Lifelong Learning (Fee Limits) Regulations 2026

Baroness Wolf of Dulwich Excerpts

Wednesday 15th July 2026 Grand Committee

[Lord Johnson of Marylebone (Con)]

My Lords, I welcome these regulations and, obviously, support the objective of the lifelong learning entitlement. As the Minister said, it originated in the Augar review a few years ago, in which the noble Baroness, Lady Wolf, played an important part. I am glad that this Government are continuing the work initiated by previous Governments in this respect.

These regulations are really important because they put in place the funding architecture for the LLE, without which it cannot become a reality. However, the real test will be whether, in reality, the architecture translates into substantially greater participation in lifelong learning, which has always been one of the missing pieces of our educational landscape in England. That will become all the more important in the world we are moving into—that of artificial intelligence. As Ministers and others have noted, we will need to enable the retraining of people many times over the course of their working lives. So I would be interested to hear from the Minister how the LLE is intended to operate alongside employer-funded retraining through the growth and skills levy.

It is important that we have clarity on the boundaries between these two important funding schemes, and how they relate to one another, so that we eliminate any policy confusion that might inadvertently depress demand for lifelong learning, which, as I said, is already pretty low. If a worker needs to retrain because AI has transformed their role, how should they go about it? How will they know whether the expectation from government is that their employer will fund that training or whether they should fund it themselves through loans via the lifelong learning entitlement? I would really welcome some thoughts from the Minister on those questions.

I also have broader questions about the future of this policy. These regulations are a great start and it is better that we are starting down this journey towards more modular study where possible, but I think the Minister has admitted in the past that this is not the end point or final destination. I would like to probe a little further where she sees this policy area going. In particular, when will the LLE be extended to master’s level study—level 7—given the increasing demand for postgraduate-level reskilling in areas such as AI, digital technologies and advanced professional practice? Many adults who need to retrain in the coming decade will already hold a bachelor’s degree, given current levels of tertiary enrolment, and will need to acquire higher-level skills rather than simply further study at undergraduate level or sub-degree level, which is the current area of focus of the LLE.

Secondly, what is the Government’s thinking on eligibility for funding for courses not drawn from existing qualifications? The stipulations in the policy are very clear at the moment: funding will be made available only for modules that are drawn from existing qualifications. I have said on a few occasions that this risks us stifling innovation in what is on offer, meaning that we, in effect, provide access only to more of the same but in smaller pieces. I would be grateful for the Minister’s thoughts on how we can meet demand from employers for shorter, more agile programmes that respond to rapidly changing labour market needs but do not necessarily fit within traditional qualification structures. If lifelong learning is genuinely to become a normal feature of working life, it seems likely that the funding system will ultimately need to accommodate that greater flexibility.

In her remarks, the Minister referred to two further regulations that are going to be laid, one of which is on student support. As she thinks about the future direction of this policy area, could she say whether the Government might soften their stance on student support for online, distance-learning qualifications? It stands to reason—and this is the whole intent of the Government’s policy—that the smaller the unit of study, the more likely it is to be studied at distance and online, given that students will not want to incur the frictional costs of upping sticks and moving to study at another institution in person. None the less, they will still need to incur maintenance costs, which the current regulations do not provide for. As we move into a more modular landscape, it is likely that we will need to rethink that, so I would like to understand the Government’s intentions in that respect.

Finally, what does success look like in this policy area? How are we measuring it? What level of adult participation do the Government want this entitlement to achieve over the next three to five years in shifting the market share away from this category-killing three-year bachelor’s degree towards other more flexible forms of study? Where does the Minister want us to end up in changing the way higher education is consumed and delivered over a horizon of three to five years and by what measures will the Government judge whether further reform is needed? All those points are not to detract from the importance of these regulations: they are a really important beginning. I wish the Minister every success in getting them through Parliament.

[Baroness Wolf of Dulwich (CB)]

I also welcome these regulations. They seem to have taken a while, and it is really good to see them. As the noble Lord, Lord Johnson, pointed out, this policy was the number one recommendation of the Augar review, of which I was fortunate enough to be a member. The cross-party support for that has been really gratifying, because we all recognise the importance both of continuing education and training and of greater flexibility.

I thought it might be worth putting on the record some of the things that we were most concerned about, because they lead into the question of how we know whether it is working or whether anything else needs doing. First, we were not particularly looking forward to modular study as such; it was much more about creating a comprehensive change in the student funding system that would build in far greater flexibility.

The thing that we were most concerned about was the rigidity of the equivalent level qualification regulations, which had been brought in by previous Governments. The noble Lord, Lord Willetts, will probably be able to elaborate. The idea was that you should have people going up and up in levels all the time. We felt that that was deeply misconceived and that one of the things you had to do—for everybody, not just for a few additional people—was to make it clear that what was important was what you were learning, not the level at which that took place.

--- Later in debate ---

[Baroness Smith of Malvern (Lab)]

It is of course the case that, even for distance learning, if you had a disability, for example, you would have access to the disabled students’ allowance. However, with limited resource, we have to make decisions about where we want to focus maintenance support. I do not think that it is inappropriate to focus it on those who find it much more difficult to earn alongside their learning. I understand the point that the noble Lord is making—anybody who has done an OU course understands precisely how much time it takes to do that—but the Government have focused in the way that I have described.

The next set of issues, as raised by the noble Lord, Lord Johnson, and the noble Baroness, Lady Wolf, relate to what we see as success, where we see the future of this measure and how radical we think it should be. It is important to say that this is not a short-term fix; it is a bold long-term investment to support the creation of a student finance system that is fit for the challenges of the future. We have made a deliberate decision to phase in the delivery of the LLE, placing quality and learner outcomes ahead of an immediate large-scale rollout, but we want to see education providers using the LLE to innovate, driving deeper collaboration between further and higher education institutions and supporting smoother learner transitions across levels.

The student finance system must also meet labour market needs, which is why we are calling on employers to be active partners. We want employers to see the LLE as an essential part of their workforce strategies, helping them to attract new talent, develop skills and retain employees. We expect more FE and HE providers to work with employers and representative bodies to co-design flexible provision, helping create coherent learner pathways into the workforce.

I reiterate, as others in this Committee have, my thanks to and respect for the noble Baroness, Lady Wolf. She has a long record in this area and is, in fact, one of only two people in this Room who turned up to my briefing session on the LLE.

[Baroness Wolf of Dulwich (CB)]

It seemed like the least I could do.

[Lord Willetts (Con)]

I am grateful to the Minister for giving way. I am clearly one of the guilty people who did not turn up to the briefing sessions, but I am sure my question will be answered. There is a view that success will look like more people moving in and out of higher education—doing a course for a time and, through the more modular structure, withdrawing and then doing some more. On the other hand, as she well knows, there are a lot of measures of quality by the OfS that focus on so-called drop-outs, non-completions and B3 requirements, which all assume that leaving a course is a bad thing. How will the modular agenda and this wider B3 agenda be reconciled?

[Baroness Smith of Malvern (Lab)]

The noble Lord makes an important point. I think the noble Lord, Lord Mohammed, asked how we change regulation to support what we want to see here. It is a fair point that the regulation at the moment is designed around that traditional three-year course. Part of how we expand the opportunities through the LLE will include looking with the OfS at that regulation, to make sure that it does not act against the more flexible way of learning that the LLE can support. Linked to that, to return to another point made by the noble Baroness, Lady Wolf, I reiterate that we believe that the way we are approaching this builds in flexibility. It is not simply an add-on of modular courses. The shift from only—

[Baroness Wolf of Dulwich (CB)]

Just to clarify, I know that that is the case, but there seem to be a lot of people out there who have not quite grasped that. That is the only point I was trying to make.

[Baroness Smith of Malvern (Lab)]

To be fair to them, that might be because I am frequently banging on about the opportunities of modularity and different ways of providers being able to offer courses. The noble Baroness also raised an important point about the proposed consultation on break points that we will bring forward. We have to develop a system where you can gain credit for learning short of having done a full three-year degree. The Prime Minister’s target for two-thirds of young people getting a level 4 or above qualification obviously puts an emphasis on qualifications at level 4 and level 5 in a way that the student finance system has perhaps not supported previously.

The noble Lord, Lord Mohammed, made a point about maintenance support. I note that the LLE provisions will expand maintenance support for those in part-time learning. Maintenance loans will become available for all courses and modules that require in-person attendance, including part-time and technical study below degree level that does not qualify today, on top of other actions that the Government are taking to upgrade maintenance loans and to introduce maintenance grants. This demonstrates our commitment to broadening access to and participation in higher education.

On implementation, several noble Lords asked what support will be given to providers to develop modules. There will be some upfront costs in setting up modular study, but these costs are voluntary: there will be no regulatory requirement to offer a greater provision of shorter programmes. However, I think that providers—with their business hat on, if you like, thinking about the strategic opportunities for their institutions of what the LLE will enable their students to do—will see the real potential profitability of these sorts of courses. I hope that will be a reason why they might want to shift some resource into and help develop those courses. This is happening at a time when we have committed—although it is not part of these regulations—to an index-linked increase in the tuition fee limits that will be funding the provision that is being made in higher education.

The noble Earl, Lord Effingham, made an important point about quality. I reiterate the announcements that we made relatively recently about the additional work that we will do to focus on quality in higher education. Of course, we have already said that we will link any increase in tuition fees to the developments in the teaching evaluation framework that the Office for Students is working on. We will look at ways in which to limit the growth of poor-quality courses and are taking action on the source of a lot of the concerns around quality: that is the big expansion in franchise provision, with the introduction of regulation of such provision with more than 300 students in it.

I hope that I have been able to respond to the key points that noble Lords have made. I accept the point—this is part of the excitement of the LLE—that not all the answers are currently available because this is the start of something that has real potential to open up and change the way in which higher education is offered and funded for students throughout their lives. This is an important start and a foundation on which we can build that much more flexible higher education system with greater work with further education, greater opportunities to learn throughout your life and greater capacity to respond to some of the skills needs that we have in the economy. I commend the instrument to the Committee.