist yet. We are trying to give them the skills for those future jobs. Therefore, it is really important to have those skills going across industry, and to provide that constant ability to learn—be that through credit bearing or non-credit bearing.
The Chair
Q
Professor Peck: Yes, sorry about that slight technical challenge. My name is Professor Edward Peck; I have not yet been knighted—but, of course, you live in hope.
Robert Halfon
Q
Professor Peck: Yes; thank you. I am happy to do that, Minister. The short course is only in its first year so far. It was trying to do something relatively quickly and it did not get as many students registering as you might have hoped, but I think it is premature to judge what might happen in years two and three of that pilot. There are other things we are trying to learn from that pilot about the regulatory regime and the capacity of the Student Loans Company to deal with a new form of loan for modules. There is a lot of learning coming out of the pilot.
In terms of demand, if you look at the stabilisation of foundation degrees—the two-year degrees—the demand for HNCs, HNDs or HTQs, and the number of advanced learner loan level 4 and 5 courses being run, there is a lot of evidence for sub full-degree level technical and vocational education. What the LLE will do is open up a whole new range of people who either want to do a particular module of that provision, or want to do it in bitesize chunks rather than commit to the whole programme at the outset. I think the numbers at levels 4 and 5 are already significant, and the LLE will increase those numbers even more.
Robert Halfon
Q
Professor Peck: Yes, about 9,000 to 10,000 students each year are doing the advanced learner loans. There are programmes such as the diploma in social care and the diploma in construction site management, which are level 4 or 5 programmes. You will be able to take modules of those on the lifelong loan entitlement. There are some technical questions about how you work out the credit arrangements for advanced learner loans, but I know that the DfE is doing a lot more thinking about that. There will be further guidance and consultation on how advanced learner loans are integrated into the LLE in due course. I understand that is work in progress.
Robert Halfon
Q
Professor Peck: We have a very close relationship, whereby we do all the training and education for level 4 and above for the people of Mansfield and Ashfield and the college does level 3 and below. That means we can design the programmes in the college to have really easy pathways of progression from level 3 to level 4 and, in future, we will start promoting the options around modular provision in the programmes we already run at Mansfield, in things like computing, construction management and those sorts of areas, where there is a real demand for skills.
If I can give you one example, we are seeing really high uptake in a level 4 course we are running in retrofit green construction. There is a massive demand. Eighty per cent. of the houses that we will live in in 2050 are already built, and the challenge is to retrofit them to be greener and more energy efficient. We do not have a workforce to do that. We now have a level 4 course in Mansfield where you can study that particular skill and, in future, you will be able to study it on a modular basis, which will open it up to a greater range of people who do not want to study that particular course full-time.
Matt Western
Q
Professor Peck: It is a challenge we faced on the Augar review, when we considered what the credit basis should be of a lifelong loan entitlement. Thirty credits hits a compromise between having a level of granularity where the Student Loans Company can give and administer loans for both fees and maintenance, and the bitesize learning that people are going to want to do. Thirty credits is notionally 300 hours of learning. I think it is the best compromise to start off with between those two different pressures that drive in different directions—the SLC to make it bigger, and maybe some of the requirements of learners for more bitesized learning to make it smaller. I think it is one of those things where we should just see how it rolls out as we implement and then change it if it seems like we have not quite got the balance right.
Matt Western
Q
Professor Peck: Yes. You can bundle them, actually, can’t you? You can sign up for three 10-credit modules. It is slightly clunkier than the Canadian system, but again, I think it will give people a chance to do smaller bitesize modules without having to take a loan out for every 10 credits, which I think would stretch the capacity of the Student Loans Company. I heard my colleague talking about transaction costs. If you start to get down to 10 credits per module, the transaction costs of recruiting the student, inducting them and so on gets quite large in relation to the fee you might get, so there is an economy of scale for providers around 30 credits as well.
Matt Western
Q
Professor Peck: Yes; I do think many employers will make use of the modular learning that the lifelong loan entitlement will promote. I think many employers will pay for their staff to do some of this upskilling and reskilling as part of investment in their training more broadly, which takes place outside the levy. I think there are some challenges at the moment about the levy and its size, aren’t there? We might be getting to a point where much of the levy is now being committed around apprenticeships, which is a real success. The question is: how do we keep apprenticeships growing over the next five to 10 years? That is for a very different group of staff. Apprenticeships often are for new starters or people completely changing their career with an employer, whereas the LLE is about modules enabling people to upskill and reskill when they are already in the workforce and established in the workforce.
Lloyd Russell-Moyle
Q
Professor Peck: It is a really mixed picture. Some are paid for by employers and some will be paid for by individuals who have the means to do so. Those are the two major sources that we currently accept.
Lloyd Russell-Moyle
Q
Professor Peck: At NTU, the vast majority of UK undergraduate students are paid for by the Student Loans Company loans. We have some students undertaking short courses, which are professional qualifications and paid for by their employers, and about 2,000 apprentices who are, again, paid for by their employers. At the moment, it is heavily weighted towards full-time undergraduates, and I think that is the challenge that the LLE is trying to unlock.
Lloyd Russell-Moyle
Q
Professor Peck: It is a really interesting challenge. One of the things that the short course pilot should tell us, even if they are relatively small numbers, is how many trainers are paying for themselves through taking out a loan with the SLC and how many are coming in through employers. There is a suggestion that there are bigger numbers doing those modular programmes but actually they are being paid for by employers. I have not seen the data on that yet, but I am trying to get those data to see if that is the case.
I think most employers would see it as part of their responsibility to pay for training their current employees. Indeed, they might want to do that in a different way from doing it employee by employee. In sufficient numbers, you would commission your own training; that happens already. It is important to ensure that we are not transferring the cost from employers to the individual employee. I think how you do that is a really interesting question, which probably bears more consideration, but there may be ways of ensuring that that does not happen.
Katherine Fletcher (South Ribble) (Con)
Q
Julie Charge: The main one we are seeing is around computer science; that is definitely top of the agenda. The other ones for us in terms of all the range of skills are things like the artificial intelligence and robotics space, and absolutely sustainability. That understanding of sustainability actually touches a lot of subjects, whether that is housing through the retrofit or others. Those are the three areas that are definitely at the top at the moment.
Katherine Fletcher
Q
Professor Peck: We have not colluded, but I agree entirely with my colleague: we are seeing construction, digital manufacturing, digital engineering and computer science, particularly coding.
The Chair
If there are no further questions from Members, I thank the witnesses for their evidence, and we will move on to the next panel.
Examination of Witnesses
Sir David Bell and Rachel Sandby-Thomas gave evidence.
The Chair
We will now hear oral evidence from Sir David Bell KCB DL, vice-chancellor and chief executive of the University of Sunderland, and Rachel Sandby-Thomas, registrar at the University of Warwick. Sir David will be appearing via Zoom, and we have Rachel with us in person. For the record, could the witnesses please introduce themselves?
Rachel Sandby-Thomas: Good morning, everybody. I am Rachel Sandby-Thomas, and I am the registrar at the University of Warwick.
Sir David Bell: Good morning. I am David Bell, the vice-chancellor and chief executive at the University of Sunderland.
Robert Halfon
Q
Rachel Sandby-Thomas: They could be. I think this measure is very helpful; we welcome it and the flexibility it introduces. I absolutely understand the rationale behind the Bill, which is to make sure that, financially, students will not be disadvantaged by adopting a modular approach.
Robert Halfon
Q
Rachel Sandby-Thomas: I think it is really sensible, because we want to get this right. I welcome the fact that there has been a pilot, and I heard from a previous witness that lessons are already being learned from that, which is great. It is very sensible. Levels 4 and 5 lend themselves well to the modular and flexible approach, and then we can learn the lessons for level 6. At Warwick, we are very keen for it to be extended to level 7 at some stage, because we think that the postgraduate year could easily be subject to a modular approach too.
Robert Halfon
Q
Rachel Sandby-Thomas: We tend not to; we tend to offer levels 6 and 7. In conjunction with Jaguar Land Rover, we have done some apprenticeships where we do not do the level 4 and level 5, but we are the end of a pathway with one of our local college groups.
Sir David Bell: There are two good reasons for doing this in a phased way. One is to do with technical matters—I think we all accept that there is quite a bit of technical work to be done to get us to the point of implementation in the higher education sector in particular.
The second goes to your point about behaviours and trying to inform people about a new system. I know from my experience, and I am sure you know from yours, that people do not always behave the way that policymakers and Ministers would like them to behave. There will be quite a big communications job here. Others have already commented on the need for high-quality careers information, advice and guidance support, particularly for those who might be beyond school and college at the age of 18, are thinking of coming back into education, and want to understand how this opportunity sits alongside others.
Mr Perkins
Q
Sir David Bell: I should probably remind the Committee that my experience of the Department is now long out of date, so I am not really in a position to comment on the current DFE. What I would say, however, is that the Department and the civil service more generally have always been used to managing these complex kinds of changes, so I have confidence there. I also know—this is an important part of the whole process—that the Student Loans Company is busily engaged in making all the preparations necessary to make the Bill a success. Looking in from the outside, I am confident that this will happen. Going back to the previous point, I think the time this will take is a good thing. Sometimes I am impatient about a slower pace of change, but in this case it is a very sensible and pragmatic approach.
Mr Perkins
Q
Rachel Sandby-Thomas: I am glad you raised that because I think there are obstacles. I am not saying this to obstruct the policy; I am actually trying to be constructive. It will introduce a lot more complexity into the higher education system, both for the students and for the institutions, and at lots of levels. It will kick off with uploading the courses on to the UCAS site. That might not seem complex, but the modules, how they all fit together and how they potentially fit with other institutions’ modules will actually be complex. Then, it is about how we market that clearly, because as was said, rightly, communicating clearly with prospective students is key to the success of the system.
There will need to be a lot of advice and guidance given to prospective students, who will want to know whether their prior learning will be taken into account and whether what they have done before and are proposing to do will actually form a coherent structural programme that will be recognised. You will then have the admissions. We hope that there will be a greater volume of admissions, but each of those admissions will have to be looked at very carefully on an individual basis, because of the matters of recognising prior learning and so on.
Data is another big and complex area. At the moment, the Data Futures programme is trying to get rid of the need to return data on modules, whereas this will obviously need the return of data on modules. There is a tension there that needs to be resolved. I could easily see it going into an extra framework of data returns, so that will be an issue. There is a big issue with the student information technical services, called SITS—I was going to say “fondly called”, except it is not—which is very much programmed on a system’s architecture, which is based on programmes that comprise modules, but is at that programme level. That will have to be completely refigured, which will be timely and costly.
Of course, you then have the issue of services and all the wraparound support services that we offer students, which will see an increase in volume. There are also tricky issues about how long students will have access to them. Do we know when they leave the university; how do we know when they go elsewhere for university; and do they have some sort of associated student status for a while? None of us knows the answers, but they are all things that need to be worked out. I say this because there is little by way of incentive for a business case at the moment. While I completely understand—going back to the first question—not wanting to provide a disincentive for students to do a modular course, there is a business disincentive in terms of the cost to the higher education institutions, unless they are already doing lots of modular provision.
Matt Western
Rachel, I am keen to understand how you see this fitting within the current regulatory landscape for higher education, particularly in the light of what it is fair to describe as an increased regulatory burden on the sector in recent years.
Rachel Sandby-Thomas: I think there will have to be differentiation between the two systems. There are quite a lot of concepts in the current OfS regulatory system that sit unhappily with this new system. For example, the concept of the completion of an award is key to the current system, but of course a student might not be completing an award as such when they are doing a module at one’s institution, so that needs to be changed. In the current degree system, there is quite an emphasis, for perfectly understandable reasons, on continuation and the importance of having a student continue for a year from the beginning of the course. Quite a lot of judgment is implied in that continuation being a good thing, whereas actually whether or not a student completes a module within or outside a year is a neutral thing, judgment-wise, in a modularised approach.
We also have the question of who will “own” the student in terms of graduate outcomes. Who can claim success, or to whom can success be attributed? I am reminded of that lovely quote of how success has many fathers, but failure is an orphan. I think there might well be many fathers for these students. Again, none of these things is insurmountable by any means, but they all need to be thought about in an intelligent manner.
Matt Western
Q
Rachel Sandby-Thomas: I do not think it should necessarily be the OfS, because that is not its area of expertise. This is really tricky. An institution can do some advice and guidance, and obviously, if a student is going to do all of the modules within an institution, that is comparatively simple. It is trickier when it is inter-institutional, which is the purpose and intention behind this.
On an individual basis, when a prospective student comes, there will be quite a lot of work for the university looking at what that student has already got and their prior learning, recognising it, and seeing how it might fit into one of their degrees or whatever. However, in a way that does not help the student very much at the beginning of the journey, because they might well have embarked on a kind of pick and mix, which might not amount to something that will end with a degree, if that is what the student wants. I do think that there is a sector-wide gap in terms of information, advice and guidance, and I think it is completely key to get that right for the success of this policy.
Matt Western
Q
Sir David Bell: Rachel has articulated very clearly some of the additional costs that will come to the sector. There is also a question, going back to the issue of demand, about this kind of course. Some of the questions that we always ask ourselves at institutional level when we are asked to put on new programmes are: what is the demand, what are the costs of implementation, and what is the likely return? We have to think in that way. I think this is why the focus on careers information, guidance, pathways and so on will be very important, because if I might use a Scottish-ism here, I think the case for demand is not proven.
Matt Western
Q
Sir David Bell: The risk is, of course, that you pilot and you pilot and you pilot, and you never get there; you never get to the destination, as it were. We are part of the Department’s pilot on a higher technical qualification, and that will be one of those courses presumably that would be subsumed in the period between, say, 2024-25 up to 2027. So it will be quite interesting to see how that works.
The problem we have, and I think that goes back to something that Rachel said, is that we will be operating this at considerable scale, because if we are going to do that modularisation and upload it all and make it all available, that is a really big job. It is a big technical job, but I am also worried, ironically, about choice. I am slightly concerned that people are overwhelmed by choice of modules and other kinds of study.
We also know from our previous experience—one might say our current experience—that asking careers or guidance professionals to be absolutely up to speed with new qualifications or new routes to qualifications is quite a task, and therefore there is a big training and development opportunity requirement for people who are going to be advising those who might want to follow this more modular route.
Matt Western
Q
Sir David Bell: I am not sure whether I am required to declare an interest in this matter as well. [Laughter.]
Matt Western
As much as me!
Sir David Bell: It is a really interesting question, and I must say that that is one of the things that slightly surprised me about the cut-off. There has been a lot of debate recently about trying to encourage more people back into the workplace post 50. And I would have thought that the opportunities afforded by the LLE would be ideal for people who might have trained in one area and then, later in life, decided they want to do something else. A module would be absolutely the right size of qualification for them, so I wonder whether that is something that could be thought about.
I mean, it’s that old cliché that 70 is the new 50, as it were. So I think there is probably some consideration worth giving to that 60-to-70 age range, because I think we will see more and more people, for one reason or another, continuing in employment. And if they continue in employment, presumably they will want to continue to upskill and enhance their qualifications.
Katherine Fletcher
Q
I am interested in what you will do to engage with employers, so that rather than people being overwhelmed by choice there are pathways that kind of say: “If you get to this level”—is that something that can be set out in advance? Also, are you set up to then track outcomes? That is, this suggested pathway has taken 20 people through it, and 20 people have gone on to work with Jaguar Land Rover, even when they were not employees, having gained this qualification. Is that something that you are set up to do—almost to narrow the choice of modularisation to aid industry?
Rachel Sandby-Thomas: We do a lot of work with employers, and we work with them a lot on degree apprenticeships, as you would expect, but, especially in our business school and in our Warwick Manufacturing Group, we work with employers to design courses that will be good for them. That would just be a variation on that. We would track the learning outcomes, as we call them. Again, that sits slightly oddly with this modularisation, but again, it should be able to be worked through. Those learning outcomes pertain to the student and the student’s progression. We do track the students, partly because they are our alumni and partly because of graduate outcomes and what they are doing. What we might not do, although we would probably measure it by repeat business, so to speak, is track how the employer thinks that it has helped the student.
Katherine Fletcher
Q
Rachel Sandby-Thomas: Because we tend to do this with specific employers, it is easier to do it within that employer. What we can say to them is, “Well, this employer did this.” That would suggest that if you do it with a similar type of employer, it should help, but without a specific conversation with that employer, you can use it only by way of analogy.
Katherine Fletcher
Q
Sir KCB Bell—I always start with flattery; I find it safer. Would you track outcomes to help people make informed choices to narrow down that modularisation overwhelm?
Sir David Bell: Yes, and I think we probably need to draw a distinction, don’t we, between the individual making a choice under LLE to follow a particular route or pathway of study and the employer working with the employee to put together a programme that is very much designed to support the employer’s business objectives. In both cases, you would be able to say either to the individual or to the employer, “If you put together this little package of modules, that would meet your needs.”
One of the benefits is that the LLE will not be the only show in town, if I can put it that way, because there will be employers who continue to say, rightly, that they want to offer the apprenticeships route and employers who say, “Actually, we want something that is more of a short-course opportunity, rather than more formal and modularised at 30 credits.” This is part of a suite of opportunities. Therefore, maybe it only emphasises the point even more that we have to provide good guidance to people so that they can understand the best way through.
Katherine Fletcher
Q
Sir David Bell: Absolutely, and I suspect that part of the regulatory regime will require us to do that. It is entirely appropriate, isn’t it, that we will have to demonstrate that. However, I think Rachel made an interesting point earlier about there being perhaps a number of players involved. Let us take the example of credit transfer arrangements; we can make that work. Someone might start a module in one institution, such as a further education college, and might then go to a university and go on to another university. That needs to be sorted out, but I would have thought from the point of view of the public purse—never mind what institutions want to be able to demonstrate—you would have to have a mechanism for tracking outcomes and successful outcomes.
Andy McDonald
Q
Rachel Sandby-Thomas: It would be another source of funding if the levy were expanded outside apprenticeships, because currently it is only for apprenticeships. If that were to be amended to have wider training involved, that would be another source of funding. I do not really think it helps the university very much, because obviously the purpose of this legislation is to prescribe how much it can charge, but it could help the prospective student if the employer used the levy to contribute in order to reduce the size of the loan that the prospective student takes out.
Andy McDonald
Sir David, any thoughts?
Sir David Bell: That is a policy choice about the allocation of apprenticeship levy funding, but I would have thought that one of the tasks for policy makers is to try to ensure that we have a coherent system of funding that supports all the different routes, including apprenticeships, those who would want to study under the LLE and so on. That is important, but I do not really think it is for us to comment on the allocation of apprenticeship levy funding.
Andy McDonald
Q
Sir David Bell: I do think it gets a bit more complicated, and we are in the process of trying to work out how we can address those complexities. I would go back to the point that Rachel made. I have not had the chance to say it, but I too want to say that this is a really positive development if it is giving people more opportunities to undertake additional education at different stages of life. That is a very good thing. We want to make it work, and if it is a bit more complicated than perhaps the system has been up until now, there is an onus on all of us to ensure that we provide the right kind of guidance and support. There are all kinds of players in that regard. Reference was made to the work in Sunderland through DWP, which is a really good source of advice. There is the university or college itself, and independent advice and careers guidance. All of that has to connect, so that people get the right advice in what I think will be a slightly more complicated system under this reform.
Lloyd Russell-Moyle
Q
Rachel Sandby-Thomas: That is a really good question. Let me do the first part first, because that is a slightly easier question. I do not want to appear as if I am putting out a begging bowl and saying, “Yes, please—more money,” but I do think it would help. There are certain one-off costs, such as the reconfiguration of SITS. Seed funding happens quite a lot. Little pilots are started, and a little bit of money is given to get a bit of resource in. Everybody gets used to the fact that it is there, and then they just keep it. Universities are very good at responding to that initial incentive, absorbing it and making it part of their resource base as they move forward, so I think that that would be welcome. If we want this policy to take hold, which we do, it would be money well spent.
The second part of your question is really tricky. I know that policy makers very often go to the most nefarious possible outcome: the wily student who might have mental health problems and thinks, “Aha! I can get a far better service if I do a 1,000 module at Warwick. I’ll just stay on for ages and ages, and get great-value mental health services that are not publicly or privately available for that money.” That would not be a good outcome. However, I am a firm believer that most people are not nefarious, and we should be regulating for the majority of players with good intent rather than evil intent.
There has to be a cut-off at some point, otherwise somebody could do one module but be able to access the library and take up library space forever and ever. On whether somebody should hold things in between, I do not quite know who that would be. There probably needs to be a bit of a time-bound associated status. You do not want to just chuck somebody out the door as soon as they have finished a course. That is not what universities want—universities want stickiness with their graduates and students—but nor do we want loads of library space blocking. There should be a bit of a time-bound lapse.
Robert Halfon
Q
Rachel Sandby-Thomas: As you rightly say, we do credit transfer sometimes, but it tends to be in the minority of students. The 2+2 course is a good example of that—generally students will do two years at a college and come to us for the final two years—but we know that college well, we know what they are teaching and we know the standards the students get to at the end of their two years at college, and that makes for an easy progression to us. That makes it much easier. There will be a lot more work if this really takes off, because we will have to get to know, assess and understand that prior learning in order to be able to recognise it. It would be a short-sighted kindness to allow a student who is not properly prepared to come on to a module if they have not reached the standard needed for that module. It might seem a kindness, but it does them no favours at all.
Sir David Bell: Making credit transfer work is a very important requirement if the lifelong loan entitlement is to work, because people will want to move between institutions. If we hold the mirror up to ourselves, I think universities also have to be a bit more liberal in this regard; we can at times be a bit sniffy when it comes to the qualifications that have been accrued in another institution. As Rachel said, there are a lot of good examples of this happening where you know your partner institutions. As a sector, we have to show that we are engaged in this by having better credit transfer arrangements without putting enormous bureaucratic hurdles in the way of students, who think, “Why can’t I transfer from this place to that place?”
Matt Western
Q
Rachel Sandby-Thomas: The T-levels example is an interesting one. The take-up has been disappointing, but most people I talk to do not really know what T-levels are. It is all about communication and understanding. There needs to be a massive, well-planned communications campaign. It will be trickier with this policy, because it is more complex than T-levels. There have to be lots of lessons learnt from T-levels and the fact that take-up has been disappointing, and those lessons can be applied to this. It will be about communication, communication, communication—and, just when you think you have drenched people, communicate a bit more. We know what needs to be done, but sometimes it is a bit hard to do it.
Sir David Bell: We have had experience before with things such as accelerated degrees, where everyone thought, “Oh, there will be massive demand,” but that really did not materialise, so perhaps the lessons to learn—
The Chair
Order. I am afraid that that brings us to the end of the time allocated to the Committee to ask questions, and indeed the end of this morning’s sitting. On behalf of the Committee, I thank our witnesses for their evidence.
Lifelong Learning (Higher Education Fee Limits) Bill (Second sitting)
Tuesday 21st March 2023
(1 year, 9 months ago)
Public Bill CommitteesRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 21 March 2023 - (21 Mar 2023)
The Chair
We now proceed, as this morning, with our witnesses to the Committee. We are sitting in public and proceedings are being broadcast. We will hear oral evidence from Matthew Percival, programme director of skills and inclusion at the Confederation of British Industry, and—on video—Simon Ashworth, who is director of policy at the Association of Employment and Learning Providers. Will you say who you are for the record, starting with Simon?
Simon Ashworth: I am Simon Ashworth, director of policy at the Association of Employment and Learning Providers—AELP for short.
Matthew Percival: I am Matthew Percival of the CBI.
The Minister for Skills, Apprenticeships and Higher Education (Robert Halfon)
Q
Matthew Percival: We are obviously in a situation that is very well documented at the moment—the extent of skills shortages combined with labour shortages in the economy. The topic is right up there in terms of the labour market as a business issue. One reason we have been strongly supportive of the principles that are looking to be embedded into the LLE is that they go with the grain of a number of the changes we see in the economy—in the nature of learning, in who learners are and what their needs are.
The way we see technology changing jobs now is more often evolving a job rather than replacing a job. The stock of learning needs in our economy is increasingly adults rather than just young people, and it is increasingly about incremental changes in a role rather than a fundamental retraining to shift occupation. There will still be people who fall into that category, but an element that we are particularly welcoming in the approach of the LLE is that it is taking a broader understanding of what quality is—that it is not just about whole qualifications but can be about keeping your learning topped up as well.
You asked about how employers will respond. We have a lot of work to do to improve employer awareness about the scheme. When we surveyed on it last year, 80% of businesses said that they were not aware of it. There is an extent to which that is not so surprising because it is largely a policy that considers the interaction between the state and the individual learner, rather than the employer being an integral component. We are all thinking about how we design the policy—not what is on the face of the Bill, but the policy—to minimise the risk that this becomes a transfer of things that employers used to pay for and now get funded through the LLE. We then need to have a positive vision for how this can leverage more business investment.
I would love to see adopted as an objective for the policy that we measure success also by the extent to which it leverages additional business investment. I am not sure that is an objective at the moment. This could have a really positive impact. Our last estimate work with McKinsey said that one in six people will need to retrain by 2030, but in only 25% of those instances of retraining will there be a return on investment for an individual employer to pay to get the learner from where they are today to where they need to be to make that transition. We either respond by saying the state or the individual has to step in and fund the entire gap to get somebody ready for the job, or we can be a bit more flexible, which is what I hope the LLE will allow us to do. How do we get somebody ready enough, to the point where there is now a return on investment more often for employers, and then get the employer to step in, and where we expect more of the employer—to step in and hire people with training involved?
Robert Halfon
Q
Matthew Percival: A couple of things could go on in parallel. We could see a situation where somebody is employed full-time by their current employer, but they want to be able to switch careers. It would be unusual to expect their current employer either to be funding time off to train, or to be funding the cost of their training, so that person will be able to leave the employer and go somewhere else. But you can see how some people could use the LLE in that kind of way to help them navigate through the labour market while having a job, and that more flexible approach helps them to do it. Personally, I do not see the LLE as a massive tool for employers to upskill and evolve their current workforce for the jobs they are already doing. Normally, that is where you would be trying to create a skills environment where you could leverage the business investment into that already, rather than the LLE doing it. We are talking about quite a small amount of a large amount of investment, but, in terms of the grand cost across somebody’s lifetime—what their total training cost is likely to be—this will be a smaller element of it. You could use three quarters of it in a single undergraduate degree here.
Robert Halfon
Q
Simon Ashworth: As you say, we are broadly in favour of the principles. We need a better mix between employer, state and individual investment in skills. For our members in the FE space, I guess awareness of the LLE is still underdeveloped. Probably the biggest impact for a lot of our members will be on those who already did not deliver advanced learner loan provision. That is a programme source that has diminished over the past few years as a result of the challenges around cost of living, and the free courses for jobs offer negating the need to take out a loan. We were particularly excited to see the move to offer a third pathway for regulation through the Office for Students. That is a really important move to ensure that our members are part of the landscape, and this does not just include an HE-provider dominated landscape; it is a true mix of FE and HE providers. Obviously, there is more work to do on what that registration process looks like, and to move more of our members to be recognised and regulated by the OfS outside the full degree-awarding powers piece.
Matt Western (Warwick and Leamington) (Lab)
Q
Matthew Percival: We are certainly not meeting anybody’s growth ambitions. It is a difficult economic position. Added to that, we are seeing some squeezing of training budgets, but there are two factors to that. It is not just the traditional case of, “If there is a slowdown in the economy, do we see some cutbacks there?”—often it is about protecting jobs in those sorts of recessionary situations. The current one is a lot of pressure being put on employers’ budgets by things such as trying to do everything they possibly can to support employees with basic pay. I know a number of employers who have squeezed their training budgets and other discretionary costs like that in order to do everything they possibly can to support with a higher basic pay settlement at the moment.
From our own indications, the same survey I mentioned on our measurement of the extent of skills shortages still reports more businesses saying they intend to increase their spend on training than saying they would decrease it, and significantly so. But there is a weaker balance than the year before. The one bit of context I would add is that last year we saw a big spike to record levels of intent to increase, because the 12 months people were referring to previously was the heavily-disrupted period of the pandemic, and therefore that was a big increase.
Now we are back to levels in our surveys of similar intent as previous years, but I also note that our survey tends to end up being more optimistic of employers telling us their intentions for the following 12 months than official measures of skills spend would show. It feels like we are in a similar environment to the five years before the pandemic rather than a different position at the moment.
Matt Western
Q
Matthew Percival: There is an important link between productivity and skills, more so in individual productivity than in a macro sense. I tend to think that the ways in which we do jobs, and the ways in which technology supports us to do jobs, create the productive potential of a job. Our skills are the extent to which we manage to realise that potential in any individual job. There is always a risk that sometimes we train somebody to do a job but do not consider how to change the job itself. We make a worker more productive, but not the jobs in the stock of our economy.
I do not see that, though, as the principal objective of the LLE, because it feels like the LLE is more about how we help individuals to navigate their path through the labour market, rather than that in-role piece. If an employer adopts a new piece of technology or a new way of working that requires a skills investment to get the benefit of it from their workforce, I would expect to see that being picked up more by the employers rather than through the LLE.
Matt Western
Q
Simon Ashworth: That is a really good question. You can look back in history at the individual skills accounts and some of the challenges. We have moved forward significantly and have some learnings, including ensuring that we have regulated providers who are delivering from a regulated list of qualifications. Some online platforms now negate some of the challenges we had historically around a paper-based system, which was probably a little bit of its time. There are key principles there around the controls and the providers.
As I said, the Office for Students regulates the provider base. I think we have moved on significantly from where we were previously in terms of access to providers and how the system can and does work. The whole concept of empowering learners and giving them an individual lifelong learning account is a really exciting move. It gives them much more control over where they access their provision, who they choose and when they choose it. I think it is a real game-changer for the individual. I would be less worried about some of the challenges we saw 20 years ago when we moved to a similar approach.
Mr Toby Perkins (Chesterfield) (Lab)
Q
Matthew Percival: There is an interesting dynamic at play, particularly at the moment, around labour shortages. Given the extent of the skills and labour shortages, there is a stronger incentive and a stronger need than ever to be able to meet your skills needs, yet, at the same time, there are forces pulling in the opposite direction. I mentioned that in this environment, we have had a lot of job-to-job moves within our labour market. People have been able to move into different roles for more money, and there is pressure around salaries on hiring and salaries for retention. If you do not do something on retention salaries, you incentivise everybody to move more and to swap employers, so you get that element of the squeezing of budgets.
There are other things that we see going on in relation to the current shortage environment. There can be an element of the off-the-job opportunity cost of a worker going off to do training. When you are already short on the frontline, it is even harder to free somebody up to go and put the time into the training, and we see a number of the providers in our membership—we have a mix; as well as the plcs that we are most synonymous with, there are universities, colleges and independent providers in our membership—particularly the colleges feeling the pinch when there are these shortages. They also have their own workforce challenges, which often make it so much more difficult to be able to provide the training where the employer is willing to do so. It is more important than ever to be able to address the skills gaps, but it is also more difficult to be able to deliver that at the same time, rather than a universally positive driver towards unlocking more investment than we have.
I think we miss a trick in terms of policy to be able to think about the question of what it would take to create an environment to unlock higher levels of business investment in skills. A lot of our political debate around skills often gets focused on what the state will buy for the individual, rather than on how the state could play a role in creating an environment for higher levels of business investment. An imperative for us would be to have more of that conversation.
Mr Perkins
Q
Simon Ashworth: I think there is a real possibility of that risk materialising. As you say, one of the big challenges for SMEs is the complexity of accessing and funding the system. We know that large employers have a significant influence, certainly on institutions, around course development and course design, so we could see some of the challenges that you have articulated replicated here in terms of the provision and some of the accessibility arrangements. As you say, on the apprenticeship side, the role of providers to support SMEs is pivotal, because SMEs and small employers tend to be time poor as well—I am thinking about their engaging with the system. But I would absolutely echo the challenges with the LLE that we have seen in apprenticeships.
Sir David Evennett (Bexleyheath and Crayford) (Con)
Q
Secondly, one of the things we find when going around the country in various roles is that businesses complain that they are not getting people trained to have the skills they require. Do you think that the Bill will encourage more businesses to get more involved with universities and colleges, so that they can work together to make sure that they are encouraging colleges and universities to have the courses to fill the skills shortages? Subsequently, the firms will be able to participate in the upskilling, as well as individuals, or the Government.
Matthew Percival: I completely agree with the sentiment and the objective of how we get employers more involved in the system; I am not sure this is the mechanism we are pinning our hopes on for that. You would expect more of that objective to be achieved through a reform like the local skills improvement plans, which try to get that employer voice out to provide us with that bit more, rather than this being the specific mechanism for it.
To your earlier comment about employer engagement with programmes, the job we really have to do is not just to say, “Let’s make employers aware of the LLE”, but to ask whether we actually have a coherent story to take to employers and say to them, “This is what is valuable for you about engaging in this process and why you should do it.” If we have that story to tell, we can be a lot more effective in helping to engage people.
Often the way it comes across to employers is that there is a whole plethora of initiatives and they will say, “I am confused as to which one”. I know part of my job, as a representative employer, is to hold a bit of that challenge back to them and say, “Well, you can’t say both that you need it to be dead simple and there to be only one option, and when there is only one option say, ‘There isn’t an option that works for me.’”
We need a plurality of different initiatives and options, but we also need to challenge and support employers to navigate that environment. Rather than just saying, “Let’s try to raise awareness” and getting them to tick the box that says, “I’ve heard of the LLE”, because they might have heard about it as individuals rather than as employers, it is about how much we can get to the objective of them giving us quite a consistent message that, “This is the value in it for me, and I am confident that I know that element of it”, rather than just brand awareness.
Simon Ashworth: We refer to our members—providers —as the sales force. I think there is absolutely a role for Government to do with engaging employers. Our members—independent training providers, colleges and universities—deal with employers all the time. It is important to harness their links with industry and employers around awareness of the LLE. Ultimately, the LLE and the entitlement is about the individual as well. There is the employer demand and the employer support, but there is also the individual because, at the end of the day, it will be the individual who takes out the loan entitlement. There is a role for organisations such as UCAS to help promote that.
I would certainly encourage the Government to work with stakeholders and providers, which could do some of the heavy lifting around awareness. I do not think it is just the Government’s role to try to reach a million employers. I think they need to pull on all the different stakeholders that can promote the programme and make it a success.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Q
My other question is probably to Simon. I started work in the ’90s, and we definitely had a skills shortage then. It seems that we have always had a skills shortage, so why is that? What have we learned or not learned from it? What is wrong with the current system? How will this solve the problem?
Matthew Percival: I will answer both. On the way businesses are thinking about the LSIPs programme, the best model is if it is adding an employer voice into the system for those employers that are currently struggling to have a voice. A lot of employers that feel they are confident with their existing provider relationship—they are understood and are getting what they want—are taking a backseat from LSIPs, because LSIPs are not a skills plan for the area with the totality of all skills needs. It is an extra source of information to try to give a voice to the businesses that are struggling most for a voice at the moment.
If that was to feed into the LLE through a consideration of how we make that information available to learners to make informed choices—I spoke about the LLE being less about someone who is in a job already and how they progress with the current employer, and more about how they navigate the labour market—and we were able to say, “Actually, there is a demand in the local area,” it is the LSIPs that would help work out what the job opportunities are.
What LSIPs will not be able to do, and where there would need to be some extra support in the LLE system, would be giving advice on what training someone would buy that would get them to the point of readiness for an employer to hire them with training, rather than their being fully competent. That is an element to add. That would be the interaction between LSIPs and the LLE for me.
Simon Ashworth: On local skills improvement plans, we have been fortunate to be involved in some of the pilots. Some of the findings for us were that employers are just keen to get individuals with really good basic skills—maths and English—and who turn up on time. They are quite happy to support them with the technical skills. There is almost an acceptance now of getting people in and being willing to invest in them and train them. We should not lose sight, certainly on the local skills improvement plans, of some of those key employability skills.
The question on skills shortages is key. Some of it is a lack of coherence around the skills system—a lack of progression. Apprenticeships are a really good example, where the reforms started with the development of high-level programmes, and lower-level programmes tended to come later. Having progression pathways is important. We also rely too much on imported labour. We have seen that coming back again in the imported skills in construction announced recently.
We see a lack of synergy between some of the Government Departments—the Departments for Work and Pensions, for Education, for Business and Trade—and some conflicting programmes. They are very complex for employers to understand and for learners to access, whether it is the Skills Bootcamp or the Restart programme. They just operate in silos. We need a much more integrated system that does not overlap, which is less complex for employers, and a lack of reliance on foreign labour; those are some of the challenges that we would say are holding things back, as well as having those skills shortages.
Andy McDonald (Middlesbrough) (Lab)
Q
Clearly, we want employers to invest in training as best we can. If SMEs are being excluded, should we be considering, in addition to these measures, some fiscal settlement for SMEs to give them an advantage over the larger employers?
Matthew Percival: You mean outside of the consideration of the LLE—a broader question around skills investment?
Andy McDonald
Yes. You said the LLE was not necessarily the silver bullet.
Matthew Percival: Okay. There a couple of things going on there. Yes, I would agree with you, and it links into my point about having a stronger conversation about what it means to create the environment for every business to invest in their skills. SMEs will find different challenges and are in a different environment to larger firms.
One point that is sometimes misunderstood when we think about size is that a big business can be a small business in a place, and the skills conversations are all happening in different places. A number of larger businesses nationally, which have multiple sites, will tell us that they have got excellent provider relationships in one area because their business happens to go with the grain of the sector in that area and it is really prominent, like food manufacturing in Shropshire, and therefore they have got loads of providers available to them.
The same company in a different bit of the country tries to take the same approach and cannot, because there is not the same critical mass of similar businesses in the area to make it economic for the providers to offer to the same extent. Size can be the business’s size to the local economy, rather than the business’s size as a business individually. Both of those factors are at play here.
Mr Perkins
Q
The Chair
Thank you to both Simon and Matthew. If you have anything else to say, you can always do so in writing.
Matthew Percival: Happy to follow up.
Examination of Witness
Sir Philip Augar gave evidence.
The Chair
Q
Sir Philip Augar: I am Philip Augar. I chaired the post-18 panel, which sat between 2018 and 2019 and was convened by the May Government. The panel disbanded about four years ago, almost to the month, and therefore I speak this afternoon in a private capacity.
Robert Halfon
Q
Sir Philip Augar: Thank you, Minister. I am not actually the architect. The panel that I convened were very much as one on this, and we built on the work of the Sainsbury review and the review of skills and vocational education written by Professor Alison Wolf, who was a member of the panel. I think, however, that all of us involved would indeed be very happy with the progress that has been made. There is clearly a lot of work to do to make this happen, but it has the potential to be a game changer and to address a lot of the issues raised by the previous witness and others.
Robert Halfon
Q
Sir Philip Augar: The approach looks sensible. It is clearly important to establish a mechanism whereby learners taking modules do not end up overpaying, and this Bill sets in place the framework to ensure that a fair price is set.
Robert Halfon
Q
Sir Philip Augar: I think this has to be an incremental approach. It would be a bad thing if this got off on the wrong foot. We have seen that with previous attempts to address the skills gap. I am very much in favour of starting small and rolling out. This may take several years to really kick in, but by the end of this decade, when the demography—the number of 18-year-olds—starts to fall away, there will be an incentive for providers to step up to the plate. By then, I think the awareness on the part of learners, schools, colleges and, indeed, employers ought to be much greater. I think we could have a real flier then.
Matt Western
Q
Sir Philip Augar: I missed a word there. Is your question about the impact on institutions?
Matt Western
Yes.
Sir Philip Augar: I think, potentially, this could be very significant. It is a significant opportunity for independent providers. It is a significant opportunity for FE colleges, which could really see them enter the mainstream. I will be interested to see how the universities respond. For the next few years, there will be pressure on places, as the population of 18-year-olds increases. When that turns down in 2030, there might well be places at universities that require filling, and this modular approach could be a really good way to do that. I think there are positives, actually, for all types of institutions.
Matt Western
Q
Sir Philip Augar: The panel that I chaired recommended that the total unit of resource—the amount allocated to each student—should remain frozen until 2025. We recommended a slight variation in the mix between the loan and a direct grant, but we felt that, by 2025, there would be a case for having another look at whether the unit of resource was right. That will be at £9,250.
Since then, we have had a period of substantial inflation. That would be the right moment to have another look at this to find out whether providers are spending the money wisely and frugally in the public interest. Without carrying out that piece of work, I would not really like to say what the fee should be 10 years out, but, clearly, one would expect that inflation would have been reflected in it to some degree
Matt Western
Q
Sir Philip Augar: That seems a pretty reasonable assumption, given where we are with inflation.
Matt Western
Q
Sir Philip Augar: That is a really good question. For this to work, we need a number of parties to respond to the opportunity. We clearly need providers to respond. We need them to understand the needs of the economy—the national and local economies—and to put on modularised courses. We need schools and colleges, in the form of their careers advice—the information and guidance that they give—to actually broaden that advice from what is currently; it is not just about universities.
We also need employers to step up to the plate. The local skills improvement plans are—and potentially could be even greater—a forum where employers can understand the needs of their local area. FE colleges are now obliged to take that into consideration, so we potentially have a joined-up system in place here. I think all that needs to happen before learners—and I suppose parents—can make a balanced judgment of the next, best step to take.
Mr Perkins
Q
Sir Philip Augar: That is a question that I ask myself quite a lot, Mr Perkins. It is hard to come up with a definitive answer. Obviously, for the independent providers and FE colleges, this is a massive opportunity. This is a chance to completely expand their market, and I would have thought that they are already on to it. For the universities, I am not so sure, because there is considerable demand from domestic and overseas students for the full three-year degrees.
I would hope that the forward-thinking institutions are looking at that demographic downturn in 2030 and thinking that it is not far away. This will come by very quickly. The cohort that starts in 2025 will have its three years and then we are into it. I hope that the forward-thinking institutions—the type that will be interested and able to offer modularised, credit-based lifelong learning—will be thinking about this: if not now, then pretty quickly.
Mr Perkins
Q
Sir Philip Augar: That is clearly a risk, but a lot depends on how lifelong learning is portrayed by the schools and colleges that are speaking to young people and parents. Not everyone is suited to an academic route. That does not make someone who pursues a vocational route a less worthy person; it just makes them different. I very much hope that we can get away from thinking it is university or bust. It is absolutely not, and this is an important way to get us there.
Andy McDonald
Q
Sir Philip Augar: It is a very good point, and the panel did engage directly with employers and representative organisations. We had a number of roundtable meetings and invited them all along. The response varied, frankly. Some representative bodies and some employers absolutely got it. There is possibly a sense in other quarters of, “Look, this really isn’t our problem. We can’t get the staff, you know.” Actually, that is your problem. I am a big fan of the LSIPs. The engagement between local business, local education providers, chambers of commerce and the rest has the potential to close the gap that you identify, and I agree with you.
Andy McDonald
Q
Sir Philip Augar: I am not so sure that it is actually in the curriculum, but it is a close adjunct to the curriculum in terms of professional, carefully considered, disciplined provision of information and guidance about career opportunities and further and higher education opportunities—not just when you are leaving a place but throughout your life. It is a core part of the rounded function of a good school and college.
The Chair
We are coming to the last couple of minutes. A brief question from Matt Western.
Matt Western
Q
Sir Philip Augar: If I were thinking of a lifelong loan, I am afraid I would be excluded by that barrier. We live in the real world. It would be great to extend it right through for much longer than that, but if these loans are not repaid, they are picked up by the general taxpayer. We have to be realistic about that, and 60 seems to me to be a reasonable number. It could be a little higher, but it seems a reasonable number.
The Chair
Thank you very much, Sir Philip.
Examination of Witness
David Hughes gave evidence.
The Chair
Q
David Hughes: Good afternoon. I am David Hughes, and I am the chief executive of the Association of Colleges.
Robert Halfon
Q
David Hughes: I was listening to Philip, and I agree with everything he said. I think it is an opportunity for colleges, but you will not be surprised to hear me say that more needs to be done. The LLE can be a real game-changer as part of a suite of changes that are needed. We need to understand what the LLE is for. It goes back to Philip Augar’s report, which said that we have a tale of two halves: half of young people are going into higher education by the age of 30, and half are not. It seems to me that the LLE is about particularly trying to help the other half who have not been into HE to have a higher education experience. That, almost always, will need to be local, will need to be flexible and will need to be affordable. The LLE helps enormously with that, and colleges should be at the forefront of delivering particularly modules at levels 4 and 5 and sometimes level 6 and beyond. We need to think about what is happening below level 4 and the investment needed to get more adults to level 3, because about 62% of 25-year-olds have a level 3, but we need more of the ones who have not to be able to get a level 3 as an adult in order to use the LLE.
Robert Halfon
Q
David Hughes: I hope so. The Nottingham Trent and West Nottinghamshire College example is a really good one. There are others—London South Bank University has some really good work going on, and Derby University has. Around the country there are good examples, but sadly, there are also examples of colleges and universities not collaborating effectively, and there are not really the incentives to do so. I would like to see more work carried out to try to get better links, particularly to give young people the option of doing one or two years in a college, getting their level 4 and maybe their level 5 without having to go residentially to get their bachelor’s degree, but perhaps topping up with an extra year or two at university. We need to help colleges and universities to collaborate better. The system needs to help, and we need to look at the regulation and the metrics of achievement, because some of it militates against that collaboration.
Robert Halfon
Q
David Hughes: Again, I think it will depend a lot on their relationships with universities in particular. There is a lot of potential for young people and adults to do some of their higher education in their local college and perhaps transfer that credit to a university somewhere else, if that is what works well for them, but that needs individual relationships to be good. In some parts of the country we will definitely see that. It would be great—wouldn’t it?—if there was a much more open sector in which those options of credit transfer became quite normal and part of what we offered to every adult of every age, but I think it will take some time to get there.
Matt Western
Q
David Hughes: The problem colleges have is that they do not have any of what the private sector might call risk capital: they cannot set up new courses unless they are absolutely certain that those courses will be successful. I think that will make them cautious, and when you are trying to introduce a very different type of higher education, caution is a real barrier. I would love to see the Department for Education supporting colleges to share some of the risk and to pilot courses.
One of the things that colleges do really well is work very closely with local employers. It would be lovely to see some more work, in specific sectors of the economy where there are skills shortages, to pilot colleges and employers working together to develop modules that are attractive to individuals and that help them to get into those skills-shortage jobs. To imagine that will happen just by chance is stretching reality; I do not think it will require tens or hundreds of millions of pounds, but it will need investment to make sure the risk is shared. If we do that, we could really get the ball rolling and show it works, and then more organisations—more colleges and employers—would engage. It is incumbent on the DFE to really start with that investment and risk sharing.
Matt Western
Q
David Hughes: The investment in adult education has plummeted over the past 12 years, so there are fewer opportunities now than there were in 2010. That is a major problem. The funding rate for colleges has not changed for 10 years. That is a major problem. We need more investment in colleges just so that they can recruit the skilled staff to be able to deliver.
There is an investment question, then, but there is a pathway issue as well. We need to make it much more straightforward for people to understand how they can get from wherever they are—whatever level—through to the sort of skills acquisition that really works in the labour market. Adults with children, mortgages, car loans and whatever other responsibilities need to see a return on their investment. The LLE is a fantastic opportunity, but it is not going to be taken unless it is super clear that getting that level 2, level 3, level 4 or level 5 will actually make a difference to a person’s chances in the labour market and, let’s face it, to their income to help with the cost of living crisis.
Gill Furniss
Q
David Hughes: I completely agree, and it looks as though it might get worse in the short term. The Government are negotiating with the teachers’ unions at the moment; if teachers get a better settlement, the gap between schoolteacher pay and college lecturer pay will get wider. It will get even more difficult. I know that the Minister is aware of that; I have talked to him about it. It is a difficult one, but we absolutely need college staff to be paid the right wage to attract and retain them.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
Q
David Hughes: I think it is happening now. It happens as part of the system. We have a system in which if you have good level 3 and good A-level results or BTEC results, you get into a university. If you are an adult and you have not got quite the same simple set of results, it is much harder to get into a university, and colleges open their arms to that group of people. So we already have that schism between a university sector that does not include those people and a college sector that does. It might get worse. A lot of adults need to build their confidence and learn how to learn, and colleges are very good at doing that. Often universities are not as good at doing that. They can teach someone a subject and can teach the research. Colleges are experts at teaching and universities are experts at research. Somehow we need to accept that and applaud it and use it to deliver to the right people.
Lloyd Russell-Moyle
Q
David Hughes: Yes, I think that is absolutely right. If you think about the extra learner needs and the high number of young people and adults in FE colleges with additional learning needs and disabilities, it is enormous—much higher than in any other sector. That learning support needs to be fully invested in. Students tend to come from poorer backgrounds as well, so bursaries and support with their finances are equally important.
Lloyd Russell-Moyle
Q
David Hughes: I think employers in this country generally pay less than in other OECD countries, so we are not doing very well on employer investment. Some employers are brilliant; many are not. I think there are massive dangers. We need to make sure that universities, colleges and private providers do not allow that to happen, because I am absolutely certain that some employers will want to do that. In my 32 years’ experience of working with employers and skills, we know that some will want to game the system, so we absolutely need to be alert to that. It will be a small number, but it could be significant. We must think about how to drive that out of the system. The providers need to make sure they are not playing that game as well.
The Chair
I am afraid we have run out of time, so there is no time for further questions. Thank you very much for your contribution to the Committee this afternoon, David Hughes.
Examination of Witnesses
Dr Elizabeth Norton and Professor Sue Rigby gave evidence.
The Chair
We now hear evidence from Dr Elizabeth Norton, policy adviser from Coventry University, and Professor Sue Rigby, Vice-Chancellor of Bath Spa University. Please can you start by introducing yourselves?
Dr Norton: Hi. My name is Dr Elizabeth Norton. I am a policy adviser at Coventry University and I specialise in Office for Students regulation.
Professor Rigby: I am Sue Rigby. I run Bath Spa University. As a member of the board of the Quality Assurance Agency for Higher Education, I rewrote the credit framework in 2021.
Robert Halfon
Q
Professor Rigby: In theory, it makes lots of sense. Nearly every university uses credits, with the exception of Oxford, Cambridge and medical schools. The exceptions in the Bill allow for that. I am worried about unintended consequences, and they focus on students who may fail a course or who may need to resit.
At the moment, the failure and the resitting is bound up within the fees for a year. We have clarity from the Department for Education that, in the provisions in this Bill, students would be responsible for paying for both the course they have failed and for the resit course.
The premise of the LLE is that the minimum fee quantum will be 30 credits. Most students will fail subsets of that—we run 10s, 15s, 20s. I think there may be some unintended consequences to explore to make sure that students are not disadvantaged.
Intellectually and theoretically, this measure will work beautifully, but in practice, I would love to see a risk analysis on unintended consequences for my students.
Robert Halfon
Q
Dr Norton: It is absolutely right that there will be a third category of registration—if a new entrant to the OfS provider system is only doing modular provision, it will need to be regulated separately—but the OfS will need to consult the sector widely on how it integrates monitoring student outcomes, progression and completion of modules to really ensure that standards, in terms of access, student experience and value for money, are maintained.
Robert Halfon
Q
Dr Norton: I think a lot of FE providers have already joined the OfS register. I cannot speak for them entirely—we are a university—but I think the main barrier for them, from my point of view, might be that there is a lot to be done to keep up with OfS regulation and to keep up with compliance. I worry about the amount of bandwidth that FE colleges have to do that—it is its own little cottage industry. That would be my main concern: do they have the capacity to integrate these new regulation challenges?
Robert Halfon
Q
Professor Rigby: Probably, in this Bill, the solution resides in that course year. If one could identify a course year with a loose allocation of credit—let’s say, plus or minus 20 or 25—that would not break the intent of the lifelong loan entitlement being a 30-credit minimum, but it allows 18-year-olds to fall over once or twice during a year and to be picked up in-year, rather than getting another £3,000 taken off their lifelong loan entitlement.
Mr Perkins
Q
Dr Norton: Coventry has multiple start dates throughout the year already—we have six, I believe—so the volume of applications may increase throughout the year, which would cause some capacity issues, but overall I think it is a positive.
Professor Rigby: Most universities currently have multiple start dates, even the research-intensive ones, mainly because a lot of international students start their master’s courses in January. In the Bill as written, this is a technical realignment, which means that instead of someone starting partway through a year and their fees running through four years if they are on a three-year course, their fees will run over three years but in practice they will start and end in the same month. It is a technical change.
Throughout the Bill, I have identified a multitude of technical changes that will affect the provision of probably a couple of million existing students in order that, in ’27-28, we will start to see the roll-out of the LLE. Intuitively, I wonder why form does not follow function, in that we should design the LLE and then make sure that the funding system will permit it, rather than changing the funding system ahead and precluding some of the design opportunities that would otherwise reside in the LLE.
Mr Perkins
Q
Professor Rigby: All undergraduate degrees tend to be 4, 5, 6. We currently accept top-ups into 5 and into 6, but there is limited demand at the moment for that provision. The real opportunity here exists in growing this ecosystem almost organically, and colleges working with their cognate universities—we are federated with Bath College, for example, and New City College in London. We are developing novel provision in that space, assuming that the funding will permit it. There is little that the funding will not permit; it is just not so obvious to the person in receipt of it. There is little in terms of top-up, one-year, short courses that we cannot do currently, but we sometimes have to look for something from commercial entities, rather than individuals taking out loans.
Matt Western
Q
Professor Rigby: As I read the Bill as written, nothing gives me direct cause for concern, but it does give permissions for things to happen down the line that are not part of what is conceptualised at the moment in the lifelong learning entitlement. For example, nothing in the Bill would stop the Secretary of State in future refusing to fund a module or course in a particular discipline. Universities are worried about that, because we have seen the removal of extra funding for courses such as archaeology and design over the past few years. It makes us conscious that the Bill, while not designed for that function, gives permission to the Secretary of State to set fees at whatever level they might want for a degree that they might like, or to refuse funds at any level for a degree that they do not like. All of us around the table might worry about archaeology—notwithstanding that you did it; people do move on later—but most of us would see that design is something that is broadly useful to the economy.
Matt Western
Q
Professor Rigby: The geek in me would say that all modules have currency because they count for credit. We already have transfer schemes between colleges and universities and between universities—one with another—that will accept aliquots of credit at a particular level and allow that to stand in lieu of partial learning. So I could take half a year’s work, I could get entry into a different university and I could be let off that half-year of study, despite the fact that the curriculum might be slightly different.
To an extent, any 30-credit module taken under the lifelong loan entitlement will have currency. It would be useful to badge or brand them with a series of designations that would make a lot of sense. If I turn up and say I have a 30-credit module at level 6, you are probably not that impressed, but it is about the same amount of effort as an A-level, for example, and at a higher level of intellectual demand. It would be useful to badge and brand these things so that they made sense to everybody. However, in their raw form, as long as they carry credit, that will make sense not just here but internationally, so you can go through the four nations and into Europe with that attribution of credit.
Matt Western
Q
Dr Norton: I was just going to say that the LLE consultation response document says that there are plans for transcripts to be standardised. If that could be integrated into the LLE gateway system, along with advice and guidance, it would give a lot more clarity to students and employers. There is a real issue of brand recognition, I think, in the value of modules, especially to employers, who might view 30 credits differently to how we in the sector do.
Matt Western
Q
Dr Norton: We in Coventry have an open-framework approach to certain areas of provision. The one that springs to mind is a professional development course that ends up in a BA or BSc for professional athletes. Through that approach, all the different campuses within our group structure are open to students, who can take modules from across the spectrum of what we deliver: sports science, business management, and exercise and life sciences. Students can complete over six years, allowing them to continue their sporting career, because obviously time is important to athletes in terms of completing their career. It is more about having standardised processes.
There is administrative burden, but it is more in terms of curriculum transformation. Adaptations will also have to be made again in advance of the LLE, once the Secretary of State has made decisions about which subjects are to be prioritised and things like that. The main burden I am worried about is financial forecasting and the behaviour of students towards admissions. We do not really know yet how popular this offer is going to be. At the moment, we run on five-year financial forecasting and have largely three-year cycles. It becomes extremely difficult to plan if you are only taking modules. So we do not have an idea of learner demand fully yet. Although we are at the vanguard of LLE provision, as you kindly say, it is only a small part of our portfolio at the moment.
Matt Western
Q
Dr Norton: I am afraid that I would have to come back to the Committee with actual student figures on that. I do not have access to them here, but I would be happy to submit them as evidence.
Professor Rigby: Can I briefly come back on those questions? In terms of the regulatory burden, it is significant. I would estimate that the cost of regulation to my university over the last year has been in excess of half a million pounds. We might have been lucky or unlucky—I do not think that data is collected across the sector.
Once we break that down into subject areas—I run around 80 different subject areas—we amplify that level of bureaucratic oversight potentially by 80. Breaking that down into modules means that every one of my degrees, which at the moment are a unitary entity, is broken down into 12 pieces, any one of which could be the focus of oversight by the Office for Students. You are amplifying my administrative or overhead burden of regulation by 80 times 12, which is significant, given that it is not cheap.
Everybody wants to be well regulated. No university is trying to escape its burden, but I think that that burden is worth considering because the metrics on which the risk assessment is based for universities will not operate for a module. I cannot come here and pretend that one 30-credit module will change someone’s entire career. I cannot assume that the progression for a module will be as high as it would be for an entire degree, mainly because the demographic of students taking a single module will be very different to the demographic of students taking a full degree. We are in different regulatory risk metrics; the risk is that those metrics will then be less broadbrush than they currently are, and there will be another amplification of the regulatory burden. So it is something that is worth considering, even if you fillet out from that the natural excesses of a vice-chancellor getting regulated.
Katherine Fletcher (South Ribble) (Con)
Q
Is there an argument that says we start small, by introducing it only for level 4 and 5, with level 6 to come, and that we focus on the more technical, easy-to-define areas of study at levels 4 and 5? They also have the happy coincidence of being in demand in the job market. Is it possible that we could go some way without having to modularise, for example, archaeology? I love archaeology, but you know what I mean. Can you help me understand what I have got wrong in that sentence?
Professor Rigby: Modularising a degree is easy. We did it at Bath Spa just for fun, to see what the answer to your question would be. We took it right through the formal processes. We have a fully stackable, modularised degree on our books, where every module has individual value. The solution to your problem is that in any degree, there are core modules that you have to do, and optional modules that you choose to do. You make sure that your core modules are, for example, your black box AI at levels 4, 5 and 6, and then your options can change over time and keep current. If ChatGPT was not part of your degree four years ago, you can do a module on it now. You can slot that in at the right academic level, and when you have enough tokens, you automatically get the next qualification, whether that is a year of study, a diploma of higher education, a certificate of education or a degree. That is easy. It is also easy to modularise every degree that is not taught by Oxford, Cambridge or a medical school, because they all bear credit, so they are already modular. What we cannot pretend is that some of our later modules have standalone value irrespective of earlier-level modules. You cannot just drop in to a third-year module on advanced ecology unless you have done it in second and first year. That is where we need to be clever, because if people are taking time out of the workforce, they cannot necessarily come back in.
You are absolutely right. The easiest thing is to start with the equivalent of first year at university—level 4—and then develop on, but you can do it through a series of generic technical qualifications from now. You can devise a degree in health or computing or business. Those things are amenable to immediately meeting all the LLE requirements. It is just a matter of good design in the background. If we can do it, so can any university.
Katherine Fletcher
Q
Professor Rigby: Imagine doing a computing degree over 10 years. If I described the degree to you now, it would be completely irrelevant in a decade, because the things you would need to know would have changed dramatically. With archaeology—and palaeontology, which is my subject—you can go 100 years and not have to redesign your degree an awful lot.
Katherine Fletcher
So the Elrathia trilobites that we probably both have at home are still 500 million years old.
Professor Rigby: The beauty of this is that you could design a degree that has a core that is significantly generic.
Katherine Fletcher
Q
Professor Rigby: Six is still fine. The opportunity is to put in those optional modules that are current and not prescribed by the degree description.
Katherine Fletcher
Q
Professor Rigby: I do not think there is any reason why level 6 is structurally different. At the moment, if I made an offer to you to read a degree, I would need to specify for data protection issues exactly what you would learn through the duration of the degree, right up to the last module you would do in your third year. The LLE degrees will have to be different from that, because the subjects move too quickly. If you take a degree over 15 or 20 years, for me to specify at the beginning exactly what the content is at the end—
Katherine Fletcher
I would agree with that. I started off coding visual basic C, and I can code ABAP 4 and VBA. You would get quite close to a computing degree—that is 20 years’ worth of technology.
Professor Rigby: All you need is to define your module as coding and they will stick into it what you need. I don’t think modularisation is a problem. I don’t think level 3, going below degree level, or 4, 5 and 6 are a problem. I think what you probably want to do is bespeak some qualifications that fit that, rather than just modularising everything that we offer and hoping that somebody wants to do research methods in the third year of their archaeology degree.
Katherine Fletcher
Fine—now I understand you. Ecology might not be top of the list—I am a biologist who did a lot of ecology so I can say it—and that is a bit like archaeology. The initial stuff at level 4, 5 and, ideally, 6 could be more granular in detail and perhaps more obviously tied to a job—moving satellites around in space or whatever. Thank you very much for putting up with my questions.
Lloyd Russell-Moyle
Q
Professor Rigby: I do not think we can avoid that risk. If we imagine that the lifelong loan entitlement will be drawn down from 18 to 50, that is 30 years of continuity, and we have not had 30 years of continuity in higher education in the last century. It is quite possible that an organisation or, indeed, a subject area would cease to exist during that time. You are working from the premise that people would start an LLE in a modular form always intending to get a degree as an outcome, and I am not sure that they would not then just do a degree, because they could do that at any age. The commitment of time might stop them, but I doubt that many people over 30 years would have their eyes set exactly on a particular degree outcome; they would surely be moving in and out of the workplace, revisiting their own choices of modularity. It would be lovely if those modules stacked so that they end up as a generic degree, but I would have thought that the risk is only if we over-specify what that degree would be on graduation. If we say it is a geology degree, that is fine. If we say it is a palaeontology degree on vertebrates that can only be delivered by the University of Bristol, we would have to be assuming that it would have continuity of delivery through 40 years. It probably could, but others might not.
Lloyd Russell-Moyle
Q
Professor Rigby: It is complicated. It would be adorable, but universities will always have the right to reject people. My son went for an interview at Oxford, and he did not get in. His qualifications were recognised; he just was not quite over the line. Universities will always have the capacity to be selective, and that means that any qualification may be insufficient for entry. I suspect that for the bulk of people, the reason for their not being admitted would be something other than the status of the qualification they have brought through the LLE.
Lloyd Russell-Moyle
Q
Dr Norton: That is where the OfS can step in. The student protection directions under the OfS have needed a review for quite a long time, but they are certainly not capable of dealing with the level of consumer protection that the LLE will demand. As Professor Rigby said, we cannot have a totally pick-and-mix approach; there would need to be certain pathways followed and competencies gained as someone bundles together, so that they can learn in the proper order. The OfS can step in and provide advice and guidance. It already has Discover Uni, which contains a lot of information regarding student outcomes, and that could be added to one of its websites.
Lloyd Russell-Moyle
Q
The Chair
It will have to be a short answer.
Professor Rigby: Any institution will have a vested interest in giving that advice, because having put all the effort into recruiting somebody and training them and realising they can learn with us, we will not want to lose them later on. The risk is that it will be partial advice, not impartial advice. The assumption has to be that the lifelong loan entitlement will be something that someone takes through mature adulthood, so they can temper to an extent their own expectations with an increasing degree of curatorial ability as they move through a career. In a sense, we are presupposing that people will remain ignorant of this system, whereas actually, they will quickly work out what works in it and what works less well, and those mores will guide someone through a career. It is not like they will do it all immediately and with the open-mindedness that we are presupposing before it starts, I suspect.
The Chair
We have come to the end of the session. Thank you very much for your evidence. There have been some interesting comments. The Committee will meet again on Thursday at 11.30 am for line-by-line consideration of the Bill.
Lifelong Learning (Higher Education Fee Limits) Bill (Third sitting)
Thursday 23rd March 2023
(1 year, 8 months ago)
Public Bill CommitteesRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 23 March 2023 - (23 Mar 2023)
The Committee divided: - Ayes: 5 / Noes: 9 - Question accordingly negatived.
The Committee divided: - Ayes: 5 / Noes: 9 - Question accordingly negatived.
The Committee divided: - Ayes: 5 / Noes: 9 - Question accordingly negatived.
The Committee divided: - Ayes: 5 / Noes: 8 - Question accordingly negatived.
The Chair
I have a few preliminary reminders for the Committee. Please switch electronic devices to silent. No food or drink is permitted during sittings of the Committee, except for the water provided. Hansard colleagues will be grateful if Members email their speaking notes to hansardnotes@parliament.uk.
We will now begin line-by-line consideration of the Bill. The selection list for today’s sittings is available in the room. It shows how the selected amendments have been grouped together for debate. Amendments grouped together are generally on the same or similar subjects. Please note that decisions on amendments do not take place in the order that they are debated; they sometimes appear later than on the final list. The selection grouping shows the order of debates and decisions for each amendment.
A Member who has put their name to a leading amendment in the group is called first. Other Members are then free to catch my eye to speak on all or any of the amendments in the group. A Member may speak more than once in a single debate. At the end of the debate on a group of amendments, I will call the Member who moved the leading amendment. Before they sit down, they will need to indicate whether they wish to withdraw or seek a decision on the amendment. If any Member wishes to press any other amendment in the group to a vote, they need to let me know.
Clause 1
New method for determining fee limit
Matt Western (Warwick and Leamington) (Lab)
I beg to move amendment 3, in clause 1, page 2, line 5, at end insert—
“in consultation with relevant higher education sector stakeholders.”
This amendment would ensure that in determining whether the credit-based method or the fixed method is to be used, the Secretary of State will consult relevant higher education sector stakeholders.
The Chair
With this it will be convenient to discuss amendment 5, in clause 1, page 2, line 34, at end insert—
“(3A) In determining which activity is to be regarded as a ‘credit-differentiated activity’ under subsection (3), the Secretary of State must consult the relevant provider, relevant higher education sector stakeholders, and any other sector stakeholders relevant to the credit-differentiated activity in question.”
In determining the nature and extent of “credit-differentiated activity” and the number of credits associated to it, the Secretary of State must consult the provider in question, higher education stakeholders, and other stakeholders to which the credit-differentiated activity relates to, for example, NHS Trusts or other representative bodies.
Matt Western
Thank you, Sir Robert, in advance of this morning’s sitting, and thanks to the Clerks for all their work hitherto.
I thought that the evidence sessions the other day were useful. The contributions of the Government witnesses, as well as those whom we had proposed, were extremely helpful. What we heard consistently was that the previous consultation was healthy, but we did not have the report back until relatively late. Perhaps there could be greater consultation.
The purpose behind the two grouped amendments 3 and 5 is to incorporate more consultation in the Bill and in particular the need for the Minister to consult stakeholders when deciding what method should be used to determine the fee limit. A second expectation to be included would be that the Minister consult the provider in question, higher education stakeholders and other stakeholders relevant to how many credits are attached to the credit-differentiated activity—that is the term used to describe non-traditional modes of teaching, or placement.
I start with amendment 3. The Bill gives the Secretary of State sweeping powers to decide unilaterally what method to apply to courses in determining the fee method, whether the credit-based method or the fixed method. In the evidence sessions, we heard from Professor Press, the Vice-Chancellor of Manchester Metropolitan University, who has done a lot of work in this area. In what was not so much a confession as a revelation, he said that
“the bit I find most difficult to understand is the difference between the credit-based and the fixed-mechanism methods of calculating the fee cap.”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 5, Q4.]
In addition, we also helpfully heard from Julie Charge, the deputy chief executive officer at the University of Salford, about their experience of the Office for Students’ short-course trial, as it was the Office for Students that conducted the trail. We heard that that might have been better had it been undertaken by the Department for Education itself. Salford’s experience revealed two significant cohorts of people taking the loan: the 26 to 30-year-olds in one; and the 36 to 40-year-olds in the other. That is valuable data for the Government. I like to think that that will provide behavioural insight into how the opportunity for lifelong learning will apply, because there seems to be a market and a need for such provision among those cohorts. I hope that the Minister will be interested in learning from the trial and implementing it when deciding many of the things that he has the power to do in regulations.
The memorandum from the Department for Education to the Delegated Powers and Regulatory Reform Committee states that the fixed method will be used only
“for courses which do not easily lend themselves to the credit-based system”.
However, the Bill grants sweeping powers to the Secretary of State to decide what method should be used, irrespective of whether the fixed method should be used exceptionally. There is a concern here. If it is decided that the credit-based method should be used, it is important that that does not lead to unintended consequences for providers or learners. The Minister would therefore surely accept that there is a real benefit to sector consultation.
The importance and relevance was underlined by the fact that the Russell Group has expressed its support for the amendment, as it believes universities should have autonomy on all decisions relating to the types of courses and provision offered, and whether or not to modularise the courses and the associated credit. I expect the Minister might not want to include sector stakeholder consultation in the Bill, but, if he does not, what assurances can he give the sector that, first, there will be an avenue for sector stakeholders to contribute before the Secretary of State decides on the fee limit to be applied? Secondly, universities will have the ability to express an opinion as to what type of courses
“do not easily lend themselves to the credit-based system”,
and the Secretary of State will take that into account in deciding what method to apply.
Mr Toby Perkins (Chesterfield) (Lab)
My hon. Friend raises an important point. The consultation that he refers to sets up an opportunity to debate clause 1. For me there were two key concerns that came out of the evidence sessions on Tuesday. The first was whether the policy would lead to a shift from employers having responsibility for their staff’s learning to employees now being expected to take responsibility. The second was whether that would be attractive enough for institutions to take them on, and whether the concerns about the financial stability of the sector had been considered in the Bill. The evidence sessions showed why it is so important that we have a full consultation on the issues.
Matt Western
My hon. Friend is right that we heard quite widely from all the witnesses. Over the last 30 years, there has been a significant fall-off in the provision of adult education and of education or training through employers—we heard that from the CBI and others. There is a real concern about whether the proposal will lead to an individualisation of the responsibility for all training and skills, which would be to the detriment of what is needed for us economically as well as socially. I agree with his point about whether what is being proposed might be a burden in the context of the current education landscape and the financial precarity, which we particularly see in colleges and also in higher education institutions. We will come on to that when we discuss other amendments.
I will come back to the assurances I am seeking from the Minister on the need for consultation. I spoke of two. The final one I want to raise is that there was seemingly some confusion among the witnesses we heard from on Tuesday. These are heavyweight college leaders, who are widely respected across the sector. I am really seeking assurance from the Minister and his team that he himself will reassure the sector on the difference between the two fee limit methods.
I will turn to amendment 5. In the Bill, “credit-differentiated activity” is the term used to describe non-traditional learning activity, such as placements with employers. That is not a term that a lot of people will be familiar with; I am not sure if you, Sir Robert, or others would have been familiar with it ahead of getting involved with this legislation. An obvious example is in hospitals, where placements are a vital part of nursing degrees and other medicine-related courses.
Providers may wish to define future courses with a placement element to them or that include engagement with employers. That is to be welcomed, of course; it is a vital part of the learning experience—the direct, practical experience—that a person can have by being in that place of work and learning very much on the job alongside the theory they may have learned in the classroom. That is a vital part of their training—understanding not just the theory but how that relates in practice to the workspace.
The Bill currently allows the Secretary of State to set down in the regulations the description of the credit-differentiated activity to be undertaken and make provision about the number of credits attached to that type of activity. Given the vast range of areas that such activity could fall in and the number of sectors and bodies that could and, I believe, should be engaged—national health service trusts, other sector-representative bodies involved in course provision and qualification bodies—would it not make sense to ensure they are consulted before the Secretary of State puts a number of credits on the activity?
The amendment also includes consultation with the provider, which is important. Let us take the worst-case scenario. Say that a provider allows a student to undergo a placement during a course year: the Secretary of State provides for that activity to be 20 credits—i.e. 200 hours —but say, in reality, the placement is much more onerous, and the university envisaged that the student would spend 300 hours on placement, or 37.5 hours for eight weeks. That example illustrates that there would be a clear discrepancy. What mechanisms are in place in the legislation to prevent that happening? Would consultation with the provider not be sensible?
We also heard from Simon Ashworth of the Association of Employment and Learning Providers that
“awareness of the LLE is still underdeveloped.”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 39, Q78.]
That is backed up by the CBI’s education and skills survey 2022. We heard from Matthew Percival about that, and he explained that the survey revealed that four in five respondents were totally unaware of the plans to introduce the lifelong loan entitlement. We also heard examples on Tuesday of how previous Government initiatives in the skills space have massively underperformed the expectations of Government. I do not mean to criticise that, because some of the initiatives have been very positive, but it demonstrates how difficult it is to get some of those new initiatives up, running and accepted by institutions, and understood by employers and learners. We have seen that with T-levels and accelerated degrees.
Mr Perkins
My hon. Friend is more generous than I am; he touches on one of the crucial parts of this entire debate. For the measures to have the force that we all hope for, providers have to be able to afford to run the courses, and, in the context of independent providers, to do so profitably. The Government have been very good at allotting budgets for projects that never get taken on and never deliver the numbers originally hoped for. There is every prospect, given the evidence that we heard this week, that this measure could fall into the same trap, if the issues raised by my hon. Friend are not addressed. It behoves the Government to ensure that they not only come up with a good idea but make it work for those who are being asked to deliver it.
Matt Western
My hon. Friend understandably has a different perspective on the sector and he has real expertise. With some of the initiatives—I am thinking of T-levels and how the Government sought to remove BTECs—there has been resistance, and a difference between what the Government and colleges and employers believe worked successfully. The introduction of any new approach brings massive challenges. As the Minister knows, the Opposition are in favour of lifelong learning, but it is important that the delivery of it is successful, and there is not a failure from the start. We are at this stage in the Parliament, and there is a lot of work to be done if the measures are to be successful.
One benefit of consultation is engagement. There has been a desire across the sector to have more engagement with the Government, but it has been made difficult. I welcome the Minister to his place; he is a decent individual with expertise and knowledge about the skills sector. There has been such upheaval and turmoil across the ministerial line-up that I think it has made it very difficult. We are five years on from the 2018 Augar report. There needs to be consistency and stability across the ministerial line-up to deliver some of these ideas.
Andy McDonald (Middlesbrough) (Lab)
Does my hon. Friend share my perception of the role of the local skills improvement plans in this area? From my own experience, it would appear that there is a degree of frustration in those who are seeking to drive the plans when gaining qualitative information from employers. I wonder whether that is indicative of well-intentioned plans not being thought through thoroughly, and not being coherent, intelligible and effective.
Matt Western
My hon. Friend has a lot of experience as a Member of Parliament for Middlesbrough, and understands how important it is, with economic change and new sectors emerging, that training and skills provision is available and co-ordinated. I worked with my hon. Friend the Member for Chesterfield on the Skills and Post-16 Education Act 2022; the introduction of local skills improvement plans was seen as a good proposal, but it is about delivery and making it work. It is important to have the right people involved in those plans, who are acting not simply out of self-interest but in the interests of the long-term—10 or 15 years hence. I still believe there is much work to be done on that.
Our amendment would bring all the relevant stakeholders together, simultaneously limiting unintended consequences and engaging the relevant groups with the policy while boosting awareness of the lifelong loan entitlement policy. I think this is a very sensible suggestion, but I guess I would say that.
So, on behalf of the sector, I just ask the Minister to provide some assurances that decisions made under clause 1(4) will not be implemented without sector and representative consultation and approval, and that is what these two amendments seek to ensure.
Mr Perkins
I do not intend to dwell on these two amendments; my hon. Friend the Member for Warwick and Leamington has forcefully set out their purpose. Regarding the consultation, given what we heard in the evidence session, it is important that the sector is engaged. There is a real concern that until there is clarity about a new method of funding further education and skills, which we know will be more expensive for providers to provide, although—quite rightly—it will not be any more expensive for learners to learn, there will be a gap there. So, unless someone steps forward, there is a real danger that an excellent opportunity will be created for learners that they will not actually be able to access in their local area.
On the subject of the definition of a credit, it is important to remind the Committee what we heard in the evidence session. My hon. Friend asked:
“Should the Bill have written into it some sort of definition of what a credit is?”
Ellen Thinnesen from Sunderland College responded:
“My personal and professional opinion is that it should. If we are defining fee limits attached to credits, it is really important to communicate to a student what a credit means. Essentially, a student wants to know a number of things. First, how much is this going to cost me? Secondly, what will I have to expend in effort and energy to complete this module? Thirdly, what will I get for that module and those credits from the institution that I am choosing to go to? So transparency about the relationship of credit to fees, and of credit to module content and what is expected within that, is very important.”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 12.]
It was crucial and right that she said that, with her understanding of what motivates learners. It is also important, of course, that future employers understand what those credits mean; other witnesses referred to receiving a handful of certificates, but said that there was no clarity about what those certificates meant.
Alun Francis from Oldham College responded to a question from the hon. Member for Bassetlaw by saying:
“The more important questions will be about the standardisation of the credits…so that learners know what they are getting and paying for. That needs to be absolutely transparent.
It is also important to say that in these technical areas there is a big difference between what learners pay for here and in a traditional degree, because some degrees are positional goods—they are paying for the credential as much as the content—but in these qualifications they are paying for the content. Learners therefore need to be clear that what they are getting is what it says on the tin. The other aspects, I think, we will just get used to.”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 13.]
Those are very powerful voices from the sector speaking in support of my hon. Friend’s amendment and if the Minister is not minded to support it, we will need real clarity for the sector as to how the definition of a credit will be assured if it is not in the Bill.
The Minister for Skills, Apprenticeships and Higher Education (Robert Halfon)
I thank the shadow spokesman, the hon. Member for Warwick and Leamington, for tabling his amendment and for his comments on it. He talked about the timing of the consultation and he said that it came out quite late. It came out quite late because we wanted to make sure that we got it right: we were having extensive consultation with the sector and with other stakeholders, as he rightly wants, and we wanted to make sure that we responded carefully. I do not know if he has seen the recent tweet by the vice-chancellor of the Open University, who said that he welcomed the engagement with the Government. There has been an LLE roundtable with previous Ministers and officials. I attended one such meeting only a few days ago on the LLE.
Robert Halfon
Yes, of course. I will come on to deal with some of the hon. Member’s remarks.
Matt Western
It would have been really helpful if the Minister had been in post in March last year, because we might have got to this a lot sooner—that is the point I was making. I am sure that the intention was there in the Government, and of course the Augur report was published five years ago, but I have lost count of how many people I have stood opposite here in this past year. Had this Minister been in place, I am sure we would have had this Bill Committee in the autumn of last year.
Robert Halfon
The hon. Member is very kind, as always. I cannot speak for the past; I can just speak for the present and the future. My intention is to get this Bill right, which is why this Bill Committee is so important.
The hon. Member opened by saying that there was some confusion about the fixed-rate method and modules and credits. He mentioned Professor Malcolm Press. Universities UK has strongly welcomed the lifelong loan entitlement; I noted that point on Second Reading.
I will just clarify, for the benefit of the Committee, that the Government intend for all courses offered under the LLE to use the new credit-based system for calculating fee limits. That includes longer programmes, such as three-year degrees, as well as short courses or modules, regardless of whether they are studied on a full-time, part-time or accelerated basis.
There may be some courses that are more suited to annual fee limits than credit-based fee limits, for example postgraduate certificates of education or first degrees in nursing. Where that is the case, the intention is that the Government will set fee limits using a consistent rate of 120 credits per year. That includes for Oxbridge, where there is no credit system for degrees; there will be a default credit system for those universities.
The Government intend to retain the ability to set fee limits using the current yearly fee system as well as the new credit-based system, but would use this ability only by exception. These exceptions will be set out via regulations, using the affirmative procedure.
Let me go through the amendments in a little more detail. They focus on the Government consulting with stakeholders regarding the fee limit method and credit-differentiated activities. We have engaged with a wide range of stakeholders to gather input to inform policy development and believe it is absolutely critical that we continue to engage with stakeholders all the way through. I mentioned the vice-chancellor of the Open University. He said:
“The Lifelong Loan Entitlement... has the potential to enable people at any stage of their working lives to improve their knowledge and skills and drive productivity and growth.”
The Government’s consultation on the lifelong loan entitlement included a question specifically on the issue suggested by amendment 5—whether any courses should be on the per academic year, or fixed, method of funding. We intend for all courses under the LLE to use the new credit-based method for calculating fee limits.
We understand, following the consultation and engagement with the sector, that there may be some courses that would be more suited to annual fee limits, such as nursing. In those cases, as I have said, the Government will set fee limits using a consistent rate of 120 credits per year for full-time courses. That will create parity with the current yearly fee system, but via a credit-based mechanism.
On amendment 3, I will provide some additional detail on credit-differentiated activities. A credit-differentiated activity is intended to be a period of study or other activity that has a different fee limit rate to another period of study within the same year—for example, a year containing substantial periods of taught study and time abroad. Credit-differentiated activities make it possible to set fee limits on sandwich placements and overseas study in a more flexible way.
Currently, placements and overseas study have a reduced fee limit rate, but that reduced rate can only be applied to a full year at a time. We are trying to make it possible to fee cap shorter periods of mobility in the year that they actually take place. Where I disagree with the hon. Member for Warwick and Leamington is that an explicit requirement to consult on the detail of credit-differentiated activities is not necessary and potentially burdensome.
Mr Perkins
If I have understood correctly, the Minister is effectively saying that what makes up a credit is up to the providers. They can decide what constitutes a credit, 10 credits or whatever else. Given the feedback we heard from Ellen Thinnesen and Mr Francis, and given the reservations we heard from those in the sector that there is a danger this might be burdensome and costly for them, how will the Government ensure that providers will not stretch what is worth 10 credits or a credit? How can we ensure that there is quality within this?
Robert Halfon
I thank the hon. Member for his question. As he knows, a credit is a unit of learning time. We are using the standardised system that exists already, but breaking it down into modules. As I said, the maximum will be 120 credits per year. In terms of the modules, there will be a minimum of 30 credits. If providers want to charge for more credits, that is up to them, but the student will not pay for those extra credits that they charge for. We are just breaking down the existing system to ensure that we can introduce modular and flexible learning.
Matt Western
I thank the Minister for his comments. However, we will press the amendment to a vote.
Question put, That the amendment be made.
Matt Western
I beg to move amendment 4, in clause 1, page 2, line 10, at end insert—
“(1A) The definition of credit must follow sector-recognised standards.”
This amendment would ensure there is a sector-recognised, standard definition of credit, consistent with the Quality Assurance Agency for Higher Education (QAA) Higher Education Credit Framework.
The Chair
With this it will be convenient to discuss amendment 9, in clause 1, page 4, line 33, after “course” insert
“as specified in a standardised transcript.”
This amendment would ensure that there is consistency amongst the academic record of students wishing to transfer between providers through a standardised transcript.
Matt Western
The amendments seek to incorporate two elements into the Bill. The first would ensure that the definition of a “credit” is aligned with sector-recognised standards, and the second would ensure that the definition of a “transfer case” includes reference to the need for a standardised transcript. This is particularly important for ensuring consistency and quality.
Let me start with amendment 4. The sector has clearly done a huge amount of work in this space, and we heard from Professor Sue Rigby of Bath Spa University, who was responsible for rewriting the Quality Assurance Agency for Higher Education’s credit framework alongside Ellen Thinnesen of Sunderland College, who was an advisory member for the development of the QAA’s quality code for higher education. Ellen made it very clear in her evidence that being precise on the face of the Bill about what a credit is would be a really important step. Interestingly, she said that it would provide clarity about the relationship between credits, fees and module content. As I said in my opening remarks, the concept of a credit—both as a term and as a currency—is alien to the wider public, which is an issue. The public’s understanding about what a T-level is and its value is not well appreciated, which, sadly, may devalue it in the eyes of employers or others. That is why we believe that the definition of credit should be on the face of the Bill.
The term is certainly understood by the sector, with one credit equating to 10 notional hours of learning. The minimum proposed 30-unit course available to a student benefiting from their LLE would therefore equate to 300 hours of notional learning. Without a clear commitment to a sector-recognised definition of credit on the face of the Bill, what is to stop the Government amending the value of a credit without any proper scrutiny? I was pleased to see reference to credit in the explanatory notes, which define one credit as representing 10 hours of notional learning. Elsewhere, this understanding or valuation of a credit is found in Ofqual’s conditions of registration and the Office for Students’ sector-recognised standards, as well as in the QAA’s higher education credit framework.
I think it is the sector’s definition to own. In not making it clear on the face of the Bill, the inevitable concern is that Ministers may well step in and start amending the value of a credit, which has implications for the fee cap that providers are able to charge. What assurances can the Minister give us that a credit is to be aligned with sector-recognised standards?
Of course, the benefit of our amendment is that it would provide flexibility: should the sector decide to amend its definition of a credit, that would be updated in the Bill. Our amendment would simply enshrine the autonomy of providers against potential interference by the Government, and I think most of us would say that that is a very healthy place to be, irrespective of where we sit in the Chamber. The context is the creeping Government interference that we have seen within the Office for Students, so it is really important that the definition of a credit is transparent and owned by the sector.
On amendment 9, I thank the Minister for publishing the consultation ahead of Report, following cross-party representations on Second Reading from me, the hon. Member for West Worcestershire (Harriett Baldwin) and the hon. Member for Twickenham (Munira Wilson). The publication of that report has invariably improved the quality of debate. The amendment is inspired by the Government’s own commitment, in their response, to introduce the requirement for providers to give standardised transcripts to learners on completion of their modules. That is a good thing. During the evidence session, we heard several concerns about how transfer cases would work. Julie Charge, for example, raised concerns about how they would work in practice and who would be the awarding body. That is certainly not clear.
We also heard from Rachel Sandby-Thomas, who explained that in transfer cases the providers involved currently have a good relationship. It is really important for there to be trust and an appreciation of the values and standards of the institution that is transferring out as well as an appraisal of the relative standards. It will take time for providers to build up such relationships when, in theory, students will be able to transfer from any provider to another. That is why the issue is so important. A standardised academic transcript would give value and credit to the qualifications achieved by a learner.
Andy McDonald
Could I take my hon. Friend back a step to the level of requirement on providers to settle a standardised script? One of my local colleges has got in touch to say that although it welcomes the idea, it understands that there are no plans to make it a firm requirement of higher education providers. Instead, they will be encouraged only to consider standardised transcripts. Does that accord with my hon. Friend’s understanding or is there something stronger in the Bill that we have not seen?
Matt Western
It is interesting to hear the voice of one of my hon. Friend’s local colleges in Middlesborough. The need for standardisation is at the heart of the issue; as I say, where this is working currently there is an existing relationship between education providers—whether colleges or higher education institutions—when it comes to the person who may be transferring out or in and what they will have attained by arriving at the other institution. That is really important.
We have to establish a currency or there will not be trust between the institutions when it comes to taking people on—they might not appreciate the value or standard that the learner may have previously achieved. It will take time for providers to build up these relationships and that is why standardised academic transcripts are important.
Mr Perkins
In the evidence session, we heard the Minister at pains to encourage our witnesses to say that as a result of the new approach there might be greater collaboration between the further and higher education sectors. We all recognise that that would be a good thing, and my hon. Friend and I have seen good examples of that. Does amendment 9 not give the opportunity for that collaboration to be far more consistent than it currently is? If someone has clarity about what they are getting at every stage, about the transfer and about where the responsibilities lie in the learning, it is much easier for those partnerships to form.
Matt Western
My hon. Friend is absolutely right. It is important that these relationships form—and they are relationships of trust, really. That is why consistency and a standardised approach are really important to give substance to that trust and relationship.
We also heard from Coventry University, which is very much at the vanguard of modular study. We heard from Dr Norton, who was concerned about how stackability might actually work in practice. She was keen to ensure that credits are widely recognised and that there is a currency across the sector. She suggested that standardised transcripts would provide the absolute clarity and brand recognition—perhaps acceptance—that are needed. I would be grateful if the Minister can explain a bit more about what a standardised transcript looks like, what it could include and, importantly, what value it will hold.
Robert Halfon
I thank the hon. Gentleman for his amendments. The standardised transcript, which is important, will be provided at the end of a module. It provides a clear record of the learner’s study in a recognisable format. It is something that courses already have in their existing certificates.
There are already qualifications for large courses, and employers know that. The standardised transcript will be given on the completion of the student’s module. It is intended to be a requirement of the regulations for loan funding purposes, but it does not necessarily need to be referred to in relation to fee limits.
Amendment 4 would require the definition of credit to align with sector-recognised standards. I emphasise that the Government fully understand the importance of that. We have introduced a definition of credit on the face of the Bill in proposed new paragraph 1A, which defines credits as units used to signify the total amount of learning time that a student would ordinarily be expected to spend in order to complete a course or part of a course. That relates to the hon. Gentleman’s question. As he said, it aligns with the definitions held by the Office for Students and Ofqual.
The Bill does not introduce a power further to define credits in regulations. However, regulations will set out that, for a course or module to be treated as credit-bearing, each credit must be equal to 10 learning hours. That mirrors existing sector practice. The Government do not intend to change regulations on the number of learning hours in a credit unless standards in the sector change. Learning hours are, and should continue to be, based on sector-led standards. I can give an assurance that regulations on learning hours will follow the affirmative resolution procedure so that Parliament will always get an opportunity to debate and formally approve any changes to regulations. As such, the amendment is not necessary.
Let me explain that a bit further. If learning hours are put into secondary legislation, rather than primary, providers that use a different number of learning hours per credit will simply have their courses treated as non-credit bearing, rather than being considered in breach of the fee limit rules as a whole. The Office for Students would have the ability to take action against the provider from a quality and standards standpoint if it deems that necessary, but the provider would not face additional consequences for breaching fee limits rules. As I say, regulations on learning hours will have to follow the affirmative resolution procedure, so Parliament will always get the chance to debate and formally approve any such number of hours before a law is made or changed.
On amendment 9, the Government fully intend to support transcripts for modules of courses. Although we encourage their use as good practice to support students for all level 4 to 6 study, we are not making transcripts mandatory for full courses. That is because modules are a novel concept in terms of designation for student finance, and do not have the fully established standards that exist for full courses. By providing transcripts for modules, the lifelong loan entitlement will enable credit transfer and boost labour market currency, allowing students to make full use of their academic achievements to progress.
Since transcripts are not mandatory for full courses, it would not be appropriate to reference them in primary legislation in the context of both courses and modules. I reiterate that employers know what courses are. Most courses come with a qualification of some kind. For those reasons, the Government will resist the amendments.
Matt Western
I hear what the Minister has said. I would like to believe the point about what might happen with the credit definition, and I appreciate that it is referenced elsewhere, but it would still be healthy to have it defined in the Bill.
On the standardised transcript issue, I certainly understand the problem with what he was describing as a full course as opposed to a module. A full course is understood, because there is a defined quantification and qualification on what has been studied. That is well understood. The issue is that, with modules, it will be much less understood.
The full course may typically be undertaken at or provided by one institution; we are talking about the movement of people over time or place, between institutions. Some standardised transcript would be in everyone’s interests, whether that is the employer, in understanding what someone has attained, the incoming institution, or, most certainly, the learner.
For those reasons, we will push both amendment 4 and amendment 9 to a vote.
Question put, That the amendment be made.
Matt Western
I beg to move amendment 2, in clause 1, page 3, line 16, at end insert—
“(4A) Regulations made under this paragraph must provide for the default number of credits to be no more than 10 credits.”.
A probing amendment to ascertain the extent to which the Government is prepared to extend the lifelong learning entitlement to modules worth 10 credits.
The Chair
With this it will be convenient to discuss amendment 6, in clause 1, page 3, line 16, at end insert—
“(4A) Regulations made under this paragraph must provide for the default number of credits to be no more than 20 credits.”.
A probing amendment to ascertain the extent to which the Government is prepared to extend the lifelong learning entitlement to modules worth 20 credits.
Matt Western
It might be disappointing that my hon. Friend the Member for Brighton, Kemptown cannot be with us today, but it is probably in all our interests that he did not come in, given what he described to me earlier. However, he would have been keen to speak to amendment 2, tabled in his name. In particular, I think he would have had real validity in moving the amendment, given his personal expertise and experience of having delivered courses—that is why he believed that it was important to include the amendment in the Bill.
We are trying to understand the Government’s justification for choosing the minimum number of credits available, which they have set at 30. On the face of it, 30 may appear to be an arbitrary figure. The amendments are not intended to represent our specific view on whether the minimum should be 20 credits or 10 credits; they are very much intended to open a debate on the benefit of having smaller credit blocks available to learners and encourage a culture of bitesize learning.
In the evidence we had on Tuesday, Professor Edward Peck of Nottingham Trent University felt that the 30-credit minimum hit the balance between not overwhelming the Student Loans Company and meeting the needs of learning. On this side of the House, we want to ensure that the balance has been struck at the right point. I appreciatethat the Augar review recommended that the minimum should be set at 30 credits for much the same reasons given by Professor Peck who, of course, was on the panel working alongside Sir Philip Augar. I understand that position.
However, we have also received evidence that 30 credits may still be too high a minimum. For example, I was particularly struck by the view of ResPublica in its submitted written evidence, which expressed concern about the 30-credit minimum. It noted that
“the evidence strongly suggests that learners and employers value shorter courses, and would therefore advocate a 10 credit minimum threshold”,
which is the position that my hon. Friend the Member for Brighton, Kemptown wished to speak to.
Interestingly, as it happens, I think we can learn a lot from the Canadians, but the Canadian Government offer modular lifelong learning on a micro-credential level, offering 10-credit unit courses. Why are they able to set the minimum at a rate three times lower than our minimum? Does the Minister think that the Student Loans Company would be really overstretched in delivering that, or are there other reasons?
Mr Perkins
My hon. Friend raises an important point. In this place, we often talk about the cost of learning as if the major cost to an employer is paying for the training. Of course, one of the other costs to an employer is the amount of time that an employee is out of the workplace in the learning institution. That is a very real consideration for many employers. For precisely that reason, a shorter-form commitment is often very attractive to employers, but it might enable their employee to develop skills that will either help them in their current job or help them into their next job. Particularly given that as a country, we are way below the OECD average in the amount that employers spend on training their staff, anything that can be done to make it more affordable for employers to let their employees have time away from work should be encouraged. Does my hon. Friend agree?
Matt Western
It may come as no surprise that I often do agree with my hon. Friend. He genuinely has insight into and expertise in this sector.
I have a particular concern from not only the evidence that we heard from Matthew Percival of the CBI but my anecdotal experience of talking to businesses in my constituency, the Federation of Small Businesses, the chamber of commerce and others. There is a desire to upskill and improve the training provided to employees, but small and medium-sized enterprises face a particular challenge in doing so. There is a barrier to their taking up opportunities because the size of the course, the commitment and the financial obligations are just too much.
Robert Halfon
I thank the hon. Gentleman for moving the amendments. Let me respond first to how they are worded before I address the specific issue of the 30 credits. Amendments 2 and 6 have been worded to limit the default credit value to 10 and 20 credits respectively. I completely get that the intention is to probe the extent to which the Government are prepared to loan-fund modules of fewer than 30 credits under the LLE, but the amendments would not achieve that end because that is not what the default credit values in the Bill relate to.
It is worth clarifying the purpose of the default credit value: it is intended to allow fee limits to be set on full courses if they are not credit-bearing or the course is more suited to annual fee limits than credit-based fee limits. As mentioned, such courses may include some degree programmes at Oxford and Cambridge, and other courses such as nursing. For those types of courses, the fee limit will be calculated using a default number of credits instead of any provider-assigned credits. The default values will be set at 120 credits a year for full-time courses, which aligns with the sector-recognised standard number of credits in a full year.
The default credit values are there to provide a credit value for non-credit-bearing full courses only. They will not apply to modules. As all modules under the LLE will be credit bearing, modules will always have the fee limit calculated using the actual provider-assigned number of credits, not a default number of credits.
The Government have been clear that the modules must have a minimum size of 30 credits for funding purposes. We believe this is a suitable level to attract fees and maintenance loans as it represents a substantial-enough package of learning. It is based on significant consultation with stakeholders and is much smaller and more flexible for training, retraining and upskilling opportunities than the current one-academic-year minimum-size offer.
As mentioned, modules of a smaller size can also be funded—provided that they are bundled together in a single entry from a parent course to meet the 30 credits—to allow sufficient flexibility for retraining purposes. This will mean that funding will be available for a 20-credit module and a 10-credit module of the same course combined.
The hon. Gentleman cited the Augar report. Philip Augar is the key architect of this reform, alongside the former shadow spokesman for skills and universities, Gordon Marsden, who often spoke about lifelong learning. The Augar report is clear that a 30-hour credit represents a
“a significant amount of teaching and learning, and is an appropriate minimum for upskilling or reskilling.”
Mr Perkins
Will the Minister clarify for the Committee and for others listening to our proceedings how much loan a student who took on 30 credits would need?
Robert Halfon
Under the current loan system, the loan would be divided up in proportion to the 30 credits that the student was taking. It would depend on whether the credit is charged at £77 or £60, which would depend on whether the provider had a teaching excellence framework or an access and participation plan. If the credit was charged at £77, it would be £77 times the 30 credits. It would then be up to the student to decide whether they wanted to do the course.
To return to amendment 2, to cap all default values at 10 credits would make them unfit for purpose, as a full-time year is 120 credits. With that in mind, the Government cannot support the amendment.
Matt Western
I hear what the Minister says but am disappointed. I would have liked him to say that, within a year or two of the scheme being in operation, this idea might be up for review. We do buy into lifelong learning, and the Minister is right in what he says about Gordon Marsden, a former colleague, and the work done by the Augar review. However, although the intent is right, we need to consider the delivery and maximising the opportunity, which is why we think there is a real opportunity for the Government, at a certain point, to review the merit in lowering the default so that the minimum is not 30 bundled credits.
There is a huge need to address this country’s training and skills gap, and particularly to be more supportive of small businesses such as those represented by the Federation of Small Businesses, to help them with the training of their staff. We will not push the amendment to a vote, but I ask the Minister to reflect further. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Matt Western
I beg to move amendment 11, in clause 1, page 3, line 18, at end insert—
“(6) In determining the maximum number of credits for a course year, the Secretary of State must—
(a) have regard to the impact on the variety of courses on offer from providers,
(b) prepare and publish an equality impact assessment, and
(c) have regard to the impact on student numbers.”
This amendment would ensure that in setting the maximum cap of credits per course year, the Secretary of State takes a variety of steps to ensure there are no unintended consequences of setting the cap at a certain level.
The amendment relates to maximum credit cap considerations and aims to ensure that the Secretary of State has regard to the wide variety of courses on offer, the impact on student numbers and the need to publish an equality impact assessment when determining the maximum number of credits for a course year. I will take each of those in turn.
The paragraph on the impact on the variety of courses on offer will ensure that when the Secretary of State decides on the maximum number of credits for a course year, they do so in a way that does not unintentionally choke off the provision of certain courses that do not fit the traditional 120-credit structure. I am thinking mainly of accelerated degrees, which often equate to 180 credits and require the learner to spend more notional learning time to complete their degree in just two years instead of three.
As I have said, the uptake of accelerated degrees has perhaps not been as high as desired or met the Government’s ambition. That is not to say that the offer of accelerated degrees does not have potential, but it has certainly not been as successful as we or the Government would have hoped. For such degrees, a fee capped at a maximum of 120 credits a year would make it financially unsustainable for providers to continue to run courses and they would no longer be offered.
Not a huge number of people have taken up accelerated degrees. Perhaps the Minister has better data than I do, but I think that, nationally, we are in the five digits—maybe the 10,000s or 12,000s. It is not a great number, but it is a good and important offer that perhaps requires further development. It works for a particular population of students who, depending on their personal circumstances, or perhaps their employer, see the advantage of getting through a degree in a shorter period.
If the Secretary of State was required to have regard to the need to protect provision, it would prevent any unintended consequences from arising from ministerial decision making. That is another good reason why we think consultation is so important; I refer back to my previous amendments, which related to involving stakeholders across the piece in the process.
On the point about publishing an equality and impact assessment, if the setting of the maximum number of credits for a course year were to have an impact on the provision and availability of courses, that in turn would inevitably have an impact on student choice. That is a concern, and we absolutely want to ensure that it does not happen.
Students are not as homogenous a group as they are sometimes portrayed; people arrive into education at all stages of life, with different demands and different needs. We need to ensure that there are no barriers to their pursuing higher education as they need and wish to, whether that is for their careers or because their life circumstances have changed.
Andy McDonald
My hon. Friend is making an important point about the lifetime nature of study. There is some confusion: I do not know whether he can assist me on this, but apparently the loans will be made available up to the age of 60. That is revealed in the consultation. On the same page, however, it also states that a reduced rate maintenance loan will continue to be available for those over 60. Does that mean that over-60s can continue to receive the funding, or is it only for those who started before the age of 60? I am somewhat confused. Can my hon. Friend clarify? Perhaps the Minister will when he sums up.
Matt Western
My hon. Friend makes an important and pressing point, which is perhaps more pressing to certain of us than others—
Matt Western
In all seriousness, the issue was discussed at the evidence sessions on Tuesday and there seems to be an anomaly. I am sure that the Minister will want to address that.
Listening to the witnesses the other day, I think there was some concession. If we have rising pension thresholds and we want to re-involve a sector of our population that has withdrawn from employment and the economy —we heard in the last few days about the Government’s intention regarding returnerships—people need to be able to access this provision; I am also thinking of the WASPI women. People suddenly find that they do not have the incomes they need to sustain themselves. The sorts of work they previously were involved in might no longer be open to them, and they might need to retrain. Age 60 is an arbitrary guillotine, and it is not necessarily appropriate. I very much hope that the Minister will clarify the issue for my hon. Friend the Member for Middlesbrough and the rest of us. Perhaps he might reflect on the economic needs, as well as the social needs, that such a change would meet.
It is important that Ministers should be confident that there will be no disproportionate effect on certain groups of students, some of whom we have mentioned, including those from disadvantaged backgrounds. I am thinking in particular of those mentioned in the evidence sessions—those with particular responsibilities, financial challenges, social and domestic challenges, caring responsibilities and so on. In the evidence sessions, I was pleased to hear from Professor Sue Rigby from Bath Spa University, who endorses the plan to ensure a risk analysis of the unintended consequences for students.
Finally, I believe there is a need to have regard for the impact on student numbers. I was intrigued to hear the suggestion from Sir Philip Augar, whom I respect greatly. He suggested that, with a declining population rate, “forward-thinking institutions” may see this route as a viable one to attract more students. A pessimist might say that, given a declining post-18 population rate post 2030, some institutions may see this route as a way to boost their declining student numbers. Although it might seem like a problem for the future, that future does not seem that far away—particularly in terms of electoral cycles. It might not be a problem that we envisage in the immediate short term, but modular study surely should not be seen simply as an avenue through which providers can boost student numbers, being purely driven by their own financial interests.
Sir David Bell of the University of Sunderland raised the prospect of the learner being overwhelmed by choice and he has a very real point. The choice on offer should always be a choice in the learner’s interest, and the Secretary of State would be wise to have due regard for how student numbers might be impacted in setting the maximum number of credits.
Amendment 11 seeks to avoid the unintended consequences of the 120 limit, which is a particular issue for accelerated learning courses, which give an offer to a particular population for whom getting through a qualification in a shorter period of time is really vital, or perhaps vital for the organisation that employs them. That is why we think amendment 11 should be accepted.
Robert Halfon
I thank the hon. Gentleman for his amendment. On his question about the maintenance loan, I confirm that the LLE tuition loans will be available up to the age of 60. We believe that is fair to students and fair to the taxpayer. Currently, just over 3,000 people—from memory, it might be 3,500 people—aged 60 take up student loans. However, learners near retirement or in retirement are likely to repay a very small proportion of their loan and their maintenance support will be subject to taper from the age of 60. I think that is what the statement refers to, but of course I am happy to write to the hon. Gentleman with clarification if he would like.
I can confirm that the setting of the maximum credits per course year will be based on robust analysis of any impact on learners and providers. More importantly, I can confirm that there is absolutely an opportunity for the sector to provide feedback on the proposed maximum values before regulations are laid. I can also give the assurance that regulations on maximum credits will have to follow the affirmative resolution procedure, so that Parliament will always get the chance to debate and approve formally any maximum credit values before the law is made or changed.
The regulations will cap the number of credits that providers can charge for within a given course year and for the course overall. That is to prevent providers from adding unnecessary credits to courses in order to raise tuition fees. The cap ensures value for money for the student and the taxpayer. The fee limits will remain aligned with the current rates, based on standard practice. A certificate of higher education will be capped at 120 credits; a diploma of higher education will be capped at 240 credits.
Regarding the hon. Gentleman’s point about the accelerated degrees, we intend all courses offered under LLE to be used under the credit-based method. That includes accelerated courses. The limit on credits will be set at 180 a year. Providers can offer more credits than the maximum, but cannot charge for them. That is in line with the current system, where providers offering the usual number of credits have the same annual fee limit as those offering more for the same type of qualification.
The Government are already factoring in the impact of these reforms on students and providers. That is why we resist the amendment.
Matt Western
I appreciate what the Minister says. It is encouraging to hear that those learners and the accelerated courses will be protected. However, we would like this amendment to be incorporated into the Bill, so we will put it to a vote.
Question put, That the amendment be made.
Lifelong Learning (Higher Education Fee Limits) Bill (Fourth sitting)
Thursday 23rd March 2023
(1 year, 8 months ago)
Public Bill CommitteesRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 23 March 2023 - (23 Mar 2023)
The Committee divided: - Ayes: 5 / Noes: 7 - Question accordingly negatived.
The Committee divided: - Ayes: 5 / Noes: 8 - Question accordingly negatived.
The Committee divided: - Ayes: 5 / Noes: 8 - Question accordingly negatived.
The Committee divided: - Ayes: 5 / Noes: 8 - Question accordingly negatived.
Matt Western (Warwick and Leamington) (Lab)
I beg to move amendment 7, in clause 1, page 5, line 3, at end insert—
“(4) When making regulations under paragraph 1B, 1C or 1F, the Secretary of State must have regard to the additional costs associated with the delivery of the course.”
This amendment would ensure that when exercising the powers granted in this Bill, the Secretary of State has regard to the additional costs associated with the delivery of modular study.
The Chair
With this it will be convenient to discuss amendment 8, in clause 1, page 5, line 3, at end insert—
“(4) When making regulations under paragraph 1B, 1C or 1F, the Secretary of State must have regard to the financial sustainability of providers.”
This amendment would ensure that when exercising the powers granted in this Bill, the Secretary of State has regard to the financial sustainability of providers.
Matt Western
It is a pleasure to serve under your chairship this afternoon, Mrs Cummins, and to welcome everyone back for this second sitting of the day. We had a constructive discussion on our various amendments under clause 1 this morning. We continue now with amendments 7 and 8, which have rightly been grouped together as they address a pretty thorny issue: financial sustainability. The amendments set out that in exercising their powers under clause 1, the Secretary of State should first have due regard to the additional costs associated with delivery and secondly look at financial sustainability in the round.
On the additional costs associated with the delivery of modular learning, we heard collectively a plethora of evidence from our witnesses during Tuesday’s sitting about how the impact of lifelong learning might affect providers. Indeed, when it comes to higher education providers, Professor Press from Manchester Metropolitan University made it clear that there were difficulties for institutions in the “mechanics” of the delivery of lifelong learning, partly due to the additional cost of delivery when moving from a full year or full three years of a course to a module. Quite understandably, that will introduce an additional cost burden, whether that be costs of onboarding or administrative processing. Worryingly, given the take-up for lifelong learning is so uncertain—the pilot programme did not attract high numbers at all—Professor Press found it difficult to predict what precisely the costs would be. That is concerning.
It is important that we have seen that uncertainty, seen what it might mean and seen the additional costs. There has been very low take-up of the apprenticeship levy, T-levels and accelerated learning. Accelerated learning and the apprenticeship levy certainly have real merits, but they can bring an additional cost burden, and a restructuring or reshaping of courses for institutions. That means more financial pressure on institutions when things are already difficult—as I am sure, Mrs Cummins, you will be aware, given that you have a university on your doorstep.
The effect may be far worse for colleges, as acknowledged by Liz Bromley of Newcastle and Stafford Colleges Group and David Hughes of the Association of Colleges. Colleges clearly have already been facing a dire financial settlement over the past 13 years—a point that I am sure my hon. Friend the Member for Chesterfield will want to build on and explore thoroughly in his comments, given his expertise in and knowledge of the sector. Certainly, almost all the witnesses representing the further education sector whom we heard from on Tuesday called for an injection of cash—presumably, to combat a gradual decline in the real-terms funding settlement for further education colleges. Lecturer pay, workload, staff retention, the administrative burden and regulatory costs were all cited as reasons why modular provision in the form of lifelong learning may hit roadblocks in the years ahead. The recent decision to take the further education sector into the public sector, denying colleges the ability to borrow and limiting their access to risk capital, will also dampen the supply of new course provision.
In the impact assessment as published, there is an estimated cost of £211,000 for all providers to familiarise themselves with lifelong learning, although it is worth pointing out that the Russell Group thinks that that is a large underestimation. Perhaps the Minister can explain how the figure of £211,000 was arrived at. When we look at how many institutions we have, whether they be further education colleges or higher education institutions, that figure probably works out at about 300 quid each. I am sure the Minister can explain how the figure was arrived at and, indeed, what the approximate cost will be for those institutions, but even that rough calculation suggests that the cost is massively understated by the Government in their impact assessment. That is concerning, because we all want to start this scheme on solid ground and ensure that it is being approached correctly and has the best chance of delivery and success. That example suggests that it has not been accurately thought out, but I will wait to hear what the Minister has to say.
Not only does the financial capacity of the sector affect the provision of courses; it also risks the financial sustainability of the whole sector. On Tuesday we heard from Dr Norton of Coventry University, who helpfully demonstrated that higher education providers work on a five-year forecasting model, which is made harder if students are opting for modular study over a several-years-long course. At a time when over one in three higher education providers are reporting a deficit, the real-terms value of tuition fees has crumbled to below £6,750—my understanding is that it is probably more like £6,400—and the Government’s own policy impact assessment for the Bill admits that the lifelong learning entitlement
“could result in providers having less financial certainty”,
the concern is that this mammoth reform may well be the straw that breaks the camel’s back. There is a real concern that it could bring down institutions in the sector. As of today, I am not entirely sure of the level of Government concern at that prospect. I hope the Minister will reassure us with his perspective of financial sustain-ability versus precarity of institutions in the sector—higher education and further education colleges alike.
This skeletal Bill introduces sweeping reforms to the way in which the student finance model works, and I would hope that the Minister would be totally assured that the reforms will pose as little risk as possible to institutional financial sustainability. That is why I was so concerned to read what I did in the impact assessment. What stress tests have the Department conducted ahead of implementation to ensure the sector can cope with the changes introduced in the Bill? What additional financial support, if any, does the Minister intend to provide to higher education providers and colleges seeking to implement modular study, given the limited financial capacity of the sector?
The amendments are important in establishing what risk there is to the wider tertiary education sector, and in ensuring sustainability. It cannot be logical that the costs per student unit will remain the same for modular learning provision. There will be a significant increase in the cost burden to institutions through the delivery of courses, but also in the administration and onboarding of students, and in managing departing students, and all the data needs around those changes. As we heard in our witness sessions, we have not even got to the wraparound support that students may require.
Mr Toby Perkins (Chesterfield) (Lab)
Has my hon. Friend reflected particularly on the evidence from Professor Rigby in the evidence session? She went into quite some detail about the administrative costs and the regulatory burdens of the modular approach, and the costs that that approach is likely to add to providers. Does my hon. Friend share my concern that the result of those administrative burdens might be that, without the additional funds he is asking for, colleges will find these courses unsustainable to run, and we will not get the amount of provision that we all want to see?
Matt Western
My hon. Friend is right to cite the evidence of Professor Rigby, and we heard from others on this point. There is a very real risk here, and none of us should underestimate that. We support the Government and the purpose of a lifelong learning entitlement—there is a need for it, in society, and also economically—so it is important that provisions are brought in, but they should succeed, and the delivery is really important in that regard.
To pick up on the point made by my hon. Friend the Member for Chesterfield, an interesting parallel is degree apprenticeships. We see real interest in them, but there are significant costs associated with their provision, including the regulatory burden, of which my hon. Friend will be more than aware. Involving employers in designing those courses and so on is intensive for an educational institution. The implementation—getting the course up and running—is a significant process.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
The salaries of further education providers and lecturers is far less than school teachers and university providers. I asked one of the witnesses in the evidence session whether the lack of the injection of cash mentioned by a previous witness would make these measures unsustainable. There is a problem with recruitment and retention, and many people can get better money out there actually doing vocational jobs, but we need these people to teach others vocational skills such as construction and hospitality. We already know that there is a skills shortage. Why are we not looking to address those particular issues, so that we can get our economy up and running? We support this legislation, but we have to hope that the finances are appropriated in the right places.
Matt Western
My hon. Friend is totally right that one of the huge issues in the sector is the paucity of remuneration to further education college lecturers and staff. While going around the country, I have heard lots of anecdotal evidence about how difficult it is to recruit good staff. We clearly want the best, most inspiring people to deliver and impart information through their teaching. Whether it be in pure vocational education or in academic subjects, we want the best people, with expertise and talent, who can really inspire others to get into that subject and to succeed.
I hear, from talking to establishments around the country, that there is a huge remuneration or salary disadvantage—a difference between what people can earn vocationally in roles versus what they earn as lecturers in colleges. What I am hearing indicates that there is a 40% difference in pay between delivering a vocational role and teaching. That is really to the detriment of the next generation, and it is why we do not have the number of people coming into teaching as we should have across the board. I totally agree with my hon. Friend’s points, which highlight another immense challenge for the sector in the financial burden; the remuneration would ideally be greater.
Amendments 7 and 8 identify a real pressure point for the sector, in terms of the burden from this Bill. As I evidenced through the degree apprenticeships, institutions have to bear additional costs to deliver good-quality courses, but the yield—the cost cover—is not there. It is actually to the cost of the institution to provide them; it is the right thing to do, but it is coming at great cost to them to do that. With that, I will end my remarks.
Mr Perkins
It is a great pleasure to serve under your chairship, Mrs Cummins. I rise to speak to my hon. Friend’s amendments. I think that he has already made the case well, but there are a few points that I would like to add, particularly regarding the financial sustainability of further education colleges and independent learning providers.
The amendments absolutely speak to the heart of our reservations about the approach being taken. They are quite modest in their scope, but given the evidence that we heard in the evidence sessions, which was touched on in earlier discussions on other amendments, they do, as I say, cut to the heart of our concerns. Amendment 7 asks the Secretary of State to have regard for additional costs associated with the delivery of the course, and amendment 8 asks the Secretary of State to have regard to the financial sustainability of providers.
I will speak to amendment 7 first. In the evidence session, David Hughes explained that colleges,
“do not have any of what the private sector might call risk capital”.––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 50, Q105.]
Given that FE college funding has fallen by 27% in real terms between 2010 and 2019, according to the House of Commons Library, and given the increasing financial pressures—with the booming energy prices and wage inflation all affecting colleges too—the financial picture for many of our colleges, crucial as they are, is very difficult indeed.
For that reason, David Hughes told us that the risk appetite of colleges for putting on courses that they do not know that anyone will study is likely to be pretty limited and restrained. As my hon. Friend the Member for Warwick and Leamington said, with colleges now being inside the public sector and therefore unable to seek private-sector borrowing, and being forced to run balanced budgets, colleges will just not be able to run courses that they cannot be pretty certain will have learners taking them.
Andy McDonald (Middlesbrough) (Lab)
My hon. Friend is making an excellent point about the difficult landscape that FE colleges find themselves in, but is he as surprised as I was to hear that Eton College was proposing to enter into the fray across the country—my own constituency included, notwithstanding that there was an oversupply in the sector already—thereby adding to the difficulties and undermining existing colleges? Is that not exactly the wrong way to go when the landscape is already so difficult?
Mr Perkins
My hon. Friend makes an interesting point. I am not specifically aware of the intended provision that he raised but, absolutely, the strength of his oratory on the issues facing further education colleges is absolutely right, and I would be very interested to learn more about what it is that Eton College believes it can offer that is not currently being provided.
Returning to the point I was making, there is a real need for somebody to step in and provide the certainty of funding that might allow more courses to be put on. Realistically, this legislation will not even come into force until 2025, so it will fall on the next Government to make this work, not the current Government, with all their best intentions. It will fall on the next Government to ensure that our constituents and learners across the country can actually take advantage of what is being offered.
Over the course of the 13 years I have been a Member of Parliament, I have become used to quizzing Ministers on pieces of legislation: “How is it going to work? What are you going to do?” This is one of those situations where the Minister is laying out what he anticipates might happen with the legislation, but all these questions will probably be for his successor. He may still be the Minister—no one knows the outcome of a future election.
However, as His Majesty’s Opposition, as a responsible Opposition, we have to think carefully about the fact that we might inherit this legislation and inherit responsibility for ensuring that these courses are available, that colleges and independent learning providers are sustainable, and that this provision is available to our constituents. It is therefore important for the Minister to confirm at this stage, given the recent Budget, whether any provision has put in place to recognise the additional costs for FE colleges or independent learning providers in delivering a more modular form of learning.
As we heard in evidence—I will expand on that in a moment—additional administrative and cost burdens will be placed on colleges. Will money be put aside to ensure that they are able to run these courses sustainably? If it is not the Department for Education or the Minister that will be ensuring additional funds, will it fall on local mayors to provide financial reassurance? Might the need for this kind of provision appear in local skills improvement plan? There would then be an expectation that a Metro Mayor would provide additional financial reassurance.
If not, I fear that this scheme will end up being something that largely happens in the private sector, where there is maybe a bit more risk appetite, and only with employers who can provide certainty about the economies of scale by placing several learners on courses. If a particular employer says, “Well, I want seven of my staff to do a specific course,” then someone might run one on that basis. But we are looking for colleges or independent providers to pre-emptively offer a course and see who signs up for it, so all these financial implications will only add to the potential nervousness around that. We heard several witnesses say that this measure has the potential to be a game changer for colleges, but only if they can afford to take the risk. This amendment, proposed by my hon. Friend the Member for Warwick and Leamington, offers some potential for the Government to illustrate that that risk has been seriously considered.
It will be useful for the Committee if I specify some of the additional costs that learning providers will face. We know that one of the Bill’s objectives is that someone who studies in this kind of modular way should not pay any more than they would have done had they studied in what you might call the usual way on a short-term, full-time course. Providers are saying that delivering in this new way will be more expensive, so there is a gap. Someone has to fill that gap, and it will either be some form of Government or the provider themselves. If it is going to be the providers, they will have to think carefully about whether that will be affordable.
If we think, for example, about the recruitment costs for any college that takes on lecturers—advertising a position, going through the interviews, all the administrative costs with collating CVs and going through and meeting to discuss those CVs—and all those things that might normally happen in advance of a three-year university degree, with all the revenues that will come in from that, all those costs still apply. However, it might be that those costs apply to someone who will actually be working for a short length of time and with far less revenue coming into the learning provider, and the barriers to recruitment will arguably grow.
The Minister for Skills, Apprenticeships and Higher Education (Robert Halfon)
It is an honour to serve under you, Mrs Cummins. I am supportive of the sentiment behind these amendments and recognise the importance of considering the impacts on providers. The Government have been fully mindful of the financial sustainability of providers during the development of the LLE, particularly of FE colleges. The Government are also mindful of the additional costs that providers may incur when offering shorter modular provision at large scale.
We engaged with a wide range of stakeholders to gather input, to inform policy development and to build awareness of the LLE. We are grateful to the stakeholders that have engaged with the Department on the LLE and, of course, we will continue to work closely with the sector on its design and delivery. It is important to note that the LLE and its ambitions have been strongly welcomed by the sector for the most part. Stakeholders responded positively to the flexibility and the keenness of a simpler finance system.
The Committee will be aware that the Government published an impact assessment for the Bill, which included a consideration of impact on the providers. The hon. Member for Warwick and Leamington and the hon. Member for Chesterfield both asked how the cost was constructed. The basis of the calculation is set out on pages 36 and 37 of the impact assessment. That sets out the estimates of the potential implementation costs to providers, which is separate to the wider assessment of the benefits of the LLE.
The hon. Member for Warwick and Leamington also mentioned FE reclassification. He will know that the decision was taken by the Office for National Statistics, but we are supporting colleges with a package that includes an additional allocation of £150 million over the 2023-24 period, and we have invested £300 million in the reprofiling of payments before the end of the financial year, to eliminate the current deficit.
Mr Perkins
How does that capital allocation compare with the number of colleges that had, were in the process of negotiating, or have received offers for, private sector loans in advance of becoming public sector institutions? Will the amount of money allocated enable all those arrangements to go forward? Or is it likely that some will no longer go forward?
Robert Halfon
As well as the figures I mentioned, the DFE is working closely with colleges to try to deal with the difficulties that have come about because of the reclassification of FE colleges. I hope to be able to set out more on that in the weeks ahead.
Robert Halfon
If the hon. Gentleman does not mind, I want to press on because I have a fair whack to get through.
On the cost to providers, the Government will publish a full and detailed impact assessment, including the qualification of expected costs and the benefits of LLE in its entirety, when we lay the necessary secondary legislation to fully implement the LLE. It is important to note that the Bill is simply three technical clauses to create the architecture to enable the LLE.
On funding, I will always champion more resources for FE and skills. There have been some steps forward: we are spending an extra £3.8 billion on skills over this Parliament; increasing 16-to-19 funding by £1.6 billion; spending £2.7 billion, I think, on apprenticeships by 2025; and spending up to £500 million on T-levels. I could go on—for example, we are spending nearly £300 million on the institute of technology colleges.
The hon. Member for Sheffield, Brightside and Hillsborough raised the issue of FE recruitment, which does concern me. I accept absolutely accept that there is an issue; I do not deny that for one minute. We have an FE teacher training bursary programme to encourage recruitment in key areas of FE that is worth up to £26,000 and will over the coming year, 2023-24. We are investing in a further education workforce package to support the sector with the recruitment, retention and development of teachers, including through a national recruitment campaign.
The hon. Lady will know about our Taking Teaching Further campaign, which supports people business and industry to move into FE part time. I am concerned about recruitment and, although I cannot give any funding commitments other than those I have mentioned, it is very close to my heart, as it is to hers. We are going to make further increases in FE rates over the academic year 2023-24, which will mean that in the relevant financial year we will invest into 16-to-19 education a further £125 million of the £1.6 billion from the spending review. We are also increasing the national funding rate by 2.2%, from £4,500 to £4,642 per student.
The hon. Member for Warwick and Leamington knows that I champion degree apprenticeships. We have spent £8 million to facilitate an increase in the number of degree apprenticeships, of which we have had 140,000 over the past few years. It is a completely new concept that we introduced. I am looking at the burden of regulation and other issues, but I am keen to champion degree apprenticeships—I have always described them as my two favourite words in the English language.
The hon. Gentleman will know that we have devolved 60% of the adult education budget. The mayoral combined authorities will be important players in the skills systems, which is why the skills for jobs White Paper makes it clear that they will be engaged in the development of the local skills improvement plans. MCAs will continue to play an important role in the development of provision that responds to a local skills gap, and they obviously have a significant say when it comes to the devolved 60% of the adult education budget. It is important to note what the impact assessment shows: that providers may see increased tuition fee revenue if the LLE encourages more people to engage with lifelong education.
Mr Perkins
Is the Minister saying that he is cognisant of the concerns, but that no additional money has been allocated in the recent Budget for the additional costs that providers have told us will be attached to this style of learning?
Robert Halfon
These things will be decided in future spending statements, and I have highlighted the extra money going into further education over the Parliament and over the coming Budget period.
The pilot scheme was mentioned briefly. I strongly recommend an article about the pilot scheme—the hon. Member for Warwick and Leamington has probably read it—by a witness to our Committee, the vice-chancellor of Nottingham Trent University, who says that the whole purpose of the scheme was to show the system working. It was not about quantity, even though there are 100 available courses. He writes that
“the effective administration of those received shows that SLC systems and processes are ready to support modular study.”
In the rest of the article, which I will not detain the Committee by quoting at length, he mentions all the other courses and pilots on modular learning that there have been, stating:
“The In-Work Skills pilot was also a pathway policy for the LLE. Delivered by Institutes of Technology (IoTs)…10 IoTs delivered the In-Work Skills pilot, which was a 1-year pilot that delivered high quality, higher technical short courses…The IoTs delivered a total of 59 short courses to 3,060 learners”.
He also cites other figures to show the extent of the move towards flexible and modular learning.
Importantly, as the hon. Member for Warwick and Leamington will know, the strategic priorities grant provides Government funding on an annual basis to support higher education providers’ ongoing teaching, and of course funding levels will be considered in the round at the next spending review, with the LLE in mind. Therefore, as the Government have been mindful of these concerns throughout the development of the LLE, and are confident that providers will be able to consider their own financial sustainability and costs when deciding which courses and modules to offer, we will not support the amendment.
Matt Western
We have had a pretty healthy debate on the amendments. I particularly appreciated the contribution of my hon. Friend the Member for Chesterfield, who has expertise specifically across the further education sector, but also in the delivery of apprenticeships.
I hear what the Minister says about the Government being mindful of the costs and so on, but when I look at the provision of further education and the costs at FE colleges, I wonder whether the Government are really being mindful of the cost pressures for them, and I wonder whether they are being mindful of the cost pressures that face the higher education sector, in which 32% of providers are currently in deficit, or of the cost of delivering degree apprenticeships.
Mr Perkins
This is a crucial point. We have already heard about the 27% cuts to the further education sector between 2010 and 2019. The Minister was at pains to say, “Well, there are some pots of money that we are looking at,” but he has also made it absolutely clear that, as things stand, this is being handed over to the next Government with an additional price tag on it and no money allocated. That is what we have heard in today’s debate.
Matt Western
Indeed, which is why the amendments are important. We want to start this policy on solid foundations, because we buy into and support it, but currently it just does not have the financial structure to make it deliverable, because these institutions are already facing massive costs. As my hon. Friend said, there are pots of money, but they are small pots of money when the sectors—particularly the further education sector—are already at a significant disadvantage.
I admire the Minister’s ambition in wanting to increase the retention of staff across the further education sector, but we are also seeing in schools a massive haemorrhaging of the staff—expert teachers and lecturers and so on—and the technicians who support so many of these courses, because they just are not getting the remuneration that they deserve so are leaving. To retain people, we must give them the right reward, and they currently feel massively undervalued by the way the Government are doing things.
As the Minister said—he mentioned his two favourite words—he believes in the sector and its value. I urge him, in future Budget negotiations, to get the support that education needs, particularly in respect of the sectors we are discussing. Too often, they are described as the Cinderella sector, and it is just not good enough. We absolutely must believe in delivering proper education, whether it be technical or otherwise, across society, and presently that is just not happening.
My hon. Friend the Member for Chesterfield reminded us of the issue of risk capital, as described by David Hughes, and the situation we have with the reclassification of debt. I am sure the sector feels completely financially handcuffed by where it is, because it just does not have the funds to do what it needs to do.
On top of that, my hon. Friend reminded us of the statement from Professor Rigby. When we think of an institution delivering a course once or twice a year—with a September, October or January start date for the delivery of courses—and suddenly increasing that from two to 12, it has six times as many. How does an institution staff that? How does it make that happen, as opposed to having modules and courses delivered by a certain number of staff at those start dates? It must lead to a multiplication of the resource, which comes with a significant financial burden. I just do not believe that the impact assessment underlines the reality of what the sector will face. As my hon. Friend reminded us, the context is the 27% reduction in real-terms funding in the FE sector between 2010 and 2019, which has made it all the more difficult.
Let me go back to the Minister’s point, because I love the words “degree apprenticeships” as well. They are fantastic programmes, but as I understand it the problem is that we are seeing a tailing off, and institutions are already saying they will not expand the programmes because of the associated costs. That gives the lie to the ambition, because if that is already beginning to reduce, what chance does this policy have? We will face the same sorts of challenges with lifelong learning, as it is currently set out, that institutions face with the delivery of degree apprenticeships.
Andy McDonald
I beg to move amendment 1, in clause 1, page 5, line 23, at end insert—
“(1IA) The fee limit as determined under paragraphs 1D, 1E and 1I is to be indexed to any future increase in tuition fees”.
This amendment is to ensure that should the Secretary of State or Parliament decide on any increase in the value of tuition fees, the fee limit is adjusted accordingly to ‘future-proof’ the value of the lifelong learning entitlement.
It is a delight to see you in the Chair this afternoon, Mrs Cummins. I thank the Minister for his commitment to lifelong learning and for his acknowledgement of the position regarding FE lecturers and teachers. All of us who value our superb FE sector are aware of the pressures it is under, but I ask him to take up with me outside this discussion the unintended consequences of bringing other providers into a field where they can detract and take people away.
I welcome the commitment to lifelong learning but, as my amendment speaks to the issue of fees and therefore indebtedness, I also feel obliged to place on the record my thanks to Governments past for making the commitment to provide me and my generation with an entirely free education. Given that I started as an undergraduate in the 1970s, I recognise the wisdom of Harold Wilson in establishing the Open University. His good sense, and that of Jim Callaghan, ensured that working-class youngsters could fulfil their potential without the burden of long-term debt.
It is a different world now, and I very much regret the commodification and commercialisation of education in this neoliberal world. I hope that future Governments will abolish tuition fees for those embarking on their higher education journey. I am of the view that some of the changes we have seen since the 1970s have not been to the betterment of those wishing to further their training and education, or to the betterment of our economy and society. But we are where we are, and the Government’s intended commitment to lifelong learning warrants support—albeit, as ever, subject to the rigours of examination in the Bill Committee process.
Matt Western
I thank my hon. Friend the Member for Middlesbrough for tabling this amendment and arguing for it so well. He is quite right that, given what we have been through over the past decade or so, the effective freeze in tuition fees has led to a significant decline in the value of the unit of resource, and he is right about the need for some form of futureproof guarantee that, should there be a rise in tuition fees, that should be matched by a consequent rise in the value of the lifelong loan entitlement.
Over the last decade, we have seen tuition fees reach £9,250 but they have essentially been frozen for the last five years, having had, as my hon. Friend explained, a marginal reduction back in 2017. We have seen a real-terms decline in their value. Indeed, Universities UK calculated that by the end of the 2024 academic year inflation would reduce the value of the annual tuition fee to £6,600 based on prices in 2012, when the fees cap was trebled to £9,000. That is a reduction of almost £2,500 in the unit of resource to an institution, which is putting huge pressures on those institutions. That was the point we were making in the debate on amendments 7 and 8. Institutions are under real financial pressure as there has been such a massive decline in the value of that unit of resource. London Economics has estimated that over the past decade, the overall income for students per unit of resource would be back at 2006 levels, when fees were £3,000. That gives some context as to just how much the sums involved have been devalued over time.
As I mentioned earlier, that devaluation is having a tangible effect on institutional financial sustainability, with many institutions reporting deficits and having to cross-subsidise their courses, take on more international students or borrow from the private sector. The amendment would seek to tie the lifelong learning loan to any rise in the value of tuition fees, as I have said. The point is that if this really is to be a lifelong loan entitlement, it is important that learners who benefit from a module in, say, two years’ time and who wish to return to studying 20 years later, in 2045, have access to the same quantity of learning as they would have done 20 years before. Otherwise, we will see the risk of individuals using their entitlement very early on in their lives paying the price of that and not being able to access further training or tuition later in life because they have used up their entitlements.
Given that there is a real need to make this work and to make the system as attractive as possible, we urge the Government to consider some form of indexation. Sir Philip Augar described this system as having
“the potential to be a game changer”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 45, Q89.]
We have heard that description before. But that potential can be realised only if the system is protected against the real risk of inflation. We saw inflation peak yet again yesterday—to, I think, 10.6%.
Mr Perkins
I want to come in at this moment, because we would all hope that learners who are looking for work and on universal credit might, as part of their efforts to get another job, take on courses and develop their skills. During the progression of the Bill that became the Skills and Post-16 Education Act 2022, we highlighted issues about the entitlement to study for those in receipt of universal credit, and amendments to the skills Bill in both the Commons and the Lords would have enabled some people in receipt of universal credit to study. Those were removed by the Government, but at the time, they offered the reassurance that they were consulting with the Department for Work and Pensions about the issue. I have heard nothing more since, so I hope the Minister might be able to tell us what happened with that consultation. Does my hon. Friend agree that in order for this measure to be as transformational and game changing as we hope, people who are in receipt of universal credit must be able to access a loan to develop their skills in order to get into another job, rather than being told, “No, you can’t do that because you’re not spending enough time looking for another job”?
Matt Western
My hon. Friend brings up a valid and pertinent point about the reality for so many people. The intent behind this legislation and policy is a good one, and it should be there to assist people in that particular predicament, but, as he says, it does not seem that that will necessarily be the case. However, I am sure that the Minister listened to his points and will address them in his response.
This amendment would ensure the long-term sustainability of the lifelong learning model and allow students who “bank” their credits to have the same chances later on in life to add to that bank. I will understand if the Minister is unable to accept the amendment as drafted, but given that he is planning on introducing long-lasting reforms to be used by people in the course of their lives, I would like to press him on how he envisages the value of the LLE being maintained over the years.
Robert Halfon
I congratulate the hon. Member for Middlesbrough on his amendment and his kind words. I am absolutely with him on the Open University, which many of my constituents in Harlow have had incredible value from. It is one of the great education reforms of the last century, without a shadow of a doubt. As an anoraky child, I watched some of its content on television —now it is all on the internet—late at night, because I was at home a lot, growing up. I therefore have complete sympathy with his remarks.
It is worth mentioning that the lifelong loan entitlement is intended to replace, as we have discussed throughout today, the current student finance system. As a result, from 2025 onwards, the fee limit rate and the per-credit fee rate will be exactly the same thing. It may help if I provide further detail about paragraphs 1D, 1E and 1I, which set out the fee limit calculation for credit-bearing and non-credit-bearing course years, and introduce the per-credit method into existing clauses in schedule 2 that set out how the four different fee rates are applied. Essentially, they set out how the credit-based fee limit method will work.
Andy McDonald
I thank the Minister for his response. On the ancillary issue of universal credit, I have an uncanny feeling that the protections are not as universal as the Opposition hope. Nevertheless, we have been given some reassurances. On the substantive matter of my amendment, I am pleased that the system works, that the Minister has been persuaded of the veracity of our arguments and that it is already built into his thinking. With that, I will not press the amendment to a Division, and I thank the Minister for his clarifications.
Robert Halfon
I forgot to mention this but I think the hon. Gentleman asked to see me. I would, of course, be happy to meet him at any time.
Amendment negatived.
Question proposed, That the clause stand part of the Bill.
Robert Halfon
This has been a good debate on clause 1, which enables tuition fee limits for higher education courses and modules to be calculated using a per-credit method under the Higher Education and Research Act 2017. The current tuition fee limits system, where fees are determined per academic year, cannot be applied appropriately to the short courses and modules that are integral to flexible lifelong learning and the wider LLE. If HERA is not amended, students who use the LLE to study shorter programmes could face tuition fees that are disproportionate to the size of their course. For example, a single parent studying one 30 credit module in social care could be charged £9,250 per year—the same as a student studying a full year of a degree programme.
The new per-credit method introduced by this clause will ensure that fee caps can be applied fairly to all types of learning under the LLE, whether the learner chooses to build up a qualification at their own pace or undertake the entire qualification in one go. Therefore, the single parent studying the 30 credit module will pay a proportionate amount compared to a larger programme, making it more affordable for them to space out their studies and learn at a pace that is right for them.
The principle of the credit-based method is set out in the Bill in new paragraph 1D, which is that fee limits will be set at the number of credits undertaken by the student, multiplied by the relevant per-credit limit. That is supplemented by the new powers in paragraph 1C, which ensure that the necessary numerical details can be set out in the regulations, as they are now, which Parliament will be able to scrutinise under the affirmative procedure.
To introduce the per-credit fee limit method, clause 1 includes three key measures. First, in new paragraph 1A, it introduces the concept of the credit as the basis of a new fee-limit calculation. Credits are defined in the Bill, in accordance with their current usage across further and higher education, and are already a popular measure of learner time.
Secondly, clause 1(2)(b) introduces the concept of a course year as the period to which fee limits are applied. The course year offers far more accuracy than the current academic year, as it can start on the first of any month in a year. That means fee limits for short courses and modules can be set with greater precision. Currently, if a course begins in November, its fee limits are applied from the 12 months beginning on 1 September. Under the course year system, courses will be capped from the start of whichever month they begin. That more precise approach will be needed to accurately fee cap the shorter periods of study that the LLE seeks to encourage.
Finally, as set out in new paragraph 1C, the clause enables the Secretary of State to limit the number of credits that can be charged for each type of course. Providers would not be able to charge for more than 360 credits for a three-year bachelor’s degree with honours. As in the current system, they may still offer more than 360 credits for the degree, but would not be able to charge the student extra fees, preventing students from being charged unfairly for their studies.
The clause is an integral part of the Government’s transformation of student finance, giving people a real choice in how and when they study, so that they can acquire new life-changing skills.
Matt Western
As I said at the outset and on Second Reading, we agree with the essence of this Bill. We certainly agree with the purpose behind introducing lifelong learning, but, for the reasons outlined in our amendments, we have real concerns about its delivery and whether it will be successful. I am sure that the take-up of recent initiatives such as the T-level programme and accelerated degrees is not as high as the Government wanted it to be. We fear that this measure will not be successful either, for all the reasons given today and on Second Reading.
Picking up on the points made in Tuesday’s witness sessions, we believe that there needs to be more consultation with all stakeholders—not just the education providers, but all those involved in the design and provision of training, particularly vocational and skills training. I am disappointed that those amendments were not agreed to.
We have made an important point about the definition of credits and the standardisation of transcripts relating to students moving between courses and providers. That should be reflected in the Bill. It is vital that the sector and the institutions have confidence in this programme and that they trust each other and the standard of the qualification with which individuals come to them. They already have those sorts of arrangements, but they are very much bespoke and ad hoc and have been built up over time. Suddenly, this is going to be opened up considerably. I am sure that the sector is very nervous about what that will mean for the onboarding of students into institutions.
We addressed financial sustainability at some length. The pressures faced by the sector—including FE colleges and higher education institution providers—cannot be exaggerated. The Minister said that there is no need to increase the unit of resource, but the fact that 32% of higher education providers are already in deficit really should be ringing alarm bells in the Department for Education regarding what our educational landscape will look like over the next few. That is why our amendments were important—they would have ensured that the Minister and the Department had due regard to the financial pressures faced by the sector.
I am disappointed that the amendment on minimum credits was not accepted, but I very much hope that the Minister will reflect on it, given that the purpose behind it is to reskill, retrain and help people back into the workplace. It would also have benefited the plethora of organisations of different shapes and sizes that the economy will support in the future, which will require a very different training model as they address social need. That is why I think that challenging the 30 credits was the right thing to do. I very much hope that the Government will remain open to thinking about how that might work, rather than just having a bundle of three 10-credit modules in future. We support the Bill, but we will abstain on the clause.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clause 2
Related amendments
Matt Western
I beg to move amendment 10, in clause 2, page 6, line 18, after “courses” insert—
“which are defined as modules under subsection (6A)”.
This amendment would ensure that the Secretary of State is unable to treat modular courses and other modes of study or subjects differently from one another for the purposes of the fee limit.
Matt Western
Our amendment looks at the funding of modular study versus yearly study and seeks to incorporate into the Bill a greater assurance that the Minister cannot discriminate in granting funding to different types of courses or modes of study.
Numerous concerns have been expressed to me about proposed new subsection (7A), to which the amendment applies. In particular, providers are worried that it will give Government the ability to introduce variable fees by subject or mode of study. By extension, they are worried that the proposed new subsection could also pave the way for differential fees for undergraduate courses, depending on subject and institution.
We have already seen hints of that in recent years, with the Government deriding certain courses, labelling them with the names of all sorts of cartoon characters and reprioritising the strategic priorities grant away from arts-based courses towards STEM subjects. That has received widespread reaction and rejection, because of the importance of the arts and humanities not just to us socially but to the UK economy, whereby our soft power in the creative arts and commercial applications do so well.
The result of such changes has been uncertainty in the sector, with the closure of several renowned departments and increasing hostility from Government about the value of the arts. It would therefore be of great reassurance to the sector if the Minister could today provide a cast-iron guarantee that the Government have absolutely no intention of introducing variable fees based on course type or mode of study.
Robert Halfon
I am pleased to speak to the amendment. If the Committee will permit, I will provide some background information on what proposed new subsection (7A) is intended to achieve.
Section 10(7) of the Higher Education and Research Act 2017 sets out that if fee limits are set on one type of course, they must also be set on other courses of a similar type at the same or comparable level. The Bill makes a technical change to section 10 to put beyond doubt that the Secretary of State will not be required to place fee limits on courses and modules that are not designated for student finance.
I want to make it clear that that original section does not restrict the Secretary of State from setting differential fee rates for different subjects. That ability is provided for elsewhere in the Higher Education and Research Act, specifically through the power in section 119(5)(a) and schedule 2, which allow the Secretary of State to make different provision for different purposes, cases or areas. That power means that the ability to set different fee limits for different courses is already in the primary legislation.
Section 10(7) is specifically in reference to which courses have fee limits, and which do not. The amendment therefore could result in an LLE non-funded course being subject to fee limits even if the course were not designated for loan funding at all. For example, a university summer course could be forced to comply with per-credit fee limits rules, even though students on the course are not LLE-funded and they self-finance. That scenario would not be fair on providers, which is why we cannot support the amendment.
Matt Western
I hear what the Minister says, and I will look again at that. I take what he says on face value, and on that basis I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Robert Halfon
Clause 2 further supports clause 1 in ensuring that fee limits can be proportionate to the amount of study taken by students under the LLE. It makes further technical but necessary amendments to HERA 2017 as a result of the changes to legislation made in clause 1.
Clause 2 amends existing reporting duties on the Office for Students and providers so that the duties include the new credit-based fee limit amounts, in addition to any per-year fee limit amounts that apply. That is not intended to add any unnecessary burdens; it only adjusts the duty to reflect the new fee limit method. Subsections (2) and (4) provide explicit powers for the OFS to regulate fee limits at third-party providers, which will ensure that students cannot be charged thousands of pounds extra for choosing to study at a franchised provider.
Finally, clause 2 makes express provision in section 10 of HERA 2017 to allow the Secretary of State to set fee limits only on those courses and modules that are in scope for LLE funding. That will ensure that fee limits are not required for every single module of higher education, regardless of whether it attracts LLE funding.
The clause is an important part of the Government’s transformation of student finance. The LLE will give people a real choice in how and when they study so that they can acquire new life-changing skills. I commend the clause to the Committee.
Question put and agreed to.
Clause 2 accordingly ordered to stand part of the Bill.
Clause 3
Extent, commencement and short title
Matt Western
I beg to move amendment 12, in clause 3, page 8, line 36, after “may” insert “until 31 January 2024”.
This amendment would ensure that the transitional or saving provisions available to the Secretary of State are only available until 31 January 2024.
Amendment 12 seeks to incorporate in the Bill a limitation on the Secretary of State exercising the saving and transitional provisions after 31 January 2024. It is a very simple amendment that aims at a compromise: to give the Secretary of State and the Minister just under a year to get this through and operationalised, and to give providers around 18 months to plan and anticipate how they might respond.
We have already seen delays to the lifelong learning policy, including in relation to the report by Sir Philip Augar in 2018, and not least the almost year-long wait between the consultation and the Government publishing their response. As I said earlier, that might suggest that the turmoil in the Department for Education has meant that this issue has very much fallen to the wayside and not been seen as a priority. Indeed, the Schools Bill was introduced, but also fell by the wayside. So much of the initiative and need to modernise education has been deprioritised by the Government over this last year in particular.
As my hon. Friend the Member for Sheffield, Brightside and Hillsborough mentioned on Tuesday, we have had a skills shortage in this country since time immemorial. If the reforms promised in this policy are to be revolutionary, we need to press on and advance this programme, because we suffer a significant skills shortage, certainly compared with our major European and global peers. One has only to look at Germany, France or Italy, which are significantly ahead of us.
It is also important that the provisions in this Bill are not implemented in a haphazard way, and that the reforms that they make to the student finance package are absolutely coherent. Therefore, if the Minister will not accept this amendment, I would ask him to explain where he envisages needing to delay the enactment of provisions in this Bill.
I am sure that the sector would welcome a clear timeline from the Minister on when he expects the framework within this Bill to be in place, subject to Parliamentary scrutiny, not least because of the institutional financial planning restraints that we heard about, particularly from Dr Norton, from Coventry University and Professor Rigby from Bath Spa University. Given those financial challenges, the additional administrative burden, and the costs to the institutions, it is vital that this is laid out clearly to ensure a managed transition to 2025. I hope that the Minister, in his response, will set out what that framework will look like.
Robert Halfon
Amendment 12 would require any regulations on transitional arrangements in connection with the coming into force of the Bill to be laid before the end of January 2024.
Due to the complexity of the regulations required, and consistent with our plans to introduce the LLE from 2025, we are not intending to lay the broader suite of regulations to enable the LLE until after January 2024. Part of those regulations will include transitional and savings provisions that are needed in relation to the new powers in clauses 1 and 2.
The LLE is a long-lasting systemic reform, as we have discussed today, set to affect generations of future students. It is imperative that we get this right, and that utmost care is taken of both the nation’s finances and our future learners, giving them the consideration they deserve.
We have already published clear directions for the LLE in the consultation response and we will continue to engage closely with providers as the remaining aspects are developed. The consultation response sets out specific areas where we will engage with them in the future, such as the additional entitlement issue. That is why the Government cannot support the amendment, because we need to get this absolutely right and ensure that these regulations are done carefully.
Matt Western
I would like to take the Minister at face value. I am sure that that is the Government’s intention, but, as I say, given some of the programmes and initiatives that have been introduced recently and the chaos and turmoil that we have seen within the Department for Education over this past year, I am not assured by what the Minister has said. On that basis, we will be pushing the amendment to a vote.
Question put, That the amendment be made.
Robert Halfon
Clause 3 provides for the territorial extent of the Bill, its commencement and the short title. The clause outlines the territorial extent of the measures, with the Bill extending to England and Wales. However, as education is a devolved matter, the Bill applies only to England, and the amendments made by clauses 1 and 2 apply only to English higher education providers.
Commencement of clauses 1 and 2 will be confirmed by regulations made by statutory instrument. The overall reforms to the student support system, along with the changes to be made as a result of the Bill, will not start until the academic year 2025-26, and we currently anticipate making the necessary secondary legislation over the course of 2024. Once enacted, the Bill will be known as the Lifelong Learning (Higher Education Fee Limits) Act.
I thank the Opposition for the way they have approached the Bill. We have had some serious and constructive debate, and I really appreciate the way they have taken it forward from their side. Of course, I also thank my own side for all their support for the Bill. We have been discussing credits and transfers, and my firm view is that the Bill will be transformative once it comes into play in 2025. It will potentially make a huge difference to many future learners.
I also thank officials at DFE, who have done an extraordinary job in preparing for everything; my Whip; and you, Mrs Cummins, for chairing today’s session. I recommend that the clause stand part of the Bill.
Matt Western
We do not wish to oppose clause 3, but I will add my remarks to those of the Minister. I thank you, Mrs Cummins, and Sir Robert for chairing us through the last couple of days. I thank the Clerks and Department for Education officials for the work that they have put into the Bill. Most importantly, I thank Members and the Minister for the spirit in which the Committee has been conducted. I thank my colleagues for their forbearance, and I particularly thank my Whip as well.
Question put and agreed to.
Clause 3 accordingly ordered to stand part of the Bill.
Bill to be reported, without amendment.
Lifelong Learning (Higher Education Fee Limits) Bill
Wednesday 3rd May 2023
(1 year, 7 months ago)
Lords ChamberRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Amendment Paper: Consideration of Bill Amendments as at 3 May 2023 - (3 May 2023)
Lifelong Learning (Higher Education Fee Limits) Bill
Wednesday 3rd May 2023
(1 year, 7 months ago)
Commons ChamberRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 3 May 2023 - (3 May 2023)
15:33 - The House divided: - Ayes: 89 / Noes: 253 - Question accordingly negatived.
Matt Western (Warwick and Leamington) (Lab)
I beg to move, That the clause be read a Second time.
Madam Deputy Speaker (Dame Eleanor Laing)
With this it will be convenient to discuss the following:
New clause 2—Requirement to publish a revised impact assessment—
“(1) Before laying the first regulations under this Act, the Secretary of State must prepare and publish a revised impact assessment.
(2) The impact assessment must take account of, in particular—
(a) the Lifelong Loan Entitlement Consultation and the Government’s response,
(b) any spending review decisions announced after the date on which the Act received Royal Assent, and
(c) any announced changes to Government skills and education policy.”
This new clause would require the Secretary of State to publish a revised impact assessment of the Bill with regard to recently announced and future changes related to the Lifelong Loan Entitlement policy.
Amendment 2 to clause 1, page 2, line 10, at end insert—
“(1A) One credit means 10 notional learning hours.”
This amendment puts the number of hours that constitute a credit on the face of the Bill.
Amendment 1 to clause 2, page 6, leave out lines 17 to 20 and insert—
“(7A) Nothing in subsection (7) requires the Secretary of State to make regulations under subsection (6) to set fee limits for courses which have not been designated by or under regulations made by the Secretary of State in accordance with section 22 of the Teaching and Higher Education Act 1998.”
This amendment safeguards against charging variable fees based on course or subject.
Amendment 4, page 8, line 36, after “may” insert “until 30 September 2024”.
This amendment is a probing amendment that would limit the use of saving and transitional measures to 30 September 2024.
Amendment 3, page 8, line 38, at end insert—
“(6A) A statutory instrument containing (whether alone or with other provisions) regulations under this Act shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”
This amendment would require that regulations made under this Act are subject to the affirmative procedure.
Amendment 5, page 8, line 38, at end insert—
“(6A) Before laying the first regulations under the 2017 Act, the Secretary of State must make a written ministerial statement updating the House of Commons on the progress made in the Lifelong Loan Entitlement roll out and outlining how the regulations will support further policy development.”
This amendment would require the Secretary of State to publish a written ministerial statement ahead of laying any regulations under this Act, updating the House on the progress of the Lifelong Loan Entitlement policy and how the regulations aim to support the policy.
Matt Western
I rise to speak to new clauses 1 and 2 and amendments 3 to 5, which appear in my name and that of my hon. Friend the Member for Chesterfield (Mr Perkins), who is unfortunately unable to be here today. Our amendments at their core seek to do three important things and are designed to ensure that the Bill is successful: to introduce parliamentary oversight; to provide the sector with as much clarity as possible ahead of the implementation of the lifelong loan entitlement; and to allow for an assessment of the interaction between the Bill and the policy underpinning the lifelong loan entitlement. They seek to achieve those aims at various key points in the Minister’s decision-making process, covering the period prior to laying the regulations, the process of laying the regulations and the post-enactment effect of the regulations. With your permission, Madam Deputy Speaker, I will speak to our amendments with that logical structure in mind.
New clause 2 would require the Minister to publish a revised impact assessment before laying any regulations under the Act. Such an impact assessment must consider the Government’s response to the lifelong loan entitlement, any subsequent spending reviews, and the Government’s broader education and skills policy. I note that the Minister has committed himself and the Government at various times to such an impact assessment. In the impact assessment attached to the Bill, a post-enactment impact assessment is promised. In Committee, the Minister also promised that
“the Government will publish a full and detailed impact assessment, including the qualification of expected costs and the benefits of LLE in its entirety, when we lay the necessary secondary legislation to fully implement the LLE.”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 23 March 2023; c. 98.]
Therefore, the need for a revised impact assessment does not seem to be in dispute.
It is important, however, that the impact assessment is as thorough as possible. At the moment, we have impact assessments split across a variety of strands: attached to the Bill, the Government consultation response, and future announcements. There are some glaring gaps, noticeably on the impact on providers. The Bill’s current impact assessment stresses that the
“overall impact is likely to be ambiguous because of various opposing effects.”
It is important that those effects are considered in the round in any future impact assessment.
Even if the Minister does not accept the new clause, I would welcome his commitment to producing a post-enactment impact assessment, pulling together the variety of loose strands across different announcements. I would also welcome his commitment to publishing a revised impact assessment before he lays any regulations under the Bill, and a commitment on when he intends to do that.
Amendment 5 is linked to the aim of new clause 2. It would require the Minister to publish a written ministerial statement before tabling any regulations under the Bill. The amendment would require any written statement to take into account the interaction between the regulation and the policy proposal. On Second Reading, I described the Bill as an “exoskeleton without a body”—that is to say, a framework without much policy substance. After detailed debate in Committee, I understand some of the reasons why the Bill is technical in design and therefore somewhat policy-light. What amendment 5 seeks to do, however, is to link the policy objectives of lifelong learning to the secondary legislation tabled under the Bill. It would close the gap between the Bill’s skeletal framework and the policy announced by the Government.
Amendments 5 and 3, the second of which would subject all regulations made under the Bill to the affirmative procedure, are guided by one simple aim: parliamentary oversight. In Committee, the Minister confirmed that regulations determining the fee method, the number of credits attached to credit-differential activity, the number of learning hours attached to credit, the maximum number of credits and the uprating of the lifelong learning entitlement would all be subject to the affirmative process. I welcome that commitment and have no reason to doubt the sincerity of the Minister’s promise. However, given that we have had, I think, three Ministers in the last 10 months, there is uncertainty about the commitment —or lack of it—to that on the part of others. Given that the Minister supports the central thrust of amendment 3 and is a keen supporter of parliamentary oversight and a pragmatist, I hope that he will be prepared to assert Parliament’s right to scrutiny in the Bill.
Amendment 4 would limit the use of the saving and transitional provisions in the Bill to the end of September 2024. I tabled a similar amendment in Committee that would have limited their usage to the end of January 2024. The Minister confirmed that the Government
“are not intending to lay the broader suite of regulations to enable the LLE until after January 2024.”—[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 23 March 2023; c. 111.]
I understand the reasons behind the need for flexibility—after all, lifelong learning is a fundamental change in the structure of the student loans system—but the Minister will no doubt be aware of the need for providers, students and the Student Loans Company to have adequate time to prepare.
On the Minister’s own timeline, continuing to table saving and transitional provisions after September 2024 would leave less than one complete academic year before the expansion of LLE to level 4 courses in September 2025. What assurances can he give the sector that the vast majority—if not all—of the regulations will be laid by or before September 2024? Can he be a little more specific than any time after January 2024?
Finally, I turn to new clause 1, which would require the Secretary of State to conduct a review of the Bill’s impact on a variety of factors after the launch of lifelong learning for level 4 in the 2025 academic year. It would need to be published before the expansion in the 2027-28 academic year to levels 4, 5 and 6. The Secretary of State would then have to conduct an annual review every subsequent year taking into account learner uptake, employer spending, the provision of courses on offer, the financial sustainability of the sector, the Student Loans Company and the Office for Students. I will touch on a few of those points to illustrate why such a review is so crucial.
On the Bill’s impact on learner uptake, we know that there is a huge job to be done. As Sir David Bell, vice-chancellor of the University of Sunderland, reminded us in Committee, accelerated courses were once poised to be the next big thing but never really materialised. The same can honestly be said of T-levels. The Education Committee’s report into post-16 education, which was published last week—the Minister will be more than familiar with it—revealed that 63% of young people had not even heard of T-levels. As Rachel Sandby-Thomas, the registrar at the University of Warwick, put it:
“The take-up has been disappointing”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 33, Q75.]
The National Careers Service—incidentally, this was introduced by my friend Gordon Marsden, the former Member of Parliament for Blackpool South—would be the most obvious choice for helping to deliver information, advice and guidance. I am reliably informed that the NCS is now poorly resourced and unable to meet the demand for face-to-face appointments, and has been described by the Local Government Association as in need of a “radical shake up”. How on earth, therefore, does the Minister expect adequate information, advice and guidance to be provided to prospective learners when the most obvious mechanism available to deliver it has been so stretched and under-resourced these past few years?
Of course, none of that is to say that LLE will not propel an enormous wave of adult learners and upskillers, but recent policy announcements suggest the need for an enormous communications campaign, a large investment of resources and a clear understanding of the barriers to uptake. A review, as proposed in new clause 1, would achieve that aim. Linked to that, the impact of the Bill on the courses on offer and the financial sustainability of the sector will be one of the main factors in determining whether the policy is a success.
Given the declining unit of resource, the urgent need for a review in post-16 education funding, as the Education Committee has called for, and the additional costs incurred by modular study, there is a risk, albeit small, that the policy might stretch providers too far and too thinly. I note the Minister indicated that the wider LLE impact assessment, which is being updated as the policy develops, expects increased uptake of technical provision, modular study and part-time study to expand opportunities for providers to generate revenue. That is good news. However, circumstances change, populations grow and shrink, and universities are under greater pressure to deliver. The assessment therefore needs to be continual.
On a final point—one that was raised in Committee—the reform will inevitably help those currently in the workforce to reskill and retrain. Given that the apprenticeship levy has been so poorly used, with just 31% of levy-paying employers in a recent Chartered Institute of Personnel and Development poll claiming that it had encouraged them to spend on training, down from 46% five years ago, there is clearly a pressing need for reskilling and workplace training. However, there is obviously a balance to be struck between meeting the needs of employers and those needs being imposed on workers, and meeting the expectations of citizens to have access to further educational experiences for their own fulfilment. There is a real risk that employers will use the system to burden their employees and potential hires with debt to fulfil their own internal skills gaps. I know that the Minister would not want the system to be used purely for that purpose and new clause 1 would keep an ongoing eye on that practice. I would be interested to hear any further thoughts the Minister has had since Committee on what steps he might be inclined to take to prevent the misapplication of the LLE by employers.
I will draw my remarks to a close. I reiterate my support, and the Labour party’s support, for the Bill and the policy it underpins. The amendments we have tabled reflect that support, while seeking to futureproof the policy to ensure it has a long-lasting impact over successive election cycles and decades. We want it to be successful. By far the most important of the amendments we have tabled today is on the need for review to guard against any unintended effects of the policy, engage parliamentary oversight and provide an avenue for all stakeholders to continue to feed into the policy outcome. It is for that reason that we will be pressing new clause 1 to a Division.
The Minister for Skills, Apprenticeships and Higher Education (Robert Halfon)
Ahead of speaking to the amendments tabled by the hon. Member for Warwick and Leamington (Matt Western), I would like to thank Members from across the Chamber for their contributions and the spirit of the amendments tabled, as well as the spirit in which they invested in the Bill and its transformational programme.
I will start with new clause 1, which seeks to require the Secretary of State to publish an ongoing annual review on the impact of the Act from academic year 2025-26. I understand the new clause intends to require the Secretary of State to conduct and publish a review on the impact of the Act, in particular covering the phased introduction of modular provision from 2025. As hon. Members will be aware, the Government published an impact assessment for the Bill, which includes a consideration of the impact of modularisation, including on providers.
If I may, I will recount to Members how the Government intend to introduce the LLE. The LLE will provide individuals with loan entitlements to the equivalent of four years of post-18 education to use over their working lives, for example £37,000 in today’s fees. The LLE will be available from 2025 for full courses at levels 4 to 6, such as degrees and higher technical qualifications. In addition, the LLE will begin a phased introduction of modular funding, starting in 2025, with modules of high-value technical courses at level 4 and 5. The Government are particularly keen to ensure a wide range of high quality level 4 and 5 modules are in scope from 2025-26. That will pave the way for expanding out new modular funding to broader level 4, 5 and 6 provision in 2027, where we can be confident of positive student outcomes.
There will be an opportunity to contribute to the approach of the expansion of modular funding. As set out in the Government’s response, we intend to launch a technical consultation next year to specify how we will determine funding for wider modules. I agree with the sentiment behind new clause 1 on the importance of monitoring the function of the LLE in line with policy intention. However, introducing an ongoing review into primary legislation before the policy has been fully implemented or had sufficient time to bed in would not be appropriate. Additionally, the Government believe a yearly report without an end date could be an undue and disproportionate burden at this stage. For that reason, the Government believe it neither necessary nor appropriate to introduce an ongoing review requirement on the face of primary legislation and that is why we cannot support new clause 1.
New clause 2 introduces a requirement to publish a revised impact assessment. It would have the effect of requiring the Secretary of State, before the laying of secondary legislation, to publish a revised impact assessment, taking into account any development of policy on the LLE. I am in full agreement with the intent behind new clause 2, which is to ensure there is adequate and ongoing analysis of the impacts of policy to inform decision making and scrutiny of legislation. As Members are aware, the Government published an impact assessment for the Bill on its introduction, on 1 February. The Government subsequently published an updated impact assessment for the LLE as a whole, alongside the publication of the consultation response, on 7 March. The impact assessment published in March contained the following commitment, on page 18:
“In accordance with the Better Regulation Framework, more detailed assessments of impacts, including quantification of expected costs and benefits of the different aspects of LLE policy, will be published in due course at the point when the government lays the necessary secondary legislation to fully implement LLE.”
I therefore reiterate and give assurance that the Government intend to publish an updated impact assessment for the LLE ahead of the laying of regulations. It is not necessary to codify that on the face of primary legislation and that is why the Government cannot support new clause 2.
On amendment 4 and the transitional measures referred to by the Opposition spokesman, the amendment requires any regulations on transitional arrangements to be made in connection with the coming into force of the Bill to be laid before the end of September 2024. Due to the complexity of the regulations required, and consistent with our plans to introduce the LLE from 2025, the Government intend to lay the broader suite of regulations to enable the LLE at the earliest in mid to late 2024. Those regulations are likely to include transitional and saving provisions needed in relation to the new powers in clauses 1 and 2. As hon. Members will be aware, the laying of regulations is subject to available parliamentary time. It would not be helpful at this point to prescribe a specific period. However, the Government agree that regulations need to be laid in a timely manner.
Munira Wilson (Twickenham) (LD)
I welcome the Minister’s assurances, both in Committee and now, that regulations will specify the number of hours that make up a credit. However, does he agree that putting the definition of a credit in the Bill, as proposed in my amendment 2, would give higher education providers confidence that credit values would not be devalued either by this Government or any future Governments?
Robert Halfon
I understand the intention behind the hon. Lady’s amendments. Putting the learning hours into secondary legislation rather than primary means that providers that use a different number of learning hours per credit will simply have their courses treated as non-credit-bearing, rather than being considered in breach of fee limits as a whole. The Office for Students would have the ability to take action against the provider from a quality and standards standpoint if it deems necessary, but the provider would not face additional consequences for reaching the fee limit rules.
We do not intend to change the number of learning hours in a credit unless the standards in the sector change. Learning hours are and should continue to be based on sector-led standards. Regulations on learning hours will have to follow the affirmative resolution procedure, so Parliament will always get the chance to have a say. The approach protects the existing use of credits as a standard that is owned and maintained by the sector, and ensures that the autonomy of the sector continues to be upheld but also allows a flexible approach in case standards change.
For the reasons that I have set out, and given that we are subjecting so many of our regulations to the affirmative procedure, as laid out in the delegated powers memorandum, which the hon. Member for Warwick and Leamington will have seen, there is no need for amendment 3 in primary legislation. I hope that he will be satisfied with that and will withdraw it.
Amendment 5, which stands in the names of the hon. Members for Warwick and Leamington and for Chesterfield, would require the Government to publish a written ministerial statement ahead of laying the first set of regulations under the Act, updating the House on the progress of the lifelong loan entitlement policy and how the regulations aim to support it. The Government will endeavour to publish a written ministerial statement ahead of laying regulations under this Act on both the development of regulations and the progress that the short course trial has made. However, it is not necessary to enshrine that commitment in primary legislation.
I would like to bring to the attention of the hon. Member for Warwick and Leamington that the Government’s intention is to lay the first regulation under the Act in mid to late 2024. It is possible that regulations under the Bill will be the first made. In addition, as is standard practice, explanatory memoranda will be laid alongside all regulations, which will explain the scope and purpose of the regulations. The Government will also publish those on the legislation.gov.uk website, explaining what the regulations do and why.
As I mentioned earlier, the majority of regulations under the Act—certainly, all those that go to determine the actual fee limits—will be subject to the affirmative procedure and all Members of the House will have an opportunity to debate the regulations in Committee. Members appointed to the Committee will be able to vote, once they have been referred to the Delegated Legislation Committee. As such, the amendment is not necessary and the Government cannot support it, so I hope that Members feel able to withdraw it.
Question put, That the clause be read a Second time.
Robert Halfon
I beg to move, That the Bill be now read the Third time.
Let me start by thanking all hon. and right hon. Members for their contributions, not just today but on Second Reading and on Report. I really welcome the way in which my counterpart the Opposition spokesman, the hon. Member for Warwick and Leamington (Matt Western), has approached the debate, because we are all united in our desire to support people to access higher and further education and to learn, upskill and retrain over the course of their working lives.
I want to extend my thanks to all those who have participated in the passage of the Bill so far. My thanks go to my hon. Friends the Members for Keighley (Robbie Moore), for Beaconsfield (Joy Morrissey) and for Stourbridge (Suzanne Webb) for their support throughout the passage of the Bill, as well as to the hon. Members for Warwick and Leamington and for Chesterfield (Mr Perkins), who have engaged constructively at every stage of the Bill. I am grateful to them both for their work in challenging us to ensure that the Bill is fit for purpose.
The hon. Member for Warwick and Leamington spoke on Report about T-levels, and I am proud that the number of T-level students has gone up to 10,000. We have 16 T-level subjects in delivery, with a total of 18 from September. We are spending up to £500 million on T-levels, which have a 92% pass rate, with many students progressing to university, employment and apprenticeships, and we have invested £240 million to help providers prepare to deliver high-quality industry placements. The apprenticeship levy is important, as we have had more than 5 million apprenticeship starts since 2010. The number of apprentices increased by 8.6% in 2021-22, and the money not used by levy payers, as he knows, funds training so that smaller businesses can have more apprentices. We have just removed the 10 apprentice cap for smaller businesses. We are doing a lot of good work on apprenticeships.
On Second Reading, a range of Members voiced their support for both this legislation and the lifelong loan entitlement, and it is important for me to thank the extraordinary Clerks and officials in Parliament and the Department for Education for their diligent work in supporting the Bill’s passage through this place. None of this would have been possible without their work, and I think Members on both sides of the House express our appreciation.
It is an honour to champion this transformational Bill in this place, and I look forward to the LLE improving our skills system and supporting people into fulfilling and lasting careers. With this Bill, we are transforming lifelong learning in this country. People will now be on a train journey with an end stop at which they get their qualification, but they will be able to start and stop at various points in their life through flexible and modular learning. This Bill will be transformational, and I commend it to the House.
Matt Western
I extend my thanks to all those involved in the passage of this Bill on Second Reading, in Committee and this afternoon. I join the Minister in thanking Conservative Members as much as those on the Labour Benches. I particularly thank my hon. Friend the Member for Chesterfield (Mr Perkins), the shadow further education Minister, whose name appeared on the amendments we debated on Report. I also thank my hon. Friends the Members for Brighton, Kemptown (Lloyd Russell-Moyle), for Sheffield, Brightside and Hillsborough (Gill Furniss), for North Tyneside (Mary Glindon), for Barnsley Central (Dan Jarvis) and for Middlesbrough (Andy McDonald) for their work, constructive comments and contributions in Committee. Their thoughts provided the basis for subsequent amendments.
I also place on record my thanks to the Clerks, and particularly to Bethan Harding for all her work drafting the various amendments that allowed us to probe the Government’s rationale and that shaped the debate the ensuing debate.
Finally, I thank the Minister and his office for how they have guided the Bill through its Commons stages, offering numerous opportunities for Opposition engagement, following up with Members on specific points raised in Committee and generally respecting the right of Parliament to scrutinise the Bill. The seriousness and efficiency with which the Minister has approached the Bill encourages a certain trust both in him and in the purpose behind the Bill, both of which are essential if it is to form part of the cross-party commitment to lifelong learning.
This Bill is an important first legislative step on the road towards the full roll-out of lifelong learning provision in the UK, but the objective of lifelong learning has swirled around this place for far longer than I have been in this House. My friend and predecessor Mr Gordon Marsden, the former Member of Parliament for Blackpool South, was an assiduous campaigner for lifelong learning in this role, and I am pleased to see that work is now channelled through his Right2Learn campaign. It may be only a few short years since he stood in my shadow ministerial shoes, but the need for these reforms has never been so urgent. They simply cannot come quickly enough. The Minister will no doubt be aware of the severity of the problem from his time chairing the Education Committee.
With Government spending on adult education falling by 47% between 2009 and 2019 under the coalition and Conservative Governments, and with only one in three adults participating in some kind of learning, meeting the challenges thrown up by decarbonisation, growing a sustainable economy and the fourth industrial revolution will require a complete reversal of the last 13 years of decline, propelled by a much more expansive understanding of lifelong learning. So what concerns me is the uncertain direction of travel. The Minister published the consultation response before the Committee stage, and I thank him for that, but this Bill leaves an awful lot to be decided in due course by him.
The purpose of Third Reading is to give the Commons a final chance to debate the contents of a Bill; it is an opportunity to discuss what is actually in the Bill, rather than, as on Second Reading, what might have been included. The awkward predicament we are in here is that so much of this Bill is yet to be determined by the Minister, in regulations. Consequently, the Bill is somewhat divorced from the policy it seeks to implement. This is not a party political point; it is a call for certainty and predictability, and an expectation that transformational reforms in the tertiary education sector are clear, open to debate and transparent. I understand that most of the current student finance system is governed through regulations, but the point is, surely, that what we are trying to do with lifelong learning is break away from the current system. Does it not follow, therefore, that the limits of the old system—namely, government by regulation—should not necessarily impose a limit on the new system?
That was why we tabled our amendments on Report. They were all about ensuring parliamentary oversight, sector engagement and continuous monitoring of the impact of legislation on proposed policy. It is somewhat disappointing, therefore, there has been no movement from the Government on those issues, despite assurances. I strongly suspect, however, that the Minister will take a conscientious, diligent and measured approach to implementing lifelong learning. I urge him to engage frequently with the sector, with me, with employers and with non-governmental bodies, such as the Student Loans Company and the Office for Students, although the latter is perhaps increasingly less non-governmental and more governmental in practice. That being said, as the Bill progresses to the Lords, I look forward to listening to their considerations on the scope of delegated powers under this Bill, the feasibility of these reforms and the timescale suggested by the Minister.
Peter Aldous (Waveney) (Con)
As my right hon. Friend the Minister has said, this Bill has the potential to be truly transformational. It can play a key role in enabling people to realise their full potential, help cure the current British disease of low productivity and be a vital component part in work to deliver meaningful levelling up. However, it is only one piece of the jigsaw. Without other reforms and initiatives, there is a risk that it will not deliver and its objectives will not be met.
Times are changing rapidly and we must deliver meaningful lifelong learning. We have an ageing population, and the days of a job for life are long gone. Climate change means that a raft of new emerging jobs require upskilling and retraining. The fourth industrial revolution is well and truly under way. We are, in effect, in a global race and if we do not step up to the plate, the UK will be left far behind. If the Bill is to succeed, we must recognise the vital importance of adult education, which has been neglected for too long, with participation rates today half what they were in 2004. Investment by employers in workforce skills must increase. We must ensure that the least advantaged have every opportunity to participate. There must be better co-ordination across the whole education and training system. Further education, higher education and apprenticeships are currently treated as distinct and separate systems, imprisoned in their own silos. There also needs to be better alignment of welfare, economic and skills policies and strategies right across Government.
Questions remain about the Bill and its implementation, which I urge the Government to address as it continues its passage through Parliament. If the Bill is to succeed in its objectives, we must quickly develop a new culture of lifelong learning. The role of employers must be developed and clarity must be provided on how the lifelong loan entitlement will work alongside the apprenticeship levy. There is a risk that the policy will result in the take-up of loans for short courses by employees that would otherwise be funded by their employers. There is a danger that the lifelong loan entitlement becomes something that well-educated people use to add a year after their degree rather than people who have not yet got a level 3 qualification. The pathways from lower levels need strengthening with better funding and maintenance support at level 3 and below.
As I mentioned at the outset, the Bill is important and it has enormous potential, but it is only one piece of the jigsaw. Other reforms and new strategies are required if we are to deliver meaningful lifelong learning. That must take its place as part of a coherent post-16 education and skills strategy that properly aligns with wider Government policies.
We must improve careers advice so as to ensure that those who need lifelong learning the most are able to access it. Further consultation is needed on the regulation and quality of modular learning. It is important that regulatory burdens and risks do not stifle innovation and limit the delivery of short courses and modules. It is important that we create a maintenance support system that enables everyone to live properly while studying or training. This will be crucial for mature learners who often have family commitments and caring responsibilities.
Finally, the whole education and skills system must be sustainably funded. FE has been poorly funded for far too long. If we are to have a truly collaborative, streamlined and more flexible system for learners to study throughout their lives at different places, on a modular basis, this underfunding must be addressed.
In conclusion, the Government are to be commended for recognising the importance of lifelong learning in the modern world. The Bill’s ambitions and aspirations are the right ones, but they will not be delivered in a vacuum. They must be part of a wider, coherent and co-ordinated strategy. As I have outlined, there are issues that should be addressed as the Bill now moves to the other place. There are also wider implications that must be considered right across Government, and I hope that they will figure prominently in the forthcoming Barber review and the autumn statement.
Question put and agreed to.
Bill accordingly read the Third time and passed.
Lifelong Learning (Higher Education Fee Limits) Bill
Monday 19th June 2023
(1 year, 6 months ago)
Lords ChamberRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 3 May 2023 - (3 May 2023)
The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)
My Lords, I am delighted to be back in the Chamber to bring forward another significant piece of legislation for our skills reform agenda. I am particularly looking forward to the speeches today from my noble friend Lord Sewell of Sanderstead and the right reverend Prelate the Bishop of Sheffield.
This Government want learners to be able to access courses in a more flexible way in order to fit study around work, family and personal commitments and to retrain as their circumstances and the economy change. The Lifelong Learning (Higher Education Fee Limits) Bill will help create a new route for people who require student finance for study at levels 4 to 6 in further and higher education institutions. It will make it easier for people to study flexibly, preventing learners being charged disproportionately for choosing to study in a way that suits them, and ultimately to acquire skills that can transform their lives.
This Bill does three key things. First, it will allow for fee limits for all types of courses to be set in a consistent and appropriate way through enabling fee limits to be based on credits rather than academic years. What this means in practice is that modules and short courses, as well as more “traditional” degree courses, will be priced according to the amount of learning they contain. This will create a more flexible system and will go a long way to encourage more people into post-18 education.
Secondly, this Bill introduces the concept of a course year, rather than an academic year. This allows fee limits for courses and modules to align accurately with the start date of a student’s study. Doing so will mean that, for example, if a course starts on 1 October, the fee limit will also apply from 1 October rather than from one of four fixed dates, as it does within the current academic year system.
Finally, this Bill will allow the Secretary of State to set a cap on the total number of credits that can be charged for each type of course. For example, fees charged for a certificate of higher education will be capped at 120 credits, whereas a diploma of higher education will be capped at 240 credits. This will prevent learners being charged unfairly for their studies and ensure that fee limits remain aligned with current rates, based on standard practices.
The Bill includes a number of delegated powers to enable the credit-based fee limits system to work. These powers essentially allow the numerical detail which will determine a financial fee limit for each course year, such as per-credit financial limits and course year maximum numbers of credits, to be set out in regulations. This mirrors the existing approach in Schedule 2 to HERA and is not unique to fee limits. It is important that these numerical values are set out in secondary legislation so that further primary legislation is not needed to amend them when reviewed. There are no Henry VIII powers in this Bill.
Noble Lords will have seen that the Government have now published their response to the public consultation on the details of the wider lifelong loan entitlement—also known as the LLE—and I thank those Lords who have taken the time to discuss this response with me in detail. While the Bill enables us to deliver the LLE, it is worth emphasising that its scope is tightly focused on changing the system by which fee limits are set.
The LLE will transform access to post-18 education and skills by providing individuals with a loan entitlement equivalent to four years of post-18 study, £37,000 in today’s fees, which can be used to fund courses and modules at levels 4 to 6 over the course of their working lives. It is estimated that at least 80% of the workforce of 2030 are already in work today. We want to give them the opportunity to upskill and reskill over their careers in order to progress and adapt to changing skills needs and employment patterns.
By putting level 4 and 5 courses on the same funding basis as traditional undergraduate degrees, the LLE aims to give people a real choice in how and when they study to acquire new life-changing skills. This Bill ensures that it costs the same for a learner to study a qualification module by module as it would to study that same qualification in one go.
In the consultation response, we said we would take a phased approach to the funding of modules, focusing first on modules of higher technical qualifications and some levels 4 and 5 advanced learner loan-funded courses, with new checks to ensure that they meet employer need. I shall give the House some examples of courses in scope for modular funding. They include the following HTQs: the higher national diploma in construction management for England at level 5; the certificate of higher education in cyber security at level 4; and a foundation degree in science—professional practice in health and social care—at level 5. The crux of our approach to introducing funding for modules is based on courses that we know have good employer returns.
Focusing initially on certain high-value level 4 and 5 courses will allow us to test and learn from the approach before extending funding, where appropriate, to modules of other high-quality courses at levels 4, 5 and 6. We also want to address the skills gap identified by the Augar review, which is overwhelmingly at levels 4 and 5, with fewer than 70,000 students a year doing levels 4 and 5 compared to almost 470,000 doing undergraduate degrees. OECD analysis suggested in 2021 that only 9% of all adults aged 25 to 64 in the United Kingdom hold a level 4 or 5 as their highest qualification, compared to around 15% of adults in France and 36% in Canada.
Overall, data on wage returns for levels 4 to 5 is compelling. The 2020 data from the Centre for Vocational Education Research shows that higher-level qualifications lead on average to better earnings outcomes than finishing education at level 3, for both men and women. For example, the average female level 5 achiever would earn approximately 57% more than would be the case if they stopped at level 3. This equates to roughly a £9,800 increase in annual earnings at age 26.
In order to support learners in understanding and deciding how to utilise the opportunities provided by these reforms, the LLE personal account will show their learning balance as well as clearly signposting the courses and modules that they can access to propel themselves into learning and to further their career aspirations. Whether they are studying a three-year degree, a higher technical qualification or another level 4 or 5 course, and regardless of whether they are studying at a university or a college, every student should be confident that higher education will help them to succeed in life. This is especially important at a time of challenging economic circumstances.
I am delighted to bring the Bill before the House today and that we have reached this pivotal stage in driving a transformation of post-18 study. This legislation will form a vital part of the LLE, which as a whole will allow students in generations to come more flexible access to courses, helping them to train, upskill or retrain alongside work, family and personal commitments, and as both their circumstances and the economy change. I beg to move.
Baroness Wilcox of Newport (Lab)
My Lords, this is an important addition to the education portfolio of legislation presented to this House by the Government, and from the outset I state the Labour Party’s support for the financial funding for students as evidenced in this legislation. I thank the Minister for introducing the Bill with clarity and in such detail.
We look forward to hearing the maiden speeches in this debate from the noble Lord, Lord Sewell, and the right reverend Prelate the Bishop of Sheffield, both of whom I am sure will continue to contribute thoughtfully and sincerely to the future work of this House.
This Bill follows on from the Skills and Post-16 Education Act 2022, which I had the pleasure of working on from the Opposition Front Bench alongside my noble friend Lord Watson. We sought to make changes as we took that Bill through the House; I am looking forward to my noble friend’s contribution in this debate on the latest Bill, as we continue to try to make changes to this primary legislation.
The main issue with the Bill is the lack of detail. It is an incredibly short Bill to deal with the significant issue of the decline of lifelong learning and, as it stands, it will mean a lack of clarity for the industry. The Bill introduces the next set of changes to primary legislation required to enable the LLE to be introduced from 2025. It would amend the Higher Education and Research Act 2017 to allow Ministers to set credit-based fee limits for some modules and courses, and the framework for how those limits will be set. It will also provide powers for Ministers to determine which courses have credit-based fees and to set the parameters of the new system via secondary legislation.
As stated, we support the introduction of the LLE and the credit-based method to determine fees. That could make a real difference in helping adults to access flexible lifelong learning, thereby beginning to address the decline that the sector has experienced over some time in England. Notwithstanding that positive statement, we believe that the legislation could be significantly improved, and today is the beginning of how we set our case out in that respect.
The number of adults aged 21 or over accessing higher-level skills courses has fallen dramatically since 2009-10, and participation is now significantly lower in England than in the rest of the UK. As with much legislation presented by this Government, it appears that the integral features of how the LLE and the credit-based method will work in practice are left to secondary legislation. Yet again, more detail needs to be included on the face of the Bill to ensure that it will be effective in boosting lifelong learning. We need greater clarity on the concepts at the centre of the Bill; we need a definition of credits and what the minimum and maximum yearly credits will be, for example.
It is essential to reverse this decline in accessing higher education. That requires a funding and regulatory system which supports and encourages lifelong learning. The LLE could be transformative in revitalising flexible higher education and reversing the sharp decline in the number of adult learners. It could also incentivise alternative, flexible pathways that support people to access learning throughout life. However, its detailed design will be key in determining how it works in practice.
I will ask the Minister a range of questions that the slender content of the Bill raises but does not answer. What is the strategic vision for modular funding within the LLE, and is the intention for most modules of designated courses ultimately to be eligible for funding? Will per-credit fee limits be set at different levels depending on whether a course is full time or part time, face to face or distance learning, or be based on the subject or level of study? Will all students be included in the LLE from 2025, or will transitional arrangements be put in place as part of a phased implementation? How will the design details of the LLE, including those on ELQ rules and residual entitlements for those who already have higher education qualifications, work in practice? Will providers continue to receive support from the part-time student premium to help with the additional costs associated with flexible part-time study? It is vital to ensure that this flexibility is considered.
No doubt the Minister is expecting me to comment on what we do in Wales, and I would hate to disappoint her. While I will leave it to other noble Lords to comment in more detail, I note that the current, progressive system of student finance we have in Wales means that Welsh undergraduate students have less to repay, on average, than their English peers, as we continue to provide non-repayable grants. They also receive a guaranteed level of maintenance support, irrespective of income.
Currently, part-time students studying face to face are entitled to maintenance support. However, the vast majority of part-time distance learning students are not. The introduction of the LLE could be a real opportunity to make this important change. Introducing maintenance support makes a difference. We have seen this with the introduction in 2018-19 of such support for part-time and distance learning students in Wales. It illustrates the significant potential impact on demand for part-time learning from extending maintenance support.
Maintenance support is crucial to learners from disadvantaged backgrounds to prevent further hurdles. Otherwise, many adults will be unable to take up these opportunities and it would prevent these people transforming their life chances and being part of the skilled workforce that employers and our economy need.
Furthermore, an extension to distance learning students would help mitigate the current cost of living pressures facing distance learners, which are beginning to impact on mature students. For working students, there is also the concern that employers would reduce their own staff training obligations as expectations of individuals funding their own training would arise as an unintended consequence.
In conclusion, there is a positive element to the Bill that we welcome. But, as it progresses through your Lordships’ House, we will bring amendments to cover the points I have raised and to try to ensure that greater substance and practicality are put into the Bill and thus lessen the subsequent need for further secondary legislation.
Baroness Garden of Frognal (LD)
My Lords, there has been great enthusiasm for the Bill, which makes welcome ground in a number of areas. Who cannot support the idea of lifelong learning? I think it was Adam Smith who was reported as saying that every man is a student all his life and longer too, which betrays a rather curious view of the afterlife. It was obviously before the days of equal opportunities, because women should of course be included in that. We all continue to learn, so why not learn in the interests of the nation and the economy?
I thank the Minister for being a listening Minister and for her patience in listening to the points of view from these Benches. There is much to welcome in the Bill, but it is rather a curate’s egg. We welcome the modular approach, giving funding for units or modules to encourage people to learn parts of skills and qualifications and get credit for the parts they have mastered, even if not a whole qualification. We are also pleased to see the demise of the ELQ restrictions. It never made any sense to deter people from studying for a qualification of equal level to one they already held but in a different discipline.
But we are left with a number of questions. As the noble Baroness, Lady Wilcox, said, it is a short Bill and short on detail. Obviously, the Welsh seem to be doing it a lot better than us. First, the Liberal Democrats are not convinced that large cohorts of adult learners will be keen to take on debt, and the lifelong learning entitlement is indeed a debt. We proposed a skills wallet, putting money into learners’ pockets to be used to enhance their skills, learning and competence at three key stages of their careers. We argue that that money would be rapidly recouped by their enhanced earning capacity.
We know that many adults are loathe to take on additional debt, so I ask the Minister: what research was undertaken to establish what enthusiasm there would be for adults taking on debt to increase their skills? What criteria will be used to determine which modules are eligible for funding under the lifelong loan entitlement? How will positive student outcomes be defined? What career information, advice and guidance will be available to adult learners as they embark on their programmes?
We also have questions about maintenance support, which should be a key consideration when making changes to the student finance system. For learners to pursue flexible study, they are likely to reduce working hours or require childcare support. There is also a lack of clarity on disabled students’ allowance and eligibility. Can the Minister shed light on that? The suggestion is that all these details should be in secondary legislation, but we feel that we need more in the Bill.
The Open University is among those interested to find out how the Bill will help distance learners. They tend to be excluded from maintenance support, which can be a barrier to learning. Why is this? Will the LLE be accessible to all in 2025-26 or will it be introduced gradually for different courses, modes of study or age cohorts?
Fees and maintenance levels should be proportionate to a full qualification, with support to deliver wraparound support—such as well-being support, careers advice and access to facilities—and high-cost modules. Would high-cost modules attract pro rata teaching grants? If not, this would disincentivise modularisation in many disciplines where there are particular skill shortages; at the moment, we think particularly of maths, physics and—from this morning’s news—English. Are there examples of good practice already in place for modular learning? If so, we should build on them, not try to reinvent wheels.
When national vocational qualifications were introduced around 1990—I was involved in the very first one—how exciting it was that we had a system of vocational qualifications that could parallel academic qualifications in its simplicity. Oh dear—happy days. They were all in units and, after much debate, they were allowed to be accredited. Of course, Governments always choose to ignore vocational qualifications if they can, but I suggest that the lessons learned from those days could be just as useful if lifelong learning is to be successful.
I am sure that others will also wish the Bill well, but I hope we can make some amendments to ensure that it really does encourage and enable people to add to and embellish their learning and their contribution to their lives and those of the community and the economy. I look forward to the debate and the Minister’s reply.
Lord Stevens of Birmingham (CB)
My Lords, I declare my interests as an honorary fellow of Balliol and as the incoming chair of Cancer Research UK, one of the country’s largest independent scientific funders of British universities.
Compared with other major countries, and indeed with our own past, Britain’s economic performance since the financial crisis of 2007 to 2009 has been problematic. On productivity and growth, we have essentially been treading water for the last decade. If, like me, you buy the argument that this is partly because investment in skills has been neglected, you will see the Bill as a small but constructive piece of the jigsaw. As the Minister said, most of the British workforce of the 2030s is already in work today.
I judge that this is a sensible, technical Bill, but the question is: will it actually be impactful in the real world? There we have to acknowledge uncertainty. The Government’s impact assessment says that
“it is too early to confidently predict the likely response of providers and learners to the introduction of LLE fee limits and the impact on provision, choice, and take-up”.
That is true, but I suggest that beneficial impact will likely need five further actions: two on the demand side, as it were—to widen eligibility for lifelong learning support—and three on the supply side, to widen educational provision.
On the demand side, I am afraid that there are some early signs that the proposed approach to lifelong learning fee support may struggle to attract many people. As I understand it, the Department for Education and OFS short courses trial has so far advanced loans to only 37 people looking for new skills or career changes. As David Kernohan has pointed out, slightly mischievously, this is rather fewer than the number of MPs who will leave at the next election, looking for new skills and career changes.
I ask the Minister to keep an open mind on two things on the demand for the lifelong learning support. First, as we have just heard, can she reconsider the prohibition on maintenance support for those studying by distance learning? For a person bringing up children while in low-paid employment, who may have missed out on university the first time around, the biggest cost of undertaking more educational study is the opportunity cost of being out of the labour market. Distance learning is obviously a way of helping to square that circle. To me at least, it seems that access to maintenance support should depend on the personal circumstances of the learner, not the mode of tuition.
Secondly, I ask the Minister to consider allowing more flexibility in the minimum number of credits that qualify for the new lifelong learning loan. I note that 30 credits, which has been discussed, is the equivalent of perhaps 10 hours a week of study for 30 weeks a year, which may be too big a chunk to bite off for the type of adult learner we are looking to encourage through this mechanism. It is possible that 10 or 15 credits may be a better option for some. We all understand the complex interaction between employer-supported short courses and those that people pay for directly themselves, but it seems to me that at this stage of the legislation we need more flexibility.
Even assuming that those two points on the demand side can be addressed, on the supply side I suggest that, to expand educational provision in new ways, there are at least three further elements that will have to be in place for the Bill to fulfil its potential. Here I depart slightly from the last two speeches in that I do not criticise the Government for not putting all this detail in the Bill on this occasion. It seems to me that we will have to be flexible and agile as we go, so locking ourselves in through a whole load of specified tramlines as to how this will work would probably be a mistake at this stage. However, that does not mean that these further three questions on the supply side do not need answering, and I hope that the Minister will be able to do so.
First, we have to question whether the likely allowed tuition revenue per credit will be sufficient to cover universities’ costs, and hence whether universities, FE providers and other educational providers will respond by making available these new courses. Figures released last month by the Office for Students suggest that the higher education sector’s spending on educating undergraduate home students exceeded income. It made a loss of £955 million; in other words, it covered only about 95p on every £1 of its costs. There is no reason to think that these modular courses will be cheaper on average; in fact, it may be the reverse. So if these courses will be loss-making, why do the Government think that educational providers will choose to expand their lifelong learning modular options, where marginal costs exceed marginal revenues?
This gets to the question of whether or not, as the Minister said in her opening speech, it should be the case that modules are priced according to the number of credits, without regard to the underlying marginal cost of offering those programmes. We all understand that this is a can of worms. The appearance and reality gap between tuition fees and the revenues—the sticker price versus the way in which university finances operate for the current undergraduate system—will begin to come under great pressure, if you allow that kind of marginal pricing through this route. But if you do not, it is not obvious that educational providers will respond in the way that the Government want.
Secondly, on educational provision, in some fields of study for modular learning to work there will need to be an agreed sequence of study. Can the Minister confirm how the Government envisage these pathways being established? How do the Government envisage the recognition of credits across institutions working so that they are transferable; in other words, who will shape the new provision for lifelong learners?
Thirdly, I urge the Government to use this as an opportunity to be more radical in creating new routes into some of the professions. The policy summary note accompanying the Bill says, incredibly disappointingly:
“There are some courses (such as nursing) which are not well suited to a credit-based system and will be treated as non-credit-bearing for fee limit purposes”.
Can the Minister explain why that should be the case, when we now have great flexibility—as a consequence of not being tied to a set of European regulations—to ensure that we design more flexible routes into nursing, still as a graduate profession? For mid-career switchers thinking about moving into nursing, the ability to do so in a modular way will probably be essential for more people to make that transition—as will the possibility to create ladders of opportunity for those working in social care, who wish to get a health professional qualification.
Just to be clear, I am not arguing that we should replace the current undergraduate nursing routes. I am arguing that they should be supplemented, and to rule out nursing ex cathedra from the very flexibilities that have been discussed today seems a mistake.
In summary, this is a welcome and sensible Bill but, to have a beneficial real-world impact, on the demand side, it will need to provide more support and flexibility for potential learners and, on the supply side, considerable action will be needed to stimulate appropriate new educational options with perhaps a degree of radicalism not yet evident in the Government’s current proposals.
Lord Willetts (Con)
My Lords, I welcome the Bill. I begin by drawing the House’s attention to my interests as an honorary fellow of Nuffield College, Oxford, and a visiting professor at King’s College London. I also look forward to the two maiden speeches from new Members of this House, although it appears that both of them are significantly older than 29. We look forward to learning of their experiences.
The Bill is a very welcome measure, which brings extra flexibility into higher education and has the potential to yield bold reforms in how higher education is delivered. I very much hope that it works and succeeds in promoting access to higher education, but I warn the Minister that I hope that therefore it avoids the mistakes and problems that I experienced and which were referred to by the noble Baroness opposite when she talked about the decline in adult learning post 2010. We were actually very optimistic: we thought that extending larger fee loans to adult and part-time learners would maintain or even increase demand for higher education from them. However, it did not play out like that.
As I looked back on why that expectation that I had was not fulfilled, the lesson that I and others drew was that, for an 18 year-old, at a massive fork in the road in their life, choosing between going into higher education and doing something different—perhaps going into work—the overall benefits of higher education were clear and obvious, and they were willing to take out a loan, on the basis of payback if they were in a well-paid job. However, for someone already in work, who already has family commitments and who cannot be confident that taking a particular modular course will necessarily transform their earnings and opportunities, it does not look quite such an obvious and attractive option to take out extra debt—even though, as we all understand in this House, it is nothing like conventional debt. Given that that is the experience of the past decade or more, I very much hope that the Minister will be able to explain to the House why these lifelong loan entitlements will be successful in promoting demand for adult learning.
As we have already heard, there are then a set of issues about the supply of provision. It would be very interesting to know what scope there is. Perhaps the Minister is already in conversations with the Treasury about the circumstances in which these loans will be available to people. There may even be estimates going back and forth of the so-called RAB charge—how much of the loan is going to be written off. I hope that the Minister is successful in these discussions, but the more that she can share with us the information about what kind of provision she thinks she will be able to offer, as well as who is going to be making this provision, the more helpful it will be. It is possible that one of the most important and radical measures in the Bill is the new third category of registration with the Office for Students, which would enable new providers to come in and supplement existing provision from established universities. Can she share with the House a bit more information about how the new third category is going to operate?
I have some brief, specific questions. Obviously, one model is that we find that this entitlement is taken up by people dipping into more higher education later in life, but will the Minister confirm that this is a four-year entitlement that will be available for people after they start from university in the near future? Therefore, it would be perfectly possible for a new student to embark on a four-year course with a full four-year entitlement. Indeed, it may be—given the anxieties among adult learners—that the biggest growth is in four-year provision among new undergraduates. Will the Minister confirm that, if that means more people getting useful higher education for longer, that is something that the Government will welcome and support?
There has been a lot of concern expressed by the OfS and others about so-called positive outcomes from courses. One way in which you do not get a positive outcome is supposed to be if you drop out. We are used to a view of higher education whereby dropping out is a bad thing. However, it is very difficult to reconcile the rhetoric of dropping out being a bad thing with the celebration of people dipping in and out of higher education—doing a short course, then withdrawing for whatever reason, then coming back to do some more higher education study. If the OfS is going to carry on monitoring and criticising universities with high drop-out rates, and we are also going to encourage flexibility and moving in and out of higher education, I am sure that, if there is any person who can reconcile these two rather different approaches, it is the Minister in this House, and we very much look forward to her account of how the regime will operate. The fact is that some flexibility is actually a good thing, and the Bill is an opportunity to recognise that.
Finally, I hope the Minister will, in the course of our scrutiny of the Bill, share with us more about the metrics the Government will be using for success. How will we assess how well this is doing? What levels of take-up might we expect, what type of courses might students be doing, and how rapidly will she perhaps succeed in reaching her agreement with the Treasury on the scope and ambition of the actual provision that follows?
Baroness Blackstone (Lab)
My Lords, like other speakers, I welcome the Bill. My main regret is that it has taken so long to introduce a radical new system of finance for schools, universities and colleges to support study by part-time mature students. I say to the noble Lord, Lord Willetts, who was involved, that the coalition Government’s introduction of the £9,000 per annum fee loans system was a disaster for those students, leading to an enormous fall in their numbers over the last decade. That this was happening became apparent soon after the fees were trebled, but nothing was done.
It has also taken too long to respond to this element in Sir Philip Augar’s report, published in 2018, which contained a range of proposals to reform the financing of courses, in FE as well as HE, and promote lifelong learning and a more skilled workforce, but better late than never. At last, we have government recognition that many learners, especially mature students, will benefit from a system of properly financed modular courses with flexible start and end dates, and the possibility of building up the credit needed to graduate at the rate that is most suitable for the individual student. We should now be able to move away from a structure that has been completely dominated by inflexible three-year, full-time undergraduate degrees, at the expense of promoting both the supply and demand, which the noble Lord, Lord Stevens, referred to at length, of flexible alternatives.
Our economy has been blighted by low productivity for many years, much of which is caused by poor skills and too few opportunities to continue developing old skills and to apply new ones throughout our lives. The Bill is focused on higher-level courses, but there also needs to be far more funded support at level 3. We must not forget that 60% of young people reach this level by the age of 19, so 40% do not. Employer investment in training per employee has fallen by some 28% in real terms since 2005. Will the Minister say what the Government intend to do to boost level 3 study? This is, after all, a pathway to level 4. Will she say something about the reforms required to respond to the existing need for technical skills as well as technological change? Surely, defunding level 3 is not the answer.
The Bill is currently very broad-brush, as others have said, leaving much of the detail of how the new system will work to secondary legislation. Can the Minister tell the House when this will be introduced, presumably with much more detail on how fee limits will be determined? There are also a number of immediate questions to be asked about how the Bill’s proposals will be implemented.
First, what do the Government intend to do about maintenance support and eligibility for those taking the modular route? Secondly, what preparation has been done to ensure that the Student Loans Company will be properly prepared to support the provisions of this Bill? Thirdly, what will be the range and extent of the credit-based method? More clarity is needed on whether most courses will eventually be eligible for modular funding. What is the Government’s intention regarding the speed of introduction of the lifelong loan entitlement? Given that it will not be available for all courses and all students at level 4 in 2025-26 or at level 6 two years later, it is important for us to understand the criteria for what is selected initially. For example, as the Minister mentioned earlier, how will “high-quality” be defined and how speedy do the Government intend to be in implementing the full programme that this Bill intends to develop?
Clearly, the Bill proposes a new direction in how programmes are funded. Some changes will therefore be needed to the system of regulation by the Office for Students. The noble Lord, Lord Willetts, mentioned the issue of drop-out; some new thinking needs to be done by the Office for Students in this area.
I am sorry to ask so many questions, but every speaker today will want to do so because we do not know very much about exactly what this will look like in the end. The HE and FE sectors will certainly need more clarity, as will future students trying to make decisions about their mode of study as well as about what subject they choose. It is also vital that employers are fully engaged with the new system but do not exploit it to fund their own training. That would be a disastrous misuse of taxpayers’ money.
Lastly, there will be a need for carefully thought-out monitoring of the outcomes of this Bill. I hope the Government have plans for more initial pilots and then really rigorous monitoring, especially of the extent to which it reaches genuine new lengths as the system develops and expands.
I end on an optimistic note. I hope that what is proposed will be the beginning of a great cultural change whereby the nation truly embraces lifelong learning, and every man and woman realises that it is never too late to follow a course and will be helped and encouraged to do so. Then the vision of George Birkbeck and others 200 years ago starting the mechanics’ institutes, of Michael Young and Jennie Lee, who created the Open University, of the founders of the Working Men’s College, and of countless others who worked for the Workers’ Educational Association, will at last be realised.
The Lord Bishop of Sheffield (Maiden Speech)
My Lords, I am grateful for the opportunity to speak for the first time in this Chamber, and in support of this Bill’s aim of widening access to higher education. I look forward to hearing the maiden speech of the noble Lord, Lord Sewell of Sanderstead. I record my thanks to Members and staff for the consistently warm and generous welcome I have received and the helpful induction I have been given. If my experience of introduction to this House is typical, it speaks very well of the culture of this place.
On Thursday, it will be exactly six years since I was consecrated as a bishop at York Minster and took up my present responsibilities. The wonderful diocese I serve is made up of former steel-making and coal-mining communities across much of south Yorkshire, farming communities in parts of the East Riding and even a port in the town of Goole. I had never lived in south Yorkshire before but have found the city of Sheffield astonishingly green—I believe it to be the only city in England with a national park within its boundary.
Sheffield also boasts two professional football clubs: Wednesday and United. The former play in blue-and-white stripes, the latter in red-and-white stripes. Rather gloriously, both achieved promotion this past season. I am in the happy position of not having to choose between them but of being able to rejoice with them both, because my own football allegiance belongs—for historic reasons—to Newcastle United, who play in black-and-white strips. Noble Lords will understand the pleasure it gives me to don my club’s colours every time I enter this Chamber.
Every follower of Jesus Christ is a disciple. The word “disciple” simply means learner; almost by definition, therefore, every Christian is rather obliged constantly to be seeking to grow in knowledge and wisdom, in insight and skill. The Christian church is, therefore, again almost by definition, bound to be committed to the principle of lifelong learning and, therefore, to support any Bill which seeks to make lifelong learning more effective and more widely possible.
Personally, I recognise how privileged I am. I have benefited—at the expense of the taxpayer—from a world-class higher education studying for degrees in the traditional manner. I studied history as an undergraduate in Durham and then theology as part of my training for the ordained ministry in Cambridge. Subsequently, I undertook doctoral studies at Oxford. So I appreciate the value of scholarly immersion, of intense periods of lectures, seminars and tutorials, of reading and writing.
In ordained ministry, however, over the past 35 years I have served on Tyneside and Teesside, in the West Midlands, on Merseyside and in South Yorkshire. Immersion in these communities has left me in no doubt that a greater flexibility and access to higher education is urgently needed. Apprenticeship schemes have generally and lamentably languished in recent years. New initiatives are urgently needed to revive them or at least to fill the gap in training which those schemes previously met.
In the diocese of Sheffield, we boast two top-ranking universities: Sheffield Hallam University and the University of Sheffield. We also have the Sheffield Teaching Hospitals NHS Foundation Trust. However, across the diocese as whole, we are equally as proud of our less-heralded colleges with HE provisions in Sheffield, Barnsley, the Dearne Valley, Doncaster and Rotherham.
I was at Rotherham College only last week to meet the staff responsible for its HE provisions and to hear from them about this Bill. Few of the HE students at Rotherham College are in a position to access the education I received; their domestic circumstances and accessibility to learning are often very different from my own, and they require more flexible funding arrangements. They may be combining higher education with employment or childcare in a way I never did. The shift envisaged in this Bill, to enable learners, including mature students, to access funding in a modular way, is surely right and good.
As noble Lords may be aware, no fewer than 11 universities in this country have a Church of England foundation and retain a Church of England ethos. Known as the Cathedrals Group, these 11 HE institutions educate 100,000 students a year. These learners, as much as any others, stand to benefit from the provisions of this Bill, to unlock new opportunities for lifelong learning and to support a greater plurality of routes into higher education. These are very laudable aims, and I gladly support them.
However, I came away from that visit to Rotherham College last week with some sense of the scale of implementation challenges which are bound to attend a Bill as ambitious as this one—for example, in the management of learning provision to ensure that supply is as flexible as demand; or on the impact of learners taking advantage of newly flexible grant arrangements to switch providers, perhaps multiple times, in the accumulation in their modules and credits. I realise there is much detail in relation to this Bill which still needs to be worked through, but could the Minister assure the House that the Government are aware of implementation challenges such as these and will address them, perhaps in Committee?
In closing, I note that my colleague, the right reverend Prelate the Bishop of Coventry—the lead Bishop for the Church of England on FE and HE—would also add his support to this Bill, though he regrets he is unable to be in the House today. It is a great privilege to participate in this debate, and I look forward to many more such opportunities in the years ahead.
Lord Blunkett (Lab)
My Lords, I have a number of interests declared on the register in the higher and further education fields.
It is my great privilege and pleasure to welcome and applaud the excellent speech by my friend—he is my friend—the right reverend Prelate. I find myself the Spam, or maybe even the ham, between two maiden speeches. I wish the noble Lord, Lord Sewell, well and look forward to his speech. I will concentrate for a moment on the excellence of the speech just made by Bishop Pete.
Obviously, all of us who are resident in or have some association with Sheffield and South Yorkshire always like to hear the city and sub-region mentioned in the way that the right reverend Prelate has done. In his case, it comes from the heart because of his humanity and sense of place and emotion—backed up by his wife Cathy, whose books my wife Margaret and I would recommend to your Lordships. They might make your hair stand on end, but they have very interesting takes, including on the Church of England.
I thought that the right reverend Prelate’s maiden speech was an indication of his own understanding of and commitment to education—to the acquisition of knowledge and the ability to use it in the service not just of yourself but of others—and an understanding that the city and region he now serves were built on apprenticeships, crafts and artisan skills which were the measure of success in the past. It also showed why this modest but important measure can contribute, as my noble friend Lady Wilcox, on the Front Bench, said, to a jigsaw which adds up to offering people a way forward and a way out of disadvantage and poverty.
On his travels, the right reverend Prelate will accord that we see a lot of the challenges of intergenerational disadvantage in Sheffield and South Yorkshire. Some of it is because of the demise of steel and the mining industries and the lack of a proper transition. If anything, this small but important measure can help with the transition we are going to be making in the years ahead, both to net zero and to making the development of robotics and artificial intelligence a plus rather than a minus for people—something that will enable people to adapt and adopt new ways of working and experience new ways of learning. If we can do that, unlike the past, when major change often came at the disadvantage of the already disadvantaged, we can make it a trampoline by which they can learn.
Working together, I am looking forward to the right reverend Prelate’s contribution in future. I have given him only one small piece of advice: try to keep Prayers short, if you do not mind. It really helps us in terms of our enthusiasm to be in there, participating and listening.
I will add to what people have said only very briefly, because much of what I was going to put to the Minister—which I have already done privately—has been touched on on a number of occasions. We need to learn from that very small trial, that small pilot, and work out why people in the beginning of the process found it so difficult to be enthused or to connect. What relationship will these measures have to credit and modular learning and to information and adult guidance, which will be fundamental to people getting it right? Why not have smaller credit accumulation, as has already been described, so that people can get a foothold and perhaps move from five hours a week over 30 years to 10 or 15, perhaps with the help of their employer?
I am here today in many respects only because of the day-release class that I was able to take advantage of all those years ago. It is true that credit accumulation and a loan scheme of this sort could be blended with the entitlement given by employers, where people already have a job, or with part-time employment, which would be an opportunity for people to take their learning into new realms. It is also true, as has already been described, that the more flexible the opportunities offered, the more likely people will warm to them.
The figure given of only 70,000 people taking level 4 and 5 qualifications outside the university sector is extremely worrying, and anything we can do to ensure that that statistic is changed for the better has to be good. However, it involves being flexible about the nature of learning, how people are learning, and how providers can work together, not just in franchising but to make it possible for people to accumulate modules and to be able to exchange them and move from one provider to another in a seamless and rational way.
I finish with an appeal, which the Minister will appreciate. If there is to be a jigsaw, and small measures such as this are to be fitted in, there will have to be a degree of give and take and flexibility from the Department for Education and beyond. We cannot have people unable to accumulate the appropriate level 3 to move, whatever the distance and blended learning may be, to levels 4 and 5. If they have not got to level 3 in the first place, the chance of them doing that is zilch.
It is not just about getting it right for 16 to 19 year-olds, who my noble friend Lady Blackstone rightly mentioned, and not trashing T-levels, but giving students some degree of choice and ensuring that high-quality advanced qualifications are available for those whose maturity in both the emotional and educational spheres—their pedagogy learning—requires something different. All the runes tell us that, if we are not careful and do not moderate and allow a little give in the push to defund—in other words, to delay it slightly—there will be even fewer people reaching level 3.
Let us try to put the jigsaw together so that we encourage people to reach level 3, they move on to levels 4 and 5, and they come back into learning throughout their lives and take advantage of the greatest gift other than—the right reverend Prelate will forgive me as a Methodist for saying—the love of the Lord, which is education. Get this right and the Minister and her colleagues in the department might be remembered for something really good; get it wrong by being too rigid and they will be remembered only for a piece of the jigsaw that did not fit.
Lord Sewell of Sanderstead (Con) (Maiden Speech)
My Lords, I thank you all for the opportunity to give my maiden speech during this debate on lifelong learning.
Before I start, I must confess that my wife and daughter have warned me severely that I should not tell any jokes, because they claim you will not find me funny—a bit like dad dancing—so I shall try to refrain. I was also told to refrain from any football metaphors. That said, I am sure that many of you have been curious about this new signing: will he freeze in the penalty box or will he be the new Erling Haaland, able to deliver 50 goals a season and help my party to victory? As my mother would say, only time will tell.
I start by thanking noble Lords across the Chamber for taking me in in my first few weeks. I know many of you smiled as I pretended to know where I was going. I give a special call-out to the doorkeepers, who have been particularly friendly to me, with a great sense of humour—especially the ones from south London. I am also grateful to my noble friends Lord Godson and Lord Mendoza for introducing me to the House and for their continual mentorship, which has been really helpful.
My parents came here in the 1950s, as part of a group of Caribbean pioneers hoping to make some money then go back home. They did not, as a false myth would have you believe, come here to help build back Britain. They were not on some noble mission to save the mother country. However, like many, they stayed on, and soon owned their own home outright while supporting their relatives back in Jamaica and their own children here in the UK. If my parents were alive today, they would be proud of my achievements so far.
The idea of lifelong learning is appropriate, given my long-standing work in education. I am a trained teacher, a teacher trainer, an education researcher and a consultant. In 2002, I was lucky to be part of the board of the Learning Trust in Hackney, the body that took over the miserably failing Hackney education authority; I would like to link these comments with my friends Mike Tomlinson and Alan Wood. At the time, we faced an authority that was deemed not only the worst in Britain but the worst in Europe. Led by those two—as I said, I was grateful to be part of that team—we turned it around within five years. It became, as noble Lords know, one of the best authorities in the country, with the authority’s flagship Mossbourne Academy, which led to the academy movement that we know today. I am really proud to have been part of that movement.
STEM—science, technology, engineering and maths—subjects are key to the country’s development. Back in 2004, I had the foresight to create a pipeline programme, starting with 12 year-olds and developing them during the school holidays into a new generation of talent. I called that charity Generating Genius. It led to thousands of young people from poor and black backgrounds studying STEM subjects at university. In fact, when I visit Oxford colleges and hear a south London accent and wonder where it is from, it is often a student from our programme. It is encouraging to know that and to see their fruition—and the noble Lord, Lord Blunkett, spoke a minute ago about starting early and building up.
The other key aspect of the programme is that we give young people fantastic career development by exposing them to a range of opportunities that their schools would never have the capacity to do. We have recently made the decision to share the programme across all income groups, across the country, from Hastings to Hartlepool.
In 2021, I chaired the Commission on Race and Ethnic Disparities. Using data from the Office for National Statistics, the commission disrupted the usual narrative and showed that many of the disparities in education, employment, crime, policing and health were founded on multiple and complex factors based on class, geography, family structure, and individual and group agency. I am happy to say that the Government accepted all our recommendations and produced an excellent policy document, Inclusive Britain. Racism persists on all levels; I am proud that the recommendations are delivering sensible solutions.
I now see my work as helping to champion a group that has been marginalised, misunderstood and maligned. I am talking about the British small farmer. As a fledgling farmer myself, I must declare my interest. We need to ensure that farming is linked to our developments in science, particularly in hydroponics, and the other green technologies that we in this country are at the forefront of developing. We need to make farming a real skill and aspiration for a new generation.
I am also interested in the need for skills development in young people. In the past, the cry was, “Education, education, education”—I daresay that it occurred across the House. The cry that we are all embracing now is, “Skills, skills, skills”. What emerged from my so-called race report was a recommendation for the Office for Students, the university regulator, to stop universities offering poor-quality courses or face tough regulatory action. We need more students doing vocational-related degrees, particularly those from underrepresented backgrounds.
As a farmer, an innovator, a developer of STEM skills and a change manager, I hope to make some humble contributions to the work of the House. I look forward to working with all noble Lords in this great Chamber of revision and scrutiny.
Lord Hannan of Kingsclere (Con)
My Lords, I declare my interest as a visiting professor at Buckingham University, many of whose customers are adult learners. What a pleasure it is to follow those two outstanding maiden speeches. The right reverend Prelate the Bishop of Sheffield spoke about his scholarly immersion and his pastoral immersion, although he did not call it that, and gave us a distilled version of all the things he had learned. I hope it will be the first of many such contributions.
It is an immense pleasure to speak after and to welcome my noble friend Lord Sewell of Sanderstead. If one of the functions of this Chamber, and one of the purposes intrinsic in its composition, is to bring us a diversity of perspective and complementary skills and backgrounds then, as we have heard, he will be an outstanding contributor, enlarging our view and ennobling our debates. As we heard, he is the son of Windrush generation settlers who had the courage and enterprise to leave everything behind and start from the bottom in a new country, which should be honourable enough. I am conscious that Thursday is the 75th anniversary of Windrush, and it is slightly bizarre that we have to pretend that this was some kind of gap-year poverty tourism to help the post-war UK. There is nothing sordid about wanting a better future for your family; it is a very good thing. We are very lucky as a country to benefit from the energy and enterprise of people so motivated.
My noble friend then became an inner-city teacher, again not in any spirit of poverty tourism but because he wanted a job and was in the inner city. He became a successful role model to generations. There, he had the initiative to set up his STEM charity, initially getting black boys into STEM subjects. He has now widened it to cover underprivileged kids from all communities. Generating Genius is a terrific enterprise.
Something that your Lordships did not hear about him is that he was also a columnist and regular contributor to the Voice in the 1980s, when that newspaper was a model of intellectual diversity, variety and pluralism. There were meaningful debates about the role of family, the role of employment and so on, in a way that in our clickbait age almost every newspaper could learn from. We have become a lot more siloed.
He was also the author of that report, of course, and came in for a lot of flak, including from one or two Members of your Lordships’ House. But it is worth mentioning that the report he chaired was written by ethnic-minority Brits, all of whom had achieved distinction and excellence in a field other than the race industry. They were there because they were outstanding educators, economists, scientists or whatever. It is a glimpse of a future Britain where individuals from every background are judged according to their success in whatever field, rather than everything being dragged back into the old paradigm of race, although as we saw in the response to the report there are one or two who still want to drag us back there.
I support the Bill for the reasons that we have heard on all sides. The noble Lord, Lord Blunkett, and the noble Baroness, Lady Blackstone, gave an outstanding history of how lifelong learning has been a tool for the betterment of people throughout this country down the centuries. If they do not mind me saying this from the outside, the proudest boast of our labour movement in this country, in its broadest political sense, was the way in which it saw politics as a way of raising people up rather than tearing people down.
At the end of last week we had a debate on the role of freelancers. To repeat a point I made then, I look at my own children, one of whom is just starting school and one of whom is leaving university, and do not think that either of them will have a job as we understood that word in the 20th century. They will go through life constantly reskilling, freelancing and adapting to accelerating technology.
The old model we had, in which you go to school, work and then retire, has gone. We need to adapt in all sorts of ways, with all sorts of policy responses in how we see social security, pensions and employment law. But, above all, we need to change the model of learning. As artificial intelligence spreads, as the turnover of jobs speeds up and as more positions become obsolete while others are created, the need will increase for people to come back in, briefly, to learn the requisite skills. The role of government here is to facilitate; it is not to provide but to remove obstacles.
Had it been up to me, I am honestly not sure that I would ever have gone down the road of limiting fees in universities. How did the noble Lord, Lord Stevens of Birmingham, put it? He had a nice phrase about it being tailored to the circumstances of the student, not the mode of learning. I would have looked for ways to support individuals, but that debate has been and gone. Within the world in which we exist, the Bill removes some anomalies, tidies things up and creates a fairer opportunity for those coming later. I am conscious of the point my noble friend Lord Willetts made about the difficulty that older people have in taking on new loans but, in an age when people need to learn cutting-edge skills, there must surely be ways for Governments to provide that support.
The big picture, on which noble Lords from all sides agree, is the need to rethink the role of education. We need to create a kind of model in which people, at any point in life, are able to switch and reskill as needed. Doing so makes us not just more employable but more interesting and interested. It makes us more engaged, rounded and content.
Lord Rees of Ludlow (CB)
My Lords, I declare an interest as a member of Cambridge University. Along with other speakers, I welcome the introduction of the LLE and hope that what is now proposed is just the first step towards creating an expanded and more flexible support system, spanning further and higher education. My comments will focus first on level 6 courses—traditional bachelor’s degrees. I will then venture brief thoughts on broader structural changes.
University campuses were silent and deserted during the peak of Covid-19. Two cohorts of students had a really rotten experience. Life has been gradually restored, but nobody expects full reversion to the old normal—nor should we wish for it. Lessons learned in the crisis should energise and accelerate some much-needed reforms of the whole post-18 education sector.
Most students are of course between 18 and 21, undergoing three or four years of full-time, generally residential education and studying a curriculum that is too narrow, even for the minority who aspire to professional or academic careers. This basic structure has prevailed since the 19th century, but universities have vastly expanded and now encompass about 50% of young people.
Post-18 education needs to be much more flexible and open, as fast-changing lifestyles offer new opportunities for both work and leisure, and technology offers new channels and opportunities. The system should offer everyone the opportunity to enter or re-enter, maybe part-time or online, at any stage in their lives. This path could become smoother, indeed routine, if there is a system of credits and modules that is respected and recognised across the whole system of further and higher education, thereby allowing transfers. Many will still pursue a traditional undergraduate course, using up their entitlement all in one go, but it is a real plus if they can instead choose to use the LLE à la carte—year by year or by a succession of modules at any stage in life.
Students who embark on a degree course but realise that it is not right for them or who have personal hardship should be enabled to leave early with dignity, with credits that formally record what they have accomplished. They should not be disparaged as wastage: they should make the positive claim that “I had two years of college and have an entitlement to return and upgrade later”. Indeed, the overwhelming focus on a degree needs revision. There is nothing magic about the attainment threshold that is reached after three or four years.
Another thing is that it would improve social mobility if universities, such as my own, whose entry bar is dauntingly high were to reserve a fraction of their places for students who do not come directly from school. They could thereby offer a second chance to those who were disadvantaged at 18 but have caught up by earning two years’ worth of credits at other institutions or online. Such students could then advance to degree level in two further years.
It is a sad fact that the worst educational inequalities are imprinted earlier in life in the pre-school years and during school education. It will be a long slog to ensure that high-quality teaching at school is available across the full geographical and social spectrum. However, promoting lifelong and part-time learning, with flexible assessment, would go some way to offering more support to those whose deprivations start in infancy and lead to barriers that become harder to surmount and to exclusions that offer no second chances.
What about the courses themselves? There is now, post pandemic, more experience of online and remote teaching. We can learn especially from institutions that had already spearheaded innovations pre pandemic, above all the Open University, and let us not forget Arizona State University in the US. We must hope, incidentally, that there is a sympathetic government response to the Open University’s well-based concerns that current proposals do not offer support to mature learners based a substantial distance away.
Purely online courses, the so-called MOOCs, have had an ambivalent reception. As stand-alone courses without complementary contacts with a real tutor, they are probably satisfactory only for level 7 vocational courses aimed at motivated mature learners studying part time. These courses should be eligible for support, but there will surely be a demand for vocational courses to develop skills at levels 4 and 5. These would open up an expanded role for new providers, many of them online, that do not possess the infrastructure of a regional college. There would then of course be a crucial need to ensure quality control via Ofqual. Indeed, it might be optimal for these courses to be overseen on a national scale by relevant professional organisations.
Accreditation and assessment of individual students is going to be challenge, and perhaps the Minister will say how this will be addressed. It is a challenge especially because traditional continuous assessment in non-practical subjects has been scuppered by the advent of ChatGPT and its successors. It should be possible for a student to be tested by some kind of examination board without having followed any particular course, rather as you can now take an A-level wherever or however you have been taught.
Although we must prioritise the case for the relevant skills and the economic situation in the UK, let us not focus too much on them. We heard about STEM, but we must also have STEAM, where A stands for the arts. Let us also not focus too much on the earnings boost engendered by courses. For instance, if advanced study enables a creative artist to become proficient enough to make a living by following his or her avocation, that is surely valuable even if they barely earn a living wage.
Finally, let us hope that the lifelong learning initiative does indeed promote what it aims to do, and that universities and other bodies are incentivised to release content. They should release content—excellent lectures, for instance—that are not just part of a course but can be watched free online in this country and around the world by those seeking education for its own sake and not for vocational reasons. In a society with vast technological change, the aims should be to widen people’s horizons and spread knowledge of UK culture, so that the life chances of young people are not constrained by what they have achieved or failed to achieve by the age of 21.
Lord Johnson of Marylebone (Con)
My Lords, I echo others in saying what a pleasure it is to follow those two excellent maiden speeches this afternoon. I draw attention to my interests in the register, particularly as visiting professor at King’s College London and as chairman of FutureLearn.
I sincerely welcome this Bill as it addresses a very important problem with our current funding system for higher education. Our system, modified by my noble friend Lord Willetts, is one of an income-contingent, time-limited graduate contribution towards the repayment of heavily subsidised loans for tuition and maintenance. In my mind it is the least bad of all available systems, but it does have three flaws.
The Bill is important in that it address one major flaw: the impact that our current system has had—as we have heard from many Members this afternoon—on lifelong and adult learning, which has been in crisis in this country for a decade. On its own, however, it is not enough, because it does not address two prior problems with our student funding system: the fact that our system has not allowed for tuition fees to rise with inflation, which has led to the progressive defunding of our universities, and the increasingly precarious dependence of our universities on international student tuition income, cross-subsidising domestic tuition and the important research that goes on in our system.
Sadly, this Bill does not address that problem. Nor does it address a related issue: we have a system that has no link at all between the quality of provision and the fees that institutions can charge for that provision. It is very important to have alignment between quality and funding; it seems to me essential that we put such a system in place. The coalition Government did attempt that under David Cameron’s Administration when they instituted a link via the teaching excellence framework, which resulted in the only year of inflationary uplift to tuition funding over the last decade. Institutions that participated in the teaching excellence framework were allowed to raise their fees from £9,000 to £9,250. Sadly, however, that sensible innovation lasted only one year, because a snap election resulted in the Government losing the majority on which the policy depended.
Since that time we have seen, effectively, a crisis whereby our institutions, so important to our future as a knowledge economy, are becoming increasingly financially vulnerable. Had we stuck with the mechanism that the Cameron Government instituted, we would not have a situation where, for example, UEA had a £40 million deficit this financial year; tuition fees would have been allowed to rise to around £11,700 for those institutions that acquitted themselves well in the teaching excellence framework; and we would have a link between teaching quality and funding, which any sensible system should have.
So, all that aside, it would be better if this Bill reinstated a link between quality and funding and made automatic an inflationary uplift in the upper limit of our tuition fee system, to put our universities on a stable footing. But that is by the by. The important thing is what this Bill does try to do; that is what is important today. The Bill creates a framework for us to move to a much more flexible system whereby we fund credits rather than years of study and enable people to dip in and out of learning throughout their lives. That is really welcome. I thoroughly support the objectives of the Bill and the framework that it creates for a much more detailed policy that is, hopefully, to come.
My concern, though, is about a policy that is in development at the moment in the department. There are lessons that we need to learn from the short-courses trial, which a number of Members have already referred to today. The trial is clearly struggling, with only 37 participants to date. That really is a paltry number, and I do not think it is sensible for us just to plough on and not try to learn some lessons from what is going on right now with the pilot and from the rather lacklustre response from providers—universities—in coming forward with suitable content for LLE funding.
There are potentially three lessons that we might preliminarily try to draw from what is going on with this pilot, and they are as follows. First, it is a mistake for us to focus so narrowly on level 4 to 5 courses at the expense of level 6 and level 7—that is, master’s—courses. Obviously, levels 4 and 5 are important, and I am not trying to say we should not have people doing level 4 and 5 study, but it is disappointing that modular degrees are not going to be available until the academic year 2027-28, almost a decade after the Augar report was commissioned and eight years or so after it landed. That is an inordinately long time for us to be getting off the policy drawing board into delivery mode for modular degrees, and I think the department could actively look at ways of accelerating that.
In respect of level 7, as the noble Lord. Lord Rees, said, it is important that we make modular funding available for level 7. Of course, master’s loans are available in non-modular form outside the LLE, but many people in work who already have level 6 qualifications will want to continue to progress to higher levels of educational attainment and will want to access level 7 courses. So I strongly urge the Government to remove their mental block on making LLE funding available for levels of study above level 7.
The second lesson that I suggest can be drawn from the pilot is about the minimum size of funding for which LLE funding will be made available. As the noble Lord, Lord Stevens, said in his excellent speech, 30 credits is too large a block of funding both in terms of learning commitment and time and with regard to the amount of loan funding—probably over £2,000—that the learner will have to commit to taking out. Other countries’ experience is that blocks of study of 10 or 15 credits are a much more flexible way of getting this thing off the ground, and I urge the Government to be a bit more flexible regarding the minimum size of funding that LLE will make available.
My third lesson, and this is probably the most important one, is about the kind of provision that will be eligible for LLE funding. At the moment the Government are determined, as far as I understand, to replicate provision that already exists; it has to derive from an existing HE qualification. In effect, we are saying that we want more of the same but in smaller pieces. This is a big missed opportunity. We want to enable learners to access different kinds of provision from different kinds of providers in different shapes and forms. We do not want to create a policy framework that completely chokes off innovation at this stage. Learners, as Andreas Schleicher from the OECD put it in his recent HEPI lecture, will want to access many different types of provision from many different types of provider in lots of different ways, so I urge the Government to be a bit more flexible in the range of providers and the types of courses that they allow into the LLE funding regime.
Those are three early lessons that I would draw from the pilot. I do not think it is irremediable at this point. We are not going to launch the LLE until 2025-26, so there is plenty of time to get the policy right, but we need to crack on with it. In the meantime, I strongly support the Bill for providing the legislative framework for what I hope will be the skills revolution that Ministers want.
Baroness Thornton (Lab)
My Lords, it seems clear, from listening to the noble Lords, Lord Johnson and Lord Stevens, and my noble friends Lady Blackstone and Lord Blunkett, that there is a great deal of agreement across the House about the things that we need to address in this Bill. I for one am really rather looking forward to our sessions in Grand Committee because we might make some progress.
I congratulate my noble friend on her opening remarks and say how much I enjoyed the maiden speeches today. I say to the right reverend Prelate the Bishop of Sheffield that I forgive him for being from South Yorkshire, not West Yorkshire. In terms of football teams, if he put a flash of yellow in, he could of course support Leeds United, which would be a wise thing to do at the moment—they need all the support they can get. I am sure that the noble Lord, Lord Sewell, will make his own distinctive contribution to your Lordships’ House.
I wish to speak about why lifelong learning is so important and to pay tribute to the person who I believe helped to set us on this path many years ago. He has already been referred to by my noble friend Lady Blackstone. I had the privilege of working with Michael Young—later my noble friend, as he became, Lord Young—at the start of my working life at the Institute for Community Studies in Bethnal Green. Your Lordships will all know of Michael Young: sociologist, social innovator and reformer, and a politician. During his seminal research in the East End, Family and Kinship in East London being the most famous, and over years of research in those communities, he learned, as he put it to me over 40 years ago, that working people could not access higher education or university because they had to go out to work, usually when they were 15 or 16 years old. My noble friend Lady Blackstone, who modestly did not say that she is a former leader of Birkbeck College, mentioned the institutions which tried to address that over many years.
I know that is an obvious thing that working people had to go out to work in those days at 15 or 16. Speaking as somebody who was the first in their family to go to university, and is married to someone who was the first in his to do so, we come from the kinds of families where such a thing was not usually possible, however smart the person might be—my mum certainly was. Even if they managed to pass the exams which should have qualified them for higher education, family circumstances and the imperative of earning a living and supporting themselves and their family meant that it was out of the question.
It was not that some of them did not make it through the system—of course, they did. My father did an apprenticeship and was a master plumber. My uncle Jim became a draughtsman and helped to design fighter aircraft, but he was the exception in a large family stuffed with smart and ambitious people. We were of course very proud of him. To get a degree after you had started your working life was rare, so the Open University and the institutions that we are discussing today are to address the waste of talent and thwarted ambition.
Higher education became accessible to the likes of me and my generation thanks to successive Labour Governments’ support for and expansion of it. But that came from the recognition of Michael Young, because he looked, as he did in so many other areas of disadvantage, for practical solutions. We have Which? magazine at the moment, for example, because he set up the Consumers’ Association. Over the 1960s he saw the establishment of several institutions, with—it has to be said—a mutually useful political relationship with the man who became the Labour leader, Harold Wilson. There was a commitment for the Open University to be set up and included in the 1964 Labour manifesto, then to be in the Queen’s Speech and open for business in 1969. It was part of that Labour Government recognising the need for a leap forward in the country—Harold Wilson called it the white heat of technology—in science and modern education. Just like that, today, the Labour Party is launching its vision and mission for rebuilding our economy and greening our world. Who knows what innovations might be necessary or lie ahead with the radical shift that we may well need in our skills and education system?
Michael Young had to tackle the academic community and convince it that a robust degree could be achieved through distance learning and over a longer period. I expect the Minister and her colleagues have had to do much the same in recent times. He had to address the issue of preparing students to apply and be ready to study. In 1960 he created the Advisory Centre for Education and the National Extension College to do these things and achieve distance learning, using the tools then at their disposal.
The idea that new technologies such as radio and television could be used to bring education to a wider audience began to surface as long ago as the 1920s. “Dawn University” on Anglia Television became the prototype of the Open University, which was part of Harold Wilson’s vision. The partnership between two great institutions, the newly formed Open University and the BBC, used the technology that existed at the time to move forward.
Given the amazing availability of technology to assist learning, for the Government to have excluded distance learners from maintenance support seems a backward move if we are serious about lifelong learning and its accessibility. I ask the Minister to address that question. Currently, part-time students studying face to face are entitled to maintenance support, but the vast majority of part-time distance learning students are not. The introduction of the LLE could be a real opportunity to make this important change, which would bring greater access and flexibility to lifelong learning.
The promotion of flexible learning is why we support this Bill. It needs to be improved, but we absolutely support its core aims to widen participation and support student outcomes by allowing distance learners to take unpaid study leave or reduce their hours of work to focus on their studies. Recognising the ambition to study, learn skills and be more ambitious about lifelong horizons should lay at the heart of this Bill. It is good for industry and business, and for individuals and their families.
That leads me to my final points. As my noble friend Lady Wilcox said, we need to see the Government’s vision of what they are building. It is not entirely clear how this Bill and the previous legislation will promote lifelong learning, and what the Government intend to do to promote that demand. I agree with what the noble Lord, Lord Stevens, said about the need to promote and encourage demand and the need for more flexibility. Indeed, I agree with the noble Lord’s remarks about the supply side and how that might be delivered. I have to say that I also agree with the noble Lord, Lord Willetts, who asked: how will we know if this Bill has succeeded, and when? There is a large measure of agreement across the House on how we might improve it, and I look forward to working with noble Lords to do so.
Lord Shipley (LD)
My Lords, I am very grateful to the noble Baroness, Lady Thornton, for reminding us of the role of the Open University over many years. I spent over 30 years of my life working for the university. I share the concerns she expressed about the latter days; I think we had not really understood the negative impacts of the changes to the funding regime in 2010. I hope that this Bill will be one of the means of seeking to put that right. The noble Baroness’s point about a level playing field and equality of access for students following distance learning courses was very well made.
I join with others in congratulating the right reverend Prelate the Bishop of Sheffield and the noble lord, Lord Sewell of Sanderstead, on their excellent maiden speeches. I look forward to hearing their contributions in the months ahead.
I worked with other colleagues on the skills Bill, and it was clear then that the lifelong learning entitlement would need to be a key element of the Government’s skills policy. I am pleased about the consultation that has taken place on the Bill and the timing of its implementation, from 2025, which are very important.
The Bill is an important step forward for individual learning, for the economy and, crucially, as a number of speakers made clear, for improving the country’s productivity, for I believe that it will prove to be a key element of that. The opportunities for the green economy, such as the North Sea, the net zero hub on the Humber, the increasing need for more semiconductor industries and the need for battery manufacture, will all help to create clusters of new industries. That means that the skills required for those will need to be developed locally, using all the elements in the skills Act.
As the noble Lord, Lord Hannan, said a moment ago, the nature of work is changing around us, and it will go on changing. We need the provisions in the Bill, which will enable people to keep learning over a much longer period than just the conventional three or four years. So I am supportive of the Government’s intentions with the Bill, which will make a huge difference to adults of all ages by allowing them to access learning flexibly during the whole of their lifetimes.
As the noble Lord, Lord Willetts, said, the decline since 2010 surprised everyone. There has been a significant decline in adult participation rates in recent years, which are lower in England than in Wales and Scotland. The decline in participation since 2009-10 is over 40%, which is evidence that we need incentives and flexibility for adults to study so that it suits their own career planning.
The Minister may recall our concern about the whole package of reforms the Government are introducing and the extent to which T-levels will prove a success—I hope they will. It is about the financial strength of the further education sector and the success of apprenticeships. Not enough young people are being encouraged into apprenticeships from which they can then progress to the higher levels, if they start as a young person at a lower level.
I am pleased that the Bill will give access to loans equivalent to four years of post-18 education at levels 4 to 6. Level 7 was mentioned, and I am interested in how the Minister will respond to that. But it is good that, at higher, technical and degree level, it can be modular, part time or full time; that flexibility is evident in what the Government are saying. However, the noble Lord, Lord Blunkett, and others identified the progression route from levels 2 and 3, and, from our conversation in our briefing last week, the Minister will be aware that there need to be pathways into level 4. We need to talk further about how we increase the participation rate.
I take the point that the noble Lord, Lord Stevens of Birmingham, made about secondary legislation. I am probably one of those who thinks that we do not need everything to be in the Bill, simply because we may need to be very flexible about how we respond to things like demand.
My noble friend Lady Garden of Frognal talked about debt and maintenance support. These are real issues, and I hope that the Government look at the idea of the skills wallet, which has a lot to commend it. We learned in 2010 that older learners, with their higher domestic costs and household obligations, are less attuned to taking out loans when the outcome of taking out that loan may not be absolutely obvious to them at the time. I think that we need to have a debate on that, which we may be able to do in Committee.
One other issue I raised last week with the Minister is whether the universal credit system needs any adjustment to ensure that learners do not risk losing their benefits when undertaking a course. Anything that the Minister can tell us now or later would be useful.
In conclusion, a lot of questions have been asked, and I will not repeat them. However, the issue of careers advice and guidance has been raised by a number of speakers. There will be demand for substantial advice and guidance by individuals from institutions and professional bodies—and maybe from trade unions—all of which will have a role in helping. It is true that there is a wide body of support for this Bill, and I am included in that. It is a huge improvement, and it really matters that this is successful. All that we say at this stage and in Committee will relate to the fact that we want this to be a success.
The Earl of Kinnoull (CB)
My Lords, it is a great pleasure to follow the noble Lord, Lord Shipley, who was typically thought-provoking. I add my congratulations to both the right reverend Prelate the Bishop of Sheffield and the noble Lord, Lord Sewell of Sanderstead. I understand from the latter’s speech that Sanderstead is near Haaland—that is an inside joke. Both showed great breadth, and they will add to our Chamber; I very much look forward to seeing them in the coming months.
I am also a supporter of this Bill. I was a Member of your Lordships’ Select Committee on Social Mobility in 2015, which studied this area. Although our eventual report was on youth and the transition from school to work, we took evidence that was far wider. One of the people we took evidence from has just left her place: the noble Baroness, Lady Wolf of Dulwich. At the end of the evidence session—I have my notebook—she was asked what she felt should be taken away from it. I made a note of what she said and underlined it at the time. She said that we should move towards lifetime entitlements so that you can take things as and when you want. She said that then, but the noble Baroness, Lady Blackstone, reminded us that it has been rather too slow in coming. I very much agree with that, and that is why I am delighted that it is here now. The interesting thing about it appearing in the House of Lords, in a very short Bill with a very simple proposition which we all agree with, is that we immediately start looking at the detail and see that there is a host of issues. Our process is very much under way.
As I am near the end of the speakers’ list, I have quite an easy job, because I can say that there was one speech made that I would have loved to have made myself: that by the noble Lord, Lord Stevens of Birmingham. I agreed with absolutely every single word, and many other noble Lords have commended him on it. I do not want to pick out anything in particular from the speech, but the noble Lord, Lord Shipley, mentioned the flexibility point; it is a point that I very much associate myself with. In fact, the noble Lord, Lord Johnson, made a number of similar points.
I will add to my probes with a few on devolution; I am a Scot, so I am naturally interested in the topic. I have two general areas to probe. First, the Bill extends to England and Wales but applies to England only. That is explained in the Explanatory Memorandum, as a slightly arcane point. However, we live in a union of four nations, so the natural question is: why is there only one nation included in the Bill?
We have, of course, a new system of interministerial groups, which meet regularly on various topics. The Interministerial Group for Education met in January, June and December last year, and in each case, on a fairly short list of topics that was covered, lifelong learning was one of them. So we know that it was at least being discussed there, but we do not know anything about what is being discussed in 2023, which is a difficult problem, and I am sorry that we do not. It seems unreasonable that we are not told fairly quickly about that—although that is not something that I am putting to the Minister. It would be very helpful if the Minister told us a bit more about these discussions. This is a UK House, and the Minister is a UK Minister. Could she tell us as well whether there are any expectations that the other UK nations will come forward with similar provisions, which would be very welcome?
The second general area on devolution—and this is the last point I am going to make—is how the Bill would work in technical terms. I have a few examples here, and I am not expecting the Minister to respond to them on the hoof. However, they demonstrate a little more what happens when you start dragging under the surface. For instance, if I max out in Wales, as a Welsh person, and then move to London, do I re-zero the clock? Can I borrow again and support myself? I would be delighted if that were the case but I do not know. If I do absolutely nothing in England then move to Scotland, will that mean that I have zero entitlement to do anything? I think I know what the answers are to those questions, but it is not written down anywhere, and no one else could possibly know it. My third example is this: if I am a Northern Ireland-based citizen, does none of this apply to me and is there nothing available to help support me? I could go on.
It would be helpful if the Minister could commit to providing some sort of written summary of the principles for people in the United Kingdom, from the different areas; all the various obvious permutations of what could happen could be explored if it could be written down carefully. That could be in a letter to me, or it could be some form of additional Bill document. In the meantime, I wish the Bill well.
The Earl of Dundee (Con)
My Lords, it is a pleasure to follow the noble Earl, Lord Kinnoull, who gave us some territorial conundrums just now—but I can assure your Lordships that he lives in a fixed location, as my neighbour on the other side of the Tay estuary. On their excellent maiden speeches, I warmly congratulate the right reverend Prelate the Bishop of Sheffield and my noble friend Lord Sewell of Sanderstead.
I too welcome this Bill’s provisions and emphasis that fees and other costs must not be allowed to prevent or dissuade lifelong learning. Briefly, I shall mention three aspects and the extent to which each should be included within the Bill: first, online learning and research; secondly, an international focus; and, thirdly, informal education. All three are interconnected in any case and can also be viewed along with the Higher Education and Research Act 2017, to which today’s Bill seeks to relate.
The Covid pandemic restrictions illustrated the benefits and challenges of online learning. During its G7 presidency in 2021, the United Kingdom championed online learning, especially for girls in the global south. Since February last year, hundreds of thousands of displaced Ukrainian students continue their learning through online courses, many also in the United Kingdom. Education opportunities for disadvantaged groups and for students with physical disabilities can also be facilitated and improved through online learning. Online learning and research, since now being part of everyday procedures, should therefore be addressed in any Bill on lifelong learning. However, those of us who witnessed the regulatory uncertainties of online courses during the Covid pandemic also know that the value and potential scope were then, and still are, insufficiently recognised—an omission that I hope will soon be remedied.
Regarding an international focus, whereas the Bill has to begin, as it does, with learning at United Kingdom institutions, nevertheless for a long time higher education and lifelong learning have already extended beyond national borders. This also represents an ever-increasing opportunity for the United Kingdom, given its high standard of learning and research and the very great numbers of people who speak English throughout the world. Here, I declare an interest both as recent chairman of the Council of Europe’s Committee for Culture and Education and as having supported current working programmes between the UK University of the Highlands and Islands in Scotland and the University of Zadar in Croatia. UK students improve their learning by going abroad, while our own institutions are enriched by admitting foreign students. These positive facts should be reflected in the Bill.
The Higher Education and Research Act 2017, which is to be amended by the Bill, stipulates in Section 38 the
“Duty to monitor etc the provision of arrangements for student transfers”.
Consequently, there is a strong case for reviewing Section 38 so that student transfers can be facilitated across international borders, especially within the European higher education area, of which body the United Kingdom remains an active member.
Student transfers across borders are adversely affected by high fees and other costs. Since we are not in the EU, European students do not qualify here for the lower fees that national students pay. Conversely, UK students are not entitled to reduced fees at higher education institutions in Europe. Equally, the huge financial support schemes by the EU, such as the Erasmus programmes, no longer benefit UK students and institutions.
We may recall that the total budget available for the Erasmus+ programme from 2021 to 2027 amounts to €26.2 billion. In 2020, Erasmus+ spent €144.25 million in the UK on grants for learning abroad and €83.22 million on grants for strategic partnerships. Given the high number of EU students having been funded by Erasmus+ at UK higher education institutions, the benefit to the United Kingdom from Erasmus+ was much higher than these two figures. If, post Brexit, we are to enable adequate learning opportunities, this purely national focus upon UK students has to be broadened. The remit of the Lifelong Learning (Higher Education Fee Limits) Bill can, no doubt, allow that aspect to be addressed; and if fees are limited, grants should also be referred to.
Finally, although informal education falls outside the Higher Education and Research Act 2017, all the same it represents an increasing need requiring attention and regulatory support, especially in the field of lifelong learning. Private companies and public administrations alike have to keep their human resources fit for technological changes and globalisation. In addition to employment contexts, lifelong learning should also be available to the elderly, as well as to the unemployed. Informal education can have a much wider reach, in particular to disadvantaged people who have been hesitant to pursue formal education—for instance, due to high fees and costs, as well as strict procedures. Clearly, those individuals in our society must not be overlooked. Informal education ought to form part of community provisions. If lifelong learners and informal higher education providers so wish, courses and learning results ought to be monitored and recognised in the field of what is otherwise called informal education, the latter thus coming to have an option to be formalised and that option to be reflected in the Bill.
In summary, regarding these three outlined themes of online learning, international focus and informal education, your Lordships may agree that, when we come to Committee, we should seek to improve the Bill by supporting those themes with a number of necessary amendments.
Lord Watson of Invergowrie (Lab)
My Lords, I much enjoyed the maiden speeches of the right reverend Prelate the Bishop of Sheffield and the noble Lord, Lord Sewell, and I look forward to doing so again in their subsequent contributions in your Lordships’ House. I just say in passing that the noble Earl, Lord Dundee, commented at the beginning of his speech on his proximity to the noble Earl, Lord Kinnoull, and I just say that in terms of the places named in our titles, the three of us occupy an area of some 20 miles along the banks of the River Tay, which I fully accept is of interest to no one else but the three of us—but there you have it.
In general, I welcome the Bill. Clearly, it is important that a minimum fee level is set, to prevent students being unfairly charged more for modular study than for a traditional academic year of study. I support the Bill’s aim of introducing a credit-based system as part of the development of the lifelong loan entitlement by 2025, although the Minister said in her opening remarks that the credit-based method will be phased in and so will not be fully in play for all courses and students by that time. Perhaps she could enlighten us as to the reasons for that, because I think it is unfortunate.
I am more than a little uneasy, though, at the detail missing from the Bill—other noble Lords have mentioned this. Integral features of how the entitlement and the credit-based method will work in practice are being left to secondary legislation, a device regularly employed by this Government, it seems, to avoid proper scrutiny. What is to prevent them unilaterally deciding to redefine, say, the nature of a credit or a module, and to make compliance with that change contingent on future funding? More needs to be included in the Bill to ensure it reflects what the sector wants and the economy needs. Otherwise, there is a danger it will not be properly effective in boosting lifelong learning.
I am particularly concerned about the effect of the Bill on distance learners, an issue emphasised by other noble Lords and by the Open University in its briefing to us. The Government’s determination to prevent distance learning students accessing maintenance support makes no sense at all to me. Only those with a disability who can show that distance learning is their single option are able to access additional study support in England, and this rule is now going to be extended to higher technical qualifications.
Financial support is of course a key factor if people with families and other responsibilities are to be encouraged and helped into more flexible lifelong learning routes. There is no shortage of evidence showing that introducing maintenance support makes a difference. To amplify the comments of my noble friend Lady Wilcox, the introduction of such support for part-time and distance learning students in Wales in 2018 produced a significant impact on demand for part-time learning. The Welsh Government continue to provide the most progressive student finance system in the UK and last week they announced a 9.6% increase in living costs support. In contrast, the Government here announced a 2.8% increase.
The Government made it clear in their response to the lifelong loan entitlement consultation that distance learners are to be excluded from the maintenance support available to face-to-face students. No rationale was given and no evidence was provided, despite the DfE’s policy impact assessment for the Bill acknowledging that financial issues are a major reason part-time learning places are not being taken up. Can the Minister say why she and other Ministers are apparently ignoring their own officials on this key matter? If the Government are serious about closing skills gaps in the economy, both existing and anticipated, then they really need to get a grip and accept that many of the people willing and able to reskill and upskill to fill these gaps are either unwilling or unable to take on classroom study. The Government should be promoting lifelong learning by providing greater access to financial support to meet existing financial commitments for distance learners, such as those with caring responsibilities.
Last month, I was privileged to visit Birkbeck, University of London, and to meet with the master, David Latchman, and some of his students. Now in its third century, Birkbeck has come through a restructuring and believes that the Bill will enable it to enhance its offer to people of all ages who have work or caring responsibilities during the day; I have no doubt that it will. Lifelong learning must mean just that—people should have access to training and reskilling throughout their lives—but there remain concerns that the entitlement could see some participants being saddled with substantial debts, especially if the Government fail to ensure adequate maintenance support. The Augar review pointed the way on this and offers a lifeline to those in low-income households.
The entitlement could be a game-changer, helping to build a lifelong learning culture in England, but I mentioned earlier some of the issues of detail that still need to be addressed. There are also wider issues of how it fits into the whole tertiary education landscape, including further education and apprenticeships. In its current form, the entitlement will not be sufficient to shift the dial in attitudes and change the behaviours and priorities of the vast majority of people who will still be intent on achieving a degree, mostly through a three-year residential model.
I will not rehearse the case for lifelong learning which the Minister heard me make on several occasions during the passage of the Skills and Post-16 Education Bill last year, but current skills gaps reflect the lack of investment in lifelong learning over the past 13 years. There has been a general neglect of adult education, with a consequent significant decline in levels of participation in it. That means millions of people are missing out on opportunities to retrain and upskill for a new job or career. Employers are unable to fill key vacancies where skills gaps exist, yet only one in three adults self-reports any participation in learning. The decline has been as dramatic for part-time study.
That must change. This Bill has the capacity to lead that change. There must be broad and consistent eligibility criteria to ensure that as many future learners as possible can upskill and retrain on an ongoing basis. Given the Government’s record on proposals to limit access to higher education, what plans can the Minister point to with the aim of extending this policy offer to as many people as possible, particularly those who are designated as hard to reach?
Employers should be central to the working of the new system being developed as part of the 2022 Act. What are the Government doing to involve them in the development of the entitlement? The Association of Colleges advocates piloting the entitlement or investing in place-based, sector-specific projects to show how it could work with employers engaged properly. Are the Government considering that route? There is also a risk that the policy results in the take-up of loans for short courses by employees who would otherwise be funded by their employers. As my noble friend Lady Blackstone said, it is vital that the lifelong learning entitlement should not become a substitute for employer-funded training.
It is not mentioned in the Bill, but I will not pass up the opportunity to once again remind the Minister of the real damage being done to young people through the ill-thought-out, rushed defunding of many BTECs and other applied general qualifications. As other noble Lords have commented, a delay on level 3 qualification defunding until a review on the impact of that defunding on level 4 and 5 participation is essential. There is widespread concern about the impact of the Government’s plans on both reduced opportunities for young people and adults and the future financial viability of some FE colleges.
I have often said that I share the aim of T-levels being successfully introduced, but until it is demonstrated that that has happened, abandoning popular and well-established qualifications will result in a drastic reduction in 16 to 18 year-old students being able to learn and achieve at level 3. Many already see no option which is attractive to them in the sector, trade or profession they want to enter. As my noble friend Lord Blunkett said, fewer learners achieving level 3 could lead to decreasing participation at levels 4 and 5, which would negatively impact the number of people able to take advantage of the lifelong learning entitlement.
The credit-based system set out in the Bill should be the default method of setting fee limits for new and continuing students from 2025. I look forward to our deliberations in Committee to help make that a reality.
Lord Addington (LD)
My Lords, when you have listened to a whole debate in which various things have been covered again and again, it becomes ridiculous to mention them anything other than briefly. The main point has been that the mechanics of this Bill are largely welcomed. We agree that there is potential for this credit-based system and for lifelong learning. However, I think it was the noble Lord, Lord Johnson, who said to me in a conversation outside, “The Bill’s fine, but what about the big argument?”
It has come across that no one is quite sure how it fits together. People from higher education have looked at that sector; the noble Lord, Lord Watson, was one of those who led the charge on the previous Bill on further education; I looked at the Bill and saw a chance to improve the status of levels 4 and 5 by bringing them into a funding structure that is associated with universities. That may be a good thing. It should give somebody the chance to choose whether they want a three-year degree, the experience and the idea of the expansion, or a way of earning a living that they can top up later. That should come from this Bill, but the colleges and skills colleges would have to buy in and T-levels would have to work to get you ready for it. It is only a part of the system.
In looking at this, we can all point out problems that are not covered and, with new government legislation, what fun we will have with all those SIs. If we get them wrong, who knows where we will end up? Probably remembering the skills Bill, the Minister said that there were no Henry VIII powers in this Bill—I can quite understand why; that was one suicide charge I would not like to have taken.
We will have to get at how this all fits, with a little information from the Minister now and more in Committee. If we do not do so, we will just be saying, “Here’s another toolkit—play with it as you will”. I hope that, as we go through this Bill, we will get an idea of how the Government will use it with other bits of legislation to encourage people to give real options at levels 4 and 5. I say this because I remember being told in my second week here, getting on for four decades ago, that our major skills problem was at technician level. In modern money, that is levels 4 and 5. We have always been bad at this level. We tried to improve up to level 3 and beyond with apprenticeships, but then we discovered that there were limitations with them—primarily, that you need an employer who will pay.
How will we get colleges, even under the new funding regime and with the input of higher education, to make sure that there are real career options? The noble Lord, Lord Stevenson, put his finger on it first—most of us thought that we would do it, but many of us would not have done it as well—in saying that short-term courses to upgrade your skill level will be attractive. Longer-term ones will be less attractive, particularly as you get older and may find that your skills, if they are technical, become outdated. This has always happened in the workplace. At the moment, we are in a green revolution; types of technology and power for technology will change and people will need to reskill. Short, bite-sized courses will be much more attractive for everybody—unless you put your life on hold, and it is very rare that you can do that over the age of 25. I hope the Minister will have some answers and the start of thinking about how that will happen.
I declare my interest as a patron of the British Dyslexia Association and chairman of Microlink plc, which deals with assistive technology and packages it for the disabled in the workplace and education. I hope the Minister can confirm that most of the people brought into these courses will be covered by the disabled students’ allowance or something very similar. If you are expanding their skills base, a system that gives them an individual package of support means that they will do it. You also have to make sure that colleges do something called information capture and the old level 1 DSA from a few years ago. That means that the colleges will undertake to record lectures so that they can be transferred on to different types of technology that people can use. Basically, it is about getting something that you can read yourself, can have read back to you or talk to normally.
I hope the Minister will say, if not now, then in Committee—I will certainly come back to it—what is happening there. If you expand the good news on higher education, you should commit to those people, who are underskilled, underemployed and should be brought in, that they will be assisted. The DSA is a good system for doing this because it gives you an individual package of support. This is required and instituted by having this huge institution buy-in. I hope we can clear this up pretty quickly.
This is an interesting Bill but it has got to be seen as a part of a whole approach that goes forward. It provides opportunities but no real answers to what we are doing here, and suggests that things are going to get better because we will apply it properly. Unfortunately, there are gaps and certain bits are left out, such as distance learning and level 3 and level 7 qualifications. Unless we get answers about those linkages, we are leaving a lot of questions hanging. I hope that some of those will be answered throughout further discussions today and when we are in Committee and on Report. This is something with the potential to be good. I hope the Minister will assure us that some of that potential will be realised.
Baroness Twycross (Lab)
My Lords, this has been an interesting and wide-ranging debate, with considerable consensus on the need for the Government to facilitate lifelong learning. As someone who has benefitted from the best of UK higher education at Birkbeck and Edinburgh, I am interested in ensuring that we make the best of this Bill between us.
Like others, I congratulate the noble Lord, Lord Sewell, and the right reverend Prelate the Bishop of Sheffield on their excellent maiden speeches. They will no doubt both make valuable contributions to the work of this House. I also add my thanks to the Minister for her introduction and her engagement on the Bill so far. As the noble Baroness, Lady Garden, said, she is a listening Minister, and this is much appreciated.
The Bill before us today is about fulfilling the potential of this country. The UK’s economic prosperity depends on us getting this right. The more we invest in the skills that we need to grow the economy, the better able both individuals and communities, as well as this country, will be able to flourish. As my noble friend Lady Wilcox said at the start of the debate, the Labour Party supports the principle of a lifelong loan entitlement; it is fundamentally a good idea. As my noble friend Lady Blackstone said, it is also long overdue. The Association of Colleges has said that the lifelong loan entitlement could be a game-changer, and there is a welcome recognition of the value of FE and higher education. However, the Labour Party view—it has been reflected by contributions across the House today—is that the Bill could be even better. We intend to do everything we can to make it better.
In her speech, my noble friend Lady Thornton outlined the routes of the Open University and its significance to the labour movement. “Education, education, education” is not just a one-off strapline; education and skills are at the heart of the values of the Labour Party. As the Bill passes through this House, we would be keen to work with noble Lords from all sides of the House to ensure that it fulfils its potential in giving people the opportunity to fulfil theirs.
The huge number of questions from across the House today demonstrates, as the Open University has said, that there are too many unknowns about this Bill, in particular how the credit-based system and the LLE will work in practice. As many noble Lords have said, including my noble friend Lady Wilcox and the noble Baroness, Lady Garden, this is a short Bill, and arguably it is too short. More clarity and more detail can and should be provided. Can the Minister provide the House with greater clarity on the definition of credits, minimum credits and maximum yearly credits, and why only levels 4 to 6 are covered?
Several noble Lords have questioned the narrow scope. My noble friends Lord Blunkett and Lady Blackstone asked why level 3 study, as a pathway to higher levels, was excluded. As the noble Lord, Lord Stevens, asked, why are some clearly vocational courses, such as nursing, excluded? As the noble Lord, Lord Johnson, asked, why are level 7 courses excluded? As my noble friend Lord Watson asked, how will the phasing in of credits work in practice? There are so many questions, and we look forward to hearing the Minister’s response.
With a pilot that has arguably failed, what confidence has the Minister got that it is right to roll this out further at this stage? Even if, as the Minister says, there are no Henry VIII powers within the Bill, why are the Government not including systematic oversight and scrutiny? Why will future regulations not be affirmative? As the noble Lord, Lord Addington, intimated, the detail will be in the SIs, but we could do with a bit more detail in the Bill itself. We look forward to that discussion in Committee. How will the Government make sure that the promised flexibility of study is delivered in practice? As the noble Lord, Lord Stevens, said, even the Government’s own impact assessment was not confident of the positive impact of the measures in the Bill.
There have been many questions raised, and I apologise for raising a few more. Will there be standardised transcripts and evidence of skills? As the noble Lord, Lord Rees, asked, will students be offered a second chance or dignity, and be able to take up education at a later date? What additional burden and costs will there be on universities and colleges as a result of the Bill? Have the Government had discussions with providers on how this will all be managed?
Given that the policy impact assessment accompanying the Bill is clear that the DfE believes that financial concerns are a key reason why part-time learners do not access higher education, can the Minister explain why the Government have not included distance learning to a greater extent within the remit of the LLE? Failure to include distance learning could disproportionately impact those with caring responsibilities and people with disabilities who are less able to move. As my noble friend Lord Watson said, it seems that the Government are ignoring their own officials. Will they reconsider these points?
As the noble Earl, Lord Dundee, noted, online learning could and should be included. As he said, and as others mentioned, with so many courses having to go online during the pandemic, it seems frankly bizarre and out of step with how our society is now organised to exclude online learning. Will the Government reconsider this? I look forward to hearing from the Minister on that point.
My noble friend Lord Blunkett reflected on how we have not always met new challenges when employment industries have changed and the employment market has shifted. He described what is needed and what this Bill could offer as a trampoline. The UK needs the most adaptable, flexible approach to learning and skills. The world is changing rapidly, and people will have to adjust and learn new skills throughout their careers as the workforce and world changes. The noble Lord, Lord Shipley, described this as an essential aspect of increasing productivity, but as he and the noble Baroness, Lady Garden, said, adult learners will not always be willing to take on debt.
We also need employers to take on some of the risk. As has been noted during this debate, employers in the UK are failing to invest in the skills system, with a drop in spending by 28% in real terms since 2005. In fact, employer investment in skills is less than half the EU average. As the noble Lord, Lord Hannan, said, with people not now having a job but a series of jobs, both government’s and employers’ facilitation of increasing skills is vital. Can the Minister tell this House what the Government will do to improve investment by employers in skills and what safeguards they will put in place to avoid employers investing even less in future as a result of the Bill?
As my noble friend Lady Wilcox said, this is a devolved matter, and currently students in Wales get considerably more support than in England. Given that the Bill applies solely to England, and given some of the points raised by the noble Earl, Lord Kinnoull, can the Minister tell us how this will apply to students who wish to move between different parts of the UK or who move at different stages of their lives? How will this Bill work—I declare an interest as someone whose husband moved to the UK as an adult—for those who have not lived in the UK their whole lives? Will someone who wants to go and study overseas for part or all of a course be able to do so? What are the limits on this?
Getting this right, and getting the right advice at the right time, will be crucial to people using the lifelong loan entitlement to best effect. Can the Minister say whether any advice offered in relation to the lifelong loan entitlement will form part of a wider all-age careers offer than is made at present?
In conclusion, I repeat that Labour welcomes the lifelong loan entitlement. It could give people without the financial means to do so the opportunity to gain skills and education at the point in their life and career that they need it and, by doing so, help both their own careers and the UK economy to grow. We want to help make this Bill be that game-changer. When we and others put forward amendments in Committee, which we will do, it will be with the intention of making the Bill the best it can be. We are keen to work with the Government and Members on all side of the House to make sure this Bill delivers what it is intended to deliver.
Baroness Barran (Con)
My Lords, I thank all noble Lords for their contributions today. In particular, I thank the right reverend Prelate the Bishop of Sheffield for his description of lifelong learning within a Christian context—I think he will agree with me that just sitting in this House listening to colleagues extends one’s lifelong learning still further—and my noble friend Lord Sewell. I am not sure about his football metaphor, but if he is secretly a spin bowler, I think he might find himself popular at Edgbaston in the next day or two. In all seriousness, I look forward to working with and listening to him, with his great experience in education, and benefiting from that.
Given the breadth of your Lordships’ contributions, I will not be able to cover everything in the time available to me, but I will write and address the points raised this afternoon. I reassure the noble Baroness, Lady Twycross, that I will try to address at least some of the points that she rightly raised. I acknowledge and thank noble Lords for the spirit of the House and the way in which they are all aiming, in the noble Baroness’s words, to make the Bill the best it can be.
I start with the credit transfer issues raised by the noble Baroness, Lady Twycross, the noble Lords, Lord Stevens of Birmingham and Lord Rees of Ludlow, and others. The Government will not impose credit transfer arrangements but will instead seek to facilitate credit transfer through other methods, including through the introduction of the requirement for providers to produce, in response to the noble Baroness’s request for clarification, a standardised transcript on the completion of individual modules—I hope that also addresses the question asked by the noble Lord, Lord Rees—and, to respond to points raised by the noble Baroness, Lady Garden, in relation to information, advice and guidance about the personal account where possible. There are numerous examples of good practice in the sector with regard to credit transfer, including provider-led initiatives to create credit transfer partnerships. These include collaborative mapping and shared curricula of certain programmes—including, of course, in healthcare.
Credit transfer across higher and further education will be very important. We are working with providers to understand how credit transfer can be encouraged without jeopardising the autonomy of the sector, giving learners the flexibility to study at a pace that is right for them while balancing their other commitments. Of course, this will require input from both government and providers to be successful, and that is happening.
The noble Lord, Lord Stevens, raised a specific question about why some courses, such as nursing, are not suited to the credit-based system. I think he expressed a concern about whether that would limit flexibility, but our understanding is that it will not. Nursing degrees do not use credits in a consistent way—as the noble Lord understands much better than I do—due to variations in the credits assigned to placements, and because credit-bearing units can cut across multiple years. We will address this by using a default number of credits to calculate the fee limit for each course year, and students will continue to receive loan funding—but I would be happy to meet with the noble Lord if he thinks that there are flaws in our analysis.
I permitted myself a small smile at the fact that the House was divided on the merits or otherwise of delegated powers in relation to the Bill. The noble Baroness, Lady Blackstone, asked about the timing of the secondary legislation. We expect the secondary legislation covering the fee limit and the LLE to be laid by autumn 2024, in time for implementation in 2025. The noble Baroness, Lady Twycross, suggested that not all the delegated powers were subject to the affirmative procedure, but all the fee-setting powers are subject to it. As I mentioned in my opening speech, the powers mirror what is already in HERA.
The noble Baroness, Lady Wilcox, and the noble Lord, Lord Watson, asked whether there was a risk that the Government could arbitrarily change the number of learning hours in a credit. As my right honourable friend the Minister for Skills and Higher Education said in the other place, the Government do not intend to change the number of learning hours in a credit unless standards in the sector change. Learning hours are, and should continue to be, based on sector-led standards.
The noble Lord, Lord Addington, and others asked whether the Government were working closely with providers and stakeholders to inform policy decisions. I reassure your Lordships that that is the case.
If I may, I will write to the noble Earl, Lord Kinnoull, on the issues he raised around devolution. He is right that policy detail is discussed very regularly with the devolved Governments, but I am happy to write and answer some of his quiz questions about different students in different jurisdictions for different periods of time.
As for the speed of the rollout, a number of noble Lords raised their frustration at the slow pace. The noble Earl, Lord Kinnoull, referred to the remarks of the noble Baroness, Lady Wolf, in 2015. I will take this opportunity to thank the noble Baroness for her very important work in this area. As I think your Lordships are aware, full courses will be LLE-funded from 2025. That includes full degree courses, higher technical qualifications and any advanced learner loan-funded qualifications where there is clear learner demand and employer endorsement.
The Government will be taking a phased approach to modular funding, making sure that there is clear employer demand and that they address skills gaps to support learners into the jobs that employers need. As your Lordships discussed, the initial focus from the start of the academic year 2025-26 will be on modules of higher technical qualifications and modules of technical qualifications at levels 4 and 5 currently funded through the ALL system where there is a clear line of sight to an occupational standard and employer support. That will allow us to test and learn from the approach before extending funding, where appropriate, to modules of other high-quality courses at levels 4, 5 and 6. I remind your Lordships that the Augar review was very clear in its recommendations to focus on the skills gap identified at levels 4 and 5.
A number of your Lordships, including my noble friend Lord Johnson, recommended exploring expansion of the Bill’s scope in relation both to micro-credentials and to levels 3 to 7. I understand the flexibility that your Lordships seek to create by including micro-credentials, but we have been clear that, in the words of Sir Philip Augar:
“A 30 credit course, in our view, represents a significant amount of teaching and learning, and is an appropriate minimum for upskilling or reskilling. It is also short enough to be combined fairly easily with work and other commitments”.
I remind the House that modules of a smaller size—my noble friend referred to modules of 10 to 15 credits—provided they can be bundled together in a single entry from a parent course to meet 30 credits, can be funded to allow sufficient flexibility for retraining. So funding would be available for, for example, a 20-credit module and a 10-credit module of the same course combined. Providers or awarding bodies are free to consider restructuring their courses into credit-bearing modules of different sizes.
Turning to the issues of inclusion of level 3 and 7 courses, raised by several noble lords, including the noble Lords, Lord Blunkett and Lord Shipley, and the noble Baroness, Lady Twycross, I understand why the House is probing this issue, but there are three main reasons for the focus the Government have announced on level 4 to 6 courses. The first relates to how the LLE itself will apply to level 7 courses; the second relates to the existing funding for level 3 courses, in particular; and the third relates to the economic opportunities created by greater uptake of levels 4 and 5. Of course, in the longer term the Government will consider how funding for level 3 provision can best work where individuals are not eligible for grant funding, as part of the next spending review.
I will start with level 7 qualifications. The LLE will be the student finance system for all study at levels 4 to 6 from 2025, across HE and FE. Integrated master’s courses will also be in scope. My noble friend Lord Willetts asked about the Government’s appetite for four-year honours degrees. One form of that, of course, is an integrated master’s. In 2021-22, there were just over 19,000 English-domiciled entrants to integrated master’s degrees, and these students will continue to benefit from this level of study via the LLE. More broadly, level 7 and above are already served by separate student finance products such as postgraduate master’s and doctoral loans.
In contrast, level 3 courses are funded for a range of individuals through other funding streams, such as free courses for jobs and the adult education budget. In addition, individuals will still be able to take out advanced learner loans for level 3 courses. The adult education budget includes a statutory entitlement to full funding for eligible adult learners aged 19 to 23 undertaking their first full qualification at level 3, and the free courses for jobs offer introduced in April 2021 gives eligible adults the chance to access high-value level 3 qualifications for free, which can support them to gain wages for a better job. Finally, the point has been made by your Lordships that—and as I said my opening speech, we believe that—there is a very strong economic case for focusing on levels 4 to 6, given the skills gaps we face in the economy.
A number of your Lordships—my noble friend Willetts, the noble Lord, Lord Stevens, and the right reverend Prelate the Bishop of Sheffield—talked about what perhaps I may describe as the implementation challenge from both a supply and demand perspective. The noble Baronesses, Lady Wilcox and Lady Thornton, both asked about maintenance loans for distance learners. Our emphasis, with the exception of those with a disability who, as the noble Lord, Lord Watson, pointed out, are eligible for those loans, is on making sure that these courses are as flexible as possible, including, potentially, distance learning. I think there was some confusion in the House about the status of online learning, which is of course part of distance learning, as rightly said by my noble friend Lord Dundee. Our emphasis is on making sure that these courses work for those leaving school or who are already in employment, and who have that flexibility. There is an enormous job to be done by the Government and providers in raising awareness of those opportunities, making sure that people feel confident to take them up and are clear on the improvement they can make to their future employability, earnings power and satisfaction in the workplace.
On the questions from the noble Lord, Lord Stevens, and others about the cost of delivering this provision, costs are relatively fixed in the provision of these courses, so volume will be extremely important to their viability from a commercial perspective. I again suggest to the House that there is something in our absolute focus on where we are starting that aligns with the pressures that providers face, in order to make sure that these courses are commercially viable, rather than spreading a large number of learners very thinly across multiple courses.
I shall try to speed up a little, the House will be relieved to know. On the quality of provision, which I know my noble friend Lord Johnson was concerned about and which the noble Lord, Lord Rees, raised, the Office for Students will continue to regulate providers and uphold quality. It will consult on introducing a new registration category for providers of courses that were formerly funded by advanced learner loans—including initial and ongoing conditions that would be appropriate—which we hope will support quality. On my noble friend Lord Johnson’s point about all future modules being derived from existing qualifications, to be clear, they will need to derive from an HE qualification, but not necessarily in future from an existing one, although clearly the initial modules are likely to do so.
A number of questions were raised about the short course trial, and perhaps it would be most helpful if I set out our learning from the trial in a letter. But I will include in it a link to an excellent blog, written by Professor Peck from Nottingham Trent University about the trial, on the HEPI website, for your Lordships’ interest.
On part-time learners and maintenance loans, a point raised by a number of your Lordships, the LLE maintenance offer will be available for part-time study below level 6. That is a major change and positive step forward from the current system, as the vast majority of part-time level 4 and 5 courses do not currently qualify for the maintenance loans. Although I absolutely heard the regret from a number of your Lordships about maintenance in respect of distance learning, I hope it will be acknowledged that this is a really important step forward.
My noble friend Lord Willetts asked how dropout rates will be measured in the new system. The Office for Students plans to consult next year more broadly on the B3s—the quality or performance measures for modules. It will be consulting on how they can be implemented, and there will be an initial call for evidence this year.
There is so much that I have not covered, and I apologise to the House for that. I will finish where the noble Baroness, Lady Wilcox, started in asking about the Government’s vision for the Bill. I stress the importance that the Government place on the Bill; your Lordships may have noticed that my right honourable friend the Minister for Skills and Higher Education has been present throughout the debate. I will steal the words of the noble Lord, Lord Blunkett, if I may: our vision for the Bill is that it is part of the jigsaw he described but also that it will help to deliver to every individual in this country clarity on their personal ladder of opportunity and on the fact that they have hope and a real sense of opportunity for themselves in their career. Through it, we will transform the productivity of this country.
Supply and Appropriation (Main Estimates) (No.2) Bill
Monday 10th July 2023
(1 year, 5 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 136-I(a) Amendment for Grand Committee (Supplementary to the Marshalled List) - (7 Jul 2023)
Lifelong Learning (Higher Education Fee Limits) Bill
Tuesday 5th September 2023
(1 year, 3 months ago)
Lords ChamberRead Full debate Lifelong Learning (Higher Education Fee Limits) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 136-R-I Marshalled list for Report - (1 Sep 2023)
Baroness Garden of Frognal
“(1A) For the purposes of this Schedule, one credit corresponds to 10 notional learning hours.”Member's explanatory statement
This amendment puts the number of hours that constitute a credit on the face of the Bill.
Baroness Garden of Frognal (LD)
Amendment 1 proposes the widely accepted requirement that the learning hours associated with credit must be consistent with sector-wide standards. It would be beneficial to have 10 hours written in the Bill in order to cement its definition, because that would mean that no new definition could be introduced or imposed at a later date for the purposes of setting fee limits.
We continue to express concern that the lack of detail in the Bill could mean that in the future the policy could significantly change from the intentions of the current Government, and there is little constraint against decisions made by the Secretary of State—often a “here today, gone tomorrow” Minister—but I recognise that on Report we are unlikely to be able to change the powers of the Secretary of State.
Amendment 2 proposes the insertion of a new clause to review the provisions in the Act. Businesses are reporting having difficulty recruiting employees with the relevant skills. In August 2022, the Federation of Small Businesses found that 80% of small firms faced difficulties recruiting applicants with suitable skills in the previous 12 months. The Recruitment and Employment Confederation estimates that if labour shortages are not addressed, the UK economy will be £39 billion worse off each year from 2024.
Despite the rising population, many employers are facing skills gaps. Some 28,300 London employers report that not all their employees have the right skills for the job. Almost a quarter—23%—of all vacancies in London are due to a lack of applicants with the right skills, while almost half of firms—42%—are not confident that they will be able to recruit people with the higher-level skills their organisation needs over the next five years. It is possible that many of the migrants waiting to be processed will have the skills that the country urgently needs, so when will the Home Office speed up the processing so that we can see if that is the case?
We are not convinced that the introduction of the lifelong loan entitlement will help to plug the gaps. The Liberal Democrats have called for grants, rather than loans, to encourage adult reskilling, concerned that many adults will be reluctant to take on debt for their further training. Will the LLE allow people to upskill effectively? Will they want to take out loans to upskill? It will be important for the Government to review the impact of the provisions of the Bill to assess whether these measures alleviate the skills shortages.
I am not my party’s expert on sharia finance, but I am aware of the Islamic belief that benefiting from lending money by charging interest or repaying more than the initial amount borrowed—riba—is forbidden. The investments made by loan companies, which might be in industries such as gambling or alcohol, are also considered problematic. For these reasons, Muslim students are deterred from taking out student loans from the Student Loans Company to cover the tuition fees and living costs associated with higher education. Research has shown this can act as a barrier to higher education for Muslims or cause financial hardship for those who do choose to study at university.
The UK Government first proposed a student finance product consistent with Muslim beliefs about interest-bearing loans in 2013. The Higher Education Research Act 2017 allows the Government to introduce such a product, but it has yet to do so. The issue has been raised in Parliament a number of times, with the delay described as shameful by my noble friend Lord Sharkey, who is indeed an expert on sharia finance.
In March 2023, in their response to the consultation on the lifelong loan entitlement, the Government said that a sharia-compliant alternative student finance product would not be available as part of the launch of the LLE in England in 2025. In July 2023, the Government said that they remain committed to delivering alternative student finance as soon as possible after 2025. Can the Minister say why the Government have yet to do this? It would be useful to understand their thinking behind the delays and whether they could explain how the introduction of the LLE would impact those who require sharia-compliant loans.
The other part of the amendment calls for a review before the end of 2026, and preferably earlier. I have also added my name to Amendment 4, which Labour will introduce. I look forward to the Minister’s response, and I beg to move.
Baroness Wilcox of Newport (Lab)
My Lords, I rise to speak to Amendment 4, which would require the Secretary of State to publish a review of the lifelong loan entitlement before bringing in further regulations on fee limits. I welcome the Minister's comments in Committee, and I fully understand her feedback about what information will accompany further regulations as these changes are rolled out.
We have brought this amendment back to further raise the point about ensuring that students, the sector and Parliament are given clear information on the details of the LLE as soon as possible. Throughout the passage of this Bill, we have raised concerns, often after input from those in the higher education sector, that so little about the LLE in terms of course provision, maintenance, credits, transfers, and further rollout of modular study at other levels is confirmed in any meaningful detail.
I am none the less grateful that, following Committee, the Minister outlined further details of the LLE that relate to this Bill in a letter. However, as we know, this huge shift in higher education policy goes further than fee limits. We all want this change to work, but for that to happen the sector will need much more clarity than has been provided through this very narrow Bill.
The accounting officer assessment for the LLE states:
“The main feasibility risk of LLE is meeting the 2025 delivery timescale”.
Is the Minister still confident that the department will be able to deliver on time, particularly in the light of current pressures arising from the major emergency that the department is currently dealing with in school buildings across the UK?
My next question follows on naturally: what is in place if this timescale turns out to be unworkable? There are a great many sector stakeholders—as well as the students themselves, of course—who will need clearly communicated timelines. Amendment 1 from the noble Baroness, Lady Garden, puts in the Bill the number of hours that constitute a credit. We understand why she tabled that amendment: it is important that the sector is given clarity and control over the definition of working hours and that it is consistent with the QAA’s higher education credit framework. As she noted, her concern is about the lack of detail. This is one of many areas in which the higher and further education sectors still have questions about how a credit will be defined.
The concept of a credit in education terms will also be completely alien to the general public, and there is a risk that employers simply do not understand its value. The Government need to think about how this can be communicated. We do not believe that putting a number in the Bill at this point would be beneficial. However, we would like a commitment from the Government that they will not seek to amend the value of a credit and will be led by the sector’s understanding of it.
On Amendment 2, I am glad that the Minister has outlined the Government’s plans to ensure sharia-compliant loans in writing; we look forward to receiving further engagement on this issue as the LLE progresses. But, as the noble Baroness, Lady Garden, pointed out, there is a distinct problem with skills gaps—a lack of applicants with the right skills. The economy cannot move forward appropriately with skills shortages.
Lord Willetts (Con)
My Lords, the amendments reflect widespread cross-party support for the Bill and its principles; they are not intended to destroy the Bill in any way. I see the case for the Bill, which of course I warmly welcome, as opening up new possibilities. We genuinely do not know the circumstances in which people may take them up and we do not know whether debt aversion is much more of an issue among mature learners than among young people aged 18 or 19; we will find out only if we give this a try. Similarly, we do not know how much suppressed demand there is for level 4 or level 5 qualifications because of the way in which loans are currently structured; we will find out only if we give this a try. So this is definitely worth going forward with.
I have three brief comments on the amendments. First, one of the temptations we have in this House— I have occasionally succumbed to it myself—is to try to determine the details of policy through primary legislation. That is one of the risks in Amendment 1, with its specification of the definition of “one credit”. Of course, it is an important and interesting area but, as we are embarking on a journey with a new and more flexible system, trying to put that into primary legislation would inhibit necessary policy flexibility—a point that I think the noble Baroness, Lady Wilcox, referred to.
Secondly, I agree with the point made by the noble Baroness, Lady Garden, on sharia-compliant loans. We have been at this for 10 years now, and it really is time that a scheme such as this were available and in force. There were initially some tricky problems, but I think that the long work that the department has done over the years has resolved them. My understanding is that the technical and theological issues have been addressed. I know that the Minister herself is keen to get on with this, so anything that she can say to the House about her commitment to that timescale would be very welcome.
Finally, on Amendment 4, I am proud to say that I am acting as the spokesman for the noble Baroness, Lady Wolf. She very much regrets that she cannot be with us; she briefly appeared, but I think she had to catch a plane to Lithuania. In many ways, she is the intellectual origins of the Bill. I know that her spirit is that she wants to get on with it. Her concern about this amendment—which I completely understand and support—is that requiring another review before we can get on with things will slow down the pace still further. I think that the mood across this House is that we want to get on with it; we do not want reasons for further delay. I fear that Amendment 4 would constitute another obstacle to this potentially important and significant innovation in policy, which I warmly support.
Lord Berkeley of Knighton (CB)
My Lords, many interesting points have been made about the amendments. I agree with the noble Lord, Lord Willetts, and the other speakers that we would like to see this progress; it is a good idea. We want to improve access to education, which means having more and better information about fees and recognising the fact that they cannot just continue uncontrolled.
Another point I endorse is that which the Minister said in a previous speech on this subject: that the Government had a “phased approach” to this. I think consideration has been given to the many points that have been very intelligently raised; I am sure that the Minister is grateful for them.
The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)
My Lords, ahead of speaking to the amendments tabled, I thank all noble Lords across the Chamber for their contributions and the support they have expressed, both for this Bill and for the wider programme to transform opportunities to build qualifications over one’s lifetime. We heard from the noble Baronesses, Lady Garden and Lady Wilcox, about the importance of filling skills gaps so that the economy can grow. I thank both my noble friend Lord Willetts and the noble Lord, Lord Berkeley of Knighton, for their support and acknowledgement that the Bill will open new opportunities for learners.
Amendment 1, tabled by the noble Baroness, Lady Garden of Frognal, would define a credit as equivalent to “10 notional learning hours” in the Bill. The Government believe that it is crucial that the definitions of credits in the fee limit calculations align to standard practice in the sector—a point the noble Baroness, Lady Wilcox, made. The Government plan to set out this detail in regulations, rather than in primary legislation. The power to do so is provided for in new paragraph 1B of Schedule 2 to the Higher Education and Research Act 2017, introduced through Clause 1 of this Bill. Specifying learning hours in secondary rather than primary legislation means that providers that might choose to use a different number of learning hours per credit will simply have those courses treated as non-credit-bearing for fee limit purposes. If we took the approach of this amendment, those same providers could instead be considered in breach of the fee limit rules as a whole, with all the regulatory consequences that might bring. I am sure that is not what the noble Baroness intends with her amendment.
To be clear, as I think the noble Baroness’s amendment seeks to do, the Government do not intend to change the number of learning hours in a credit unless standards in the sector change. Learning hours are, and should continue to be, based on sector-led standards. Regulations on learning hours will follow the affirmative resolution procedure, so Parliament will get the opportunity to debate and formally approve any changes to those regulations.
Amendment 2 and Amendment 4, tabled by the noble Baroness, Lady Twycross, and the noble Lord, Lord Watson of Invergowrie, would require the Secretary of State to publish a review of the impact of the future Act on the progress of the rollout of the lifelong loan entitlement. Amendment 4 sets out that such a review must be published ahead of regulations being laid, and Amendment 2 would require the review to be presented to Parliament before the end of 2026. I thank my noble friend Lord Willetts for being the very eloquent messenger of the noble Baroness, Lady Wolf. We absolutely agree with her point and that made by the noble Lord, Lord Berkeley. Amendment 2 specifies that the review should include the impact of the credit-based method on sharia-compliant loans and skills gaps.
I thank your Lordships for these amendments. The Government agree with the sentiment behind them, if such sentiment seeks the department’s commitment to monitoring the impact of these measures on the transformation of student finance under the lifelong loan entitlement. As your Lordships will be aware, the Government published an impact assessment alongside the Bill upon its introduction in the other place in February this year. Subsequently, the department published an updated and more extensive impact assessment of the lifelong loan entitlement, more broadly, alongside the publication of the consultation response in March. As was committed to in the impact assessment published in March, and in accordance with the Better Regulation Framework, a more detailed assessment of impacts will be published at the point when the Government lay the necessary secondary legislation to implement the lifelong loan entitlement fully. Therefore, the Government already intend to publish an updated impact assessment covering all aspects of the LLE, including the measures in the Bill, when regulations are laid.
In addition, parliamentary accountability mechanisms are already in place to review Acts of Parliament and the impact that they have on policy, including post-legislative scrutiny in particular, but not exclusively. There will be continued scrutiny of the LLE and the impact of these measures in both this place and the other place, including the role of the Education Select Committee in scrutinising the work of the department.
I will just rest for a moment on the point about post-legislative scrutiny, which I understand the noble Baronesses raised at the briefing yesterday. The noble Baroness, Lady Wilcox, will be aware that under the current government guidance and as proposed in 2008, between three to five years after an Act is passed it should be reviewed by the government department and Parliament. I can assure the noble Baroness that the Government will seek to work together with the relevant Select Committee in line with that guidance. However, while we recognise the importance of reviewing the implementation, it should be not just of this Act but of the reform of the system—and again, I can commit that the Government would like to see that review happen.
On the specific details within the amendments themselves, the timing requirement in Amendment 4 would require a review of the impact of the Bill on the rollout of the LLE prior to regulations being laid. I want to be clear here that any impact assessment which is conducted ahead of laying regulations would not be any different to the impact assessment currently available for the Bill and the consultation process. The next point at which impacts can be assessed is when the regulations are laid and, as stated, the Government are committed to publishing an impact assessment at that time.
Amendment 2 relates to the impact of the credit-based method on sharia-compliant loans and skills gaps. First, it is important to note that fee limits are set on courses, not on students. Therefore, the credit-based method—like the current fee limit system—will not depend on any characteristics of individual students. All students on a course will have their fees determined in line with the same fee limit rules, regardless of whether they use their LLE, self-fund, or use alternative loan arrangements.
I take this opportunity to assure your Lordships that the Government remain committed to delivering an alternative student finance product compatible with Islamic finance principles. The noble Baroness, Lady Garden, questioned why it was taking so long. I will not rehearse all the arguments, but I think she will remember that we touched on this in Committee, and it really is linked to the complexity of implementation. Every element that changes within the student finance systems needs to be mirrored for the alternative finance product, so it is a more complicated process and is contingent, and it has to follow the building of the systems which will allow us to deliver the new approach.
The noble Baroness, Lady Wilcox, questioned our commitment to being able to deliver by 2025. I remind the House of the measures that we set out in the letter that I sent your Lordships on this point following Grand Committee. I am pleased to confirm that in August, the Student Loans Company commenced delivery planning for alternative student finance, and it is supported on this phase of work by experts in Islamic finance, the Islamic Finance Council UK. I continue to meet on a quarterly basis with the Student Loans Company, the Islamic Finance Council UK, the noble Lord, Lord Sharkey, Stephen Timms MP and representatives from the Islamic community to discuss the steps the Government are taking to deliver alternative student finance as swiftly as possible. Because of the delays there have been, we need to be as transparent as possible to make sure that we build or rebuild trust with the community that we really will deliver on this. I will provide a further update on alternative student finance later this year.
On skills gaps, in response to the LLE consultation, the Government made it clear that they will be taking a phased approach to modular funding, as the noble Lord, Lord Berkeley, reminded the House, focusing on higher technical courses which have the clearest employer value. It is important to note that fee limits are not a means to address skills gaps; they are to ensure that students have affordable access to higher education provision provided by those higher education providers who receive government funding to support course delivery.
Finally, it is worth noting that the LLE policy is much wider than the provisions of the Bill, and as such, the reviews sought through these amendments would focus narrowly on fee limits and not on the impact of the LLE as a whole.
For these reasons, while the department understands the sentiment behind these amendments, they would either have unintended consequences or would be unnecessary, as there will already be mechanisms in place to provide such review. Therefore, the Government cannot accept these amendments and I hope that your Lordships will withdraw or not move them.
Baroness Garden of Frognal (LD)
My Lords, I thank the Minister for her response and her reassurance, and I thank the noble Baroness, Lady Wilcox, and the noble Lords, Lord Willetts and Lord Berkeley, for their comments on this short debate.
Of course, we are all committed to encouraging lifelong learning—it is essential for the well-being of the country and of individuals—and we all want to make sure that it is encouraged. As I say, we continue to express concern that adults may not prepared to take on loans for this but, obviously, only time will tell. I thank the Minister for her remarks about sharia finance, because it is a concern that Muslim students are deterred from entering higher education because they cannot get the means to do so. With that, I thank all your Lordships and I beg leave to withdraw the amendment.
Baroness Twycross
“Review of the operation of the Act(1) The Secretary of State must conduct an annual review of the operation of the provisions of this Act.(2) The review must consider the impact of the provisions of this Act on—(a) learner uptake of modular study;(b) learner uptake of non-modular part-time study;(c) adult learner uptake of Level 3, Level 4, Level 5 and Level 6 study;(d) access to higher education for students with disabilities; (e) access to higher education for students from lower- income backgrounds;(f) access to higher education for students from ethnic minority backgrounds;(g) uptake of modular study amongst learners between the ages of 30 and 60;(h) employer spending on lifelong learning, retraining and upskilling opportunities for their employees;(i) the provision of courses offered by higher education and further education providers;(j) the financial sustainability of the tertiary education sector;(k) differences in higher education provision across different regions of England;(l) skills gaps in the United Kingdom.(3) The Secretary of State must lay the report on the findings of the first review before Parliament within one year of the introduction of the Level 4 lifelong loan entitlement provision.”Member’s explanatory statement
This new Clause would require the Secretary of State to annually review the impact of the Act on various aspects of higher education and adult learning, starting within one year of the rollout of the Lifelong Learning Entitlement.
Baroness Twycross (Lab)
My Lords, I will speak to Amendment 3, standing in my name and the names of my noble friends Lady Wilcox, Lady Thornton and Lord Blunkett. I thank the noble Lord, Lord Evans, for giving his time yesterday to meet to discuss the Bill, and I thank the Minister for her own engagement in correspondence on the Bill.
As my noble friend Lady Wilcox stated in the debate on the previous group of amendments, Labour supports the aspiration in this Bill, and we want the change to work. However, we think that the Bill could be strengthened, and all the amendments we have tabled have the aim of making sure that it succeeds.
Labour wants students to have access to funds and to have a lifelong loan entitlement and the opportunity to learn throughout their careers. I have found the cross-party consensus and debate on aspects of this Bill of great interest, and one of the most compelling points in the debate in Committee was from the noble Lord, Lord Willetts. To paraphrase—and I apologise to him if this is an incorrect interpretation—he stated that one of the main issues for the success of the Bill’s measures will be whether or not those who are thinking about deferring their entitlement believe and trust that the funding will still be there in the future. I think it was a really well-made point. We need enough trust in future Governments keeping the entitlement to ensure that people do not instead decide to use it all at an early stage of their career to ensure they do not lose it, thereby negating part of the point of the Bill.
Lord Watson of Invergowrie (Lab)
My Lords, I start by apologising for my bad timing in not arriving for the previous set of amendments to which I was a signatory. I was caught on the hop, and it takes a few hops to get here from my office in Millbank House, so I apologise to the House.
It is important that some of the issues to which my noble friend Lady Twycross referred are emphasised. The impact of the Bill’s provisions on a number of education sectors is considerable, and I return again to the impact on the access to higher education for students from lower-income backgrounds. I shall not rehearse the arguments about BTECS and AGQs, the Minister will be relieved to hear, but that is one issue that needs to be borne in mind as the legislation proceeds.
I can no longer speak on behalf of the party as I am no longer on the Front Bench, but I very much hope that an incoming Labour Government would retain much of this legislation, because I think it is very positive and it would be a great shame if that was not done. I think it will; I think common sense will mean that that happens. Some of how we shape the Bill now, therefore, will have an impact further down the line, whatever happens at the next general election. I particularly mention the skills gaps in the economy, mentioned at the end of subsection (2) of the new clause proposed in the amendment; it is very important that we bear that in mind going forward.
The Minister, in response to the previous set of amendments, talked about impact assessments: the one done before the Bill was published and one in, I think, March this year. I was surprised that she did not mention—at least, not when I was here, and I think I was here when she was speaking—the report issued just under two weeks ago by the Permanent Secretary of the department on the assessment of the lifelong loan entitlement, which I thought was potentially rather worrying. The Permanent Secretary was questioning the ability to complete the rollout by 2025, as is intended. She said, and I quote from her report, that the biggest risk to feasibility of the lifelong loan entitlement is “significant delivery challenges”.
I will not go through all of those, as I am sure noble Lords will have seen them—this is the report issued on 25 August. It is all very well to talk about an impact assessment, but an assessment has been made of whether the deadline can be met, and I would like the Minister at least to comment on it, because we are getting fairly close to the time when, if certain preparations for the implementation of the lifelong loan entitlement are not completed, that 2025 introduction date will slip. That would be very unfortunate, to say the least, and could have considerable knock-on impacts.
Coming to my final point—perhaps I am being a little unfair to the Minister, but I am going to say it anyway—I referred, in my Oral Question in July, to a thematic report published by Ofsted which raised some questions about T-levels. I know that this is not the same thing, but I think the way that T-levels roll out will have an effect on the number of people who are properly prepared to take up some of the options under the lifelong loan entitlement. Could she say whether—if she thinks it is not appropriate to do so now, I should be very happy if she could write—she and her officials, having had more time to study the Ofsted report, have any other comments to make on it? I thought it unusual for His Majesty’s inspector to be as openly critical on such a fundamental part of the Government’s education and skills policy. If she would prefer not to rise to that today, I would be very happy for her to write, but it would be helpful to have some comment on that thematic report issued in July.
With those remarks, I think that the issues covered in Amendment 3 are important, and I do not really see why the Government should be unhappy about the Secretary of State conducting an annual review considering the various issues listed in the amendment.
Baroness Thornton (Lab)
My Lords, I support the amendment, to which my name is attached, but I also echo my noble friend’s remarks on this matter. As I mentioned to the Minister, the rollout will be very important, and the three to five-year assessment of whether the legislation has worked will not serve, because it will be a moving feast. Indeed, I thank the Open University for writing to us to draw our attention to the accounting officer’s assessment, which my noble friend mentioned, which highlights concerns within the department that the rollout might be a problem.
There are two things here, really. First, I seek some clarity on how this will be promoted. This partly echoes the remarks made by the noble Lord, Lord Willetts, in Committee, which we rather liked; they were about trust and how this will be sold to people as something that we would want them to take up in the long term. The second point is about addressing the concerns that have been expressed within the department by the accounting officer.
Baroness Garden of Frognal (LD)
My Lords, we have here a fairly formidable list of things, all of them important. I want to focus on subsection (2)(j) in the new clause proposed by Amendment 3, which concerns:
“the financial sustainability of the tertiary education sector”.
We note that student fees have not gone up in all the years they have been there and that universities now face intense financial pressures. I note that, in Committee, the noble Lords, Lord Willetts and Lord Johnson, put forward a suggestion that student fees should rise with inflation; that has not gone further but I wonder whether the Minister could give some succour to university vice-chancellors, who are desperately worried about how on earth they can balance their books as costs go up but income does not.
Baroness Barran (Con)
My Lords, I now turn to Amendment 3, tabled by the noble Baronesses, Lady Twycross, Lady Thornton and Lady Wilcox of Newport, and the noble Lord, Lord Blunkett. This amendment would require the Secretary of State to publish an annual review of the operation of the provisions of this Act and specifies several areas that the review must cover, including learner uptake, access to higher education and financial sustainability in tertiary education more broadly.
As mentioned in relation to Amendments 2 and 4, the Government published an impact assessment upon the introduction of this Bill in February and an extensive impact assessment of the lifelong loan entitlement more broadly in March. The Government intend to publish an updated impact assessment covering all aspects of the LLE, including the measures in this Bill, when regulations are laid.
There will be continued scrutiny of the Bill and the LLE via existing parliamentary accountability mechanisms, for example post-legislative scrutiny and the Education Select Committee. In addition, there are already systems by which the areas mentioned in this amendment are monitored. I will take each area in turn to provide reassurances as to the existing work being undertaken in these areas and the mechanisms in place for review.
In relation to the point from the noble Baroness, Lady Thornton, about three to five years, I was speaking specifically about post-legislative scrutiny. It is in the Cabinet Office guidance from 2008—a period that I imagine the noble Baroness might support. Obviously, as I have just listed, there are a number of other mechanisms for scrutiny.
The amendment lists a number of areas relating to uptake. I want to take this opportunity to refer noble Lords to the publications produced by the Higher Education Statistics Agency, which will continue to include data on learner uptake and enrolments. For example, the Higher Education Statistics Agency website allows anyone to view information about higher education student enrolments broken down by year, level of study, higher education provider, subject, mode of study and more. High-level national results are also published in its annual statistical bulletin.
Regarding uptake of modular and part-time study, the Government expect to see a shift in how, what and when people study as the LLE provides support for alternatives to full-time study. For example, Universities UK polling in 2020 on modular study indicated that 82% of prospective students polled who were either unemployed, at risk of unemployment or looking to learn a new skill would be keen to study individual modules of a university degree.
Turning to access, tackling inequality in higher education is a central part of the Office for Students’ mission. The OfS shares information through its access and participation data dashboard, which allows it and the public, alongside registered universities and colleges, to identify gaps between groups. The OfS also maintains an equality of opportunity risk register, which identifies key sector-level risks to equality of opportunity in higher education and highlights the student groups that are most affected by each one.
The Government recognise the importance of supporting access, which is why maintenance loans will be available for all eligible courses and modules that require in-person attendance under the LLE, as will targeted support grants such as the disabled students’ allowance and the childcare grant. The impact assessment published alongside this Bill notes that learners who will particularly benefit from the introduction of fee limits for short courses and modules are more likely to be older, female, from ethnic minority backgrounds or from lower socioeconomic groups.
Baroness Twycross (Lab)
My Lords, I thank the Minister for her detailed response and thank all those who participated in this short debate. It is regrettable that the Government do not view this as a useful amendment. In Labour’s view, it would improve the likely outcomes of the Bill and the outcomes for the students who the Bill intends to help. Notwithstanding that, I beg leave to withdraw my amendment.
Lifelong Learning (Higher Education Fee Limits) Bill
Tuesday 12th September 2023
(1 year, 3 months ago)
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The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)
My Lords, I would like to express to your Lordships how delighted I am that the Lifelong Learning (Higher Education Fee Limits) Bill is finalising its passage through this House. This Bill is a significant moment in transforming access to post-18 education and skills as the next step toward the introduction of the lifelong loan entitlement.
I thank noble Lords for their valuable scrutiny and input throughout the Bill’s passage in this place. I express my particular thanks to Members on the Front Benches, including the noble Baronesses, Lady Twycross, Lady Wilcox of Newport, Lady Thornton and Lady Garden of Frognal, and the noble Lords, Lord Storey and Lord Addington, for their positive engagement and overall support for the principles behind the Bill, as well as for their thoughtful scrutiny and constructive contributions. The debates have been engaging and we have benefited significantly from the deep expertise in this House.
I pay particular thanks to those former Education Ministers and Secretaries of State who provided us with their insight. They include the noble Lord, Lord Blunkett, and my noble friends Lord Willetts and Lord Johnson of Marylebone.
I thank the many other noble Lords who took part in the debates and who have a wealth of knowledge across higher and further education, including honorary fellows, visiting professors and members of many of this country’s brilliant universities and colleges. I am also grateful to those leaders in universities and colleges who shared their insights with me about the potential for the Bill, the learning from the pilots and what is needed to make the Bill have a material impact once it becomes law.
Baroness Twycross (Lab)
My Lords, I thank the Minister for her constructive engagement on this Bill and for briefing Members at an early stage, along with the noble Lord, Lord Evans of Rainow, and the right honourable Member for Harlow. I also thank the Bill team. Labour supports the Bill’s aim; we support the idea that people can access funding to undertake the learning they need throughout their career. With people undertaking portfolio careers and with continual changes in technology and society, it is no longer the case that what you learn through a traditional three-year degree course is all that you will need in your work for the next 45 years or so.
We had a number of interesting, if concise, debates as the Bill passed its various stages. The Bill is quite limited in scope and Labour still believes that there could have been scope for setting out a more formal review process on a number of its aspects. This would, not least, have helped to safeguard against unintended consequences, whether around distance and flexible learning or employers making a proper contribution to staff development.
There are a number of potential negative impacts on people who are less able to move to study or who are less able to study full-time because of caring responsibilities. From what the noble Baroness said, we hope and believe that the Government intend to monitor and review the lifelong loan entitlement as it is established and rolled out, to make sure that its promise and potential are fulfilled, and especially to ensure that every person in England can have their own promise and potential fulfilled.
I thank the team in the Labour group office, particularly Clare Scally, as well as my Front-Bench colleagues and mentors—my noble friends Lady Wilcox and Lady Thornton. Their patience and kindness in imparting their own lifelong learning and talking me, a relatively new member of the Labour Front-Bench team, through the process of the passage of the Bill has been hugely appreciated.
Baroness Garden of Frognal (LD)
My Lords, I apologise profusely to the House for arriving after the Minister started speaking; business moved much more quickly than I expected.
From these Benches, I thank the Minister and the Bill team very much for all their work on the Bill. We remain concerned about how many adults will wish to take on debt in order to improve their learning, and we look forward to hearing updates from the Minister about how many people have done so. From these Benches, we feel that grants would be a much more effective way of persuading adults to learn. But, of course, we are all totally in favour of lifelong learning, and we wish the Bill well.
Baroness Wolf of Dulwich (CB)
My Lords, as many of you will know, the number 1 recommendation of the Augar review of post-18 education and funding was for this sort of reform. As someone who was a member of that review and who has spent a considerable part of the last three and a half years on secondment to government to work on the Augar review proposals, among other things, I take this opportunity to thank everyone involved.
I have been jinxed: I have not managed to contribute to any of the fine and informative debates that have taken place on this. They have highlighted some of the challenges that lie ahead. I am enormously encouraged by the cross-party support for the principle of a funding system that genuinely takes us forward into not just the 21st century but a future where post-compulsory lifelong learning is the rule, not the exception. We now have an opportunity to build on this.
I thank everyone involved in the drafting and passing of the Bill—although we have not quite passed it yet. I particularly put on record my appreciation of the work put in by a large number of officials who have worked enormously hard on this—on teasing out the policy implications and on minimising the amount that had to be put into primary legislation. I thank them and the Minister for her support. It is a little miraculous that we have moved from a major recommendation in 2019 to putting this reform on its way to implementation in 2023. So, on behalf of the Augar review team—and, I think, all the future students of this country—I thank everyone involved in this reform.
Royal Assent
Monday 18th September 2023
(1 year, 3 months ago)
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