Lifelong Learning (Higher Education Fee Limits) Bill (First sitting)

(Limited Text - Ministerial Extracts only)

Committee stage
Tuesday 21st March 2023 Public Bill Committees

[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 Good morning, Professor Press. Thank you for being a witness. The chief executive of Universities UK said:

“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 What will be the impact on universities? Obviously, it is hard to know how behaviours will change, but once level 6 is introduced under the lifelong loan entitlement, how do you think universities will respond?

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 Given what you say about HTQs, and level 4 and 5, do you foresee much greater collaboration between universities and further education colleges once the lifelong loan entitlement is up and running?

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 Good morning, professor. I will start with questions about the funding model for higher education institutions. What impact do you think the introduction of the lifelong loan entitlement and the proposed funding model in the Bill will have on higher education providers, particularly given the declining unit of resource?

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.

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[The Chair]

I do not think we have Liz.

[Robert Halfon]

Q I will start with Alun Francis. It was good to visit Oldham College recently—thank you. What do you think will be the impact on your most disadvantaged students of their now having access to the lifelong loan entitlement?

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 I will turn to Ellen. Good morning and thank you again for coming today. Which students do you think will stand to benefit most from the lifelong loan entitlement and from being able to do fairly priced short courses and modules?

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 Absolutely. Careers guidance will be essential to ensure that the lifelong loan entitlement works properly for students. Do you think the personal accounts that students will be given will make a difference? Each student will have a personal account, which will give them all the information in terms of what course they have done, how many credits they have left and what loan entitlement they have. We also very much hope that UCAS will take a significant role in that as well. Do you think that will make a difference in terms of the things you just discussed?

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 I think there will be a one-to-one service for those students, which is part of the Government service that exists already, but absolutely. I very much hope that not just UCAS but the National Careers Service, which we are doing a lot on, will have an important role in directing students to the training and retraining options that they might want to consider.

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 Thank you, Ellen. I am afraid you are very much the centre of our attention for the time being. I will ask specifically about quality, as I understand that you have a certain expertise in its delivery and measurement. How are we going to ensure that there is a consistent measure of quality across courses and providers with the LLE?

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.

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[Matt Western]

Q Thanks very much; it is good to have you all on the call this morning. Thanks for joining us. This is really aimed at Liz and Alun: how might employer demand be measured in deciding what courses should be initially rolled out under this new system? We will start with you, Liz.

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 Could I start with Alun Francis? It was good to visit your college a few weeks ago; I had a wonderful visit. What do you think, in terms of FE, about the impact of the LLE encouraging disadvantaged students—particularly those from low-income backgrounds—to take up the LLE? What impact will it have on colleges such as yours?

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 May I ask the other two witnesses, in relation to your institutions, about the impact on disadvantaged students? We know that more disadvantaged students than ever before are going into HE, but at some institutions more than at others, there are issues with their completing courses. What impact do you think this approach will have on disadvantaged students in terms of module starts and higher completion rates? Would all three of you give us your views on the phased approach we are taking? We are starting with levels 4 and 5 in higher technical qualifications and employer-led qualifications, and moving on to level 6 later, so that we bring this through slowly and cautiously?

[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.

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[The Chair]

Thank you. I call the Minister.

[Robert Halfon]

Q Good morning. Do you expect students to respond favourably to the new system of limits per credit, instead of limits per year?

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 What work needs to be done, apart from careers guidance, to get students more familiar with the new system and the fact that they can do modules or short courses as well as long courses?

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 Do you anticipate that this will mainly be utilised by learners who are in work currently and are looking to develop their careers, whose employers are looking to develop their skills, or by learners who are either out of work or looking to change jobs or employers?

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.

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[The Chair]

That’s twice today. I call the Minister.

[Robert Halfon]

Q I should declare that I am an honorary professor of Nottingham Trent University. Good morning to you, Professor Edward Peck. You have written about the short course trial. Obviously, the numbers have been small at the moment, although the purpose of the trial is not about numbers. You said that focusing on the numbers taking the short course trial is missing the point. Could you explain why, and why you think there will be significant take-up of the LLE?

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 You have talked about the advanced learner loan as well, and the numbers taking that up. Could you expand on that a bit?

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 You have a close relationship with the Mansfield college. I want to understand how you think the LLE will impact both on HE and FE and also in terms of franchising to other institutions, as in the way that you are doing.

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 Hello Professor—good to see you. Likewise, I was very impressed by Mansfield when I came to visit. I am just interested to know your thoughts on the rationale of having a minimum of 30 credits. Do you think we should be considering a lower threshold?

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.

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[The Chair]

Thank you very much for attending this morning.

[Robert Halfon]

Q Rachel, do you agree that without these measures, students who want to learn flexibly could be disproportionately affected by significant fee limits?

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 We are introducing this in a phased way, starting off with levels 4 and 5 and then level 6. We want to get it right. It will be hard to predict behaviour change, although I think it will be very positive. What is your view of the phased approach and starting off with levels 4 and 5, particularly HTQs and employer-led qualifications?

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 Do you imagine yourselves offering level 4 and 5 courses under the LLE to begin with?

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.

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[Lloyd Russell-Moyle]

Q I am interested in the additional costs for institutions. Rachel, you touched on that. Do you think there need to be some additional payments to institutions to incentivise them to do this? Who should look after students between modules? Who should offer that ongoing support? Should it be the institution, or should there be another body?

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 I want to ask you both about credit transfer. It will obviously be for the institution to decide on this—where people move their courses if they decide to transfer. There are good examples of this taking place already, as you well know. How will this work in practice? Will it be embraced by colleges and HE institutions?

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 We heard from a previous panellist about the importance of confidence in any new scheme. I think about T-levels, which have not really taken hold in the way the Government had perhaps hoped. If we are looking at 2025-26 as the year that this system may start, how can the Government make sure that there is the massive take-up to ensure it is a success?

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—