28 Baroness Wolf of Dulwich debates involving the Department for Education

Thu 13th Jul 2023
Thu 24th Mar 2022
Skills and Post-16 Education Bill [HL]
Lords Chamber

Consideration of Commons amendments & Consideration of Commons amendments
Thu 27th Apr 2017
Higher Education and Research Bill
Lords Chamber

Ping Pong (Hansard): House of Lords
Mon 27th Mar 2017
Technical and Further Education Bill
Lords Chamber

Report stage (Hansard): House of Lords
Wed 8th Mar 2017
Higher Education and Research Bill
Lords Chamber

Report: 2nd sitting (Hansard): House of Lords

Higher Education

Baroness Wolf of Dulwich Excerpts
Thursday 7th March 2024

(1 month, 3 weeks ago)

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Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (CB)
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My Lords, I congratulate the noble Lord, Lord Blunkett, on securing this important debate, at a time when the university sector is under enormous pressure. He has rightly drawn our attention to the role of universities in growth, productivity and levelling up. This reflects the increasing tendency, at all levels of education, to discuss what we do in terms of the economy.

Universities have always been about training people for jobs, long before growth was seen as a central concern of Governments. Universities are indeed central to growth, productivity and levelling up. Without them, we would not have the levels of innovation and wealth that we do, or the genuinely improved opportunities—although they are not as great as they might be—for our young people.

I will use my short time in this debate to utter some words of warning and concern about our enthusiastic embrace of universities as engines of growth. There is a real danger, not just in this country but throughout the world, that a simplified understanding of this relationship and of what it means for government policy is a genuine threat to university excellence. It leads Governments down a path which does not deliver what they hope it will and leads to some reactions that we might wish to avoid.

Especially once the wonderful years straight after the Second World War came to an end and productivity suddenly started to be problematic—rather than something that just seemed to be happening and growing right, left and centre—Governments, intellectuals, academics and politicians cast around for some way of turbocharging growth. All over the world, they came to the conclusion that education was the answer—the more people we educated for longer and the more graduates we had, the more the economy would grow. It is true, I repeat, that without a highly qualified and well-educated population you cannot have a modern and innovative economy. But what has also happened is that we have all been rather disappointed: all over the world, there has been a huge increase and expansion in graduate numbers, but somehow growth has remained anaemic and productivity is not going in the directions we want.

All over the world, as the university sector gets larger and larger, resource per student tends to go down, and there are also some really concerning results: degrees become barriers to entry and you cannot get a job that you used to be able to get without a degree unless you have one. We should be very aware of this danger because it is starting to have a real impact on the way that Governments deal with the university sector in ways that threaten its ability to deliver the innovation and the type of education that we all value.

Australia, for example, having failed with one set of very complicated differential fees, is now about to introduce another set, which will apparently be based on the future contributions to the economy of different degrees—so this is not just a British disease. It has been true here, in the United States and elsewhere that we have focused more and more on whether individuals earn a lot from a particular degree. This is being hard-baked into our regulatory and accountability regime. We should take a deep breath and ask whether this is sensible, any more than it was sensible to believe that you would guarantee an uptick in economic growth simply by increasing the number of students.

Individual salaries depend on a very large number of things. They depend, for example, on whether you go into an occupation like nursing, where your wage is set not by a market but by a Government. They depend on which institution you went to and on the sort of occupation you go into. They also depend—this comes to levelling up—on where you are. You will not earn as much if you study in the north-east and stay there as if you study in the south-east and stay there—although actually you might be as well off, given house prices. But as a tool for steering, regulating and changing the higher education system, the way we have doubled down on the idea that we must look at whether a degree delivers growth—and that, if it does, it will deliver salaries—is very concerning. As well as celebrating the role of universities, I hope we will pay careful attention to some of the unfortunate consequences of focusing too much on growth.

Skill Shortages in Business and Industry

Baroness Wolf of Dulwich Excerpts
Wednesday 28th February 2024

(2 months ago)

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Baroness Barran Portrait Baroness Barran (Con)
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I have already talked about some of the things we are doing. It is important that people know what options and opportunities are available in their local area, and the LSIPs are critical for that. In particular, the Government have invested up to £300 million in a network of 21 institutes of technology, which are providing exactly the kind of higher technical education to which the noble Lord refers.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (CB)
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My Lords, the Government’s figures indicate that fewer than one apprenticeship in five is in a shortage occupation. Given those figures, is it really plausible that no changes are needed in the apprenticeship levy?

Baroness Barran Portrait Baroness Barran (Con)
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I hope I did not suggest that no changes are needed. What employers need and want is a degree of stability in the apprenticeship system. We have done a huge amount of work, and the noble Baroness has been a critical part of achieving that, in improving our apprenticeships system. I am not suggesting that there is not some tweaking required—the noble Baroness is a great expert on that. Broadly, stability for our employers is vital, so that they know how they can use the levy and that it will be here to stay.

Lifelong Learning (Higher Education Fee Limits) Bill

Baroness Wolf of Dulwich Excerpts
Baroness Garden of Frognal Portrait Baroness Garden of Frognal (LD)
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My Lords, I apologise profusely to the House for arriving after the Minister started speaking; business moved much more quickly than I expected.

From these Benches, I thank the Minister and the Bill team very much for all their work on the Bill. We remain concerned about how many adults will wish to take on debt in order to improve their learning, and we look forward to hearing updates from the Minister about how many people have done so. From these Benches, we feel that grants would be a much more effective way of persuading adults to learn. But, of course, we are all totally in favour of lifelong learning, and we wish the Bill well.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (CB)
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My Lords, as many of you will know, the number 1 recommendation of the Augar review of post-18 education and funding was for this sort of reform. As someone who was a member of that review and who has spent a considerable part of the last three and a half years on secondment to government to work on the Augar review proposals, among other things, I take this opportunity to thank everyone involved.

I have been jinxed: I have not managed to contribute to any of the fine and informative debates that have taken place on this. They have highlighted some of the challenges that lie ahead. I am enormously encouraged by the cross-party support for the principle of a funding system that genuinely takes us forward into not just the 21st century but a future where post-compulsory lifelong learning is the rule, not the exception. We now have an opportunity to build on this.

I thank everyone involved in the drafting and passing of the Bill—although we have not quite passed it yet. I particularly put on record my appreciation of the work put in by a large number of officials who have worked enormously hard on this—on teasing out the policy implications and on minimising the amount that had to be put into primary legislation. I thank them and the Minister for her support. It is a little miraculous that we have moved from a major recommendation in 2019 to putting this reform on its way to implementation in 2023. So, on behalf of the Augar review team—and, I think, all the future students of this country—I thank everyone involved in this reform.

Bill passed.

Teacher Vacancies

Baroness Wolf of Dulwich Excerpts
Thursday 13th July 2023

(9 months, 3 weeks ago)

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Baroness Barran Portrait Baroness Barran (Con)
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I talk to a lot of schools and trusts, and I absolutely accept that there are particular areas and subjects where recruitment feels really hard at the moment. But I do not accept that this is the highest figure of leavers ever—I have the numbers in front of me. The trend over the past 10 years is pretty stable. It is only fair to look at the facts and to use the facts. I think that most parents feel that teachers go above and beyond to give their children a great education. The work that we have done to improve the curriculum over the past 10 years is a really important part of that.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (CB)
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My Lords, teacher shortages in specialist subjects and short-lived responses have been common for decades. Shortages are also currently chronic in many other countries, notably France, Switzerland and Australia. Can the Minister inform us whether the Department for Education is conducting an in-depth review of the long list of previous short-lived policy responses or examining how other countries are responding to comparable shortages?

Baroness Barran Portrait Baroness Barran (Con)
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I am not aware that we are compiling a list of short-lived responses. We are committed to introducing improvements to the system that are based on evidence, such as the payments to early-career teachers in specialist subjects and the improvements that we have made to the early-career framework, which we introduced in 2021, providing mentors for every single early-career teacher. We are committed to building on those policies, including in relation to continuing professional development being a core part of every teacher’s experience in future.

Skills and Post-16 Education Bill [HL]

Baroness Wolf of Dulwich Excerpts
Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (Non-Afl)
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My Lords, I declare an interest because, as the noble Lord, Lord Blunkett, pointed out, I am currently working as a skills adviser at No. 10. I was therefore quite involved in the skills White Paper, which led to much of the legislation today.

I very much appreciate the interest the House has taken in this Bill. Like the noble Lord, Lord Baker, and many other noble Lords, I have been bashing away at skills and vocational education for many years. It is wonderful to see that it is now a subject of such importance to so many of you.

I will say something about the local skills improvement plans and Motions 4, 4A and 4B. There is a danger that we are losing sight of what these were meant to be, can and should do, and what the White Paper set out to do. They were meant to be a simple way to create a stable mechanism to make sure that local employers’ voices and insights would be brought together and made available to providers. Colleges do not have to follow these plans in detail; they just have to take note of them. I am concerned that, with the best of motives, we are in danger of creating a vast, complex and bureaucratic process that will not do what it was meant to do, which was to take employers into account but also to reverse the 20-year trend of colleges and providers generally spending all their time worrying about ticking boxes for Whitehall and whether they have met regulations and requirements, but far too little time looking out to their local communities.

I put it on record that I am also bemused by why six pages of dense text are needed to put this simple idea into legislation. I am genuinely concerned that, in trying to enforce something that says, “You must take account of schools, and of this and that”, instead of creating a simple mechanism for employers to be part of the thinking about what is provided in a locality, we will create a new series of tick boxes.

I raise a question particularly on independent training providers, because I simply do not see how this will work. Independent training providers range from huge national providers, which are dominant in apprenticeship sectors, to tiny commercial companies of literally two people in a room above a chip shop. I tried to get my head around how you would take their views into account, when many of them are commercial concerns in determined competition with each other. I really wonder whether this will achieve what people want it to.

As I said, I take this opportunity to say, first, how very much I think the Bill and the support expressed for its purposes show how this country has moved on and really understood the importance of this, but also that local skills improvement plans are meant to be simple. They are meant to be not tick-box or expensive bureaucratic exercises but a way to ensure that employers are part of a process. They are something of which to take account, not an attempt to introduce central planning into what colleges decide to put on.

Baroness Blackstone Portrait Baroness Blackstone (Ind Lab)
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My Lords, it is a pleasure to follow the noble Baroness, Lady Wolf, who has fought so hard for the skills agenda. I associate myself with much of that fight and I very much welcome a great deal of what is in the Bill. However, I will say a few words in favour of Amendments 15A and 15B. All the key points on these amendments have already been made very eloquently by my noble friends Lord Blunkett and Lord Watson, and the noble Lord, Lord Baker. I strongly support the arguments they put forward and I will underline three points.

First, it is true that too many qualifications can be confusing. I have no doubt about that, so I understand what the Government are trying to do here. Nevertheless, I think they have got it wrong. There is no confusion about BTECs. They have been going for nearly 40 years. They are long established and well tried and tested. They play a really important role in the range of qualifications at level 3. It is particularly important that they combine the development of skills with academic learning. They are the only qualification focused entirely on that.

For all the positive aspects of T-levels, they do not do this. They are mainly designed to help those enrolled on them to become successful in specific occupations. Again, I do not want in any way to criticise their introduction—that is an important role—but BTECs allow those who are successful in completing them to go into higher education and in particular to take applied vocational degrees, of which there are many, or into the workplace, or, in some cases, into both, because there are quite a lot of part-time students at BTEC level. Therefore, they should not be ditched to try to bolster T-levels. It is not necessary to do that. I know the Minister has indicated that there are certain niche areas where they will survive, but they should survive as a whole. Moreover, as the noble Lord, Lord Baker, said, we need some time to see how T-levels bed down, who they are successful for, who is attracted to them and whether they are really working for employers.

That is my first point. My second is that the Government seem to have ignored the results and outcomes of their own consultations. Some 86% of respondents to its level 3 consultation disagreed with the proposal to remove funding from qualifications deemed to overlap with A-levels and T-levels. As has been said by the noble Lord, Lord Baker, there is a big issue about what is meant by “overlapping”. The fact their content might be the same does not mean that the approach to teaching and learning is the same. In fact, they are profoundly different. Neither of the two reviews the Government have cited, one undertaken by the noble Baroness, Lady Wolf, favoured the Government’s approach. In her review, the noble Baroness recognised the value of BTECs, and the Sainsbury review did not cover BTECs at all because they were not part of its remit.

My third point is that abandoning BTECs is likely to severely damage social mobility. It will block a route to university or skilled employment for large numbers of disadvantaged young people. This is reinforced by the evidence of the Social Market Foundation that 44% of white working-class students who entered universities studied at least one BTEC. I am familiar with this from my past role as a vice-chancellor. Many of these students do extraordinarily well when they get to university, often better than those who come in with rather poor A-level qualifications. As I think the noble Lord, Lord Baker, mentioned, 37% of black students went to university with only BTEC qualifications. Surely we should not block the route of these young ethnic-minority students into our higher education system by taking away a qualification deemed valuable for them.

Skills and Post-16 Education Bill [HL]

Baroness Wolf of Dulwich Excerpts
Lord Storey Portrait Lord Storey (LD)
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My Lords, I rise to speak on the issue of essay mills and contract cheating. I thank the Minister for tabling this amendment. There have been four Private Members’ Bills, three of them from me. The first time, I drew number 2, and then there was then a general election. I then drew number 50, which never got debated, and then I drew number 3—and we have the Private Member’s Bill up and running. I thank Chris Skidmore for putting one in the Commons as well.

More than 45 vice-chancellors and heads of UK higher education organisations wrote to the Secretary of State in 2018. The support and briefings of the Quality Assurance Agency for Higher Education have been fantastic. I also pay tribute to two professors who started this whole thing off before I got involved: Professor Newton and Professor Draper at Swansea University.

When I looked at a particular independent college in Greenwich and saw the effects of contract cheating and essay mills, I realised that this was a very serious problem that we faced not just in further education but in higher education and, increasingly, in schools as well, although this amendment does not deal with that. Some 15% of our students admit to using contract cheating services. Oxbridge Essays claims that it has produced, for cheating, 70,000 essays. This is not just about students being drawn into this situation—many of them are worried about their well-being, their mental state et cetera—it is also about the academic credibility of our higher education system. If we allowed this cancer to grow, it will affect our universities and colleges.

I pay tribute to the Minister’s legal team, which has nailed this properly. I showed the amendment to a number of people, and, as you can imagine, I got some quite important replies. They said that the proposed strict liability offence—whereby there is no need to prove intent—is really important because it means that essay mills will not be able to rely on disclaimers, although they do have a due diligence defence. Getting strict liability offences through Parliament is extremely rare, but it is absolutely critical to this offence having any impact.

I would also like in passing to congratulate the Minister’s press department or PR department. The Minister very kindly emailed me her intended amendment and it said, “Strictly embargoed for four days”. I thought after the third day I would tip off the Times Higher Education Supplement or FE Weekly so I might get a little bit of credit, and they said “Oh, we got it four days ago”. The Government obviously have an eye on publicity as well.

I thank the Government for this amendment. Students, vice-chancellors and universities up and down the country will be very grateful. This is not the end of it, in the sense that we have to make sure that we look at Wales and Scotland, because that is important, and we will at some stage need to look at secondary education as well. When the Minister winds up, will she consider saying that if breaches occur, we will look at how we can tighten up the situation? I am sure that these essay mills, which form a £1 billion industry, will be looking at ways around this, and we need to see whether we can find ways to stop breaches happening in future. I hope the House does not mind, but I am going to depart.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (Non-Afl)
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My Lords, I, too, strongly welcome the amendments tabled in the names of the noble Baroness, Lady Barran, and the noble Lord, Lord Storey, which seek to address the pernicious effects of essay mills. I must declare an interest as an adviser on skills to the Prime Minister and as an academic employee of King’s College London. That is why I want to take this opportunity to say how important and welcome these amendments are. I pay particular tribute to the noble Lord, Lord Storey, who has been passionate and determined. Without his recognition that this is a major and serious issue which can be tackled, I am sure that these amendments would not have been tabled tonight.

There are a number of reasons why cheating has become a major problem for universities. It is partly to do with the pressure on people to get formal qualifications, the scale of universities and the temptation—you can do things you could not do before. There are two major sources of this. One is plagiarism, where we can fight software with software, and one is essay mills, where we cannot. I am quite sure that there will be a major improvement as a result of these measures: the firms will be unable to operate and students will take much more note of the risks attached to doing something illegal with these measures in place. The noble Lord, Lord Storey, has escaped, so I will send thanks in his direction. I say on behalf teaching academics all over the country that they will be extremely happy to see these amendments to the Bill, because it is almost impossible to know if somebody has used a commissioned essay.

Baroness Sherlock Portrait Baroness Sherlock (Lab)
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My Lords, I thank the Minister for introducing the government amendments and all noble Lords who have spoken. I shall say a brief word on government Amendments 58 and 72, on religious academies. When my noble friend Lord Touhig raised this matter in Committee, my noble friend Lady Wilcox made clear our support for his endeavour, so it is good to see the Government responding positively by bringing forward on Report their own amendments to address the problem. I congratulate my noble friend Lord Touhig. Given how long this has seemingly been worked on, I hope that at least one academy, the Lord Touhig catholic academy, will be appearing any day now to mark his success. I am going to ask him to put his name to my amendments in future, in the hope it will have a similarly positive effect on the Minister on future subjects. I look forward to his support. These amendments are very welcome.

Turning to the remaining government amendments in this group on essay mills, as I made clear in Committee, we fully support the outlawing of cheating services. Having had to research this matter for one of the many Private Member’s Bills proposed by the noble Lord, Lord Storey—I had only just taken the brief on—I was shocked to find how comprehensive the available services are. I think I have regaled the House more than once with my story about commissioning imaginary essays on Augustine and the problem of evil and various other things, and being astonished to find the precision with which one could request services. There was even a “comparethemarket.com” for it. The whole thing is extraordinary.

I have a small number of questions, and I apologise, but given the amendments have been brought forward on Report, we have not had an opportunity to ask about them, so I hope the Minister will bear with me.

First, one of the conditions is that material provided to a student has to have been prepared in connection with the assignment, rather than published generally. One of the abuses of the current system has been essay mills selling the same essay to more than one student, as the same topic comes up again and again. If material had been prepared for one student and was then resold to 15 more, is that one offence or is each sale an offence?

Secondly, the policy note talks about committing offences in England and Wales. What does that mean? Does it mean that the website is hosted in England or Wales, that the company that owns it is registered there or that the owners and essay writers live there? Who commits the offence? Is it the person writing the essay, the one promoting the service, the staff, the owners or all of them?

I have two other quick questions. We are told that enforcement of the law will fall to the police and the CPS. Given the pressures on both, do the Government have a sense of how many prosecutions, if any, are likely in a typical year or will this rely on deterrence as a way forward?

Finally, the penalty on conviction is a fine. I sought clarification offline as to the likely scale of this and was told simply that this will be determined by the courts in accordance with Sentencing Council guidelines, with no cap on the powers of magistrates to issue fines. When I have had to deal with these things on Bills before, I have normally been given some kind of heads-up about the likely tariff or scale from the Government Benches, so can the Minister give us an idea? Are we talking about £50, £5,000, £50,000 or £5 million, or something relating to the profitability of the company? Can she give us some sort of heads-up or a rough benchmark?

I commend the Government for acting on both these points and look forward to the Minister’s reply.

Education: Industrial Strategy

Baroness Wolf of Dulwich Excerpts
Monday 24th June 2019

(4 years, 10 months ago)

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Lord Agnew of Oulton Portrait Lord Agnew of Oulton
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The noble Baroness will know that we have put a floor under funding for young people from 16 to 19. I cannot speak for what happened in 2010 or earlier, but if she would like me to write to her on that, I will be very happy to do so. However, we are absolutely committed to further education, and in an earlier answer I gave examples of some of the areas that we have put resources into.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (CB)
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My Lords, the noble Baroness, Lady Bull, pointed out the chronic underfunding of further education and referred to the Augar review; I declare an interest as a member of the panel that produced that review. I will follow up on this by asking the Minister how the Government can possibly deliver on some of the specific commitments of the industrial strategy without rethinking in major form the way in which they fund further education. More than 60% of all private sector jobs are in small and medium-sized enterprises, which operate in a way that means they cannot work easily with universities and depend directly on the further education sector. The industrial strategy, among other things, commits itself to putting the UK at the forefront of high-efficiency agriculture and transforming construction techniques. I cannot see—I would like the Minister to tell us—how this can be delivered without changing the funding system.

Lord Agnew of Oulton Portrait Lord Agnew of Oulton
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My Lords, we welcome the Augar review. It was the most far-reaching review of further and higher education since—amazingly—1963. It makes a number of recommendations that we are considering. The industrial strategy has aimed to support education and skills with a package of some £400 million. That includes a four-year programme to improve teaching and participation in computer science, an additional £50 million to improve the quality of post-16 maths teaching, £100 million of new government funding for the national retraining scheme, and £20 million to support providers to prepare for T-levels. We are doing a great deal to support the industrial strategy and it remains a key focus.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts
Baroness Garden of Frognal Portrait Baroness Garden of Frognal (LD)
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My Lords, perhaps I may associate these Benches with the eloquent words we have already heard. It is inevitable that there will be a measure of disappointment that not all of your Lordships’ wisdom has been accepted unequivocally by the other House, but I think we can all agree that we have made immense strides in this Bill, and we are deeply appreciative of the way in which Ministers have listened and come forward with proposals. Perhaps I may pick up one thing about which we are particularly pleased, which is that there will be a delay in implementing this while a review is carried out. Some really key measures set out in the Bill need more reflection to see whether they are actually the right path to tread, so we appreciate the fact that the delay has been built in. Again, we appreciate the measures that the Government have taken to come towards us on these issues.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (CB)
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My Lords, first, I should declare an interest as a full-time Academic Council member of King’s College, London. I had not expected to speak in this part of the debate and I am afraid that I will be speaking again later. But, since I am on my feet, I would like to say that I agree with all noble Lords who have expressed their appreciation of how the Government have listened to opinions and to the House generally. I, too, feel that we have come a long way. In this context, I will bring back a couple of points that were made in the earlier debates by the noble Duke, the Duke of Wellington, and by me in the context of amendments that we had tabled. Since the noble Duke is unable to be here today, I will make them briefly on behalf of us both.

Along with almost all noble Lords here, we strongly welcome the delay in implementing the link with fees—here I endorse the remarks of my noble friend Lord Kerslake. I am delighted to hear that we are moving quickly towards a position where we will have subject-level rather than institution-level assessments. However, one reason we became so concerned about the TEF is that putting a label on an institution is potentially very damaging to it.

One thing that has been rather an eye-opener for me is the extent to which—perhaps inevitably and as someone who teaches public management I should not be surprised—the “sector” is, in the view of the Government, the organised universities and Universities UK, and how few good mechanisms there are for the Bill team and the department to get the voices of students, as opposed to occasionally that of the National Union of Students. Students have been desperately concerned about this, because they are in a world where they pay fees and where the reputation of their institutions is so important. They have been worried about and deeply opposed to anything that puts a single label on them. This single national ranking caused many of us concern.

I will say a couple of things that I hope the incoming Secretary of State will bear in mind. First, as others have alluded to, we have a pilot going on and a system of grades that is out there. I fully understand that that is under way and there are enormous lessons to be learned from it. However, I hope very much that, after the election, whoever the Government may be will think hard about how they use that information, how they publish it, and whether they are in any sense obliged to come forward with the type of single-rank national league table that has caused so much anxiety to students. That is of great concern and it is hard to see how it serves the purpose, also expressed in the current Conservative manifesto, of preserving the reputation of our great university sector.

The other thing, on which I do not have any particular inspiration but about which I would love the incoming Government to think, is how to widen out their contacts with not just the organised sector and Universities UK but the academics and students who are really what the sector is about. We have great universities not because we have activist managerial vice-chancellors but because they are autonomous in large measure internally as well as vis-à-vis the state. That has been of real concern to me. Since we are going to have an Office for Students, it would be very good if, post the election, we could make it genuinely an office for students.

Lord Stevenson of Balmacara Portrait Lord Stevenson of Balmacara (Lab)
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My Lords, this is a very big Bill. I share the feeling of the noble Lord, Lord Kerslake, that perhaps this subject is one we will not see again for some time to come and so ought to enjoy what we are seeing now. The train passes slowly, but it is a very important one and we should pay regard to it.

We should also bear in mind that the Bill attracted more than 700 amendments and resulted in, at our last count this morning, 31 major concessions made by the Government to the voices raised, in the other place and particularly in here, in relation to some of the issues we heard about today. The noble Baroness, Lady Deech, was right to reflect on the fact that what we have in front of us today, although really important, is the end of the process, not the whole of it. We should not forget that within the list of concessions—“concessions” gives the wrong sense; I mean the things that moved in the Bill—there are important aspects. There is not just freedom of speech, which she mentioned and which is of course tremendously important, but also measures that will improve collaboration within the sector, that will help reverse the decline in part-time students, that will assist mature students who wish to come back, and that pave the way for more work to be done on credit transfer and flexible courses. These are all really important changes to the infrastructure of our higher education system and will make it better. They have not been picked up today because they were dealt with earlier in the process, but they should not be forgotten as they are important.

We have also heard nothing today about UKRI and the developments made in that whole area, which are to change radically the consensus on operating within science and research more generally that has gone on for nearly 30 years in one form or another. It is important that we also reflect that those changes went through after debate and discussion—and some minor adjustments but not many—primarily because there was an effort to make sure that the words used to describe the change were understood properly. A lot of time was spent in going round talking to people and making sure they were happy with that. That was a good thing. Indeed, this whole process, as has been touched on already by a number of noble Lords, is an example of what this House is good at but should be more widely developed within our political debates and discussions: that there is room for civilised debate and discussion about every issue. It does not have to be party political, as my noble friend Lord Blunkett said. It can be small-p political. It can be aimed at trying to arrive at a better overall solution, and I am sure that what we are achieving today has ticked the box in all these areas.

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Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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My Lords, our reforms are designed to make it simpler for high-quality providers to enter the higher education market, contribute to greater student choice, and ensure that our higher education sector remains innovative and can respond to changing economic demands. However, we have been clear that encouraging new providers cannot come at the price of lowering the quality bar for obtaining degree-awarding powers. We are absolutely committed to protecting the value of English degrees and, throughout the passage of the Bill, we have added to the legislative protections to achieve this.

At Report in this House, we tabled an amendment, based on a proposal from the noble Baroness, Lady Wolf, requiring the OfS to request expert advice from a “relevant body” on quality and standards before granting or varying degree-awarding powers, or revoking them on grounds of the quality or standard of provision. The role of the “relevant body” would be similar to that of the QAA’s ACDAP, and the system that we are putting in place will build on the valuable work that the QAA has been doing over the years. Our amendments further strengthen this requirement for expert advice. In particular, this amendment makes clear that if there is not a designated quality body to carry out the role, the committee that the OfS must establish to carry it out must feature a majority of members who are not members of the OfS. Additionally, in appointing those members, the OfS must consider the requirement that advice be informed by the interests listed in the clause. This will ensure that the advice is impartial and well informed. This amendment also makes it clear that the advice must include a view on whether the provider under consideration can maintain quality and standards. In line with the arguments put forward by the noble Baroness, Lady Wolf, it requires the OfS to notify the Secretary of State as soon as possible after it grants degree-awarding powers to a provider who has not previously delivered a degree course under a validation arrangement.

Let me be clear that, as is already the case, I expect the Secretary of State’s guidance to the OfS on degree-awarding powers to continue to require that a provider’s eligibility be reviewed if there is any change in its circumstances, such as a merger or a change of ownership. The OfS has powers under the Bill to remove degree-awarding powers from a provider when there are concerns as to the quality or standards of its higher education provision following such a change. I can confirm that we expect the OfS to seek advice from the relevant body on any such quality concerns before taking the step of revocation. I beg to move.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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First, I take the opportunity to thank the Minister in this House and the Minister for Higher Education very sincerely for listening so carefully and patiently to the arguments that I and many others put forward on these issues. I follow other noble Lords in saying that, while this has been a grind, it has also been something on which all parts of the House have found a great deal to discuss and agree. In that sense, it has been perhaps not enjoyable but certainly an educational and ultimately a positive process. I repeat that I appreciate the time that everybody in the Lords has put into this, and I very much appreciate the time put in by Ministers and the enormous work put in by the Bill team.

I am very happy to see the clause moving towards the statute book, but it seems to be slightly ill understood perhaps outside this Chamber and certainly outside this building. It might be worth my while reiterating what I think is important about it, and I would be grateful if the Minister would let me and the House know if he disagrees with anything that I am just about to say.

One of the major reasons why the Bill is so important is that it sets out what is happening in the sector, quite possibly for decades to come. That is why we have to take account of both whether it can provide innovation and new ideas and allow the sector to move and whether it can provide guarantees of quality and standards and protect students, many of whom take out large loans, and the whole country against what is always possible: that some institutions and people will not have the interests of the country and the sector at heart. Innovation is a very important part of it.

I also take this opportunity to welcome in this House the fact that the Government have recently given some money to the new model university that is being established in Herefordshire, which is enormously important because of the role it will play in helping to develop engineering skills and in working with small businesses and supply chains. It is the sort of institution that we need many more of, and I am really pleased that the Government have given their support.

It is worth remembering that one thing that has bothered us very much in thinking about how this Bill should go forward is our knowledge that it is only too easy to create a situation in which institutions arise and gain access to public funds but whose existence is very hard to justify and that can do enormous harm. It is not just this country—the United States has given us the largest and most catastrophic bankruptcies, leaving students stranded—but it is, after all, not very long ago that the Home Office moved to investigate and shut down higher education institutions in this country that were, not to put too fine a point on it, fraudulent.

This part of the Bill has always been enormously important. I am extremely happy, because it seems that this new clause will institute a quality assurance process that focuses the attention of the Office for Students on a number of critical issues when it is granting or varying awarding powers, and clarifies the importance of independent advice from outside an institution. This is always important, because an institution creates its own understandings and inevitably becomes defensive against the world. The potential strengthening and improvement of the advice that the OfS will get from outside, which will build on the QAA but will potentially be more independent and therefore both add an additional safeguard and add substantively to the process, is very welcome.

This clause also clarifies for the general public the way in which the Government envisage new institutions coming through. They clearly envisage two pathways. Many people will come through validation, a process that itself has grown up over the years with remarkably little scrutiny, but if an institution is to get degree-awarding powers from day 1, this is something of which the Secretary of State must be aware. The noble Lord, Lord Willetts, pointed out in earlier debates that anything that goes wrong tends to land on the Secretary of State’s desk anyway. What seems to be important here is that we have an extra element not just of formal accountability but one that will bring into the process both a clear ability for the Secretary of State to create a new institution that has degree-awarding powers, because that is seen as something of which they are capable from day 1, and something to make the process public and one that cannot slide through unobserved.

This is an area in which we have made enormous progress. Perhaps all this would have happened anyway, but I am extremely happy to see it in the Bill. I finish by expressing my gratitude once again to everybody who has worked on the Bill and listened to our concerns and my appreciation of all the comments, information and hard work that colleagues on all Benches of the House have put into it. I welcome this amendment.

Baroness Blackstone Portrait Baroness Blackstone (Lab)
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My Lords, I speak very briefly just to endorse everything that the noble Baroness, Lady Wolf, has said. On behalf of the House generally I want to thank her for all the hard work and effort that she has put into securing these changes. It is fair to say that this part of the Bill, in its original form, was the one that gave cause to a great deal of worry, and for me personally the most worry of all because in my view it threatened the reputation of higher education not only in this country but overseas. With this amendment, we are now in a much better place.

The only thing that I ask is that there be some monitoring of how it works in practice. It is very important that there should be some evaluation to make absolutely clear to the higher education sector as a whole, and to those who might want to enter it, that there will be rigorous tests of both quality and standards before any institution can have degree-awarding powers and access to grants and loans through the system of financial support that we have. Having said that, however, I am really grateful to the Government and to the Minister for bringing forward this amendment. It is a huge improvement to the Bill compared to what we had originally.

Technical and Further Education Bill

Baroness Wolf of Dulwich Excerpts
Baroness Cohen of Pimlico Portrait Baroness Cohen of Pimlico (Lab)
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My Lords, I support the amendment. The Bill has cross-party support; it is potentially the greatest engine of social change that can be imagined and rights the injustice of the many years when technical education has been regarded as much less important than formal academic education. The effect of cancelling benefit for 16 to 18 year-olds embarked on apprenticeships will be to deter a small but important group of these young people from taking them up. Since the apprenticeship is not just education but a route into a job, this would be entirely wrong. In families with very low incomes, budgets are extremely delicate. Allowing one child to do an apprenticeship when they are not fully funded could damage the rest of the family and is therefore not likely to happen. I therefore hope that the Government will think again on this.

I will also speak to Amendments 14 and 16, which provide slightly different versions of guarantees if trainers go bust. I remind the House that I am chancellor of BPP University, with 2,000 degree-level apprenticeships, and my sister company has 2,000 16 to 19 year-old apprenticeships. It is not very difficult for long, well- established training operations to contribute to a contingency fund, if that is what is wanted, or to get a bank guarantee. I am thinking of new people who may want to come into this field, whom I believe the Government want to encourage. I suspect that having to contribute to a contingency fund, which is difficult and requires special provision, is possibly a barrier to entry, whereas producing a bank guarantee is—as my noble friend Lord Watson said—a well-understood route and I believe a lot of banks know how to do this. I would, therefore, much prefer any measure to require providers to produce a bank guarantee rather than a contribution to a contingency fund, or their own private contingency fund.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (CB)
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My Lords, I also support the amendment and share its concern for the small but important group of young people who may be denied an apprenticeship. I will also speak to Amendment 16 tabled in my name and lend strong support to the general argument that we must provide financial guarantees and security to young people in the training field. I declare an interest that, as a member of the Sainsbury review, I was part of the panel which lies behind other parts of the Bill. I also strongly welcome the provisions to ensure that, should an FE college fail, special arrangements will be in place to make sure that students are looked after; that clearly set out procedures will swing into place; and that they will not just go to the bottom of the list after creditors, in the hands of administrators whose responsibilities and skills are essentially commercial. It is absolutely right that the Government have recognised this as their duty. It is their duty because, by funding young people and adults, encouraging them to enter training—and, in very many cases, to take out loans—the Government have implicitly promised that an institution to which they are lending money will give a good-quality education and will endure to see students through. The introduction of loans is a mammoth change and lies under much of the Government’s conviction that they need to change the HE regime. We must recognise that the Government’s ambition for huge increases in adult learner loans changes the environment in which young people and adults are studying and training.

Many noble Lords will know that failures are not unheard of—one wishes that they were. In the United States, huge companies have gone under, leaving many thousands of people with loans. These are not all at degree level; they are often at associate-degree level, which comprises two-year courses. On the one hand, therefore, it is very welcome that we have these provisions for FE colleges, but, on the other, I find myself completely unable to understand why equivalent protections should not be introduced for people training and studying in institutions which are not FE colleges and which also offer—and are being funded to offer—technical education. Many of these people have loans, and many of them are not mobile. The loans represent large sums of money for them, and they have made big changes in their lives to undertake this form of training. Again, it is tremendously welcome that the Government are putting so much effort and money into technical education. However, we have to ensure that the promise, encouragement and—sometimes—pressure to enter technical education is matched by a guarantee that the Government will deliver on their implicit promise.

Against this background, the repeated failures—that is what it has felt like—in recent weeks of a number of private training providers should make us aware that this is not a hypothetical situation. Like the noble Lord, Lord Watson, I was not very convinced by the letters from the department and the SFA. My noble friend Lady Watkins will speak in a moment. She and I had a very productive meeting with the Bill team. We appreciated their willingness to listen to our arguments. However, the letters that we received seemed to amount to a combination of the statements, “We are muddling through” and “There aren’t very many of them anyway”. That is not adequate at a time when we are embarking on a major rethink—and, I hope, a major expansion—of technical education.

In Committee, the Minister noted that you cannot treat private businesses as though they were public organisations. That is indeed true. Although many private training providers are small charities, many others are commercial organisations, as the noble Baroness, Lady Cohen, said. Many of them survive entirely on government contracts and are very small. That is why I have proposed a mechanism which I think would be entirely appropriate for this situation. We have heard about it already, and I thank the noble Baroness, Lady O’Neill, for first bringing it to my attention. It is well established, costs the Government nothing and would not cost providers anything that would begin to wipe out their margins. It is well and frequently adopted in other sectors and I cannot see why it should not apply here.

That brings me to my final point—the idea that we do not need to worry about this matter because only a few people are involved and the risks of failure are quite small. Even if the figure is less than 1%, that is hundreds of people a year on current levels of loans. If we have the expansion that we hope for, thousands of people a year will be affected. To give a medical analogy, if 1% of life-changing operations were cancelled and eventually lost because people got older and were never able to have their operations and had to go back to the bottom of the waiting list, I do not think that anybody would find that acceptable. Therefore, I strongly hope that the Minister will assure us that at Third Reading he will be able to bring concrete proposals to this Chamber and that we will see the same acceptance of the importance of looking after students in the entire technical education sector that we so happily see in further education colleges.

Lord Storey Portrait Lord Storey (LD)
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My Lords, I will speak to Amendment 14 and to Amendment 16, which is linked to that, and will say a few words in support of Amendment 1.

It is interesting that a large part of the Bill is about insolvency—what happens if a college becomes insolvent. Yet it does not say very much about what happens if a poor student, through no fault of their own, becomes insolvent because of debt problems arising from the fact that their college no longer exists. We also encourage private providers—I say right at the outset that there are many good private providers, who have an exemplary record and are very worth while. Sadly, however, some providers have caused immeasurable harm to young people, and we need to ensure that there is a proper safety net for those young people.

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Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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My Lords, I rarely disagree with the noble Baroness, Lady Garden, on technical education, where I highly respect her expertise and experience, but I confess to a certain unease about the idea that there should be only one list and that it should overtly include everything. One of the key things that we are trying to do here is to create a highly respected and distinctive technical education course which sits alongside the academic one, and therefore by definition it cannot include everything that has passed a basic set of requirements for being an acceptable qualification.

I remind noble Lords that I have an interest in this, having been on the Sainsbury panel, but also looking back to my experience when I was doing the 14 to 18 vocational education review. I completely agree that one could go round for ever on vocational to technical to professional. But there is a really important distinction here between a limited set of qualifications that have been identified as having a very clear purpose and the possibility—and, I would say, high desirability—of allowing a very large number of qualifications to arise and be offered and meet a minimum threshold in the vocational and technical area. It may be that the wording of the noble Baroness’s amendment will not get in the way of that, but these distinctions are important.

When I made the 14 to 18 recommendations, I said explicitly that there should be a distinction between there being strong requirements before something could be offered in mainstream 14 to 16 education and a very different set of requirements which said that they could be out there and schools could offer them if they wished but they could not count in the league tables as being equivalent to GCSEs or A-levels. The same thing applies here with the task set for the new institute to identify qualifications which really meet the requirements of that distinctive high-status route. That is not the same as being on the Ofqual register.

This is not about whether it is craft or creative or technical, where I entirely agree with the noble Baroness, but about creating this “lost” route that we used to have without at the same time throwing overboard a large number of qualifications—some of them tiny, some of them big—which may serve quite different purposes. It is really important to recognise that one of the purposes of the institute is to create that alternative route and that part of that is about having a set of qualifications—probably not thousands long—that meet these criteria. Getting there is going to be difficult but if you do not have this end in view, it is hard to see how we will ever get out of what is at the moment a hugely confused and confusing mass of qualifications.

Again, to talk from personal experience, when I did the 14 to 18 review, I did not recommend anything like as much restriction at 16 to 18. What was recommended and adopted was this idea of a programme of study for each individual student between 16 and 18, which has worked quite well. I thought at the time that as a result of that we would move to a situation where a smaller number of good qualifications became clearly apparent as market leaders, and strongly established. I was convinced by Nick Boles, the Minister at the time the Sainsbury panel was set up, that this was just not happening; we needed to be more active and the programme of study was not enough.

It seems to me that a fundamental part of what the institute is about is creating a set of qualifications which meet the requirements for that alternative, high-status route from 16 on into adult life. Without talking to lawyers or drafting clerks, I do not know whether the amendment would have any negative impact on that but it is important to understand that one of the purposes of the institute, for which I think there is cross-party consensus, is to recreate that route. In my view, that means that you cannot just say that everything that is not an A-level can be on the institute’s list, because we need a list that is clearly part of this route without wiping out all the other many qualifications which may serve other and different purposes. That is what I wanted to say and I hope the noble Baroness and I do not really disagree.

Baroness Vere of Norbiton Portrait Baroness Vere of Norbiton
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My Lords, I welcome the opportunity to debate the amendments in this group. I thank all noble Lords for their contributions.

I fully understand why the noble Baroness and the noble Lord have tabled Amendment 6, which seeks to define technical education qualifications as,

“the full range of work-based qualifications”.

I reassure them that all relevant and appropriate occupations in the economy will be covered within the technical education routes. What is important is that there is good provision for everyone and that the reformed technical education system focuses on occupations for which skilled technical training is a requirement.

The Sainsbury panel report has already provided a clear definition:

“Technical education must require the acquisition of both a substantial body of technical knowledge and a set of practical skills valued by industry”.


Trying to define these qualifications in this manner could restrict the scope of technical education qualifications, both now and in the future. In practice, technical education qualifications will be defined by the coverage of the 15 technical education routes. Each route will provide a framework for grouping together occupations where there are shared training requirements. An occupational map will identify all the occupations within the scope of each route.

When defining the coverage of the 15 technical education routes, it is important to highlight that not all occupations will be included. The Sainsbury panel was clear that unskilled and low-skilled occupations that do not have sufficient knowledge requirements would not warrant a technical education route. Rather, these occupations can be learned entirely on the job, often within a matter of weeks. For these occupations, it would not be appropriate to offer technical education qualifications.

I reassure the noble Baroness and the noble Lord that within the technical education routes there will be comprehensive coverage of the skilled occupations that are vital to the success—

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Tabled by
16: After Clause 35, insert the following new Clause—
“Providers of technical education: guarantee to students
(1) Any providers of technical education who are not covered by the insolvency regime created by this Act must provide a guarantee from a reputable financial institution to each Government supported student that, if the provider is made insolvent, the financial institution will cover the cost of operating that student's course until a suitable end point.(2) In subsection (1), a “suitable end point” means the completion of the course or the successful transfer of the student to an alternative institution.(3) In subsection (1), a “Government supported student” means any student whose education is funded directly by the Government through grants to the providers or student loans.(4) The cost of providing the guarantee under subsection (1) must be met by the relevant provider under subsection (1).”
Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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I note that the Minister did not reply to my amendment in his response, and I hope we can have further discussions before Third Reading.

Amendment 16 not moved.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts
Lord Judd Portrait Lord Judd (Lab)
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My Lords, I agree with those who have expressed deep anxiety about the impact of this gold, silver and bronze scheme. When I first read about it, I thought it was a further trivialisation of the whole concept of education and scholarship. It seemed to me to be the language and preoccupations of the market—marketing creeping in and distorting still further that ideal. I have said before that I wish that we could get back to the concept of universities as a community of scholars—I would hope, an international one. Students are not clients or customers: they belong to the university and they should be contributors to it. Student surveys encourage the concept of “the university and us”; whereas they should be encouraged to contribute to thinking about how the university is functioning and how it could improve its provision.

I also agree with those who have expressed another anxiety. If we are really concerned about the quality of higher education, how on earth will it help to start having oversimplified measures of this kind? When I was much younger, I held HMIs in very high esteem because of the contribution they were making to education in schools in Britain. Several inspectors were good family friends, one of whom was a godmother of one of our children. They were not going around failing schools; they were assessing their strengths and weaknesses and finding out how to help overcome any weaknesses. It should be the same for universities. There is a great deal of room for helpful assessment.

Another issue is that it is a crude measurement. I do not believe that scientific objectivity can be established. This system is inevitably a very subjective process, based on the experience and values of the people who concoct it. It is too crude, in another sense. In a university, you may have areas in which the teaching is weak and for which a great deal could be done to enhance it. That may apply to some of our older universities as well as our newer ones It is not uniform. There may be areas within the university where there is amazing excellence in teaching.

We need a much more sensitive approach that looks at the university as a living entity and reports convincingly—of course we need the information—on its different dimensions and patterns of success and failure, such as, what is strong and what is weaker. Surely, too, we should not be discouraging teachers with innovative approaches to teaching that may not lend themselves easily to crude metrics of this kind. I hope the Government have listened to the debate and will say that they understand that this may not be the right approach, and will go away, think about it and come back with something better.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich (CB)
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My Lords, I rise to speak to Amendments 62 to 66, 88 and 93, tabled by the noble Duke, the Duke of Wellington, and Amendment 72, tabled by the noble Lord, Lord Blunkett, to all of which I have added my name. I declare my usual interest as a full-time professor at King’s College London, but also note that I am a founding editor and editorial board member of Assessment in Education, a leading international academic journal in the field.

I have listened with interest to all the remarks made by other noble Lords and have agreed with the overwhelming majority of them. I just want to comment on an issue that is at the heart of the amendments to which I have added my name. It concerns the profound difference between using a single composite measure and having a wide variety of measures that are reported separately.

One of the prime rules of assessment—indeed, of measurement—is that you do not throw away information if you can avoid it. The Government have, rightly and repeatedly, emphasised their commitment to transparency and to giving students better information about teaching quality and other aspects of the higher education courses to which they might or do subscribe. But the trouble is that a composite measure is the opposite of transparent. It is also a problem that it is seductively simple: three stars, four stars—how can one resist it? We believe it is somehow objective because that is how we respond to a single number. In modern societies, we love rankings. But if we add up measures of different things and produce a single number, we are not being transparent and we are not being objective. What we are presenting to people, first, throws away large amounts of information and, secondly, imposes our value judgment on those different measures. When we use different indicators, add them up and create a single rank or score, we are denying other people the chance to see how it was done. It is irrelevant whether you gave equal weight to each measure or decided to do all sorts of clever things and weighted one thing at threefold and another at a half; the point is that by doing that, you have imposed your judgment. The students for whom these are designed—the students we want to help—may have different interests from you, as the noble Lord, Lord Storey, has pointed out.

That is why I support the proposal from the noble Lord, Lord Blunkett, that a scheme to assess quality must report individual measures individually. It is also why I completely agree with the noble Duke, the Duke of Wellington, that the last thing we want to do is impose on Governments, quite possibly for the next 30 years, the obligation to create rankings.

In this case, we are not even adding apples and oranges, which at least are both pieces of fruit. We are adding up things that are completely different. If the numbers are measuring or representing different things—and doing so with varying degrees of error, as is always the case—adding them up will compound the error. Obviously it would be nice to have a wonderful single measure, but the fact that we would all like one does not mean that it is better to have an unreliable one, rather than not have one at all. On the contrary, it is worse.

We know why most universities have signed up to this. On Monday, the Minister pointed out that if they do not agree to link TEF scores to fees they will,

“lose £16 billion over the course of the next 10 years”.—[Official Report, 6/3/17; col. 1140.]

Universities are in a corner and over a barrel—as we have heard, that is exactly how you would feel if you were the vice-chancellor of Warwick.

It seems to me that this is all quite unnecessary. The Conservative manifesto did not commit to rankings, to a single measure or to labelling people as gold, silver or bronze. It said that students would be informed of where there is high-quality teaching. That is something to which everybody in this House would sign up. I very much hope that the Government will continue to listen and will move away from a current commitment that can only be harmful, for all the reasons that people in this House have talked about so eloquently this afternoon.

Lord Watson of Invergowrie Portrait Lord Watson of Invergowrie (Lab)
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My Lords, this has been a passionate debate, which reflects accurately that this is the most contentious part of the Bill—certainly the email traffic that all of us have experienced would bear that out.

As we have heard from many noble Lords, the metrics proposed for the TEF are flawed, and confidence in their effectiveness remains extremely low among academic staff, students and more than a few vice-chancellors. The noble Duke, the Duke of Wellington, referred to the University of Warwick. I have to say that that is more reflective of the general view than that sent out in the rather unconvincing letter from Universities UK and GuildHE a few days ago.

We on these Benches have consistently said that we are of course in favour of a mechanism that enhances the quality of teaching and of the general student experience. But, due to the differentiation of tuition fee levels, the TEF as it stands—even with the improvements made thus far—is not fit for purpose. In view of these uncertainties, and because the reputation of UK higher education institutions needs to be handled with particular care in the context of the upheaval that will result from our impending departure from the EU, it would be inadvisable to base any form of material judgment on TEF outcomes until the system has bedded down.

That is why Amendments 67 and 68 in the names of my noble friend Lord Lipsey and the noble Lord, Lord Lucas, calling for delays in the implementation of the TEF and the linkage of any fee increases to it, are sensible. As we on these Benches have argued consistently, we do not believe that there should be such linkage. In many ways, using student feedback as part of a framework that leads to fee increases, while at the same time purporting to represent and embody the interests of students, is contradictory. My noble friend Lord Blunkett has outlined why it is appropriate for the Secretary of State and not the Office for Students to bring forward a scheme to assess the quality of teaching.

In Committee, we tabled an amendment which sought to ensure that any rating scheme had only two categories: “meets expectations” and “fails to meet expectations”. So we welcome the fact that that principle is incorporated in my noble friend’s amendment. The amendment has the benefit of being straightforward without a confusing system of three categories, all of which would be deemed by the OfS to have met expectations—to different extents, of course. However, as many noble Lords have said, that is not how it would appear either to potential students, to those awarding research grants or to the world at large.

Amendment 72 also highlights the need for consistent and reliable information about the quality of education and teaching at institutions. The fact that what is proposed in the Bill would guarantee neither is a major reason why so many have opposed the TEF in its current form. The requirement to have the data and metrics on which the TEF is based subject to evaluation by the Office for National Statistics was advocated in Committee, but it merits reconsideration today. Without a firm base on which to establish the TEF, it is unlikely to gain the confidence not just of institutions but of staff and students, on whose futures it will have great bearing.

The future standing of higher education in the UK will depend on the Government rethinking their approach to these issues. It has to be said that not one noble Lord in the debate this afternoon has spoken in favour of the TEF as proposed. I ask the Minister and his colleague Minister Johnson to give that fact due weight of consideration.

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Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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There is no badge of shame. It is simply that we want to clarify that gold, silver and bronze occupy a particular platform of award level. Most international students would respect the fact that bronze is an award, not a badge of failure. But I want to clarify that there is a level below it, which is in effect a sort of non-level. I hope that that clarifies the position.

Let me move on. I appreciate that noble Lords want to ensure that whatever format the assessment takes, it is carried out rigorously and is based on reliable sources of evidence. I can assure noble Lords that the Government feel just the same. For example, we have already commissioned an independent evaluation of the metrics, which was carried out last year by the Office for National Statistics. Given that this evaluation has already taken place, repeating it, as proposed in Amendments 69 and 72, is unnecessary. The report proposed minor amendments to the metrics being used for the TEF, and the Government are already working with HESA and HEFCE on addressing those concerns for future TEF assessments. All of the metrics used for the TEF are credible, well established and well used by the sector.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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My Lords, I feel as though I must have read a different ONS report from the one given to the Minister. You can clearly identify the outliers in the NSS data, those at the bottom and those at the top, but the rankings in the middle are so uncertain that you cannot discriminate or put in order the vast bulk of English higher education institutions. So, to say that minor amendments were called for uses the word “minor” in a way that I personally would not.

Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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Perhaps I may move on to the NSS, in particular to the amendments spoken to by the noble Lords, Lord Bew and Lord Lipsey. I would like to reassure the House on some of the specific concerns that they have raised about the TEF in today’s debate, and I shall start with the NSS. While we recognise its imperfections—I did listen carefully to the speech of the noble Lord, Lord Lipsey—we consulted with the sector, which echoed the types of remarks made jointly by Professor Anthony Forster, vice-chancellor of the University of Essex, and Professor David Richardson, vice-chancellor of the University of East Anglia, who said:

“The National Student Survey (NSS) provides the most robust and comprehensive basis for capturing students’ views about the quality of their education and student experience”.


As I say, we recognise its drawbacks and we have put in place appropriate safeguards. For example, we use specific questions from the NSS that are directly relevant to teaching, not the overall satisfaction question, about which concern has rightly been raised.

I would also like to use this opportunity to do some further myth-busting about the TEF. First, the TEF is not just about metrics. Providers can give additional qualitative and quantitative evidence to the TEF assessors through their provider submission. My noble friend Lady Eccles alluded to the human element of the TEF, and she was right to do so. Secondly, the metrics are not worth more than the provider submission. The TEF assessors will consider both the metrics and the provider-submission evidence holistically before making a judgment. Thirdly, all assessors get contextual information about the providers they are assessing, including maps reflecting employment in the region and the make-up of the students studying at that provider. Fourthly, although I have made the important point that the metrics are not perfect, they are robust datasets which have been used by the sector for more than 10 years. This means that a TEF rating is not a box-ticking exercise and it is not an equation. It is a rigorous and holistic assessment process that is overseen by one of the sector’s most respected figures, Chris Husbands, vice-chancellor of Sheffield Hallam University. I know that he has been given fulsome praise by many in the House today, including the noble Lord, Lord Blunkett, and my noble friend Lord Lucas.

Highly qualified assessors, vice-chancellors, pro vice-chancellors and other experts in teaching and learning, as well as student and employer representatives, weigh up and test the evidence they receive before reaching a final judgment, which again reflects the human element. The noble Baroness, Lady Wolf, suggested that we should not throw away information. We are not throwing away information. The OfS will publish all the underlying metrics and provider submissions. However, composite measures have value. Why else would the vast majority of universities represented by noble Lords today award their students a specific degree class? We have to think about that.

I remind noble Lords that the Government listened carefully in Committee and made a number of important changes to the TEF in light of the suggestions made by noble Lords. We have slowed the implementation timetable and we have committed to revisit key concerns raised by the House in the lessons-learned exercise. I reiterate that the lessons-learned exercise will consider the following: the way in which the metrics have been used by the TEF assessors; the balance of evidence between core metrics and additional evidence; whether commendations should be introduced for the next round of TEF assessments; and the number and names of the different ratings and their initial impact internationally.

The lessons-learned exercise will survey all participating providers. The Department for Education will also collect feedback from panellists and assessors and involve further desk-based research. I am sure your Lordships will agree that the department has responded to the concerns raised by planning a thorough exercise.

Where we have not made changes we have done so with good reason. Following the Committee stage, we considered carefully the suggestion made by the noble Baroness, Lady Garden, that all those in universities must have a teaching qualification. However, such a requirement would fly in the face of the points that noble Lords have made about institutional autonomy. Indeed, the amendment agreed by noble Lords on Monday covers the freedom of English higher education providers to determine the selection and appointment of academic staff.

The amendments in this group challenge the fundamental nature of the TEF. The words in the manifesto were carefully chosen to echo the way that the REF is described. It said that the Conservative Government would,

“introduce a framework to recognise universities offering the highest teaching quality”.

A framework that allows only for a pass or fail assessment offers no gradients. A framework that offers no opportunity to recognise the highest teaching quality simply does not meet the Conservative commitment. I do not want noble Lords to misinterpret these amendments as offering constructive tweaks. They strike at the very foundations of what we want to achieve.

However, I reassure noble Lords that the Government remain committed to developing the TEF iteratively and working with noble Lords to do so. Developing the framework to date has involved two formal consultations and thousands of hours of discussions with the sector and with students, and we have only just begun. Universities UK has offered to engage with any noble Lord who wishes to provide input into its feedback to the department as part of this lessons-learned activity.

Many of the concerns we have heard throughout the course of the Bill were made in the early days of the research excellence framework introduced by a Conservative Government more than 30 years ago. We are still iterating that framework now. The noble Lord, Lord Bew, suggested that the REF was bureaucratic and encouraged gaming. We have designed something substantially less bureaucratic than the REF and have put in a number of safeguards at every stage to prevent gaming. I am sure the noble Lord has read the fact sheets, which I hope help him with his view on that.

The TEF has already started to change sector behaviour for the better and, given the same opportunities as the REF, will propel the quality of higher education teaching to new heights. I hope that this House will be able to look back 30 years from now with pride at what the TEF has achieved. I ask that the amendment be withdrawn.

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The OfS must have regard to this advice before deciding whether to make an order to authorise, vary or revoke any kind of degree-awarding powers. This is a very robust process. It will ensure that only the best providers can access degree-awarding powers and, as recognised by Universities UK and GuildHE in welcoming and supporting these amendments, that independent expert scrutiny is built into the system. I therefore do not believe that any further changes beyond the government amendments are needed to ensure a robust process that protects students and the reputation of the sector. I invite other noble Lords, should they so wish, to address their amendments in this group before I respond to their concerns.
Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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My Lords, I reiterate my support for the government amendment to which I have put my name because this is actually a big move forward in clarifying in the Bill what is needed to ensure that, as the sector grows, we have really high quality. However, something more is needed. The Bill sets forth the whole environment for the sector, possibly for decades to come. Over the years we have moved to a situation where most people do not understand what is going on. I know that this sounds very strange but it is true. People do not understand—and I include myself in this much of the time—how degree-awarding powers can be given, where powers lie, and what can and cannot be varied.

My Amendment 116A is intended to complement and add to the improvements that the Government are proposing by modifying somewhat and clarifying the process by which new institutions may receive degree-awarding powers, ensuring that these are clearly understood—because they are in the Bill—and to further reduce, to a very low level indeed, any remaining risk that students may end up with degrees from institutions that failed early in their existence and are therefore effectively devalued in the labour market. I do not think that a degree awarded by the Office for Students is likely to be understood or valued, and we should be thinking about two clear alternatives, which are set out in my amendment. These are that,

“the provider has been established for a minimum of four years with satisfactory validation arrangements in place, or … the Quality Assessment Committee is assured that the provider is fully able to maintain”—

from day one—

“the required standard expected for the granting of a United Kingdom degree … and may therefore be authorised to grant taught awards or research awards … and has reported to the Secretary of State”.

I will come back to why I think that is important. The OfS should also be assured,

“that the provider operated in the public interest and in the interest of students”.

There are a few points that I want to underline. First, thinking in terms of four years is really quite important. I would like to see that in the Bill for institutions that come through the validating requirements. The reason for that is, as the Government have frequently said, we want to know whether or not an institution works and is deserving of degree-awarding powers. That means that it needs to have gone through the process of educating people and giving them degrees and those people need to go out into the labour market. We need to see whether their degrees are robust and still stand up and bring them labour market recognition and labour market power. My sense is that four years is actually a pretty good number and that is why we have had it up to now. We should recognise that it is a number that has worked and put it in the legislation and have done with it. One thing I have discovered is that there is an extraordinary ability to vary things through guidance, and my sense is that the four-year figure really matters.

The other change is in giving degree-awarding powers without a validation period. There are cases where this is clear and important, but it should involve the Secretary of State. The reason is that, again, having degree-awarding powers is a really valuable thing. That is why private companies buy and sell universities; they think that they can do very well out of them. If you move to being able to do this straightaway, then you need to be quite secure that it can be done. I would not argue that everybody should have to have a validation process. That is not the case in the statute at the moment and certainly was not the case when many of our best younger universities moved straight to being universities, as many people including the noble Lord, Lord Willetts, pointed out in Committee.

One of the more informal questions that often comes up is: supposing that MIT wanted to set up here? I do not think that MIT probably would want to, but one day, if my dreams come true, the Government might want to create the equivalent of Caltech here—something really new, exciting and very different, which could become a university straightaway. If we were asked whether we wanted to validate anybody like that who came along, there would be a competitive, fighting queue around the block. If future Governments realise that their higher education policy needs to be more active and in some ways more interventionist about meeting the needs of the future, as the noble and learned Lord, Lord Mackay, pointed out on Monday, then they will need to be able to do that.

Why do I also suggest that the Secretary of State has to come into this? As I said, creating something which can go straight out and give degrees to students is a big thing. The Secretary of State is the accountable one. A regulator is not accountable, or the same thing as an elected politician. If you made sure that this was happening, most of the time it will be fine—of course it will—but the reality is that, a few years from now, the caravan will have moved on and people will not be looking at things with the same clarity. If there is this possibility, any new institution coming about in this way must be of very high quality. We need to be absolutely sure of that, and it seems not unreasonable to suggest that the elected, accountable Secretary of State should be involved in some way in that decision.

I have added my amendment to the government amendments, which are excellent, as I said, because this is an opportunity to have a clear set of rules and possibilities for the next few decades, and we still need to tidy some of this up. I also consider that the deletion of Clause 48, which suggests that the OfS can put itself on the register and award degrees, is consequential to this amendment. I would be grateful if the Minister could confirm whether this is the case.

Lord Storey Portrait Lord Storey
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My Lords, I too thank the Government for their amendments, which are much needed and beneficial. I have put my name to Amendment 116A because the four-year period is absolutely right. As the noble Baroness, Lady Wolf, has said, it would enable students to go through a cycle of university education and into the labour market. There would then be feedback and we could see clearly whether any issues needed ironing out before that awarding status is given. Feedback should also include things such as facilities: for example, the quality of the library and, dare I say it, perhaps the quality of teaching as well.

I apologise for just throwing this out—it may be that I have missed it—but perhaps I may take the liberty of asking the Minister this. If a private provider gets degree-awarding status and, goodness forbid, that provider goes into liquidation, what happens to the student loans that have been taken out? Will the Government guarantee that they can get those loans back, so that they can pay for the course somewhere else?

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Moved by
104: Clause 41, page 24, line 11, leave out paragraph (a)
Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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My Lords, this is a very small amendment and I rather hope that it is a tidying-up amendment that the Government will go away and decide to agree. At the moment, as part of the general rethinking of the sector, it is possible for institutions to apply for just bachelor-level degree-awarding powers, bachelor’s and master’s or bachelor’s and research, but one group is regrettably shrinking in size: foundation degrees. That is important because, in another part of the woods, we are trying to rethink and redevelop tertiary education, and foundation degrees are a sub-degree level to which there is a lot of business and employer input.

By what is to me is a strange quirk, although the Minister may be able to explain it, the only people who can have foundation degree-only powers are FE colleges. I cannot see why other institutions should not also in certain circumstances have those powers. My amendment would simply delete that restrictive clause and leave it to the OfS to give foundation degree-only awarding powers to any institution where that seems appropriate. I beg to move.

Lord Young of Cookham Portrait Lord Young of Cookham
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My Lords, I am grateful to the noble Baroness for her explanation. She tried to link it with the amendments I just moved and put it in the same category as tidying up. Hers is a more substantial proposition than those that I just put to the House. I agree with the noble Baroness that foundation degrees are important and can be—indeed, are—awarded by a wide range of institutions, which includes but is not limited to the FE sector.

Under the Bill, subject to meeting registration conditions, institutions that provide higher education will be able to apply for TDAPs—taught degree-awarding powers. That is a broad suite of powers that includes the ability to grant foundation degrees. The ability to apply for the powers to award only a foundation degree was always intended as specifically relevant to the FE sector, and it has never been the Government’s intention to change this position under the Bill. The sector is defined by reference to Section 91(3) of the Further and Higher Education Act 1992 and includes further education corporations and sixth-form colleges.

We are mindful of the fact that the landscape has changed since foundation degree-awarding powers were first introduced almost a decade ago—in particular, with the introduction of providers such as institutes of technology or national colleges. On institutes of technology, it is envisaged that existing FE colleges or higher education providers will be part of the consortium that is the IoT, and they will be involved in the provision of higher education. Given that involvement, we do not envisage any impediment towards the ability of such providers to deliver courses leading to foundation degrees, should they wish so to do. Against that background, I hope that the noble Baroness will be minded to withdraw her amendment.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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I have to say that I do not find the answer satisfactory, because I still do not see why, in that case, one still has a foundation degree-only awarding power in the mix at all. I continue to feel that it is odd to bar the possibility of something which might be useful in this changing landscape. Nothing here says that you have to do it.

However, I accept that the Government are not minded to do this, at least on this occasion. I very much hope that they might think about it some more. On that basis, I beg leave to withdraw the amendment.

Amendment 104 withdrawn.
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Moved by
116A: After Clause 44, at end insert—
“( ) The OfS must not authorise a provider unless—(a) the provider has been established for a minimum of four years with satisfactory validation arrangements in place, or(b) the Quality Assessment Committee is assured that the provider is fully able to maintain the required standard expected for the granting of a United Kingdom degree for the duration of the authorisation, and may therefore be authorised to grant taught awards or research awards or both, and has reported to the Secretary of State; andthe OfS is assured that the provider operated in the public interest and in the interest of students.( ) In this section the “Quality Assessment Committee” is the Committee established under section 25 and “validation arrangements” has the same meaning as in section 47(4).”
Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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My Lords, I listened carefully to the Minister’s response on this and I have to say that I was rather disappointed. I was very pleased with the government amendment, to which I put my name, but I feel that, as part of thinking hard about how new providers enter the system in the decades ahead, we have to be aware of the fact that, although there is enormous promise, there are also enormous threats. I am rather taken aback by how many new providers we have.

Looking at the fact sheet on degree-awarding powers, I note that there is an intention to reduce the typical amount of time before a track record is approved as adequate in validation to three years rather than the existing four, which is not a good idea. If completely new institutions are going to go straight to having degree-awarding powers, I reiterate the importance of being absolutely sure that it is a special type of institution, that it is well established and that there is a good reason for this. It is worth remembering that we have now, around the world, a large number of cases of institutions that have gone through apparently quite thorough regulatory oversight and have still failed—in large numbers in the United States.

I accept that the Secretary of State has set up a regulator, which will be independent, and clearly I do not think that he or she should involve themselves in every decision. However, this is a very important part of our higher education system and our reputation. If we are creating brand new institutions that can go forth and give degrees straight away, and which therefore often carry the rather strange term of having “probationary” degree-awarding powers, this ought to go right up to the top. In the next few years we will have a new and, I hope, exemplary regulator with a very well-known and highly respected chairman. However, the reality is that regulators are subject to regulatory capture and, as time goes on—particularly if we have the volume of new entrants coming through that the Government would like—there will be real risks.

For that reason, as well as because I would like to encourage the Secretary of State to be involved in this and to think actively about where something really exciting can occur and should be given support, the suggestion in our amendment that on that route the Secretary of State should have some involvement remains a good one. Therefore, rather sadly, I would like to test the opinion of the House on this.

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Moved by
117A: Clause 47, page 28, line 17, at end insert—
“(5A) The governing body of a provider involved in such commissioning arrangements may appeal to the First-tier Tribunal in respect of either the conditions specified by the OfS under section 47(2) or the validation arrangements made by the first provider (as defined in section 47(4)).(5B) The grounds and procedures for any appeal made under (5A) are those specified in section 46.”
Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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My Lords, I will not say that this is a tidying-up amendment, having been quite rightly told off about that, but it is meant to bring things into line and make sure that everyone in this emerging landscape of higher education is able to operate with confidence, knowing that if things are going wrong they have a route of appeal.

The amendment addresses validation, an area that Ministers are concerned about because they consider it to be fraught with problems for new providers. It is an area where new and innovative providers are encountering difficulties. There has been for a long time a difference of opinion about how major an issue this is. What the amendment sets out to do is state clearly that, if a commissioning arrangement involving the validation of a new provider by an existing provider goes wrong, there should be a means by which to appeal.

The Bill gives the OfS powers which, curiously enough, no one as far as I know has challenged during our long and slow progress. We seem to have had amendments to almost every clause, but not to this one. I think it is recognised that, if we are going to try to make it easier for good, new innovative providers to come in, there should be an active role for the Office for Students in that. It may wish to ensure that one provider can work with another institution, validate its degrees and help it to mature, and it has the power to do so. In the same way, there are existing powers for two institutions to get in touch with each other and go through validation. While I know that this is a major issue of concern for the Government, it is also true to say that the Competition and Markets Authority does not think that this is an area where there is a real problem with the market.

However, the relationship is not always easy, so the purpose of my amendment is simply to make sure that if things go wrong where a provider is involved in a commissioning arrangement of this sort, where one institution is the potential validator of degrees and another institution hopes to have its degrees validated if they are good enough, there is a clearly marked out route of appeal to the First-tier Tribunal. That is what this amendment sets out to introduce into the Bill. On that basis, I hope that the Government will see this as something which would ensure that everyone has a route of appeal and that they will consider it seriously. I beg to move.

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Lord Willetts Portrait Lord Willetts
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I am encouraged by what we have just heard from the noble Lord, Lord Stevenson. I think that there is a kind of logical structure here which the removal of Clause 48 would damage. We have currently a lively set of arrangements for validating degrees carried out by a range of universities. I was involved, for example, in supporting a programme to create a new higher education institution in Herefordshire. When it tried to find a validator, it had a queue of universities that wished to be the validator. We have a lively market at the moment, although there are concerns that it may not always cover every case and is not as open as it should be.

There is a proposal that it should be possible, if necessary, for the Office for Students to commission a validating body if it is concerned that validating is not being done properly. However, in cases where it has not been able to commission arrangements that ensure validation, in the last resort it may itself be the validator. The noble Lord, Lord Stevenson, is right that it is unusual for a regulator also to be the validator, but I hope we will hear from the Minister that the circumstances in which that became necessary are rather remote. Given what is already happening, one would expect either the current arrangements for validating to be satisfactory or for the OfS to be able to commission a body that will undertake validation.

The argument for Clause 48, which it is proposed should be deleted, is that it is the logical long stop in the event that it has not been possible to commission anyone else to carry out the arrangements. On the basis that it is unlikely the power will be necessary, but we can understand why it has to be held in reserve, I think Clause 48 is needed and the amendment to remove it would leave a potential gap in the system. I hope we will hear more on that from the Minister.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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My Lords, I agree with what the noble Lord, Lord Stevenson, has said and with his response to the letter, which is encouraging. I am particularly encouraged by the fact that there will be better consultation. Although I agree that we need a final long stop, what we have at the moment is that the regulator has to put itself on the register and then award degrees, and that could be addressed with a little more care.

Viscount Younger of Leckie Portrait Viscount Younger of Leckie
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My Lords, we recognise that many validation arrangements are highly successful and beneficial to the institutions involved and to students. Validation will remain the chosen route to entry for many under the new regulatory framework. Under our reforms we plan to put in place an alternative route for high-quality providers to obtain DAPs without a track record, but this will not be the right route for everyone. We want providers to be able to choose the right option to meet their specific needs. It is therefore important that the validation services on offer are comprehensive and accessible to providers.

Unfortunately, this is not always the case at the moment, as Members of this House have recognised. In compiling his review of higher education funding, the noble Lord, Lord Browne, said he and his panel spoke to many organisations and found that in many instances validation arrangements simply did not work. Highly lucrative for the established providers, they created a closed shop that stifled innovation and competition among new entrants and, as a result, reduced student choice. As the noble Baroness, Lady Garden, acknowledged, protectionist practices are sometimes adopted when it comes to current validation arrangements. This is why the Bill enables the OfS to take concrete steps aimed to improve validation services. Should this prove to be insufficient, the OfS may enter into commissioning arrangements with other providers.

The OfS cannot force registered higher education providers to enter into such commissioning arrangements. However, once a provider enters into the arrangements, the OfS could then require that provider, in line with the terms of the arrangement, to offer to validate. This is not unlike other arrangements where, for example, a party to a contract may require, in line with the terms of the contract, another party to do something. We in no way expect the OfS as part of this arrangement to require validation where the provider had legitimate concerns regarding the quality of provision. I cannot imagine a scenario where a provider would agree to such terms or where anyone would think it beneficial. Clause 3 sets out clear factors that the OfS must have regard to when exercising its functions, which include the promotion of quality.

The protections set out in Amendment 117A are therefore not required. Remedies for failing to act in accordance with the arrangements and for resolving disputes about them are expected to be provided for in the commissioning arrangements. Where they are not, other laws, such as the law of contract, may apply.

Turning to Clause 48 and Amendment 119, we anticipate that in the event that the OfS is still unable to address significant shortcomings in the validation market through other means, the Secretary of State may make regulations to allow the OfS to become the validator of last resort. I understand that there are still concerns about how this would work in practice and how the OfS would set up such a function. Let me help to this extent. Noble Lords may have received a letter I circulated today. I wish that this letter could have been circulated earlier. For very good reasons it was not able to be. To that extent, I apologise to the House.

I can confirm that, as part of the regulatory framework consultation, we will consult on how the OfS could best establish a validation service to ensure it is underpinned by the necessary expertise and that it is delivered in a way that prevents or effectively mitigates any conflicts of interest. This would enable the OfS to have a blueprint that has been stress tested with the sector through consultation and to be ready to act, subject to Secretary of State and parliamentary approval, as a validator of last resort should this become necessary. I stress that these regulations are subject to parliamentary scrutiny, so there will be an opportunity to scrutinise these powers. We expect the OfS to make a case to the Secretary of State as to why it is necessary for it to act as a validator of last resort, clearly setting out the nature and severity of the issues in the validation market.

There are further safeguards, in that the Secretary of State may attach conditions, such as ensuring that the service the OfS provides is underpinned by the necessary expertise and is sufficiently independent from its regulatory function, for example by being housed in a separate division. We have heard arguments that this would be unprecedented, but that is simply not true. For example, the Bank of England regulates many aspects of the financial sector to maintain financial stability in the UK, but in extremis will also act as the lender of last resort, or a market maker of last resort—that is, buying and selling assets such as government bonds to provide liquidity—at a time of financial stress.

There are also strong mechanisms in place to ensure that the quality of the OfS’s validation provision is high. We would expect the OfS’s advice to the Secretary of State to clearly set out how it will ensure its validation service is best in class. This could, for example, involve the OfS drawing on sector-recognised best practice principles, exemplar templates and processes. If the Secretary of State designates a body to fulfil the OfS’s quality assessment function, I would also expect the OfS to draw on information from the designated quality body to help formulate its advice and recommendations to the Secretary of State, and to help inform how it can develop the capacity and reach of existing validation services while safeguarding the quality and standards of awards granted. These would be nominally in the OfS’s name, but, importantly, would bear the overall branding of the institution being validated, which answers some of the questions that were raised. I hope that full explanation also answers the question my noble friend Lord Willetts asked about what “last resort” means.

Before I finish, I shall briefly address Amendment 118 and—without too much surprise, I hope—reassure my noble and learned friend Lord Mackay that Clause 48(6) replicates a standard provision relating to the awarding of degrees. These powers are simply designed to enable the degree-awarding body—in this case the OfS—to deprive students of their degree should this become necessary: for example, if it is discovered that it was wrongly obtained, such as through plagiarism.

Without Clause 48, the OfS would be left without adequate powers to ensure full and ongoing provision of good-quality validation services. As I said earlier, we will consult on how the OfS can best establish a validation service as part of the regulatory framework consultation, which will enable further input from the sector. With that explanation, I hope the noble Baroness will withdraw Amendment 117A.

Baroness Wolf of Dulwich Portrait Baroness Wolf of Dulwich
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I thank the Minister very much for his words, which I have listened to with interest and optimism. On that basis I am very happy to withdraw the amendment.

Amendment 117A withdrawn.