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Written StatementsToday I am setting out the actions this Government are taking to tackle concerning evidence of abuse of public money associated with the franchised higher education system which we inherited.
Franchising, where one higher education provider subcontracts provision to a delivery partner, grew significantly under the previous Government, but most franchised providers were not placed under the direct oversight of the regulator—the Office for Students. When done well, franchised higher education can be an important driver of inclusion, but against a backdrop of growing financial instability within higher education, for some institutions, it is apparent that franchising became less about expanding access and more about maximising income.
In 2023 and 2024, the Government Internal Audit Agency, the National Audit Office and the Public Accounts Committee all raised concerns about abuse, unethical behaviour and fraud. Without the necessary guardrails, or a funding settlement that put universities on a sound financial footing, in some institutions the system has become a breeding ground for abuse, unethical behaviour and fraud.
Earlier this month, I was made aware that there is a disproportionately large number of Romanian students settled in the UK who receive student funding from the Student Loans Company.
Investigative work undertaken by the Student Loans Company suggests organised exploitation both of Romanian students and of the UK taxpayer.
Under this Government, this abuse will end. The Department for Education and the Office for Students already have a programme of investigations under way related to franchised provision. Where these investigations have found abuse of the student finance system there will be serious consequences. I have now also asked the Public Sector Fraud Authority to tackle this threat and take forward this work across Government.
We will also take immediate action on the use of agents to recruit students. The Government can see no legitimate role for domestic agents in the recruitment of UK students. We are taking urgent steps to prevent any further abuse of the system.
Since taking office in July, the Government have moved at pace to tackle the many inherited challenges in the higher education sector, which this Government believe should be treated as a public good, not a political battleground. In November, I set out changes to the level of tuition fees and maintenance, for the first time in seven years, and set out the five principles for broader reform of the sector which underpin the approach this Government will take. We have already reformed the Office for Students, accepting the report of Sir David Behan and bringing new leadership and a tighter focus.
I have written to Edward Peck, the incoming chair, to ask him to make protection of public money a top priority. To support this, I will bring forward legislation at the next available opportunity to give the Office for Students stronger powers to act more quickly and effectively to protect public money.
In January the Department launched a consultation on franchised higher education. The proposals would bring much closer regulatory scrutiny of the largest franchised providers—the ones in which there has been significant growth in recent years—bringing them under direct oversight by the Office for Students. The Office for Students is also consulting to strengthen its conditions of registration, to stop providers with weak governance arrangements from being able to register in the first place. We have asked it also to urgently strengthen the requirements on the providers who subcontract provision. Together, if implemented, these proposals would impose new and significant controls on franchising.
Higher education providers are engines of growth and drivers of opportunity, but these issues threaten the integrity of the sector. With the regulator, we will set the rules, we will enforce them and we will protect public money. However, ultimately universities must take ownership of these issues for themselves and we will look to them to take responsibility to ensure abuse like this is brought to an end. There can be no excuse for the abuse of public money, and under this Government there will be no hiding place for those who perpetrate such abuse.
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Written StatementsIn the multi-year spending review later this year, the Government will set out the full details of a new grant programme to succeed the 2021 to 2026 affordable homes programme. Alongside wider investment across the Parliament, this new programme will help deliver the biggest increase in social and affordable house building in a generation.
The Government have already allocated an additional £800 million in new in-year funding for the 2021 to 2026 affordable homes programme. As a result of significant demand from housing providers across the country, this additional funding is already on course to be oversubscribed.
We know that there are a large number of housing providers who could progress new projects in advance of the new grant programme if the necessary funding were made available. We also know that providing greater funding certainty ahead of the forthcoming spending review will encourage more providers to come forward with ambitious projects and help drive up social and affordable housing supply in this Parliament.
The Government are therefore announcing today an immediate injection of £2 billion of new capital investment to support delivery of the biggest boost in social and affordable house building in a generation and contribute to our plan for change milestone of building 1.5 million safe and decent homes in this Parliament.
This new funding, which will be made available to housing associations and local authorities on the same terms as the affordable homes programme for 2021 to 2026, will act as a bridge to the future grant programme to be announced at spending review and thereby maximise rates of social and affordable house building in this Parliament.
The funding will deliver up to 18,000 additional new social and affordable homes by the end of the Parliament. The majority of that additional funding will fall in 2026-27, and all projects funded will need to have started by March 2027. A tail of funding will cover completions, with projects funded being required to finish by June 2029.
The Government encourage providers to come forward as soon as possible with bids for new ambitious projects, including those ready to commence quickly. We will ask Homes England, the Greater London Authority, and bidders to continue to prioritise homes for social rent in their proposed developments, in line with the Government’s firm commitment to support this tenure and the approach taken to recent in-year top-ups.
The £2 billion of new capital investment announced today will, in time, be supplemented with additional funding for 2026-27 and beyond. Full details of wider long-term and future grant investment will be announced at the spending review. Once the new grant programme to succeed the 2021 to 2026 affordable homes programme opens for bidding, the window to bid for the £2 billion of capital investment announced today will close and any unallocated funding will then be allocated under the terms of the successor programme.
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Written StatementsToday, the Independent Networks Co-operative Association (INCA) and the Internet Services Providers’ Association (ISPA), the trade bodies representing the fixed-line broadband industry, have published new best-practice recommendations for the deployment of telegraph poles.
The Government understand the concerns of people across the country about the use of telegraph poles to support the deployment of new gigabit-capable broadband networks, especially where this duplicates other infrastructure or seems unnecessary.
I have heard from people who were not aware of new infrastructure coming to their street until telegraph poles were erected, and from people whose access to their driveway was blocked by a new unannounced pole. I certainly do not want to impede or slow down the roll-out of essential connectivity. I support the commercial and competitive roll-out, but I do want to ensure that this is done sensitively and proportionately.
Telegraph poles can play an important role in delivering connectivity. This is particularly important in areas that do not yet benefit from gigabit-capable connections, but even in areas that already benefit from gigabit-capable broadband, competition between different operators using poles and ducts can bring greater choice and lower prices to consumers.
Sharing existing infrastructure is obviously better for everyone, but it will not always be possible, for instance in areas where the existing broadband infrastructure was directly buried in the ground, without ducts. Ducts may also be full, or damaged. In some cases, developers have discovered that underground cabling is buried rather than ducted. In such areas, it is generally not possible to use existing infrastructure. Building new underground ducts can be up to 10 times more expensive than installing poles, and comes with its own challenges such as traffic disruption. Higher costs to operators will ultimately raise costs for consumers or result in infrastructure not being built at all.
The Government considered a range of options to ensure that we can effect change without negatively impacting roll-out. I have met with telecommunications providers on multiple occasions. I have sought targeted action where I was made aware of specific issues, and also voiced my strong concerns about the deployment of new infrastructure where alternatives, such as sharing existing infrastructure, would be viable.
In response to my concerns, INCA and ISPA undertook to work with their members and the wider fixed-line broadband industry to produce new guidelines for the deployment of telegraph poles. These guidelines set out conditions that must be followed when deploying telegraph poles, and set out what operators are expected to do when installing new infrastructure.
But more importantly, the new guidelines include a commitment by its signatories to always consider the needs of communities during the design and construction of new fibre networks.
I am grateful for the efforts of the industry, and trust that this new commitment, underpinned by strong expectations towards operators, will mean that communities can be confident that their needs are put first as the roll-out of gigabit-capable connectivity continues.
A copy of the “Telecommunications Poles Working Group Best Practice Recommendations” will be deposited in the Libraries of both Houses.
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Written StatementsBy publishing our new maritime decarbonisation strategy today, the Government have set out plans to encourage and support our maritime sector in using fuels of the future and shipping “chargepoints” to reduce greenhouse gas (GHG) emissions. The maritime decarbonisation strategy sets out the Government’s vision of for the future of the UK’s maritime sector, by setting new domestic decarbonisation goals for a 30% reduction by 2030 and an 80% reduction by 2040—both relative to 2008—and outlines our key policies to meet them.
To support this, we are also publishing two supplementary calls for evidence: on “Net zero ports” and on “Decarbonising smaller vessels”, with measures for small, sub-400 gross tonnage (GT) vessels and accelerating uptake in targeted subsectors. These calls for evidence will allow us to gather evidence to provide a more holistic understanding of the current state of play of the maritime sector and how to decarbonise the sector moving forward.
In 2019, the UK domestic maritime sector produced around 8 million tonnes of CO2 equivalent, on a fuel lifecycle basis. Decarbonisation of our maritime sector will support this Government’s missions: driving the uptake of clean fuels and energy, helping to make Britain a clean energy superpower, seizing the green growth opportunities which will help to kick-start economic growth, and realising the co-benefits that reducing emissions can have for health, supporting our health mission, in line with our plan for change. It is conservatively estimated that the decarbonisation of the UK maritime sector could support £130 million to £180 million of gross value added (GVA) and around 1,400 to 2,100 jobs in the UK on average in each year between now and 2050. This is in respect to the provision of on-board technologies, fuel storage and engines alone. The investments required on land to support the decarbonisation of the sector, including the production of zero and near-zero GHG emission fuels and energy are also expected to further drive growth in the UK, and deliver energy security.
This ambitious, but credible and evidence-based maritime decarbonisation strategy is based on a state-of-the-art maritime emissions model, representing a significant step change in our ability to estimate the emissions from the UK maritime sector. Responses from the two calls for evidence will also inform the development of the maritime emissions model as we look to increase our understanding of how to decarbonise maritime.
Maritime Decarbonisation Strategy
The maritime decarbonisation strategy outlines this Government’s vision for how the maritime sector can decarbonise. The strategy sets new goals for domestic maritime emissions, aiming for zero fuel lifecycle GHG emissions by 2050, with at least a 30% reduction by 2030 and an 80% reduction by 2040, relative to 2008 levels. These interim goals are aligned with the level of highest ambition of the 2023 International Maritime Organisation GHG strategy, allowing us to take pragmatic action domestically while continuing to push for high ambition internationally.
These goals highlight our commitment to decarbonising the maritime sector and will provide the industry with the certainty it needs to invest, playing its part in kick-starting economic growth and making Britain a clean energy superpower.
The strategy will cover five key policies to drive decarbonisation from now to 2050:
Fuel regulation. Alongside a fuel standard being developed at the International Maritime Organisation (IMO), we will, subject to consultation next year, introduce domestic fuel regulations to drive the uptake of zero and near-zero GHG emission fuels and energy sources.
Emissions pricing. The UK emissions trading scheme (ETS) will be expanded to include UK domestic maritime GHG emissions from 2026. At the IMO, we are also continuing to push for emissions pricing through a global shipping levy, introduced from 2027.
Ports and emissions at berth. We are considering further action to reduce emissions at berth and are launching a call for evidence to inform this work alongside the maritime decarbonisation strategy.
Smaller vessels and targeted subsectors. We need to reduce emissions from the whole fleet over time, including smaller vessels. To build our understanding, we are launching a call for evidence to begin this policy development. We are aware that while this will be challenging for some subsectors—such as fishing vessels—there are others that could move quickly, such as offshore wind vessels.
Energy efficiency. We will support the IMO review of short-term measures to further incentivise energy efficiency and explore domestic energy efficiency measures.
This strategy continues to build on the innovation and expertise developed through our research and development programme UK SHORE, which, as well as accelerating the commercialisation of the future fuels and technologies necessary, positions the UK as a leader in clean maritime development and drives investment into clean maritime technologies. Supporting this will be the Maritime and Coastguard Agency’s new UK maritime innovation hub, which will encourage innovation and research and development, and support economic growth by helping innovators bring new technologies to safe commercial use in the sector.
“Net zero ports” Call for Evidence
This publication will collect evidence to support the Government’s consideration of an at-berth emissions requirement in the maritime decarbonisation strategy. It looks at the role of ports in enabling shipping to decarbonise and reduce shipping’s wider environmental impacts. This includes providing new infrastructure and aims to capture evidence on the future electricity demand at ports, recognising this is a shared asset to enable ports, shipping and port tenants to decarbonise and capture new commercial and economic opportunities.
The publication also looks at the progress ports are making in decarbonising their own operations and how Government could potentially galvanise the sector to decarbonise. We focus on whether ports are planning to decarbonise their own operations, their goals and what they have included in their strategies, including wider environmental considerations.
“Decarbonising smaller vessels” Call for Evidence
This call evidence will provide Government with essential information and data to help decarbonise and reduce the environmental impacts of vessels under 400 GT. It asks questions on the costs of these vessels, when the new technologies will be ready, what infrastructure will be required and where these vessels are likely to be built. It seeks to identify which subsectors have a clear decarbonisation pathway and may be able to move quickly. This call for evidence represents a balance between ambition and deliverability, recognising that some subsectors such as fishing will need more time, and that this is the start of a conversation with them. This means we will have a stronger evidence base to make informed policy decisions in the future.
Next steps
Following the publication of the maritime decarbonisation strategy, and the two calls for evidence, we will continue to work with the sector to deliver the domestic decarbonisation goals and to reduce wider environmental impacts. We will collect and analyse the responses from the calls for evidence to inform our next steps and will publish a consultation on future UK fuels regulation. Furthermore, we will continue to champion ambitious action at the IMO to drive the global maritime sector towards zero emissions and deliver the IMO GHG 2023 strategy.
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