Lifelong Learning (Higher Education Fee Limits) Bill
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Baroness Garden of Frognal (LD)
My Lords, I thank the Minister for her willingness to discuss issues in the Bill with all interested noble Lords. I have added my name to Amendment 1, for all the reasons set out by the noble Baroness, Lady Twycross. For these provisions to succeed, close co-operation and consultation with higher education and indeed other awarding organisations are crucial.
This is a small Bill with considerable limits. We had hoped to table amendments to ensure that careers information, advice and guidance were available to any of those wishing to take advantage of the provisions of the Bill, but we were told that that was out of scope. I fear that other of our concerns may also turn out to be categorised in that way.
There are a great many unknowns in the Bill. It is a matter of great concern that the number of adults over 21 accessing higher-level skills has fallen dramatically over a number of years. One reason is the lack of maintenance support—also, I fear, out of scope. The majority of part-time students do not have access to maintenance support and that can be a serious disincentive for them, so can the Minister say whether any thought has been given to maintenance loans—or, better still, grants—to enable the provisions of the Bill to succeed? I guess that this, again, will be out of scope.
As the Minister is aware, 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 propose a skills wallet, putting money into learners’ pockets to enhance their skills learning and competence at three stages of their careers. We argue that that money would be rapidly recouped by the enhanced earning capacity of those who took advantage of it. We know that many adults are loath to take on additional debt, particularly in these times of economic difficulties. We will support any amendments calling for reviews to see how successful the offer of loans and debt is to adults.
I am not sure whether the Minister answered those concerns at Second Reading but obviously now we have to concentrate on the amendments tabled, which largely centre on clarification of what is or is not included in the Bill. We can only hope that the Bill has the desired effect. The country is woefully short of people with the skills that the economy needs and, if more adults can be encouraged to acquire those skills, we shall all benefit. However, it is a very little Bill.
The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)
My Lords, I shall speak to Amendment 1, tabled by the noble Baroness, Lady Twycross, also in the names of the noble Baronesses, Lady Garden of Frognal, Lady Wilcox of Newport and Lady Thornton, and Amendment 4, tabled by the noble Baroness, Lady Twycross, and in the names of the noble Baronesses, Lady Wilcox of Newport and Lady Thornton, which would require the Government to consult relevant stakeholders and others before, first, setting out which method should be used to calculate fee limits and, secondly, determining the nature and extent of credit-differentiated activity and the number of credits associated with it.
The Government intend for all courses offered under the lifelong loan entitlement, the LLE, to use the new credit-based method for calculating fee limits in order to create a consistent and unified fee limit system. That policy has been designed in consultation with relevant higher education sector stakeholders. I agree with the noble Baroness opposite that it is extremely important to take account of their views. That is exactly what the Government have done in designing this policy.
The Government intend to retain the ability to set fee limits using the current yearly system, as well as the new credit-based system, but would use this ability only by exception. The Government do not currently anticipate any courses to use the fixed method from 2025 and are confident that all courses can use the credit-based method. The Government concluded their consultation on the LLE on 6 May last year. The consultation included a question on whether any courses should continue to be funded per academic year under the LLE rather than according to the number of credits.
Through the consultation, the Government understand that some courses, such as postgraduate certificates in education or nursing degrees, may not be suited to having fee limits set using provider-assigned credit values. This is due to variations in how different providers assign credits to these courses, which could lead to variable fee limit outcomes. For those courses, the intention is to set fee limits using a consistent rate of 120 credits per year for full-time courses, with other values for other intensities. That will enable those courses to use the new credit-based method while retaining parity with the current per-year system.
In relation to credit-differentiated activity, the Government want to ensure that periods of sandwich placement and study abroad continue to be subject to lower fee limits. In the current system, these lower limits are applied to full academic years, which makes them incompatible with the per-credit system. To enable those lower limits within the credit-based method, the Bill introduces the term “credit-differentiated activity”. This will mean that substantial periods of sandwich placement and study abroad can have their lower fee limits applied accurately even when they do not conform to full academic years. Regulations will set out details on how this system will work, including a mechanism to enable credit-differentiated activities to work for non-credit-bearing placements.
I can also announce that, in the autumn of this year, the Government will publish further detail of the fee limits regulations. This will give the sector and the public an opportunity to scrutinise the detail and plan accordingly for the introduction of the LLE in 2025, as well as ensuring that the Government can receive feedback on their proposals prior to the laying of regulations. This will include detail on the maximum and default credit values for different course types.
In conclusion, given that consultation has already taken place and that further engagements with the sector will take place as part of the pathway to the LLE’s delivery, the Government cannot support these amendments.
Baroness Twycross (Lab)
My Lords, I thank the Minister for her response. I also thank the noble Baroness, Lady Garden of Frognal, for adding her name to Amendment 1 and for her contribution to this discussion; as she said, we desperately need more skills, so we need this Bill to succeed.
We welcome the Minister’s announcement that further detail and consultation will come in the autumn. The Labour Party is keen to work with the Government to make sure that this Bill is the game-changer that it could be. I hope that, once we get the detail of the consultation, we will look at whether additional consultation will need to be built into the Bill. At the moment, we think that there is merit in building something into the legislation. I beg leave to withdraw the amendment.
Lord Johnson of Marylebone (Con)
My Lords, I will speak to Amendment 6A in my name. I declare my interests in the register as a visiting professor at King’s College London and as chairman of FutureLearn. As other noble Lords have indicated, this amendment attempts to address what is an elephant in the room in our debates. This is obviously a controversial issue, which is very much present but has largely been avoided as a subject for discussion: the absolute level of fees and tuition fees.
While it is very welcome that we are introducing a more flexible system of student finance, that is not much good on its own unless we address the relentless erosion in the value of tuition fees themselves. I have always found it a little unreal that we have a Bill that refers in its title to “Higher Education Fee Limits” but we have not actually had any discussion whatever of those fee limits.
The legal cap on tuition fees for full-time undergraduate study at most universities is now £9,250—that is barely changed from the £9,000 that it was when the system was introduced a decade ago. By May this year, inflation had eroded the value of these fees to £6,020 in 2012 money. If inflation remains elevated, it will be materially below £6,000 in 2012 money by September and teaching UK students at this level will be loss-making for many, if not most, institutions. Carry on like this and we will have stretched the unit of resource to such a point that a crisis is inevitable. The LLE certainly will not be offered, nor will much else. My view is that we are really not doing our job unless we do something in this Committee, and during the passage of the Bill, about the fact that the system as a whole is becoming unsustainable.
The current impasse is creating a situation in which we are systematically defunding our universities, depriving the engines of our knowledge economy of the fuel they need to offer great teaching and world-class research. If we want to retain our position as one of the world’s most highly regarded higher education systems, and to have a fighting chance of attracting researchers to support our goal of becoming a science superpower, this clearly cannot go on. We all know that this needs to be fixed, yet we seem to lack the political courage to do what needs to be done.
As far as I can tell, a lot of effort is going on across all parties to work out how to say as little as possible about higher education funding ahead of the next general election. I am very grateful for the support from my colleagues opposite and hope that, were this amendment to find favour, they would continue to support it as we make progress with the Bill. The amendment seeks to force the debate into the open and to flush out the extent to which the Government—and Opposition parties—are seriously engaging with this issue before the crisis in funding takes a further turn for the worse.
The amendment itself is very simple. It would automatically allow higher education institutions that deliver great teaching and student outcomes, as assessed by the teaching excellence framework, to raise fees in line with inflation. There is nothing novel about this. A mechanism to link funding to quality in exactly this way exists already in law in the Higher Education and Research Act 2017. Schedule 2 to that Act allows fee caps to be set at differing levels based on a provider’s teaching excellence framework award, subject to overall limits prescribed by regulations that are scrutinised by Parliament. This amendment would ensure that the mechanism is used automatically each year, ensuring that high-quality providers can continue to deliver great teaching and student outcomes without their tuition income being relentlessly eroded by inflation. There is nothing new in it.
As noble Lords may recall, the Cameron Government used this exact method to enable fees to rise with inflation from £9,000 to £9,250, some five years ago. In my view, we should have continued with that approach, as it would have maintained university funding on a more sustainable footing than it is at present and entirely avoided the current crisis. Gold-rated and silver-rated providers would today have been able to charge fees of approaching £12,000. The University of East Anglia, for example, would have had an extra £38 million, which would wipe out the black hole in its finances. Such a system, linking funding to quality, aligns the interests of students, taxpayers and providers, and is an immediately deliverable solution which can be implemented as soon as the next TEF results come out this September.
We do not need a big review. We should not wait for our universities to start falling over one by one. We need to get on and use the mechanism that already exists.
Baroness Barran (Con)
My Lords, I will respond to Amendment 2, tabled by the noble Baroness, Lady Garden of Frognal, and Amendment 5, tabled by the noble Baroness, Lady Twycross, and also in the names of the noble Baronesses, Lady Garden, Lady Wilcox of Newport and Lady Thornton. I will speak also to Amendment 6A, tabled by my noble friend Lord Johnson of Marylebone. These amendments seek to put the number of notional learning hours that constitute one credit in the Bill, to limit the default credit value to a maximum of 20 credits, and to allow certain higher education providers to increase their tuition fees automatically each year in line with inflation if they have a teaching excellence framework rating.
Amendment 2 would define in the Bill a credit as equivalent to 10 notional learning hours. As has been set out in the other place, while it is crucial that the definition of credits in the fee limit calculation aligns to standard practice in the sector, the Government plan to set this out in detail in secondary 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 the learning hours in secondary legislation, rather than primary, means that providers which 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 that might bring. 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 always get the opportunity to debate and formally approve any changes to those regulations.
Amendment 5 queries the extent to which the Government are prepared to fund modules of fewer than 30 credits through the LLE. As I referred to in my response made at Second Reading, and as set out in the Government’s consultation response, modules must have a minimum size of 30 credits for funding purposes. This is in line with the recommendation in the Augar review. None the less, as the noble Baroness, Lady Thornton, pointed out, it will be possible to bundle two or more modules from the same parent course to meet the 30-credit funding requirement.
This amendment also refers to the default credit value. If your Lordships will permit, it may be helpful to provide the Committee with some further detail on the purpose of this value. The default credit value is intended to allow fee limits to be set on full courses that do not bear credits or on full courses that are more suited to annual fee limits than credit-based fee limits. For example, this could include some degree programmes at Oxford and Cambridge or sandwich years where the provider has not assigned credits. It could also include courses such as postgraduate certificates in education or first degrees in nursing. For these types of study, a default number of credits will be used in the fee-limit calculation, instead of any provider-assigned number of credits. These default values will be set at 120 credits per year for full-time courses, with other amounts for other intensities, all of which will align with sector-recognised standards. The default credit values will not apply to modules undertaken separately from their full course. As all modules funded through the LLE will be required to bear credit, they will always have the fee limit calculated using the provider-assigned number of credits, not a default number of credits.
To be clear, the default credit value applies only to full courses, not to modules. If default values are all set at 20 credits, that would mean that, for example, Oxford and Cambridge would be allowed to charge for only 20 credits a year for their degrees, instead of 120 credits, which I am sure is not the noble Baroness’s intention. We would not want providers to be limited to being able to charge for this number of credits per year.
I now turn to speak to Amendment 6A, tabled by my noble friend Lord Johnson of Marylebone. It is clearly vital that our higher education sector remains on a sustainable financial footing. It is an important contributor to our national economy, and it is something that we excel at as a nation. That is why the Government keep all elements of student finance and higher education funding, including fee limits, under constant review. We have said that fees will remain frozen until the start of the 2025 academic year. This ensures that students and taxpayers continue to receive value for money. However, we are also investing an extra £750 million in higher education teaching and students over three years to 2024-25 through the strategic priorities grant. This will help providers to fund their provision of high-cost subjects, such as medicine, science and engineering, and help students to succeed.
We provide support for the sector through subsidised fee loans. This is our investment in the skills, people and economy of this country, and one that is even more important in current circumstances. A continuous automatic increase in fees in line with inflation would undermine the incentive for providers to find efficiencies in their business models or to develop other sources of revenue to diversify their income and achieve sustainability in ways that benefit British students and British taxpayers. Despite current pressures, the Office for Students found in its latest report that the overall aggregate financial position of the sector remains sound, though there is variation between individual providers.
I remind the Committee that overall tuition fee income in English higher education providers has increased in cash terms from £13.7 billion in 2014-15 to £21.6 billion in 2021-22, an increase of around 58%, but there are significant differences in income and student number growth between providers. Some providers have increased their student numbers significantly in recent years, in particular in business and management courses, which have grown rapidly. With the public outlay to support students to go to university having increased so much in recent years in cash terms, the rapid, localised growth that we have seen in some courses and at some providers emphasises the need for us to ensure that the quality of provision remains high, so that students can achieve the employment outcomes that they are looking for and the economy benefits from our considerable investment in higher education.
As my noble friend understands very well indeed, fee income from domestic students is just one element of the income mix of higher education institutions. Obviously, there is income from international students, research fees and funding institutes, as well as commercial income. There are questions that the Government would be keen to work with universities on, and, if helpful, I would be happy to meet my noble friend or providers to think about the scale and breadth of courses offered by individual institutions and groups of institutions within an area, as well as about how the cost base of institutions will develop in future.
Lord Storey (LD)
My Lords, I added my name to this amendment. I apologise for not being present at Second Reading. I echo the comments made by the noble Baroness, Lady Wilcox, that it is really important that everybody is able to take up these opportunities. The Minister should think carefully about those people who live in rural areas. Last year, I went to Northumberland where I met a group of students who have to travel scores of miles to get to the local college. There is no financial support for their travel, but one way round that would be distance learning. By not providing that opportunity, the Government are denying the opportunities they want to achieve in this very welcome and important Bill.
Baroness Barran (Con)
I will speak to Amendments 3 and 6, tabled by the noble Lord, Lord Watson of Invergowrie, and also in the names of the noble Lords, Lord Addington and Lord Storey, and the noble Baroness, Lady Twycross. These amendments would require that per-credit limits and credit-differentiated activity may not be prescribed solely according to whether the learning is in person or distanced.
Fee limits are not different for distance learning currently, and there is nothing in this Bill that would change this. I hope that reassures the noble Lord, Lord Watson, on one of his questions. I can assure your Lordships that the Government have no intention of differentiating fee limits between distance and in-person learning under the LLE. The per-credit fee limits will be the same for full-time, part-time, face-to-face and distance learning.
Distance learning courses will remain in scope for tuition fee loan support under the LLE. As your Lordships have pointed out, these courses will also continue to be out of scope of maintenance support, which is in line with the current system. However, the Government are committed to encouraging flexibility, and I was grateful to the Committee for acknowledging the important expansion in the use of maintenance loans for living costs and targeted grants. This will make maintenance support available for all designated courses and modules under the LLE, including those currently funded by advanced learner loans and those studied part time. It will also include—a point raised by the noble Baroness, Lady Wilcox—targeted support grants such as the disabled students’ allowance and the childcare grant.
Your Lordships expressed real concern that the absence of maintenance loans might impact on demand for distance learning. The noble Lord, Lord Watson, referred to the impact assessment. I will need to check, but my understanding is that distance learning was not specifically covered in the Bill’s impact assessment. Rather, as the noble Lord knows, the impact assessment was very positive overall, particularly when referring to learners who might be debt averse.
The ratio of distance learners to campus learners has been constant, at around 10%, despite the rapid growth in campus learners over that period, so I do not think there is compelling evidence that the absence of maintenance loans is impacting on demand for distance learning, relative to campus learning.
The noble Baroness, Lady Wilcox, stressed that distance learning was the key to unlocking lifelong learning. I only partly agree with her: I think the key is choice. We need to offer learners choice, whether that be campus learning for those who would benefit from and prefer that approach, and distance learning for those for whom campus learning is not their ideal situation.
On the maintenance loan and distance learners, the Government will roll over the existing exemption that enables distance learners with a disability to qualify for maintenance loans and disabled students’ allowance. The disabled students’ allowance will be extended to all designated courses and modules. The Government intend to review attendance validation more widely, and we will consider any necessary policy changes following the outcome of that review. We believe this amendment to be unnecessary, and therefore the Government will not support it.
Lord Watson of Invergowrie (Lab)
My Lords, I thank the Minister for her response, and I also thank those who spoke on this group of amendments. I am happy to welcome what the Minister said about fee limits not being different and the Government having no intention to change that, and that per-credit fee limits will be the same for all modes of study. It is useful to have that on the record. I know that the Open University was concerned about the lack of specificity on that, and that has been laid to rest this afternoon.
Some issues remain on the question of distance learners’ maintenance. If I understood the Minister correctly, she said that distance learners account for about 10% of all learners taking undergraduate courses and that that figure has remained stable while the overall number has increased. I am not sure that suggests that there is not an issue. How many more would have come forward and participated had they had the support needed—the sort of support to which the noble Lord, Lord Addington, and my noble friend Lady Wilcox referred? These needs will still be there.
It is slightly disingenuous to suggest that the disabled students’ allowance is available. That is basically saying that, if you want to study and are disabled, you can do so from home, but if you choose not to study, you need to make bit more of an effort and could get to classes if you really wanted to. As we have said, this impacts often older learners—those with family or caring responsibilities or a full-time job that stops them doing that. It is in no way a defence of the current situation.
I do not have the figures to cite to the Minister on the impact assessment, but, as I said earlier, when the plan to provide this support to distance learners was abandoned four years ago, it was on the basis that the demand would not be high enough to make it viable. I do not quite know what “viable” is—has it got something to do with repayments? I do not know. We need some more information on this, and it may be possible to get it at Report.
The Government cannot use this Bill to change that because it is so narrow, but this issue will not go away and it will impact on the Bill’s effect, which we very much support, of getting more people to make use of lifelong learning. With those remarks, I again thank everyone who has contributed on this group of amendments and I beg leave to withdraw the amendment.
Baroness Barran (Con)
My Lords, Amendment 7, tabled by the noble Baroness, Lady Twycross, and in the names of the noble Lord, Lord Addington, and the noble Baronesses, Lady Wilcox of Newport and Lady Thornton, Amendment 8, tabled by the noble Lord, Lord Addington, and Amendment 11, tabled by the noble Lord, Lord Watson of Invergowrie, would place requirements on the Government to review the impact of the Act. I take this opportunity to confirm that the Government agree with the sentiment behind these amendments and are fully committed to monitoring the impacts of this transformation of student finance.
As your Lordships will be aware, the Government have published an impact assessment for the Bill which includes a consideration of impacts on learners, providers and employers. A full impact assessment and an equality assessment were also published alongside the Government’s response to the LLE consultation. In addition, parliamentary accountability mechanisms are already in place to review Acts of Parliament, including post-legislative scrutiny reviews, and I take this opportunity to acknowledge the Education Select Committee in scrutinising the work of the department.
Amendments 7 and 8 would require the Government to review the impact of the Act in relation to multiple different areas. However, vehicles through which these areas can be monitored already exist. For example, I take this opportunity to refer your Lordships to the publications produced by the Higher Education Statistics Agency, which will continue to publish data on learner uptake, personal characteristics of learners, including disabilities, and student course enrolments. Similarly, data on the take-up of level 3 courses, as referenced in Amendment 11, is available on the government web pages. I also refer your Lordships to publications from the Office for Students, including its annual report and accounts, as well as publications on the financial sustainability of the sector. Furthermore, information on student loan borrowers is publicly available from the Student Loans Company.
The Government are working jointly with the Student Loans Company and the Office for Students throughout the development and implementation of the LLE. I refer your Lordships to the framework document between the DfE and the OfS, which was updated in January 2023. It sets out the governance framework within which the OfS and the DfE operate, including in relation to financial matters. The department and the OfS will continue to work together to monitor expenses, funding, resources and efficiency via business planning.
I note that Amendment 8 references the impact of the credit-based method on students with disabilities and those with a need for a sharia-compliant loan system, among other criteria. I clarify that the fee limits are set on courses, not 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 have a disability, 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 alongside the LLE. We were grateful for the support and contributions of noble Lords on this issue during the passage of the Financial Services and Markets Act. I can confirm that, in April, I met the noble Lord, Lord Sharkey, and representatives from the Islamic community, including the Islamic Finance Council UK, to discuss the steps the Government are taking to deliver alternative student finance as swiftly as possible. I look forward to meeting them again—later this week, I believe.
Lord Watson of Invergowrie (Lab)
They may have been confidential discussions, but is the Minister able to tell the Committee what the stumbling block is to introducing suitable loans?
Baroness Barran (Con)
I am familiar with what the current issue is and, if I express myself in any way inaccurately, I know that my colleagues will help me to write to the noble Lord and all your Lordships. The issue is that there are obviously very significant changes to the Student Loans Company systems with the establishment of the LLE, and sharia compliance should not be an add-on on the end. It needs to be woven through every single one of them and we are committed to doing that really important job. It is very significant in its complexity, but I am happy to set out more detail in a letter to the noble Lord, if that is helpful. I can stress, knowing what I think is behind his question, that there is no lack of motivation and commitment to doing this. It is a practical barrier rather than any other.
Returning to my recent meeting with representatives on this issue, we will continue to engage with your Lordships, Members of the other place and representatives from the Islamic community. I will be able to provide a further update on alternative student finance later this year.
Delivering the Government’s vision for the LLE will require, as I just said in response to the noble Lord’s question, extensive changes to the student finance system and the types of course available. Introducing ongoing reviews into primary legislation before policies have been fully implemented or had sufficient time to bed in would, we believe, be of limited value, if any, particularly when the Government want to focus on working with the sector and learners—and indeed with employers, as your Lordships raised—during implementation.
As your Lordships know, we often see initiatives in post-16 education needing time to scale up to reach their full potential. The noble Lord, Lord Watson, referred to the development of T-levels, which have been deliberately phased to ensure high-quality provision. There are now 16 T-levels available, with 164 providers. Over 10,000 new students were recruited to T-levels in 2022; that is more than double the 2021 figure, but there is obviously also tremendous growth potential there.
I turn to some of the specific questions which your Lordships raised. The noble Lord, Lord Aberdare, hoped that there would be a straightforward registration process for independent training providers. Of course we need to make it as straightforward as humanly possible; equally, it needs to be appropriately rigorous so that we uphold quality because, as the noble Lord understands extremely well, there have been issues with the quality of provision and we really do not want to go there again with these reforms. We are very committed and keen to ensure that we uphold quality at all times, so simplicity of process should not trump the quality of delivery.
In relation to VAT, the noble Lord answered his own question; it is considerably above my pay grade. On creative subjects, I had breakfast last week with a group of tech companies to talk about STEM careers. A number of them really wanted to talk about only the importance of creative subjects within a STEM career, so I agree with much of the sentiment that the noble Lord expressed on that.
Lord Addington (LD)
I think the Minister covered my questions, but just to make sure that bears of little brain have no confusion about this: all the provisions for anyone entitled to the DSA are now available at level 4, and the responsibilities of the colleges and universities providing this are the same as they would be for those on the traditional undergraduate course. So information capture and structuring are required to be there, and if they are not then there are consequences. Is that right?
Baroness Barran (Con)
That is the basic principle we are following but I will set it out absolutely accurately in a letter to the noble Lord.
Baroness Twycross (Lab)
I thank the Minister for her detailed reply to this debate. I particularly welcome her strong words on the need for employer investment, which is a shared concern. I also welcome others noble Lords’ contributions to this debate. In particular, I note the strength of feeling from the noble Lords, Lord Addington and Lord Storey, and my noble friend Lord Watson in relation to ensuring that sharia law-compliant funding is available. I welcome the commitment from the Government and the Minister to ensure that alternative finance is available. As the noble Lord, Lord Addington, said, this can and should happen; everybody on all these Benches agree that it is a priority.
The noble Lord, Lord Aberdare, mentioned the need for independent training providers to be included within the scope of any review and in the Bill, including, in his words, making the process straightforward. We agree with the Government on the need for rigour in this process in order to ensure quality without making it impossible for independent training providers to apply to be within the scope of this provision. I feel passionately about creative subjects, so I am pleased that the noble Lord raised them.
I do not think we heard the point made by the noble Lord, Lord Willetts, on scepticism from learners. It is a valid point and one that was worth raising in terms of the concern that some learners may have that this may be a scheme that is here today, gone tomorrow. One thing that we need to make sure we get clarity on is how learners will get some sort of model; I do not know how we can guarantee it but this debate has, I hope, demonstrated that there is cross-party agreement that this model would work.
I feel—I think that I speak for Labour colleagues, but I do not want to speak for other parties—that there is a view that periodic reviews of the legislation’s impact may help to ensure that students do not feel sceptical about this and that learners do not feel that they need to use all the money now or else risk not being able to access it in future. I appreciate that the Minister feels that some of the assurances that we would want from a review are already covered by other mechanisms and other forms of scrutiny, but Labour is not yet convinced that that is sufficient. We would welcome an opportunity to discuss further with the Minister how we can build additional reviews into the Bill and into future scrutiny of the legislation. We feel that periodic reviews of the impact of the legislation will ensure that it is delivering what it promised, including people feeling able to wait 10 or 20 years to take up some of the funding.
I appreciate that the Minister is unable to say today that the Government would support including this measure in the Bill. We would like to discuss it further, but I beg leave to withdraw Amendment 7.
Baroness Barran (Con)
My Lords, Amendment 9, tabled by the noble Lord, Lord Addington, would require the Office for Students to have regard to the need to provide information to students about the changes made by the provisions of the Bill. The noble Lord set out clearly the skills gap that the Bill seeks to address and the flexibility it seeks to introduce as an Act, if passed. He is right that this is a significant change that we need to communicate effectively.
I can assure your Lordships that the Government understand the critical importance of ensuring that students are aware of the benefits of the lifelong loan entitlement, including the fee-limit system. Ongoing sector engagement has been, and will continue to be, an integral part of delivering the transformation of student finance that the Government aim to achieve. The Government will work with key organisations and delivery partners, including the Student Loans Company, to support providers in implementing the changes, learners in making informed decisions and employers in recognising the value of the LLE. This information, advice and guidance will be supported by stakeholder engagement, targeted communications and promotion to future learners and others, ensuring that the right information is communicated at the right points to aid delivery of the LLE.
The noble Baroness, Lady Wilcox, stressed the need for clarity. I remind the Committee that prospective learners will have access to an LLE personal account—I think they will be able to get it on their phone—which will support them to make choices on how they spend their entitlement. This will change the way in which they interact with the student finance system and make it simpler, easier and more accessible for those who, previously, never thought that higher education might be possible for them.
The Government will work closely with the regulators to ensure that providers understand how fee limits apply to their courses and modules. As is the case currently, providers will take responsibility for making clear to students what the cost of each course will be. I can assure your Lordships that the Government will keep the available information, advice and guidance under review to ensure that learners have what they need to make informed choices. I stress that, ahead of the introduction of the LLE in two years’ time, a great deal of work will go into ensuring that learners have the information they need.
I thank the noble Lord for his amendment and strongly agree with the spirit and intentions behind it, but as the Government are already focused on the range of information, advice and guidance that will contribute to the successful delivery of the LLE, the Government cannot support the amendment.
Lord Addington (LD)
A hint of agreement, my Lords, but the main thing here is finding out what so that we can figure out how it is being done. Can the Minister at some point give us some form of guidance about the level of preparation for what is to happen? When it is going to happen would seem to be the next question. If the Minister is in a position to answer now, I shall give way.
Baroness Barran (Con)
I shall be delighted to keep the House updated as we progress in whatever form is most useful.
Lord Addington
Mentally, I had about another five minutes on this, but as somebody who did not read the review, it would probably be churlish to say other than that I thank the Minister for her response and hope that everything she said would be provided by the department will come through regularly. I promise that if it does not, we will be back do it. Let us hope we do not have to do that. I beg leave to withdraw the amendment.
Baroness Twycross (Lab)
My Lords, I rise to move Amendment 10 in my name and those of my noble friends Lady Thornton and Lady Wilcox. The purpose of this amendment is somewhat different to the amendments in group 4. This amendment would introduce an early review of the rollout of the lifelong loan entitlement. We think this is necessary, given the extremely low—indeed, poor—take-up during the pilot stage. We have heard concerns from stakeholders that the pilots were primarily intended to test the IT system at the Office for Students. Although that is an important thing to test, it means that the impact on the wider sector and the level of interest among the general public remain untested.
Given that the intent behind this legislation has sector and cross-party support, I find it surprising that the Government are rolling it out without testing it fully. We do not understand why the Government have not had a wider, more thorough pilot stage of this approach. We are also concerned that, given that guidance on adult education has been severely fractured since the end of Connexions, the lifelong loan entitlement means that the Government may need to rethink the framework of adult careers advice completely.
How do the Government intend to ensure that learners and, more importantly, those who are not learners, will be aware of the changes to their entitlement? In my view, this is particularly important for those who do not have a history of further or higher education. What will the Government do to ensure that they know what options are available throughout their careers? How are the Government intending to ensure that individuals are supported in their current career or support them to make a career change?
As I said, the pilot appears to have been entirely about IT systems, not the interaction of people with the education system. This runs counter to what appears to be the intention of the Bill, and the rollout of the lifelong learning entitlement should move us to a situation in which we can treat further and higher education as something that can and should enrich the lives and careers of people throughout their lives. It is right to ensure that the IT system works; it is, however, wrong not to look at how this new funding system works in practice for those it is intended to help. It seems almost reckless not to build a review of the rollout into the legislation, and I hope, although I am not convinced she will, that the Minister agrees. I beg to move.
Baroness Barran (Con)
We are so speedy, my Lords. I will speak to Amendment 10, tabled by the noble Baroness, Lady Twycross, and also in the names of the noble Baronesses, Lady Wilcox of Newport and Lady Thornton. This amendment would require a review whereby the Secretary of State would publish a Written Ministerial Statement as to the impact of this Act six months after Royal Assent. As we mentioned in our debates on earlier groupings, the Government are fully committed to monitoring the impacts of this transformation of student finance.
In accordance with the better regulation framework, I can assure your Lordships that full and detailed impact assessments will be published when the Government lay the secondary legislation to implement the LLE fully. In addition, as is standard practice, Explanatory Memoranda will be laid alongside all regulations to detail the scope and purpose of them. The Government will publish them on the dedicated government legislation website to outline fully what the regulations do and why. I can also confirm that the Government will endeavour to publish a Written Ministerial Statement ahead of laying regulations under this Act.
Delivering the Government’s vision for the LLE will require extensive changes to the student finance system and the types of courses available. Introducing into primary legislation a requirement to publish a Written Ministerial Statement before policies have been fully implemented or had sufficient time to bed in would not, in our opinion, be appropriate. I also take this opportunity to refer once again to the parliamentary accountability mechanisms that already in place to review Acts of Parliament, including post-legislative scrutiny reviews.
Furthermore, the LLE as a policy is much wider in scope than this Bill. As such, the Written Ministerial Statement sought through this amendment would focus narrowly on fee limits and not on the impact of the LLE as a whole, which is, I think, behind the spirit of the noble Baroness’s amendment. The necessary suite of regulations needed to implement the LLE is expected to be laid more than six months after Royal Assent, given that the LLE will be implemented from the 2025-26academic year. Therefore, such a Written Ministerial Statement would neither cover as much detail as the existing plans for further scrutiny nor be able to consider the implementation of the LLE in its entirety.
The noble Baroness referred to the short course pilot. She is absolutely right that part of the point of it was to test the Student Loans Company’s systems. We are pleased to have been able to do this. During the trial’s launch, 22 providers developed more than 100 courses, which will be delivered at various points during the three-year trial period. We are a bit over a year into the trial; there are still two more years to go. The noble Baroness is right that this is a really important opportunity to test the shape and size of demand for these courses.
With those reservations, I have, I hope, explained why the Government do not support this amendment.
Baroness Twycross (Lab)
I thank the Minister for her reply. I am pleased that the Government intend to monitor the impact of the legislation and welcome the Minister’s commitment to the Government endeavouring to publish a Ministerial Statement before secondary legislation is laid. “Endeavour” is a slightly unfortunate word; we would welcome a stronger commitment than that.
We could probably do with a bit more detail about what the pilot involves. There is a slight difference in terms of whether it is intended to test computer systems and whether it will be ongoing as we develop the legislation. It feels a little ad hoc in that we are agreeing legislation while the pilot is ongoing; this strengthens the argument for building in a review at an early stage of the rollout of the policy. It does not speak to me against the need for a review that would bring up any adverse impacts of the approach so that they can be dealt with at an early stage. This is another thing on which we would welcome further discission with the Government.
I will not say any more as I do not want to risk us derailing what has been a really positive debate today. I beg leave to withdraw Amendment 10.