Universities: Financial Sustainability

Baroness Royall of Blaisdon Excerpts

Tuesday 21st May 2024 Lords Chamber

[Baroness Barran (Con)]

If the noble Lord looks at the recent data that has been produced on the financial health of our universities, he will see that larger universities, such as those in the Russell group, are in very good financial health and continue to show significant surpluses. Of course the Government have a role to play in making sure that student interests are protected in the case of a university failing.

[Baroness Royall of Blaisdon (Lab)]

My Lords, does the Minister agree that international students have a positive impact on our skills base, future workforce and international influence? Businesses recently said that they agree. If this is the case, why do the Government want to axe the graduate visa programme? Could it be that they are pandering to the right wing of the Conservative Party rather than thinking of the greater good of our country?

[Baroness Barran (Con)]

The Government recognise the value of international students and are very proud of our international education strategy and what it has achieved. However, the Home Secretary commissioned the Migration Advisory Committee to write a report, which it published very recently, and the Government are considering its recommendations with care.

Plurilingual and Intercultural Education

Baroness Royall of Blaisdon Excerpts

Tuesday 18th October 2022 Lords Chamber

[Baroness Barran (Con)]

The Government are concerned about the level of uptake of modern foreign languages in schools generally, and specifically in the communities to which the noble Baroness refers. That is why we announced in our schools White Paper that we are setting up a network of language hubs, introducing new continual professional development courses for language teachers at both primary and secondary level, and have undertaken a review of the modern foreign languages GCSE curriculum and syllabus, which we think will improve uptake.

[Baroness Royall of Blaisdon (Lab)]

My Lords, I remind noble Lords of my entries in the register. The Minister mentioned some facts and figures to do with the Turing scheme. Can she assure us that all students who spend a year abroad as part of their studies at university do not have to pay any extra and that their universities do not have to subsidise them in any way as a result of the change from Erasmus to the Turing scheme?

[Baroness Barran (Con)]

I will need to confirm the exact details of that in writing to the noble Baroness.

Higher Education and Research Bill

Baroness Royall of Blaisdon Excerpts

Ping Pong (Hansard): House of Lords
Thursday 27th April 2017 Lords Chamber

[Lord Judge (CB)]

My Lords, I will speak very briefly to Motion F. The original Bill produced an appeal system that was far too narrow, and the amendment that I and my noble friend Lord Lisvane proposed suggested that it should be wider. We used words which were reflective of advocacy rather than law, and argued that the ground of appeal should be on the basis that the decision was wrong. That view appealed to this House. We have reconsidered it and discussed it with the Secretary of State and the Minister. The amendment now proposed by the Government makes much better law and, given that, I support it.

[Baroness Royall of Blaisdon (Lab)]

My Lords, I declare my interests as in the register. I am very grateful to the Government for tabling Commons Amendments 15A and 15B and put on record my specific thanks to the Ministers—the honourable Jo Johnson and Chris Skidmore—along with their officials, for their time and willingness to find a compromise following the adoption by the House of my amendment on Report. This issue has been the subject of powerful advocacy by my honourable friend Paul Blomfield MP, who has done much work on the registration of students to vote, and by organisations such as Bite The Ballot and by the APPG on Democratic Participation.

The voice and views of the Association of Electoral Administrators was extremely helpful in supporting my case, and I have to say that the chief executive John Turner expressed some surprise that the Minister suggested on Report that the association did not take a positive view. UUK has been helpful to me personally, although it is divided on the issue. I trust that it will now do everything possible to ensure that all universities comply with this new obligation at the earliest opportunity.

I well understand that we all have the same aim: to enable the greatest number of students to register to vote and thus shape the future of this country so that it works for young people. It will probably not be possible for ministerial guidance to be published before the enrolment of students this autumn, so I hope that the Minister in office, whoever it is, will draw the attention of higher education institutions to the numerous examples of best practice that exist, including those cited by the Minister today. I am very proud of what Bath has done in these endeavours. I am grateful to the Minister for suggesting what will be in the guidance, which is very welcome, but could he say when the guidance is likely to be published and when the Government, if they are a Conservative Government, might expect higher education institutions to comply with the new obligation? Although we might not have another general election for perhaps five years, there will be local government elections in England in May 2018 and my fervent hope is that all HE institutions will have a system in place by then.

I reiterate my thanks and look forward to working with the next Government to ensure that the maximum number of students register to vote so that not only their voices are heard but their views are expressed in the ballot box, thus enabling them to exert maximum influence, as they should, in the democratic life of this country.

As I will not speak again on this Bill, I wish to say that I too think the way in which all Benches have co-operated and collaborated on it has been extraordinary and very welcome. To be partisan for a moment, great thanks go to my noble friend Lord Stevenson and the support he has received from Molly Critchley. I understand that my noble friend is shortly to step down from the Front Bench. He has done the most superb job, not just for the Labour Benches but for the House as a whole, and I look forward to working with him on the Back Benches.

[Baroness Garden of Frognal]

Having been a staunch supporter of the amendment from the noble Baroness, Lady Royall, and indeed of trying to engage young people in the importance of voting in elections—I think this is a valuable step in enabling them to get involved at university level—I am grateful for the amendment that has come in from the Government. As we are trying to involve young people in voting, would it not be wonderful if we could now think of lowering the voting age to 16 to enable more of them to do so?

Universities: European Union Students

Baroness Royall of Blaisdon Excerpts

Wednesday 15th March 2017 Lords Chamber

Asked by

[Baroness Royall of Blaisdon]

To ask Her Majesty’s Government when they plan to give guidance to students from other European Union member states wishing to commence study at United Kingdom universities in 2018-19 about the costs of their studies and their eligibility to access student loans.

[Viscount Younger of Leckie (Con)]

My Lords, EU students make an important contribution to our universities and we want that to continue. Existing student finance rules on fees and student support for eligible EU students who either are currently studying or will be beginning courses in the academic year 2017-18 will remain in force until students finish their courses. Applications for 2018-19 do not open until this September and we are working to ensure that students applying have information well in advance of this date.

[Baroness Royall of Blaisdon (Lab)]

My Lords, I am grateful for that Answer but I really do not think it is good enough. Universities—including Bath and Oxford, where I declare an interest—need to plan long term. There is clear evidence from UCAS, the BMA and others that student applications from the EU are going down this year. Prospective EU students for 2018 are already considering their options; without certainty about fees and student loans, they will look elsewhere. When will the Government say that they will extend current transitional arrangements? I urge them to make it soon.

[Viscount Younger of Leckie]

The noble Baroness makes the important point that there are uncertainties arising from Brexit, but the Government have moved rapidly to give assurances to this sector. Within five days of the referendum result being announced we gave assurances on the 2016-17 year, then we followed up in October 2016 with assurances for the 2017-18 year students. We have also provided similar assurances that EU nationals starting courses in 2016-17 and 2017-18 remain eligible for Research Council postgraduate support. As I have said, we will ensure that students starting in 2018-19 have the information well in advance.

Higher Education and Research Bill

Baroness Royall of Blaisdon Excerpts

Monday 6th March 2017 Lords Chamber

Moved by

[Baroness Royall of Blaisdon]

52: Clause 15, page 9, line 16, at end insert—
“(2A) The list of principles must include a requirement that every provider—(a) provides all eligible students with the opportunity to opt in to be added to the electoral register through the process of enrolling with that provider, and(b) enters into a data sharing agreement with the local electoral registration officer to add eligible students to the electoral register.(2B) For the purposes of subsection (2A)—(a) a “data sharing agreement” is an agreement between the higher education provider and their local authority whereby the provider shares the—(i) name,(ii) address,(iii) nationality,(iv) date of birth, and(v) national insurance data,of all eligible students enrolling or enrolled (or both) with the provider who opt in under subsection (2A)(a);(b) “eligible” means those persons who are—(i) entitled to vote in accordance with section 1 of the Representation of the People Act 1983, and(ii) a resident in the same local authority as the higher education provider.(2C) Subsection (2A) does not apply to the Open University and other distance learning institutions.”

[Baroness Royall of Blaisdon (Lab)]

My Lords, in moving Amendment 52, I must apologise to your Lordships for not having been present to move it in Committee. Naturally, I read Hansard carefully and have to say that I was disappointed by the Minister’s reply.

This is a simple amendment that would make it mandatory for all higher education institutions to offer their students the option of being placed on the electoral roll at the point of enrolment or re-registration. I know that a few universities are already doing this and I am particularly proud that this includes the University of Bath, of which I am pro-chancellor, and the University of Oxford, where I have been elected the next principal of Somerville. I understand that the Minister, Mr Chris Skidmore MP, has recently been at the University of Bath to discuss the issue.

The amendment would provide the best means of achieving the objective I share with the Government: to improve the level of voter registration among students, which fell dramatically as a consequence of individual electoral registration, when thousands and thousands of students dropped off the register. We have a duty to do this for three reasons. First, we should enable students to have a vote and a voice. As my noble friend Lord Smith of Finsbury said in the previous debate, many of his students who, by 23 June last year, were convinced of the need to vote in the EU referendum were unable to do so because they had not registered. By exercising their democratic right to vote, young people are able to influence policy and shape their future. Secondly, it would help to instil the voting habit in young people. While I realise that there is still a big step to be taken between registering to vote and voting, there is evidence that when someone has voted once they are more likely to vote again. I still get a tingle down my spine when I put a cross on a ballot paper, and I am always grateful to those who fought for our right to vote. Thirdly, it would ensure that when constituency boundaries are redrawn in future, they will better reflect the size of the population.

It is also in the public interest of universities to do their utmost to ensure that students participate in the electoral process. I pay tribute to the work of my honourable friend Paul Blomfield MP, who, working with the vice-chancellor of the University of Sheffield and the city council, and with the support of the Cabinet Office, devised a very successful pilot at the University of Sheffield. The results were simply staggering. Seventy-six per cent of its eligible students were registered to vote. In Bath, the university initiated a project on the direction of the pro-vice-chancellor for learning and teaching, who was working with Bath and North East Somerset Council. This resulted in 40% of eligible students registering to vote in 2015-16. In Cardiff, with a similar system, 65% of students registered in 2016-17. By contrast, institutions that simply pointed students to the national electoral registration portal as part of the enrolment process saw an increase of only 13%. This is clear evidence that my amendment would make a real difference to student participation in the democratic life of our country.

In January, the Minister spoke of bureaucratic burdens and I am very conscious of the bureaucratic burdens on higher education institutions, but the amendment is not overly onerous. It simply requires universities to make a minor change to their student enrolment systems to provide new students with the opportunity to have their names added to the electoral register in a seamless process. Universities already collect most of the data needed to register students. National insurance numbers were until recently an impediment but the Cabinet Office has offered new and very welcome guidance on this, so it is no longer necessary.

--- Later in debate ---

[Lord Young of Cookham]

My Lords, I am grateful to the noble Baroness, Lady Royall, and other noble Lords who have spoken in this debate and have set out the reasons why we should increase the franchisement of students. The Government entirely share that aim of increasing the number of students and young people registered to vote. As part of our drive to create a democracy that works for everyone we are taking a number of steps which I will touch on in a moment, such as funding the National Union of Students to the tune of £380,000 in 2015 to increase student electoral registration.

We listened carefully to the concerns raised by noble Lords when the amendment was debated during Committee. While we agree with the objective of this amendment and understand the intention behind it, we firmly believe that this Bill is the wrong vehicle to achieve greater student electoral registration, and that the scheme as proposed in the amendment has serious drawbacks. The Government have an alternative plan to address student registration which we believe will be more appropriate and effective; again, I will come on to that in a moment, the Government having considered it in the light of the debate in Committee a few weeks ago.

Both Universities UK and the Association of Electoral Administrators have told us that a one-size-fits-all approach to electoral registration, which this amendment would be, is not necessarily the best solution. The AEA does not want further unnecessary prescription introduced into the electoral registration process. Some universities have also signalled that they do not support the system that this amendment seeks to mandate. Seeking to achieve this objective in this way is unnecessary and risks complicating the Government’s relationship with electoral registration officers, as it contradicts our stated objective to give them greater autonomy in how they choose to conduct their statutory duty of maintaining the completeness and accuracy of the electoral registers. Choice is the key point here. It is for HE providers and the electoral service teams, who are the acknowledged experts in registration, rather than Parliament—whether through the Bill or other means—or the OfS to determine what the right approach is for their local area.

Furthermore, this system simply will not work for electoral registration officers in London and other large cities since many students have a term-time address in a different registration area from their university or HE provider. For that reason alone, the amendment simply will not work. This is a significant issue given the numbers of students in London, where approximately 376,000 students could be living across all 33 London boroughs. Only the borough in which both the university and the student are located would have the necessary data required to complete an application. Students can participate in the democratic process by actively choosing to register to vote at either their university or home address. As the noble Lord has just said, research has suggested that 60% of students may do so.

We have a commitment to increase student electoral registration. To date we have undertaken a range of steps to encourage it, most recently ahead of the EU referendum. In addition to those steps, I can commit today that the Government will, in their first guidance letter, ask the OfS to encourage institutions to offer their students an opportunity to register to vote by providing a link to the online registration page so that students can apply to register quickly and easily. I think that this is a user-friendly solution that avoids some of the problems in the amendment which I have touched on. I understand that in Committee the noble Baroness, Lady Brown, stated that this was successfully applied at Aston University, and other providers have done so too.

However, we have also heard the calls for urgency, repeated by the noble Lord from the Opposition Bench, and we do not want to wait until the OfS is in place. That is why I can confirm that the Minister for Universities, Science, Research and Innovation, Jo Johnson, will write to HEFCE before Third Reading to ask it to work with the sector to encourage best practice and to actively promote student electoral registration.

To inform our activity, the Minister for the Constitution hosted a student round table in January at which he heard about the barriers to registration that students face. Since then, we have embarked on a plan to further our aim of maximising student electoral registration and we will continue to do so ahead of the local elections this May and beyond. I can now confirm to noble Lords that in the forthcoming weeks we intend to meet university vice-chancellors to that end. We will also write to the higher and further education sector to promote the outcomes due to be published from the different models available, to encourage take-up and to continue to facilitate greater co-operation between providers and local electoral service teams.

For the reasons already given, I believe that this voluntary and collaborative approach is the right one. However, if the evidence is that it is not working, it will be open to the Government and the OfS to consider other options in future, including, perhaps, the use of appropriate and proportionate registration conditions, requiring providers to comply with any such condition or explain why they cannot comply. The Government will also work with sector partners, such as Universities UK, to promote different options and encourage take-up.

The Government have already committed to publishing and promoting the outcomes of the University of Sheffield pilot, which we part funded, as well as other models, all of which are currently being evaluated, and we will publish the results at the earliest opportunity. As I wrote to the noble Lord, Lord Rennard, an indicative assessment shows that this project had successful outcomes. However, ICT software costs are a prohibitor, and some universities have already told us that they will not implement this model for that reason.

In addition, the amendment rests on the provider informing “eligible students” of their registration rights and local authorities providing various details regarding those students. An “eligible student” is defined as someone entitled to vote as an elector at a parliamentary election, but it is not clear who determines eligibility. Given that the amendments suggest that it is the provider who has to take specified actions, it looks as though it has to be that same provider who determines eligibility—something it surely is not, and indeed should not be, resourced to do. For all those reasons, we are confident that a voluntary approach is the best option and we are confident that more of these agreements can be reached in this way.

As the noble Baroness, Lady Garden, previously stated, many other institutions are already taking steps to encourage young people to ensure that they are on the register. In fact, numerous HE providers have, of their own volition, already implemented a model similar to that used by the University of Sheffield, including, as the noble Baroness, Lady Royall, said, the University of Bath. Nor should we lose sight of the fact that students can choose where they are registered, and some students might not wish to have their data shared.

We are also committed to increasing registration among all underregistered groups, of which students form only a part. This will be part of our democratic engagement strategy, which will be published in spring 2017.

Therefore, I say to the noble Baroness who moved the amendment that the Government have genuinely thought about the arguments put forward in Committee. We have come forward with a new set of proposals, which we think meet the objectives that we all share. Against that background, I ask her to consider withdrawing her amendment.

[Baroness Royall of Blaisdon]

My Lords, I am grateful to the Minister for outlining all the initiatives that the Government are taking, and of course we all share the same aim. However, he outlined a piecemeal list of initiatives rather than a comprehensive plan. We have been talking about these things for a long time and the pilot undertaken in Sheffield was completed many months ago. The Government said that they would evaluate it and, indeed, they are in the process of doing so, but I simply do not understand the delay. In the meantime, many students have not been able to vote simply because they have not registered to vote.

The Minister also says that universities and electoral registration officers should have a choice about what they do and about whether they improve registration efforts for students. I think we have a duty to ensure that the maximum number of students is registered to vote. I understand the problems in London, for example, where students do not necessarily live near their university. I have talked to many people about this and I am advised by those at the most senior level that these issues are not insurmountable. I would prefer a system which all universities have to adhere to in order to maximise the number of students on the electoral register. I therefore wish to test the opinion of the House.

Social Mobility

Baroness Royall of Blaisdon Excerpts

Monday 20th February 2017 Lords Chamber

[Lord Nash]

There is no question but that many of the social issues had a big influence on the vote last year.

[Baroness Royall of Blaisdon (Lab)]

My Lords, does the noble Lord agree that the social mobility strategy recommended by the APPG should be developed as a matter of urgency so that the country can make use of all the talents available? Will he further agree that mentoring of young people from disadvantaged backgrounds, especially those from black and ethnic minorities, is absolutely invaluable, and will he welcome the new initiative, entitled One Million Mentors, which was launched last week?

[Lord Nash]

As I said, we will respond to the report shortly, but I entirely agree with the noble Baroness about the importance of mentoring. I know that Chance UK has an active programme in that, and the system she refers to is definitely to be encouraged. At the Bridge Academy in Hackney, which is sponsored by UBS, over 1,000 UBS employees mentor individual pupils every year. When you talk to pupils, particularly those from disadvantaged backgrounds, many of whom have often not met people who work in white-collar jobs before at all, you understand that mixing with people like this and going to their place of work clearly has a transformational impact.

Higher Education and Research Bill

Baroness Royall of Blaisdon Excerpts

Committee: 6th sitting (Hansard): House of Lords
Wednesday 25th January 2017 Lords Chamber

[Lord Watson of Invergowrie]

My Lords, Amendments 446, 449 and 449B are in my name. Amendment 446 is a reaction to the fact that Conservative education policy has had a detrimental effect on the education and life chances of those from low and middle-income backgrounds. We can trace that back to 2010, when Labour left office, with 71% of state-educated pupils going to university. By 2014, that had fallen to 62%.

The change from maintenance grants to loans is a regressive policy, introduced last year, that will leave students from low and middle-income backgrounds facing higher debts, which they may never be able to repay; we will discuss this in a later amendment. Bringing back the maintenance grant, which is what is proposed in this amendment, is a necessary move to ensure there is that investment in our young people, helping more of them access a university education, and providing the country with the highly educated and highly skilled workforce that we need.

English students already face some of the highest levels of student debt in Europe, with the average student graduating with anything up to £50,000 of debt. This is a particular problem for students from low and middle-income backgrounds, who are more likely to need to rely on loans to fund their studies. It is well known that students from more affluent backgrounds do not need a loan—they may take one out because it provides access to cheap money—but for low and middle-income students, that is not an option; they have to take that loan out. Increasing the amount of debt they face by replacing grants with loans could act as a disincentive that will stop some of them pursuing higher education at all.

It may well be asked: if you were to reintroduce this, what would it cost? Labour has in fact costed it. We reckon it would cost about £1.5 billion in each academic year but our policy is quite clear and has been stated before: we would raise corporation tax by 1% to 1.5%. By funding the policy in this way, it is a direct correlation: companies would be contributing to the education and training of the highly skilled, highly trained workforce that is needed to help Britain’s economy thrive in the 21st century. It would be a cause and effect in that respect.

I heard what the noble Lord, Lord Willetts, said about Amendment 449. I bow to his greater experience and, indeed, direct involvement in this until quite recently. The Student Loans Company appears to be a law unto itself. In many ways, it seems out of control. Repayment levels are well below projections and there is very little confidence in the company. The loans are regarded as a non-contingent tax liability, not a normal loan, and therefore they are not regulated. I hear what the noble Lord, Lord Willetts, said, and there are reasons for that, but the money has to come from somewhere. I accept that for those seeking a loan affordability is an issue. We are very concerned about the way in which the Student Loans Company operates.

Just a few minutes ago, in a quite unrelated set of amendments, we were treated to a further example. When the noble Baroness, Lady Goldie, told us that one of the reasons why the sharia-compliant finance product could not be introduced—and she did not appear to have the faintest idea of when it would be released—was that the Student Loans Company needed time to get its processes into suitable order. So thousands of Muslim students are forced to wait while the Student Loans Company dithers. That is symptomatic of the way in which that organisation operates. The Student Loans Company does need proper regulation, if not by the Financial Conduct Authority, then by some other means. If the noble Lord, Lord Willetts, thinks it is operating satisfactorily, he should say so, but I would be very surprised if he does.

The last amendment I will speak to is Amendment 449B. It traces back to when the noble Lord, Lord Willetts, was Higher Education Minister. In the 2015 Autumn Statement the then Chancellor announced that the repayment threshold on student loans was to be frozen at £21,000 from April 2017, instead of being uprated in line with earnings, as was promised in the marketing materials and in writing from—and I am not trying to score particular points—the noble Lord, the Minister at the time. That is an important point.

Labour MPs submitted a raft of amendments to this Bill in another place that were designed to stop retrospective changes to student loans by Ministers, and to bring them under regulation by the FCA. The key issue is that millions of students have taken out loans with an understanding that the threshold would increase with earnings, and have had their loans changed retrospectively and regressively. I say to both Ministers opposite that that is the sort of underhand tactic that undermines the public’s trust in politics and politicians, and that alone would be sufficient reason to overturn this decision. Worse, however, the change places additional financial burdens on poorer students and sets a dangerous precedent. It also falls short of the standards that we would expect from the private sector, where the FCA has the power to stop this happening.

The noble Baroness, Lady Garden, outlined the effect on students. Our amendment would prevent any changes to the repayment of a student loan after the terms and conditions of repayment had been agreed. This would apply to existing loans after the commencement of the Act, and it would ensure that such a situation would not recur by bringing loans under the regulation of the Consumer Credit Act 1974. These amendments demonstrate the need to regulate the student loan market and would provide the protection that students need and, we believe, deserve.

[Baroness Royall of Blaisdon (Lab)]

My Lords, I broadly support, in particular, Amendment 446, tabled by my noble friend Lord Watson. Opportunistically, however, I ask the Minister, since we are discussing student fees, when there will be clarity vis-à-vis student finance for EU students who want to register for courses in 2018-19. They have no clarity at the moment, and this is putting some EU students off even thinking about applying to UK universities.

[Baroness Goldie]

My Lords, I thank noble Lords for their contributions. I am aware that this is an issue that stimulates debate and the contributions have been genuinely informed and reflective.

When the Government reformed student finance in 2011 we put in place a sustainable system designed to make higher education accessible to all. It is working well, because total funding for the sector has increased and will reach £31 billion by 2017-18. These amendments cover a number of areas of the student finance system.

I refer first to the issue of the student loan repayment threshold. The decision to freeze the repayments threshold for post-2012 loans was taken to put higher education funding on to a more sustainable footing. To do this, we had to ask those who benefit from university to meet more of the costs of their studies. I thank my noble friend Lord Willetts for providing a very clear explanation of the threshold freeze and the circumstances that led to it. Freezing the threshold enabled us to abolish student number controls, lifting the cap on aspiration and enabling more people to realise their potential.

On average, graduate earnings remain much higher than those of non-graduates. Students continue to get a fair deal: the current threshold remains £3,500 higher than that for pre-2012 loans. Uprating the threshold in line with average earnings would cost around £5 billion in total by April 2021 compared to the current system. The total cost of uprating by CPI would be around £4 billion over the same period. Taxpayers—many of whom will be non-graduates earning much less than the graduates who would benefit—would have to bear that cost.

On the matter of student loan terms and conditions, I share your Lordships’ desire to ensure that students are protected. That is why the loan terms are set out in legislation. However, it is important that, subject to parliamentary scrutiny, the Government retain the power to adjust terms and conditions. Student loans are subsidised by the taxpayer, and we must ensure that the interests of both borrowers and taxpayers continue to be protected. This amendment would also prevent the Government making any changes to the loan agreement that would favour the borrower. Finally, we believe that the Government should continue to be able to make necessary administrative amendments to the terms and conditions to ensure that the loans can continue to be collected efficiently.

With regard to the replacement of maintenance grants with loans, I reassure noble Lords that this Government remain committed to increasing access to higher education. Indeed, the proportion of students from disadvantaged backgrounds entering higher education has increased from 13.6% in 2009 to 19.5% in 2016. We have, furthermore, increased support for students on the lowest incomes by over 10%. Reinstating the system of maintenance grants would reduce the up-front support available for students from some of the most disadvantaged backgrounds, while costing the taxpayer over £2.5 billion each year. Students recognise the value of a degree. Lifetime earnings are, on average, higher for graduates than non-graduates and it is right that students who earn more contribute towards the cost of their education. Repayments are related to the ability to pay and start only when a borrower is earning £21,000.

I turn now to the amendments relating to the regulation of student loans. I agree that it is important that students are protected. However—as my noble friend Lord Willetts set out—student loans are not like commercial loans: we must remember that. They are not for profit and are available to all, irrespective of their financial history. Repayments depend on income and the interest rate is limited by legislation. The loans are written off after 30 years with no detriment to the borrower. The key terms and conditions are set out in legislation and are subject to the scrutiny and oversight of Parliament. This means that additional regulation is unnecessary.

Lenders regulated by the FCA are obliged to assess the creditworthiness of all their borrowers, and the affordability and suitability of the loan product for each borrower. Were the Financial Conduct Authority to regulate student loans—as Amendment 449 seeks—it could affect the ability of some students to obtain them. My noble friend Lord Willetts spoke powerfully about that.

Our system allows the Government, through these subsidised loans, to make a conscious investment in the skills of our citizens. I hope that this addresses the concerns raised by noble Lords and I therefore ask that Amendment 444 be withdrawn.

--- Later in debate ---

[Baroness Garden of Frognal]

My Lords, I have added my name to this amendment; I strongly support the words that we have heard from the noble Lords, Lord Hannay and Lord Patten. I, too, will try to be helpful because this amendment highlights the significant impact of international students and their contribution to the success of UK universities. It builds on Amendment 127, which I spoke to earlier in Committee, so I shall curtail my remarks at this stage.

As has been said, counting international students in migration targets is a poor policy choice. It damages the reputations of UK universities. There seems to be universal agreement that it should be reversed and that other countries do not treat their students in this way. We will doubtless hear from the Government that there is no limit on the number of international students who can come into the country. The trouble is that they follow that up by saying, “But we will count them in immigration targets and we are intent on reducing immigration”. This sends very mixed and misleading messages to students who are left mystified about this but feeling generally unwelcome. It does not help now that we make them leave the country as soon as they finish their studies, rather than staying on to make some postgraduate contribution to the country.

Our messages are unwelcoming and overseas students hear those unwelcoming messages. We understand that these decisions are within the Home Office, not within the department the Minister represents, but we ask him to take back to his colleagues in the Home Office—or, indeed, to his right honourable friend the Prime Minister—how very strongly this House feels that these measures should be changed.

[Baroness Royall of Blaisdon]

My Lords, I too have added my name to the amendment. Everything has already been said. I would merely say that Nick Pearce is now a professor at the University of Bath—so that is good, isn’t it?

Like the noble Lord, Lord Patten, and all other noble Lords, I find it particularly bizarre that in this brave new world, where we want to be outward-facing, persuade the world to trade with us and attract people to study at our universities, we still persist in including students in the immigration figures, which, as the noble Baroness has just said, sends out bad feelings. It is perception that is important. The noble Lord may be right that we are welcoming everyone but, even if that were true—and I am not sure it is—the perception is that we are not, and that is a big problem.

In an earlier debate on an amendment tabled by the noble Lord, Lord Lucas, which unfortunately I missed although I supported his amendment, he said he was searching for ways in which,

“the university sector could organise and present itself so that the nation would be on its side and it would be equipped with the data”.—[Official Report, 11/1/17; col. 1999.]

Of course I agree with that, but I would add, as the noble Lord, Lord Patten, said, that the public are already onside, with 57% of them saying that foreign students should not be in the immigration figures compared with 32% who thought that they should be. So as the Government are so determined to pursue a hard Brexit because a mere 52% of the population voted in favour of leaving the EU while 48% were against, why can they not now act on the 57% who say that they would be content with taking students out of the immigration figures?

We are all against bogus institutions, and we are glad that the Government have acted on that. We are all against those who overstay, but the figures on overstaying cited in the past by the Government are, at best, merely estimated and, at worst, being used for political ends. When will better data be available, and when will the consultation on the study immigration route be concluded?

I well understand the political importance of immigration and immigration figures, as well as the concerns expressed by the citizens of our country. However, bona fide students studying at bona fide institutions are not economic migrants but visitors, and that is the view of the people of this country. I hope that the Government will act accordingly.

[Baroness Smith of Newnham (LD)]

My Lords, I declare my interests as someone employed at the University of Cambridge. One of my roles is as co-director of the Master of Studies programme, which brings in international students on a regular basis. They come not for a year or two at a time but for temporary periods, yet they have to go through the whole visa regime, which is long and complicated. One of the things that is so difficult in higher education and recruitment is that over the years UKBA has made it so difficult for students to come here. The procedures are lengthy and time-consuming, and very often are done out of country. Yesterday I talked to one of my tutees who said that from Kazakhstan she has to apply for a visa in the Philippines—not necessarily the most obvious thing to have to do.

In many ways, part-time students have an easier time than full-time students because most of them have full-time employment so can fulfil visa requirements quite easily. However, as the noble Lord, Lord Hannay, said in his opening remarks, there is something very strange about treating international students as economic migrants. Normally we think of economic migrants as people coming to work and taking jobs. That may be a good thing or it may be bad, but it is very specific. International students are paying fees. They are contributing to the local economy, contributing jobs and making a real difference. Yet time and again, usually led by the Home Office, we get decisions that make it harder for us to recruit international students.

I was going to refer to “global Britain” but the noble Lord, Lord Patten, has already mentioned it. So I will not go much further, except to say that there seems to be something very odd when a Government who are saying, “We want to make a success of Brexit and are looking for international opportunities”, do not see international students as a major opportunity.

Should the Government not be thinking of the situation for EU students? The noble Baroness, Lady Royall, has already mentioned them. At present EU students are treated as home students. Presumably on the day we leave—we keep being told that nothing changes until that day—EU students become international students. Are they then going to become part of our immigration target? Are we then going to say that EU students appear even less welcome than students have traditionally done? What are we saying? What sort of message is going to be given? What opportunity can we as Members of your Lordships’ House offer to assist the Government and the Minister of State in getting the rules changed?

In a Question for Short Debate a few weeks ago, the noble Lord, Lord Lucas, asked, “What is the problem?”. In the past, under the coalition Government, the problem appeared to be the then Home Secretary, who was not very keen to liberalise international student numbers. That former Home Secretary is of course now the Prime Minister, and she does not seem to have changed her mind.

The noble Lord, Lord Hannay, referred to all corners of this House supporting the amendment. When I made my maiden speech, I was sitting exactly where the noble Lord is sitting now. I spoke on European matters and said I looked forward to working on them with Members from all parts of your Lordships’ House. All parts of your Lordships’ House appear to be in agreement on this amendment, with one exception: some Members on Her Majesty’s Front Bench. Can we find a way of persuading the Government to accept this amendment, take international students out of the immigration figures and accept that international students are an export and are not about economic immigration?

--- Later in debate ---

[Baroness Royall of Blaisdon]

My Lords, I fully support everything the noble Lord has said but I have one thing to add. Everyone speaks of, and is rightly proud of, the excellence of our universities, but one of the reasons—perhaps one of the major reasons—that we have such excellence is that we have many brilliant academics and, as my noble friend Lord Darzi said at Second Reading:

“We must secure and sustain our ability to attract, excite and retain the world’s greatest minds”.—[Official Report, 6/12/16; col. 663.]


I fear that, as has been said many times while debating this Bill, some of those finest minds are already deciding not to apply for posts because of their perceptions and feeling that they are more welcome elsewhere. If more restrictive immigration controls were put in place on EU or other academics and students it would be a disaster for our world-class research and for the high-quality teaching which is the reason that so many students wish to study in this country.

[Lord Patten of Barnes]

Obviously these amendments are relevant to the debate we have just had, and I do not want to speak at length, but I endorse everything that the noble Lord, Lord Hannay, has said. I want to pick up just two points, one of which was made by the noble Lords, Lord Judd and Lord Rees, earlier. It is the huge importance of international students, international academics and postgraduates to the quality of our universities.

The university I know best recently came top of the league tables for universities. We were pleased about that—and of course we believed the methodology wholeheartedly. In previous years, when we did not believe the methodology quite so enthusiastically, we had come second to Caltech. There are more American students at Oxford than at Caltech. Our great universities would not be able to do the spectacular research they do without the academic staff from other countries, without postgraduates in particular, and we are delighted to have so many students from other countries.

The points that the noble Lord, Lord Hannay, made are really important to the quality and the vitality of our universities, and that is where Brexit is decidedly relevant. Some people say that we have been ridiculously emotional about the impact of Brexit on our universities. You try talking to an academic from Europe or elsewhere at the university I know best and tell him or her that they are really not citizens of the world or that citizens of the world are second class because they do not really understand where they have come from.

Brexit sent a chill through our universities. We were talking about perception earlier. It is really important to give people the confidence that we are not going to change the rules about students and academics coming here during the discussions on Brexit in the years ahead. It is really vital to the quality of our universities. If Ministers do not understand that in the months and years ahead then we will all be in very big trouble. I think at the moment we are probably underestimating the impact of Brexit on our universities. It is not particularly the money—although that matters. It is not just the research collaboration—although that matters hugely. It is the people. It is whether we are able to attract the postgraduates and undergraduates to our universities because they are an enormously important part of our higher education system and have been ever since the 13th century.

Higher Education and Research Bill

Baroness Royall of Blaisdon Excerpts

Committee: 4th sitting (Hansard): House of Lords
Wednesday 18th January 2017 Lords Chamber

[Lord Willetts]

There are genuine questions, including the impact on overseas students, and I understand that issue. But I think that it would not be possible to envisage fees increasing without some kind of measures of the teaching performance in universities.

Given the difficulty of getting any measures, my view is that the measures we have are the best ones currently available. I think that the message that should go out from your Lordships’ House is surely that we would see them improved, changed and reviewed—and improved rapidly. It would be particularly regrettable—I know that I am turning to a later stage in our debate—if we bring in measures, if we amend the legislation, to make future changes in the metrics harder rather than easier by requiring a more elaborate process for them to be changed in the future. I am absolutely not saying that we now have a reliable and authoritative measure of teaching quality.

[Baroness Royall of Blaisdon (Lab)]

My Lords, the noble Lord, Lord Willetts, said that we are embarking on a journey, which indeed we are, but I feel that the car in which we will travel does not yet have all the component parts. I therefore wonder if, when we have concluded all our debates, rather than going full speed ahead into a TEF for everybody who wants to participate, we should have some pilots. In that way the metrics could be amended quite properly before everybody else embarks on the journey with us.

I speak to the amendments in this grouping, many of which I support and I remind the House of my interest as a pro-chancellor at Bath University. Like all other noble Lords, I celebrate quality and excellence, and students should and must expect to receive high-quality teaching in their higher education. This should always have been the case, but is especially important now when students leave university with a debt of perhaps £50,000.

How the quality is measured and the metrics used are of the utmost importance, and it is clear from everything that has been said that the Government have not solved the conundrum yet. However, it is very good news that Chris Husbands is assisting the Government in this task. I have to say that Bath has one of the highest levels of student satisfaction, of which I am very proud. Much of that is down to good teaching. In 11 departments we have 100% satisfaction rates, which is great, but I also have to wonder that there must be some instances in some universities where students are completing the student satisfaction surveys in their rooms and possibly they have never even been to a lecture. That metric is slightly questionable.

I would be grateful if the Minister can say who will make the judgment in respect of what the metrics will be and who will judge each university that is part of the system? Those people are incredibly important.

While I support the TEF in general, whatever system is introduced must not be the traffic light system currently under consideration and it should not be linked to fees. The real problem is when the quality of teaching in a university is measured across the board. As the noble Lord, Lord Kerslake, said, excellence in some departments will be eclipsed by poor teaching in other departments and vice versa. Creating a system that assesses the quality of a whole institution and allows that whole institution to raise the fees of every course based on that assessment, when the quality of teaching will vary—potentially drastically—for every student at that institution, is therefore fundamentally unworkable. It risks creating the potential that students undertake courses that are not of high quality but at an institution that was deemed by the TEF to provide general high quality, and are therefore unfairly charged higher fees for poor-quality degrees. As has been said on all sides of the House, the bronze, silver and gold proposals are entirely inappropriate and fraught with difficulties, not least the potential for jeopardising the excellent international reputation of our universities. Why would a foreign student paying hefty fees wish to study at a bronze university, and why should our own students go to British universities that are deemed inadequate? Students who begin their degrees at a gold university that is judged to be silver or bronze at the end of the course would feel disillusioned and, literally, short-changed. Amendments 176, 177 and 195 are particularly interesting, and I hope that the Government will give them favourable consideration.

--- Later in debate ---

[Viscount Younger of Leckie]

I will reflect on what the noble Baroness has said. It may give her some comfort if I say that we are not rushing this in. The proposals that we have are not all in the Bill; that is why this is an iterative process. I will continue to engage, as will the team and my honourable friend in the other place, on rolling out the TEF.

[Baroness Royall of Blaisdon]

My Lords, we do not question the fact that this is a manifesto commitment. We support the fact that it is a manifesto commitment. We want to ensure that the system which comes out of the noble Lord’s manifesto commitment works for all universities in this country and ensures their excellence in the future.

[Viscount Younger of Leckie]

My Lords, we all want that. I hope that in my considered response I have given my views as to how we see the way forward. I will say again that I have listened to all the views and will reflect carefully, when I read Hansard, on what noble Lords have said. I am sure that that will be read widely. I am listening but I do not wish to go any further from my views on how we go forward.

Higher Education and Research Bill

Baroness Royall of Blaisdon Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Wednesday 11th January 2017 Lords Chamber

[Lord Mackay of Clashfern (Con)]

My Lords, I should have said at Second Reading that I am a member of the Council for the Defence of British Universities—whatever impact that might have. The government amendment seems to cope with the different layers of responsibility that exist in relation to access and participation. The director will certainly have responsibility for seeking agreements with institutions about access and participation. Then there is the question of whether institutions have fully performed what they agreed to, which becomes another responsibility of the Office for Students. Another aspect, which the noble Lord, Lord Willis of Knaresborough, mentioned, is the degree of participation open to a student who wants to move from one institution to another. There are a number of aspects to this duty, so the phrase chosen in the government amendment is appropriate at that level. I do not think that the director can be responsible in the same way for all the levels involved in this idea. To have oversight of the responsibilities that the Office for Students performs in this matter is perhaps the appropriate way to deal with the issue. Saying that the director is “responsible for” is certainly different from saying that he has “oversight of”, but that is more appropriate when there are more different levels of responsibility involved in access and participation than might at first sight appear.

[Baroness Royall of Blaisdon (Lab)]

My Lords, I wish briefly to reiterate a point made by the noble Earl, Lord Listowel, about primary education. As we know, universities are now taking great pains to ensure that they have relationships with senior schools to enable students to know more about going to university, giving them confidence to look at university education. As we also know, unless they have not only aspirations but good primary education, they will not be able to fulfil those aspirations in future. It is important that universities nurture relationships with primary schools so that primary school children have a vision of what they might want to aspire to in future. I know that there are some excellent organisations and charities, such as IntoUniversity, which work with primary school children to enable them to take advantage of all the opportunities that come in the future. Of course, we cannot mandate the director to do everything and he will not have the capacity, but I hope the Government are thinking about working with universities or asking the Office for Students to work with primary school children as well as those in senior schools, because that is where the flame—the aspiration—begins.

[Lord Krebs (CB)]

My Lords, I want very briefly to endorse the comments of the noble Baroness, Lady Brown of Cambridge, on the role of access and engagement in postgraduate education and training, particularly in relation to taught and vocational master’s degrees, where there is virtually no funding from the Government any more and people have to rely on their own resources. However, if students from less well-off backgrounds are to benefit from their university education, for many career paths they will need to undertake a higher degree, particularly taught master’s degrees. I hope that we will hear something more about that from the Minister.

Higher Education and Research Bill

Baroness Royall of Blaisdon Excerpts

2nd reading (Hansard): House of Lords
Tuesday 6th December 2016 Lords Chamber

[Baroness Royall of Blaisdon (Lab)]

My Lords, I am proud to be pro-chancellor of the University of Bath, where we undertake ground-breaking research which improves the lives of people today and tomorrow. We are also celebrating the 50th anniversary of the granting of our charter. I strongly urge Ministers to review everything in the Bill to do with royal charters, which should continue.

There are many common themes in today’s debate, including the increasing domination of market forces, potentially at the expense of quality, if new entrants to the market are not subject to the same requirements as existing universities. Students, staff and the reputation of the sector as a whole will be vulnerable. It cannot be right that new institutions are granted probationary degree-awarding powers from day one.

Like other noble Lords, I regret the timing of the Bill, when there is so much uncertainty in higher education—as in every other sector—as a consequence of Brexit. I simply do not understand why the Government had to add to the insecurity by introducing the Bill so soon after the referendum, when the challenges facing our universities changed and grew exponentially. The brave new post-Brexit world has huge implications for students and staff and, of course, for research collaboration and funding. We are awaiting answers from the Government to myriad questions, including on EU students considering studying in the UK from 2018-19, who have no certainty about their tuition fee status and access to student finance. We want—we need— to welcome EU students but UCAS figures show a 9% decrease in applications so far this year; without certainty, next year these figures could be worse. When will clarification on this point be forthcoming?

Why is there the rush with the TEF? There is deep concern about the metrics, including how to assess teaching excellence. The swift introduction of the TEF really increases the burdens on universities and will have a profound effect on smaller institutions. The desire of many institutions is to increase the number of non-EU students, so why does the TEF only partially reflect the quality of teaching experienced by these students? The impression given is that the Government are avoiding parliamentary scrutiny on these issues.

What would be the implications for an institution’s future if it were judged bronze rather than silver or gold, especially when it may have some excellent departments and courses? I am concerned about the link of the TEF to fees. In practical terms, would a university judged to be gold one year have to reduce its fees in future years if it were then deemed bronze or silver—or, perhaps, vice versa? Such insecurity is unacceptable. What will be the relationship between the TEF and the granting of student visas, which many noble Lords have raised? The speech by the Home Secretary at the Conservative Party conference was deeply concerning. Any additional barriers to attracting international students will naturally lead to a reduction in numbers, which will affect universities, their communities and the economy of our country. I am concerned about the link with immigration policy, and I suggest to the Minister that the mismatch in timing between this Bill and the Home Office consultation on the study immigration route is not helpful.

Many noble Lords have spoken of the intrinsic link between teaching and research, and the need for co-operation and collaboration between the OfS and UKRI. The requirement in the Bill that the two bodies must co-operate if required to by the Secretary of State is simply not enough; neither is the planned memorandum of understanding between the two bodies. To ensure that the separation of teaching and research in the new HE architecture does not lead to the loss of the benefits of research informing teaching and learning practices, the Bill must make the requirement to co-operate explicit.

The next point may seem peripheral but I wish to mention voter registration. I am confident that all noble Lords would wish to improve the level of voter registration among students: the Bill could do exactly that by requiring universities to introduce the integrated student enrolment system with voter registration. This system was recommended by Universities UK and supported by the Cabinet Office. It was originally and very successfully piloted by the University of Sheffield. Unfortunately, an amendment on it was rejected in the Commons. The Minister suggested that there should be further consultation but I think the time for consultation is over and I will seek to amend the Bill accordingly.

Like many other noble Lords, I welcome the emphasis on access, participation and equality of opportunity but there is so much more to be done. My noble friend Lord Winston mentioned outreach to schools. I would mention the excellent work of the charity IntoUniversity, which is doing precisely this. Mention has been made of children in care; we should also reflect on the needs of young carers. There was an excellent programme on the radio the other day about a young carer who has just got into Cambridge, which was great news—but she could not have got there without the support of Gloucestershire Young Carers. There are many things that we should reflect on.

I regret that the Bill does not address properly the falling numbers of part-time students or introduce measures that would ease access, allowing greater flexibility in study and therefore greater social mobility. The noble Lord, Lord Rees, said in another debate that we need a revolution in the way we formalise the system to allow more readily for transfers between institutions, and between part-time and full-time study. The demand for part-time and distance learning is bound to grow for financial reasons and because of the changing world of work, which has the potential for huge insecurity if people are not able to learn and gain new skills to equip them for employment and increased leisure. Our education system is simply not prepared for or preparing people for the technological revolution which will radically change work in the 21st century, so we should grasp the opportunity in this Bill to make lifelong learning in higher and further education a reality. It is an important means of social mobility and a ladder out of social disadvantage. This used to be an attractive aspiration about which too little was done, but it is now vital for the future well-being of our citizens and our country.