Technical and Further Education Bill

Baroness Wolf of Dulwich Excerpts

2nd reading (Hansard): House of Lords
Wednesday 1st February 2017 Lords Chamber

[Baroness Wolf of Dulwich (CB)]

My Lords, I thank the Minister for his very kind words about my work on vocational and technical education, and the noble Lords, Lord Watson and Lord Storey, for their kind comments. I welcome the Bill for reasons I will discuss. I declare an interest as a member of the Independent Panel on Technical Education, chaired by the noble Lord, Lord Sainsbury of Turville. Many of its recommendations went into the Government’s skill plan and some are now encapsulated in the Bill, particularly those in Schedule 1 that deal with the institute.

The reason why I am particularly delighted to see this Bill—which, happily, is quite slender compared with the higher education Bill—is that, after many years of well-meaning but in the end pretty empty rhetoric, we are now aware that we need to do something as a country about our technical education system which is serious, immediate and properly thought out. For years, we have had a rather bizarre approach—I do not want to call it market-led—whereby government tried to achieve quantity over quality, with a huge number of qualifications; if there were 50 awarding bodies today, then 100 awarding bodies tomorrow would be even better. It was a very strange system. One result was that we reduced the quality and credibility of our technical and vocational system. That had been very good—it is not that this country never had a good system; it had a good system of apprenticeships and it destroyed it. Instead, we have on the one hand gone for this rather strange approach of “more, more, more and never mind the quality” while, on the other, being increasingly obsessed with growing a very uniform higher education system. In that, we are almost unique in the world in trying to have a single, huge university system in which all institutions do everything. If you compare that system with just about any other country, you will be very struck by the fact that, elsewhere, there has either been maintained or established a strong and distinctive technical route which is high-status in and of itself.

It is more than time that we did something to re-create this. We have effectively destroyed any high-quality, tertiary technical offer—it is what in the business they call level 4 and 5, but for the rest of us it is the stuff you do after age 18. I believe that the Government are genuinely committed to re-creating that. This Bill is one of the major steps towards it, and I hope that it along with the industrial strategy and the policies introduced there mark the beginning of a serious reversal of years of decay. I look forward to looking in detail at the individual clauses in Committee.

I do not want to say any more now about the general importance of the Bill—I know that other speakers, particularly the noble Lord, Lord Baker, will be able to speak with enormous eloquence about the importance of this part of our education system. Instead, I want to talk about the insolvency aspects of the Bill, because I welcome those, too. I do so because one thing happening in our societies is a move towards near-universal involvement in tertiary education. In our country, we have moved at a remarkable rate to a quite extreme position in how far we fund tertiary education via student loans. We are very unusual in the degree to which we now use student loans and in the proportion of our funding that comes from them. Everything that I see in the Government’s proposals indicates that this will be increasingly the funding mechanism for non-university tertiary education, including post-18 further education, just as it has been in the higher education sector.

We need to recognise in this context the duty of government to carry out its role as a guarantor of quality. One of the earliest things that Governments existed to do was to ensure that weights and measures were true. A modern version of that is ensuring that the qualifications which government offers to its young and adult people are good and saying, “We will give you a loan if you take that”, thereby implying that the quality is good. It has a duty to ensure that, if anything goes wrong, it as the weights and measures guarantor and the underwriter of the loans protects the people to whom it has made an implicit and explicit promise of quality and of endurance. One of the very obvious things when you look at the modern tertiary scene is that, far too often, individuals enrol on courses or take out loans believing that they have that implicit or explicit promise from government but then find that this is not necessarily the case. Obviously, at the moment this is a minority issue but as we move to a larger and more heterogeneous tertiary system it will become more important that government explicitly recognises that duty.

I entirely agree with the noble Lords, Lord Watson and Lord Storey, that one reason why we need an education administration regime in further education is that the whole sector is crazily underfunded and expected to do things on a smaller scale than we do for 14 or 15 year-olds. Again, that is extraordinary and almost unique. It is hardly the way to guarantee high-quality technical education. However, whether or not that is the case, it is absolutely right that a Government providing a publicly supported education system should also have a system in which, if things go wrong, there is an administrator whose job it is to avoid or minimise disruption to the studies of existing students in the further education body as a whole. Where necessary, the administrator should rescue and maintain that institution as a going concern until people finish their studies. I really welcome the recognition in the Bill that this is a duty of government. I wish that the Government recognised that same duty with respect to both higher education and private providers of training. It should be of enormous concern to all of us in the House that that is not the case.

Just a week or two ago, in talking on the higher education Bill, I related what happened with an alternative provider of higher education, the London School of Business and Finance, which lost its tier 4 authority. You had these heartbreaking stories of students who had paid money and assumed that this would be a safe thing to do. As one said, “I did not expect this to happen in the UK”. Suddenly, they found their course collapsing around them. Just last week, it was clear that there would be a major issue around a failed private training provider, John Frank Training, which, a few months after returning record profits, collapsed into bankruptcy. Again, more than 500 people took loans to start courses with this training provider. While it is absolutely right and welcome that the Bill introduces an education administration regime for further education colleges—I truly welcome that—I would like the Government to consider as a matter of urgency why there is not a comparable regime for people in other parts of the tertiary system, including private providers of training funded by the Skills Funding Agency or the Student Loans Company, and higher education.

In conclusion, I am absolutely delighted that the Government brought this Bill to the House. This could be an important moment for the skills base of this country, for technical education as a high-status route and for a tertiary system that is fit for purpose rather than dominated by the idea that the only thing you need is a three-year bachelor’s degree. I very much hope that in the months ahead the Government will build on this and go further, recognising even more explicitly their duty to the students and the borrowers of this country, to whom they made a promise.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

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

Debate on whether Clause 47, as amended, should stand part of the Bill.

[Baroness Wolf of Dulwich (CB)]

My Lords, I beg noble Lords’ indulgence because there will be a couple of times when I will need to look up the wording of the Government’s factsheet, which may cause a delay. Clause 47 states:

“If (having regard to advice from the OfS) the Secretary of State considers it necessary or expedient, the Secretary of State may by regulations … authorise the OfS to enter into validation arrangements”.


That sounds quite reasonable, until one realises what is actually happening here. The OfS is the regulator of the sector and is being authorised to award degrees.

This is an extraordinary proposition. For an organisation that is regulating higher education providers, and bestowing and removing from them the power to award degrees according to terms of registration committee conditions, also to award degrees may not be unprecedented but it seemed rather amazing when I first read the clause. I read it four or five times to make sure I had not completely misunderstood it.

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[Viscount Younger of Leckie (Con)]

My Lords, I thank noble Lords for the opportunity to discuss validation arrangements. We believe that they are essential to a fully functioning higher education sector. We have listened to the concerns raised around the potential for Clause 47 to create a conflict of interest. However, I believe that a more substantial conflict of interest already exists within the sector.

At the moment, new providers usually have to find a willing incumbent provider to validate their provision. This gives those incumbent providers significant levers to control which new providers can enter the market, and what kind of provision they offer. Even if established providers are willing to help new providers get a foothold in the sector, there is an inherent conflict of interest if the proposed new provision would directly compete with one of their own courses. Of course, conflicts of interest are not the only problem validated providers can face. We know that some providers still find it difficult to find a partner that is willing to enter into validation arrangements with them, or have established arrangements unexpectedly withdrawn, and not because they are considered poor quality.

The noble Baroness, Lady Garden, stated that there was no evidence, but I have to put her right. We only need to look at events at Teesside University last year. Following a change of leadership, the university unexpectedly withdrew important validation services to 10 local colleges, based on a change of strategic direction and not as a reflection of the quality of the provision. Ensuring new and existing high-quality providers are not locked out of the market via their preferred entry route is essential to ensuring that students are able to access the right type of higher education for them.

The OfS cannot force providers to enter into validation arrangements. If insufficient providers are entering into validation agreements with each other or into commissioning arrangements with the OfS, or these fail to correct the problem, the OfS will need to find another way to promote competition and choice. Without further powers, the OfS could potentially be forced to stand by and watch while good-quality providers that do not want to seek their own degree-awarding powers remain locked out of degree-level provision indefinitely.

The OfS will, if it performs any validation function, have to have regard to the need to encourage competition among higher education providers in England. Its aim will not be to compete with the other higher education providers with a view to diminishing their attractiveness or their ability to offer validation services. It will only offer these services if there is demonstrable evidence that validation services are failing to support the sector. A regulator needing to take a role in the sector it regulates is not totally unprecedented. For example, the Bank of England regulates many aspects of the financial sector in order to maintain financial stability in the UK. In extremis, however, it will also act as the lender of last resort, or a market-maker of last resort, for example by buying and selling assets such as government bonds to provide liquidity at a time of financial stress.

Noble Lords might wish to read an interim report by the Open University and Independent Higher Education on a joint project piloting a streamlined approach to validation. The report highlights several perceived obstacles for providers in developing successful validation partnerships, including restrictive behaviour on the part of some validating universities and,

“insufficient support for alternative delivery models including accelerated and more work-based degrees”.

While the report accepts that this is not representative of all validation partnerships, it recognises the importance of validation as a route into the higher education sector and the need to fix problems which, if left unchecked, could have an adverse impact on student choice.

The report says:

“Validation stands as a critical part of the regulatory infrastructure, and its role as a gateway into the higher education sector means that any dysfunction will have a substantially negative impact on the diversity and quality of provision available to students”.


Relying on incumbents to shape the future of higher education can also curb innovation and result in the entrenchment of the same model of higher education, as providers may be hesitant to validate courses that do not conform to their usual modes of delivery. As the noble Lord, Lord Browne, said, validation can create a closed shop. As part of its work on improving validation services, we would expect the OfS to draw and build on this and other work already carried out.

I also noted the suggestion in the previous debate to create an independent central validation body akin to the CNAA model. As a regulator of the higher education sector, the OfS is ultimately responsible for ensuring that the regulatory framework and its supporting processes are functioning effectively. As the noble Lord, Lord Browne, said, it therefore makes sense for the OfS to have a role in determining how validation problems that could prevent it from fulfilling its responsibilities, such as ensuring that market entry routes and related processes are functioning effectively, are actually fixed.

The OfS’s broader strategic role makes it best placed to identify emerging trends in validation services across the sector and to monitor the impact of whatever solution it puts in place to correct any problems. It will be able to draw on information and advice from all its designated bodies and stakeholders to develop a robust evidence-based approach to address any serious validation failings. I reassure noble Lords that this is not a power easily given or used. We envisage that the OfS would be authorised as a validator of last resort only if it was absolutely necessary or expedient after other measures had been tried and failed.

The noble Baroness, Lady Wolf, said that this would be based only on anecdotal evidence. The Secretary of State may exercise this power if she considers that it is necessary or expedient to do so, having taken OfS advice. That advice is most likely to come in the form of an evidence-based report.

The Secretary of State would need to lay secondary regulations in Parliament. As we all know, it is common practice for these regulations, which use the negative procedure, to be laid before Parliament 21 days before coming into force, giving Parliament the opportunity to see these conditions. As always, Parliament retains the power of veto.

The regulations, should they be deemed necessary, are expected to set out the terms and conditions of any OfS validation activity. I would expect the OfS, as the overall regulator of higher education quality and champion of students’ interests, to be best in class in terms of demonstrating that its validation services abided by best practice validation principles and delivered to the highest standards. I would also expect the OfS to put in place appropriate governance arrangements ensuring that an appropriate level of independent scrutiny was applied to the validating arm of the organisation and the safeguards to protect student interests.

The noble Baroness, Lady Wolf, asked how this would work, who within the OfS would do the validating and whether they would have the requisite skills and qualifications. The regulations by the Secretary of State could attach certain conditions to ensure that the service set up by the OfS was underpinned by the necessary expertise. As we expect members of the OfS board to have between them experience of providing higher education, the organisation will have the necessary expertise to recruit the staff needed to set up a validation function. For further detail on how the OfS validation arrangements would work, I again refer noble Lords to my letter of 19 January enclosing a factsheet published by the Department for Education on validation. With that, I move that this clause stand part of the Bill.

[Baroness Wolf of Dulwich]

My Lords, I thank the Minister for his full reply, though if anything I am now more confused than ever. Either the validation issue is a serious one, in which case presumably the OfS will be giving out degrees in large quantities, or it is not, in which case I am not quite sure why we have these massive powers. I hope the Government revisit the whole validation issue. I actually have no idea when it appeared on the scene; it was not the case for many years, and I assume it was created by government for a purpose. This is an issue we will want to return to on Report, but at the moment I am happy to see the clause stand part of the Bill.

Clause 47, as amended, agreed.

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[Baroness Garden of Frognal]

My Lords, I support the amendments in this group, particularly Amendment 368, which is about the number of staff on non-permanent contracts and zero-hours contracts, as the noble Lord, Lord Watson, set out. As we have discussed before, these sorts of metrics might be more valuable to the TEF than many of the metrics already in it, because the non-permanent staff and zero-hours staff will have a greater impact on teaching quality than many of the other things which the TEF purports to measure. On Amendments 376 and 377, it is important at all stages of the Bill to ensure that adult, mature and part-time students are included as part of the student population.

[Baroness Wolf of Dulwich]

My Lords, I have one amendment in this group, which is a very small amendment in that it asks that one word be substituted for another. But if I read out the original clause, it may be evident why this is really quite important. I am very much in sympathy with what the noble Lord, Lord Lucas, said about keeping an eye on the fees that people charge.

The original Clause 61(2) reads:

“The amount of a fee payable by a registered higher education provider under this section may be calculated by reference to costs incurred, or to be incurred”—


so you do not even have to incur it yet—

“by the body in the performance by the body of any of its functions under this Act which are unconnected with the provider”.

My amendment would replace “unconnected” with “connected”. This is quite typical of a number of statements in the Bill to which amendments have been tabled already; it implies a degree of freedom for the regulator or designated body to impose fees of any sort or level, without any requirement that the necessity or even the link to the provider being charged be demonstrated.

It would be entirely possible for the Government, without losing sight of any of their major objectives, to go through the Bill and change these extraordinarily open-ended invitations to levy a charge for something that we know not what. It starts to sound something like the South Sea bubble. With a regulator or an official body, it is very important that the nature of fees, like the nature of information, be very clear, and that there is not an ambiguity in the legislation about the ability of organisations that rest on statute to be able to levy charges that are not in any sense proportionate to the activities or what is required of the individual provider. I would be very grateful if the Minister could come back to us on that.

[Lord Liddle (Lab)]

My Lords, the amendments in my name are relevant to the points that the noble Baroness, Lady Wolf, has just made. I am concerned with the scope that the OfS has to levy charges on the sector; effectively, it is a provision to tax the sector for unlimited purposes, which are not clear, and there needs to be some mechanism of control and full consultation on any proposed charges. Just as regulators impose limits on rises in fees on institutions in line with the cost of living, similarly the regulators should be under an obligation to try not to put up their charges on the sector above the rate of increase that universities can themselves charge.

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[Lord Stevenson of Balmacara]

My Lords, I will speak to Amendment 423 in my name. The question is about grants to the OfS for set-up and running costs, but there is the additional possibility, picked up in the amendment of the noble Baroness, Lady Brown, that there may be other aspects and bright ideas that come to mind about how these charges might be recouped. The amendment asks whether or not there are tight guidelines available which would restrict the ability of the OfS to raise funds in a broader sense other than specifically for set-up and running costs. I look forward to hearing the Minister’s response.

The point raised by the noble Baroness, Lady Brown, in her opening remarks on Amendment 420 is important, because we still worry a bit about what the nature of the beast called “OfS” is. Is it a regulator? It has been said that it is, and if it is, does it fall under the Regulators’ Code? I think I heard the Minister say on a previous amendment that it did not qualify to be considered within the code of practice for regulators. But if that is so, why call it a regulator? It will cause confusion and doubt if, in the public mind, it is a regulator for the sector but in fact it is not because it does not fulfil the criteria that would normally apply to other regulators. As the Minister said, these are not unhelpful comments in relation to regulator practice. They would clarify a lot of the uncertainty we have been experiencing in terms of how the regulator will operate. It might be that there is a case for it, even though it was not intended.

The noble and learned Lord, Lord Mackay, has pointed out a number of times that there are other statutory provisions and considerations that might bear on how this Bill is constructed and issues relating to it. It is wise to have a wider net on these matters than simply to focus on the wording of the Bill. If there are other considerations that we ought to be aware of, it would be helpful if the Minister could respond, making quite clear what it is that drives the determination that the regulatory code does not apply in this area, even though some of the factors might be helpful and effective in terms of how it discharges its responsibilities.

[Baroness Wolf of Dulwich]

My Lords, I want to repeat what has been said by a large number of people in the Committee this afternoon about the issue of fees paid and how this is looked at and moderated. It seems fundamental to the future of the relationship between the regulator and the sector. An awful lot of what one gets from reading the Bill is the sense that they will be at odds—that the regulator is there to punish, to force, to fine and to search. Ultimately, that is completely destructive. The most destructive thing of all will be if people are fighting constantly over the nature of fees, what is legitimate and what is not.

Therefore, rather than repeating comments that I made in connection with an earlier amendment, I simply say how fundamentally important this issue is and how very much I hope that the Government will look carefully at the structures that are being set up. Fees and payments go to the heart of everything. As a policy researcher, “follow the money” is always what I say to myself. It would be very helpful if the Minister were able to assure us that, following this House’s deliberations on the Bill, that is one of the things that the Government will look at in terms of other legislation and statutory requirements, and that they will look at how, going forward, the OfS will interact with the sector in a way that is mutually beneficial rather than being made up of constant arguments and turf wars.

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[Baroness Brown of Cambridge]

My Lords, Amendment 429 is in my name and that of the noble Baroness, Lady Wolf. This is a probing amendment to investigate the relationship between the two higher education regulators—the Office for Students and the Competition and Markets Authority. The perception of overlap between the two regulators, the potential for conflicting advice and requirements, and the perception of the difficulty of collaboration under Competition and Markets Authority regulation are all issues causing concern in the sector. As an aside, this is part of the reason behind our desire for the OfS to promote both competition and collaboration.

I ask the Minister: would it not be possible for the sector to work with a single regulator, the OfS? If this cannot be the case, will she explain how the two regulators will work together with the sector to ensure they support,

“those they regulate to comply and grow”,

as the Regulators’ Code says? I beg to move.

[Baroness Wolf of Dulwich]

My Lords, I strongly support what my noble friend Lady Brown said. Up until now, higher education has been fortunate in that it has had relatively few different regulatory authorities. The OfS will be quite different from anything that we have had before.

I refer to other sectors. I personally know the social care sector quite well. Those of us who have worked with or in this sector or the health sector, for example, know that, when you have more than one regulator, if they overlap or if it is not really clear who is responsible for what, you get regulatory and expenditure creep. This is not necessarily what the regulators mean—at least, not at the top level—but it is very much the experience that one has. The noble Lord, Lord Willetts, referred to this earlier in our deliberations. He talked about the problems that you could have in the health sector as a result of Monitor thinking that bringing institutions together was not a good idea when other people thought it was.

This is a probing amendment to ask for clarity, if not total simplicity, because there are very real costs when a sector does not have it.

[Lord Stevenson of Balmacara]

My Lords, I apologise to the Minister. I was watching a figure behind who seemed to be moving towards an upright position and therefore might speak. If he is not I will carry on.

This is an interesting amendment and I am glad that it has been raised in the form that it has. We cover a number of points every time we debate this, but here is a question that cannot be ducked. The reality is that universities have to face a number of different regulators already. Those that are charities obviously have the Charity Commission as their regulator. Then there are those that are established as companies. As we have heard, many higher education providers have the permission of the Secretary of State to use “university” in their title or, even if they do not, are subject to anything that may be required under the Companies Acts. Many will have a variety of regulators; it is not unknown to have companies that are also charities. There are also bodies that are not for profit—corporations that are subject to the Companies Acts, but in a different way from those that are set up for profit.

However, I think the main purpose was to try to untangle the relationship between the CMA—a recent entry to this area—and the universities. It is a little surprising that the CMA has entered this area rather late given that it stated recently that providers of higher education that now come within its scope are subject to the Consumer Protection from Unfair Trading Regulations 2008; the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013; the Unfair Terms in Consumer Contracts Regulations 1999, for contracts concluded prior to 1 October 2015; and Part 2 of the Consumer Rights Act 2015. That Act went through your Lordships’ House just over a year ago and included the application of consumer rights to public bodies such as institutions of higher education. It was amended during its passage through the House.

As I think is well known, the CMA has carried out a preliminary investigation into the new responsibilities that it has taken on in the last 18 months, and has obtained undertakings from more than a few universities to secure improvements to their terms and/or practices. It has written to all higher education providers, drawing the findings of the compliance review to their attention, and asking them to review and revise their practices and terms, as necessary, to ensure compliance with consumer protection law.

Where will this wave of regulatory practice, which is sweeping in with unforeseen and possibly unpleasant purposes, stop? I do not object to the CMA’s engagement or to anything that raises standards and keeps public bodies moving forward. However, there will be regulatory overload, as has been mentioned. We must be very careful to guard against that. The way most sectors operate in the event of overlapping regulators is to obtain a memorandum of understanding between the principal regulator—or in this case regulators—and the one closest to the bodies concerned. If the OfS is to be a regulator, we will need to know how this will operate in practice. It is welcome news that the Bill team is considering whether to engage more directly with the Regulators’ Code, as that would solve a lot of problems.

Before we proceed further with the Bill, we should be told exactly what the boundary between the CMA and the OfS, as envisaged, is. Indeed, it would be helpful to be informed of the boundary between the Charity Commission and the Registrar of Companies, if that is relevant. We should also probe a little further whether it is envisaged that a memorandum of understanding between these regulators will be drawn up to protect the provision we are discussing. If so, what timescale applies to that? Could that be provided by Report, at least in draft form, so that we can discuss it further?

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Moved by

[Baroness Wolf of Dulwich]

434ZA: After Clause 72, insert the following new Clause—
“Power to require information on the need for new providers
(1) The Secretary of State must establish an independent committee to provide information to the Secretary of State and to the OfS on emerging needs for new providers within the higher education sector.(2) The independent committee may provide recommendations to the Secretary of State on matters including—(a) the type and location of new provision that is required;(b) how best to make validation arrangements for particular new providers, should they be required, and whether mentoring by established institutions will be required.(3) In making recommendations under this section, the independent committee must take into account—(a) skills shortages, including forecast skills shortages, within the economy of the United Kingdom; (b) lack of adequate provision within the higher education sector for certain disciplines;(c) restricted access to higher education, or to particular disciplines, in certain areas of England, including restricted access for part-time and employed learners.(4) In this section “validation arrangements” means arrangements between the Secretary of State, the Office for Students and a registered higher education provider under which the higher education provider is authorised to grant taught awards or research awards or both.”

[Baroness Wolf of Dulwich]

Amendment 434ZA, in my name and that of the noble Viscount, Lord Ridley, is not exactly a probing amendment but it seeks to emphasise the importance of something that gets rather little attention in the Bill as it stands. In speeches and discussions we have heard a great deal about the importance of innovation, opening up the sector and preventing vested interests getting in the way. There has also been quite a lot of discussion on the Floor of the House about the need for diversity. However, there is remarkably little about diversity in the Bill. When I looked through it did not appear at all, although the Lords spiritual had a couple of amendments that explicitly talked about it. The point of this amendment is to make explicit that diversity is truly important and we stand to benefit from a far more diverse set of institutions. However, diversity will not happen by magic or automatically simply by virtue of making it easier for a certain number of new providers to enter the higher education sector.

It is very important that we think positively about diversity and not negatively in terms of possible barriers. Diversity does not happen automatically, and one reason that Governments exist is to tackle what are in effect major barriers to entry when those barriers mean that we do not serve the long-term or even the short-term interests of the country and of students.

Having more providers that offer business degrees may be very good for the quality of business degrees but it will not in itself do anything either about the need to think of very different ways of delivering higher education and lifelong learning or about the areas where we know that we have enormous skills shortages in this country, which will not be solved without active government.

Over the last 15 or 20 years, there has been a very large increase in the number of providers, although possibly there should be more. Alternative providers offer courses which are cheap, which you can afford to put on with the resources at hand and which do not put you at risk of going broke in week one. That is absolutely as it should be but, when you look at the profile and detail of what is being offered, as I have done, you find that it is accounting and business and business accounting—things that do not need huge up-front investment.

A similar pattern can be seen in, for example, the apprenticeship statistics. Again, there has been a regime of effectively inviting people to offer apprenticeships—not dissimilar to what we are talking about for higher education. The result has been overwhelmingly a growth in apprenticeships that do not require expensive equipment or involve high-risk activity, which means that you can cover your costs and more with relative ease.

Therefore, the purpose of the amendment is to argue that it is truly vital that the Government take a more active approach to encouraging new and different institutions. If they do not, then simply enacting the current regime as proposed will not solve the problem. New entrants will not on the whole do science or engineering. I am sure that lots of them would love to do exciting and expensive things, but the reality of being a new, small institution is that they do not.

I have mentioned the history of apprenticeships. Another example is the fight over saving archaeology A-level. I have considerable sympathy with the examination boards. Running things where you lose money heavily is quite hard to do. Unless you are large enough to spread those courses, by and large you just do not do them. These courses are very expensive and, without government support, they will be too risky and long-term for most people, but they are areas that are badly needed.

In a week in which an industrial strategy has just been launched, it would be appropriate for the discussions on the Higher Education and Research Bill also to take account of the fact that, in the past, Governments in other countries have felt the need to take a very active role in this area. They have felt the need to put long-term planning and substantial government money into the sector in a directed and planned way, because otherwise things would not happen. In this context, it seems to me that the Dyson Institute of Technology, which is clearly a wonderful initiative, makes the point. How many very rich individual entrepreneurs with the ability and money to take these decisions are there in this country? So far, there has been James Dyson. As a strategy for providing that part of the higher education sector, relying on the beneficence, good will and commitment of rich individuals is not very sensible. Obviously we cannot go back to the 1960s but it is worth looking at the commitment, vision and expenditure that were put in back then.

Therefore, the amendment asks for the Secretary of State—not the OfS—to have an obligation to take, on a regular basis, a strategic view of where in the country and in what disciplines we might need something more, something new, something different and something involving government commitment and government money. We suggest that the Government also look at how these institutions can be set up. We have gone on a lot this afternoon about validation. Going back to the 1960s, we had institutions that were developed over time. They launched forth, they had their own degree-awarding powers from day one and they had royal charters.

I think we are getting into a sort of mindset here in which there is the existing sector and then there will be new, brave little institutions, which may or may not need validation by other institutions and, if they do not, maybe the OfS will do it. That is too narrow and far too limited a view of what our universities and our higher education need to look like. I am sure that one possible response will be to say, “Oh, I’m sure the Office for Students will do it”. The Office for Students is already being asked to do an amazing number of things. I do not believe that this is a matter for a regulator; it is for the Secretary of State, on behalf of the nation and on a regular basis, to look at how, in new ways or “back to the future” ways, something can be done to create genuine diversity and genuine responsiveness to the needs of the economy and of society now and in the decades to come. I beg to move.

[Viscount Ridley (Con)]

My Lords, I support the amendment, which also stands in my name. I did not speak at Second Reading but I hope the Committee will indulge me. I attended nearly all of the Second Reading debate but, because I thought I would not be there at the end, I did not put my name down to speak.

I share some of the doubts that have been expressed about the Bill in other parts, but I am enthusiastic about one of its principal aims, which is what the amendment seeks to reinforce. I refer to the encouragement of diversity and innovation, as the noble Baroness, Lady Wolf, has eloquently explained, and the encouragement of new entrants, not just passively but actively—letting 1,000 flowers bloom but planting 1,000 flowers as well.

I am a great believer in competition, so it is important that we do our best to bring forward new ways of doing higher education, as well as new types of courses and new locations for them, especially in vocationally relevant areas—areas that are in demand with employers and where the signal is not being transmitted well enough to students. As the noble Baroness, Lady Wolf, said, it is not just a matter of opening the gate and seeing a flock of new entrants come through; starting a new university is a huge investment and there are enormous barriers to entry. You need premises, people, programmes and quite a lot of pennies. So, before taking the plunge, as the noble Baroness said, entrepreneurs will need to be given signals that the state prioritises supporting certain courses and certain disciplines. As has been said, the industrial strategy makes the case for singling out and encouraging certain things that we think will be important in the future.

The example that I would give is data science. I know somebody who, as a sideline, retrains the holders of physics PhDs as data scientists, because that makes them much more valuable to employers in the private sector. There is a huge demand for data science in business, and that is the kind of thing that perhaps it would not be immediately obvious to existing universities to supply, or indeed obvious to new entrants, who might be hard pressed for cash and so on. I think that with the right kind of encouragement from government, advised by independent expertise, the sector could benefit from this sort of duty on the Secretary of State to consider where new ideas should come from.

I am no fan of committees for committees’ sake, so I am not wedded to the exact form of the amendment. In that sense, I see it as somewhat probing—raising the issue and seeing whether the Government are interested in responding in a positive way to this suggestion.

--- Later in debate ---

[Baroness Goldie]

My Lords, we agree that it is necessary to have a holistic overview of the sector to understand whether our aim of encouraging high-quality, innovative and diverse provision that meets the needs of students is being achieved. However, I do not agree that to achieve this an independent standing committee is necessary. There are already a number of provisions in the Bill that allow the Secretary of State, the OfS and other regulatory or sector bodies, where necessary, to work together to consider these important issues.

For example, Clause 72 enables the Secretary of State to request information from the OfS, which, as the regulator, will have the best overview of the sector. Clause 58 enables the OfS to co-operate and share information with other bodies, and, as we have discussed at length, the Secretary of State can give guidance to the OfS to encourage this further.

We have already debated the issue of new providers at length, but let me reiterate that there is a need for new innovative providers. The Competition and Markets Authority concluded in its report on competition in the HE sector that aspects of the current system could be holding back greater competition among providers and need to be addressed. In a 2015 survey of vice-chancellors and university leaders, 70% expected higher education to look the same in 2030. This risks becoming a self-fulfilling prophecy.

We must not be constrained by our historical successes, because if we place barriers in the way of new and innovative providers we risk diminishing the relevance and value of our higher education sector to changing student and employer needs, and becoming a relic of the last century while the rest of the world is moving on.

[Baroness Wolf of Dulwich]

I do not think that the amendment was proposing barriers of any sort. We need to be clear about that. It does not propose barriers in aid of diversity. It just says that simply removing barriers to entry would not deliver diversity. I apologise if that was not made clear.

[Baroness Goldie]

I thank the noble Baroness for her intervention. I fully accept that the express text may not have intended that—but we have to look at what the consequences of this new independent committee would be, and infer from that what effect it might have on the broader sector.

At the moment we have a university sector that needs to do more to support its students and the wider economy: it has built up over time to serve only parts of the country; it is not providing employers with enough of the right type of graduate, especially STEM graduates; it can do more to offer more flexible study options to meet students’ diverse needs; and it can to do more to support social mobility. It is not enough simply to ensure that all young people with the potential to benefit have a theoretical opportunity to go to university and secure a good job when they graduate.

Alternative providers are already supporting greater diversity in the sector: 56% of students at alternative providers are aged 25 or over, compared with 23% of students at publicly funded institutions. They also have more BME students: 59% of undergraduate students at alternative providers are from BME groups, compared with 21% at HEIs.

The Government are determined to build a country that works for everyone. That is why we have announced a number of opportunity areas that will focus their energy, ideas and resources on allowing children and young people to fulfil their potential. That, in conjunction with what the Act sets out to achieve—the broad vision that I think universities accept as positive for the sector—holds out hope that we are proceeding on a journey in which we can have a lot of optimism and confidence.

I note the references to skills and would stress that we are carrying out reform programmes in higher education and in technical and vocational education at the same time. This gives us the opportunity to ensure that these programmes of reform are complementary. The Government’s recently published Green Paper on an industrial strategy outlines further our vision for skills and a system that can drive increases in productivity and improvements in social mobility. We are committed to reforms that will improve basic skills, create a proper system of technical education, address regional skills imbalances and shortages in STEM skills, and make it easier for adults to retrain and upskill in later life.

One of the 10 pillars of the industrial strategy is that we will create the right structures and institutions to support specific places and sectors. In some cases, this will mean strengthening existing educational institutions or creating new ones. We recognise the need for accurate information to identify and address current and future skills shortages, and we will work towards a single authoritative source of this information. To ensure a joined-up approach, the OfS’s ability to co-operate with a range of other bodies, including the Skills Funding Agency and the Institute for Apprenticeships, will be important. Clause 58 enables that.

The important issue of part-time education was raised. The Government agree that part-time education, distance learning and adult education bring enormous benefits to individuals, the economy and employers. Our reforms to part-time learning, advanced learner loans and degree apprenticeships are opening significant opportunities for mature students to learn. The OfS must—it is not a question of should, or if it feels like it—have regard to the need to promote greater choice and opportunities for students, and to the need to encourage competition between providers where that competition is in the interests of students and employers. That is alongside the other practical support that the Government are already giving for part-time students, including providing tuition fee loans where previously they were not available. We have also recently completed a consultation on providing, for the first time ever, part-time maintenance loans. We are now considering options. The Bill already provides for the mechanisms to enable the kind of information referenced here to be gathered effectively. I hope my remarks have reassured the noble Baroness, and I therefore ask her to withdraw her amendment.

--- Later in debate ---

[Lord Adonis (Non-Afl)]

I observe that a whole section of Schedule 1 relating to the Office for Students concerns committees. Paragraph 8(1) states:

“The OfS may establish committees, and any committee so established may establish sub-committees”.


This appears to be a power without limitation. The noble Baroness not only can have her committee on new providers; she can have a range of sub-committees as well. We could spawn a whole bureaucracy around the provision of new providers. One hopes that, at the end of it, we will actually get some new providers and not just committees. In one of the many letters she is sending us, I wonder if the Minister could confirm that, under that power, it would be perfectly possible for the OfS to establish a committee for the purposes that the noble Baroness and the noble Viscount have in mind.

[Baroness Wolf of Dulwich]

It would be very helpful to have that confirmed.

--- Later in debate ---

[Baroness Wolf of Dulwich]

I thank the Minister. For part of the last five minutes I felt as though two different plays were going on in the Chamber, somehow scheduled on the same stage. The issue is not, to repeat, whether there should be new providers. The amendment clearly supports that. The issue is whether without direct intervention activity we will get the degree and type of diversity that the country needs. I thank the noble and learned Lord, Lord Mackay, for his suggestion, which would at least place the importance of this firmly at the beginning of the Bill. I hope that we might pursue that. This is not about hoping or having faith that new little providers will do all these things. We know, factually, that they will not, just as we know factually from the whole history of apprenticeships that if you throw it open in the way that is proposed for higher education and just wait to see what people will get from the general fee regimes available, you will not get the expensive ones.

Of course I will withdraw the amendment for the moment, but I hope we can return to it. This is not necessarily about committees—I share noble Lords’ views about committees—but about making sure that there is a clear function and duty on the Secretary of State to address these issues. I would very much like to pursue the noble and learned Lord’s suggestion, and I hope we can return to that on Report. I beg leave to withdraw the amendment.

Amendment 434ZA withdrawn.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

Committee: 5th sitting (Hansard): House of Lords
Monday 23rd January 2017 Lords Chamber

Moved by

[Baroness Wolf of Dulwich]

143: After Clause 15, insert the following new Clause—
“Power to restrict enrolments
(1) If the OfS has reasonable grounds for believing that a registered higher education provider is in breach of an ongoing registration condition with respect to the quality of the higher education provided by the provider, or to its ability to implement a student protection plan which forms a condition of its registration, the OfS may place quantitative restrictions on the number of new students that the provider may enrol.(2) The Secretary of State may by regulations make provision about the procedures for imposing such restrictions and about rights of appeal.”

[Baroness Wolf of Dulwich (CB)]

My Lords, this amendment stands in my name and that of the noble Baroness, Lady Garden.

Before explaining why this slightly technical-sounding amendment is the way it is, I should like to explain that I tabled it because quite technical issues are central to the purpose of the Bill and to the Government’s commitment to preserve and raise the quality of the higher education system, ensuring that students throughout the country and the system get a fair and quality deal from the institutions that they attend and to which many of them now pay a great deal of money.

One of the slightly curious aspects of the Bill is that the sanctions which it mentions, and which can be brought to bear by the Office for Students when an institution appears not to live up to its promises and commitments and to the requirements placed on it, seem to be either rather draconian or very restricted. The sanctions are either a draconian response of withdrawing degree-awarding powers or university title, or a whole range of fines, which might be in response to a fraud, on which there is a whole schedule allowing powers of entry. However, what is striking about the sanctions is that they are very different from the way in which, for example, the regulators in the health or school sectors tend to approach their task, which is much more about maintaining or improving something as a going concern—that is, how they might work with it.

I have raised the issue of certain powers, which we understand from the Minister are seen as not as relevant under the proposed new regime as they were under the old one, both because closing down an institution in which students are studying should be seen as an absolutely last resort—I think we all share the Government’s determination that institutions should be of high quality and serve their students—and because a bit of history is in order.

In recent years we have seen a very large increase in the number of institutions in this country that provide higher education. Some have been universities, where numbers have increased, and many have been alternative providers, where numbers have increased enormously. Some of the alternative providers have degree-awarding powers and some award higher national diplomas or certificates, but many of them also have tier 4 sponsor status, which allows them to enrol students from outside the EU. Between May 2010 and September 2016, no fewer than 968 institutions had their tier 4 sponsor status withdrawn. That is a fairly terrifying number, because all those institutions had students in them, who were studying and had paid money—and, basically, they had their education and their plans pulled out from under them.

As part of this recent history, there was also a somewhat fraught hearing with the Public Accounts Committee, which I seem to remember was not happy with the way that the Government had been regulating these institutions, and an NAO report. Following that, BIS, as it then was, took additional powers, which included imposing student number controls on alternative providers. One of the other things that has happened in the last few years is that student number controls for universities have been lifted, so universities can recruit and enrol as many students as they wish. I am not implying that an alternative provider is a bad thing—actually, I am strongly in favour of greater diversity and of an open, diverse and innovative sector—but, in a spirit of risk-based regulation, we have to take account of that recent history.

--- Later in debate ---

[Viscount Younger of Leckie (Con)]

My Lords, the Bill creates the conditions to improve the overall quality and diversity of the higher education sector, creating a level playing field through a risk-based approach to regulation. Clause 6 enables the OfS to impose specific, ongoing registration conditions on a provider. The practical effect of this is that the OfS will assess the compliance of all higher education providers with the appropriate conditions and will adjust its regulatory approach accordingly. This is central to the risk-based approach to regulation that the OfS is being established to provide.

In practice, we envisage that, if the OfS considers that an institution or an element of an institution, such as its financial sustainability, poses a particularly high risk, it can add, change or tailor the registration conditions applicable to that provider to address that risk. I hope I can reassure noble Lords that the Bill already provides for the OfS to set a student number control condition in cases where it is appropriate and proportionate; for example, an institution that the OfS considers may be in breach of registration conditions that relate to quality of provision could have a student number control imposed by the OfS as an additional specific registration condition, if the OfS believes that such action is reasonable and proportionate. The OfS may also exercise this power if it considers that there is a risk that the provider is recruiting more students than its student protection plan can properly cater for.

I am in complete agreement with the noble Baronesses, Lady Wolf and Lady Garden, about the importance of providing the OfS with the tools it needs to ensure the quality of higher education provision. However, given the powers already conferred on the OfS through Clause 6, it is unnecessary to include in the Bill one example of the conditions that could be imposed. Indeed, including one example of such a condition might appear to exclude other conditions which might be more appropriate in the circumstances of a particular provider, including those which have no plans to increase their student numbers. However, I appreciate the noble Baroness, Lady Wolf, raising this and I hope I can provide some further reassurance for her, focusing particularly on overseas providers, which she mentioned. Our plans will speed up and streamline process without lowering standards. In order to become eligible for degree-awarding powers, any provider must register and pass rigorous entry requirements. It is a high bar which only high-quality providers will be able to meet. We welcome overseas providers which meet this test increasing choice for students. Providers that cannot meet the rigorous entry criteria will not be able to become registered or obtain access to degree-awarding powers or university title.

The noble Baroness, Lady Wolf, asked what sanctions are available to the OfS. I start by saying that the best principles of regulatory practice will be adhered to. These include transparency, accountability, proportionality, consistency and, where issues are targeted, targeting only cases where action is needed. Specifically, the escalated suite of actions and sanctions available to the OfS includes: putting in place a support strategy or issuing a direction for a provider to take specified actions; imposing additional specific ongoing registration conditions—for example, as I mentioned earlier, student number controls; or imposing a monetary penalty. We envisage that most often this will be used where a breach has occurred but has now been remedied, but it can also be used alongside a suspension. Also—and by the way, this is as a last resort—the OfS can order deregistration. To further reassure the noble Baroness, this will be where all other efforts have failed or it is clear that imposing monetary penalties or suspensions will simply not be sufficient to deal with the provider. I hope that, with those reassurances, the noble Baroness will withdraw her amendment.

[Baroness Wolf of Dulwich]

I thank the Minister most sincerely for what he has just told us and for—I do not want to call it a gloss—the additional information he has provided. I am extremely relieved to know that it is clearly the intent of the Government that the OfS should have a wide range of actions and get deeply involved not merely in risk regulation but in avoidance of catastrophe, which I have alluded to. I am extremely grateful to the Minister, I am delighted to have had the points of fact he has just given us placed on the record, and I beg leave to withdraw the amendment.

Amendment 143 withdrawn.

--- Later in debate ---

[Baroness Deech]

I am glad to support the noble Lord, Lord Lipsey. I have the National Student Survey in front of me. It raises profound questions about what higher education is and how it has become perverted, in that we see the student now as a consumer, because the student is paying at least £9,000.

I draw attention to some statements in the survey. One says that the workload on the student’s course is manageable. We ought to think about what that means: manageable for whom, whether you are a lazy student or an avid one? Another says that the course does not apply unnecessary pressure on the student. I am not sure about that either. There is another that says that all the compulsory modules are relevant to the student’s course. Even now, 50 years after completing a law degree, I am still pondering whether Roman law was really relevant to my course, but I yield to those who thought it was. That was long before we joined the European Union, which in a way made Roman law and the continental system more relevant. These questions would be better addressed to someone going on a package holiday. I am not sure that as it stands this student survey should play a part in the most profound questions that we face—about what a university is, what sort of young people we wish to turn out and by what process. So I hope that the survey will not be included, or that if it is it is thoroughly revised, bearing in mind the outcomes for which we are looking.

[Baroness Wolf of Dulwich]

My Lords, I support the comments of the noble Lord, Lord Lipsey, on the National Student Survey, and will speak to Amendments 194 and 201 standing in my name. Before doing so I would like to underline that we are talking about the use of measures to give ratings. With respect to the comments made by the noble Baroness, Lady Blackstone, I think that there is a huge difference between what is useful internally and what is suitable for a high-profile, high-stakes national rating system. In my first amendment I have suggested, or requested, that any measures used should be criteria-referenced, and therefore provide a substantive rating and indication of attainment or degree of attainment. I am slightly alarmed that this is even at issue, and take issue with the noble Lord, Lord Willetts, when he suggests that benchmarking is the way forward.

I have an example from the rail regulator. We can be told what proportion of trains are late, which is a substantive measure: we can have a target—which in fact it has—which says that it is reasonable that there should be X per cent, and then you fall this far short. We can be told whether a given rail company is doing better or worse than the others. This year it is really pretty easy for everybody to do better than Southern, but does that mean that they are all doing well? I do not think that you can conclude that.

If you have benchmarked or relative measures, the problem is that all that you are being told is how people stand relative to each other. We might have a system in which the quality of teaching was excellent across the board, yet in which half the institutions would by definition be below average; or we could have a system in which all the institutions were doing rather poor-quality teaching, yet in which half of them would be above average. That is not the sort of system that we wish to use. We would not wish to imply to students that that gave them helpful information. A measure that is bad does not become good by being made relative; and a measure that is good is good in its own right, not simply by being turned into something in which you rank people on the curve. That is an important aspect of how the Office for Students approaches the sorts of ratings that it gives and the way in which it conceives of them.

[Lord Willetts]

Does the noble Baroness accept that her objection is the opposite of the one raised by the noble Lord, Lord Lipsey? His objection was that these are raw data that cannot be trusted. As a result of that concern, they are being benchmarked, and that indeed raises the valid questions which she has raised.

--- Later in debate ---

[Baroness Wolf of Dulwich]

I think the noble Lord, Lord Lipsey, meant a number of things, but I am not saying that raw data are the problem. I think he was also referring to aspects such as whether you have a decent sample size. Benchmarking is not the answer. I am somewhat alarmed that it seems to have become a major part of what is under discussion.

My second amendment is something that is not an exceptional ask in the world of regulation. Before elaborating, I have a request for the Minister. If at the end of this debate he does not think that the Office for Students can and should report on whether its statistics meet the UK Statistics Authority’s code of practice, will he explain why? Most regulators which I know that are involved in collecting statistics for information and regulation proudly boast on their websites that their statistics meet the code of practice.

Things that we can be proud of in this country are the UK Statistics Authority and that we have a record of knowing what makes a good-quality statistic and of making sure that among public bodies and for public purposes we do our very best to meet those criteria. One thing we know, for example, is the importance of sample size. We know about the importance of the reliability of measures. We know that in many things it is quite difficult to get a valid measure and that it is just as well to say that we cannot measure them properly.

Another thing we know is that the quality of statistics can change over time and that you have to keep looking at them. One thing that has clearly changed over time is the degree to which one can assume that a standard that was used in one time and place has been carried over to another. Many of us in these debates have been standing up for the quality of university education. It is pretty clear that in North America, this country and many other countries over time there has been grade inflation and that the proportion of people getting higher-class degrees and higher marks cannot be fully explained by harder working students, miraculous teaching or any other splendid innovation. There has been a slippage. One of the reasons there has been grade inflation and one of the reasons why we need to be very careful about this—this is why I raise the point quite clearly—is that students like easy grades. Since student satisfaction is quite important for promotion, particularly in North America, it has also been studied a great deal. We know that student satisfaction judgments and scores rise the more easily instructors, lecturers and examiners grade. We also know—these are statistics that I use a great deal in my teaching because students like them—that lecturers and professors get higher student satisfaction scores if they are good looking. This applies to both men and women; it is completely gender-neutral.

So there are things we know about specific statistics, and we also know more broadly that there are things we need to look at to know whether statistics are valid, reliable and fit for purpose. As the noble Lord, Lord Lipsey, has indicated, there are aspects of student satisfaction measures which require careful attention before they are used for something as important and high-stakes as a rating of teaching quality issued by the regulator.

The final thing I want to say about the importance of observing a code of good practice—and I have no reason to suppose that the Office for Students will not, but it would be nice to have reassurance that it will—is that you cannot add up completely unrelated statistics to make a meaningful total grade. This is often described as “apples and oranges”. Apples and oranges are relatively easy to add up, but trying to take a large number of different measures with different levels of validity—different levels of reliability in terms of whether you would get the same thing if you measured it again; different types of statistics, some with clear numbers attached and some judgmental—and adding those all up into a single judgment is a pretty dicey affair, at best. It is interesting that it is something that on the whole has not been done in research. It has always been done at a much more disaggregated level. However, it is also something which we need to be very careful about because, among other things, it risks not informing students but misleading them.

I find it very strange that, at the same time as saying that we want to give maximum information to students, we are also saying that the Government in their wisdom—or the Office for Students in its wisdom—are going to pull it all together into a single-rank order which cannot be unpacked. What is really useful to students is to have lots of different information on different aspects, so that they can look for the things that they most want.

Is there any reason why we should not expect the Office for Students to follow the code of good practice that we already have in this country and which many other regulators follow? I also suggest that, once again, we only use statistics which actually have substantive meaning. That in itself makes it extremely unlikely that a gold, silver, bronze all-encompassing, all-singing, all-dancing rating is going to fit the bill.

House resumed.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

Committee: 5th sitting (Hansard - continued): House of Lords
Monday 23rd January 2017 Lords Chamber

Tabled by

[Baroness Wolf of Dulwich]

216: Clause 27, page 17, line 22, leave out subsection (3) and insert—
“( ) The amount of a fee payable under subsection (2)(a) by an institution or provider— (a) must be calculated by reference to costs incurred by the designated body in the performance by the body of functions under section 23(1) in relation to the institution or provider, and(b) may not be calculated by reference to costs incurred by the designated body in the performance of any other functions or in relation to a different institution or provider.”

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

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

[Baroness Cohen of Pimlico (Lab)]

My Lords, I support all the amendments and in particular the comments that my noble friend has just made. For the university of which I am chancellor, part-time study is a key part of the business model, and for my noble friend Lady Blackstone it is a key part of her business model at Birkbeck. Why, we ask ourselves, are part-time students reducing in numbers? I have to say that I do not have a good answer to that, but it is enormously important. It would be very hard to find anybody who does not support the extension of part-time teaching, but we do not seem to be getting it right—even those of us whose core business it is. I would like to ask the Government to think about this.

[Baroness Wolf of Dulwich (CB)]

My Lords, I also would like to support this amendment and all the amendments in the group, one of which bears my name. The comments we have just heard go to the core of the problem. Everybody believes that part-time and mature students are very important—the Government believe it and every previous Government in my memory believed it—and yet, at the moment, we see not a rise but a decrease in their numbers, and they are not more evident as part of the higher education system but less so than they were quite recently. My view is that the root cause of this lies with the current funding system for higher education, which clearly cannot be dealt with by this Bill. However, the Bill can and should make explicit the responsibilities of the OfS to make these groups central to its concerns and mission and not, as the noble Baroness, Lady Bakewell, said, something to be added on at the end.

I will mention one other group mentioned in the amendment: workplace students. Again, those students are tremendously fashionable in political statements but do not tend to be very numerous in reality. Twenty or 30 years ago, we had a well-developed ONC/HNC route for those students, but we no longer do. Since I totally agree with those noble Lords who have underlined the rapidly changing nature of the jobs market, I think that this group, too, needs explicit attention from the Office for Students.

[Lord Desai (Lab)]

My Lords, I will make a short plea for something that has not been mentioned so far. Most people have spoken about part-time students as people who want a degree, a skill, a job and so on. I do not know where further education is in all this—perhaps it is not part of this debate. Many people go into further education not necessarily to get a diploma or a degree but to educate themselves. I had enough of primary, secondary and higher education to suit me for several lifetimes, but I did go to Morley College for a family French class with my children. Children and adults studied together and it was a very pleasurable experience—I even learned some French. So I think that there may be ways of learning without actually taking a degree.

--- Later in debate ---

[Lord Willis of Knaresborough]

I asked a specific question about the transfer of students, using their acquired learning, on to courses in other universities. Despite what has been said in this House, the vast majority of universities, particularly in the Russell group, will not accept students whose prior learning comes from other organisations. If we are to deal with this issue, it is important that the Office for Students has the power within its overall remit to ensure that fair arrangements are made between universities to allow students to transfer.

[Baroness Wolf of Dulwich]

May I correct that? It may be true that this is not common but it is not true that the vast majority of Russell group universities will not accept credits. I want to make that clear for the record.

[Lord Willis of Knaresborough]

I would like to see the evidence for it.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

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

[Lord Addington (LD)]

My Lords, in making my first contribution in Committee I should start by making a declaration of interests, but I hope noble Lords will forgive me if it does not include being a member of a university in any shape or form. I think this puts me in a distinct minority in this debate. I am president of the British Dyslexia Association and chairman of a company that deals with assistive technology. This is relevant to the amendment I have tabled, which suggests that disability should be included in the general duties here.

Disability in universities is in a rather strange place at the moment. At the start of last term, universities acquired a duty to deal with what is graded “bands 1 and 2” disability functions. They were supposed to receive some guidance. They have not received that guidance to date—or if they have they have had it incredibly recently. So they have a duty which they have not had before, which means they are doing something they have never done before. Should they be doing it? Yes, probably, because they are charging fees and they have a duty to make reasonable adjustment, which has been taken on by the disabled students’ allowance until this point. That has been removed, so they have to do it, so they will need some guidance.

The noble Lord pulled me up when I said at Second Reading that there was no guidance on this, saying, “Yes, there are duties in regulation”. There is no guidance on this situation because it has not occurred before. It is new; it started in September. I hope that at the end of this debate we will have a little more information about the state of the guidance that has been issued. If no duty is placed somewhere in the Bill, how long will this situation go on for and when will we update it? Whatever happened here, the cock-up school of history has another example of what can happen.

When it comes to other duties such as accessibility, universities do not have an unblemished record. I have had many letters coming across my desk saying, “I could not get into a lecture hall”. If you cannot get into a lecture hall to receive lectures you cannot be part of the main group. There are arguments on both sides. Perhaps the person was expecting a little too much and the duty of reasonableness may not have been covered, but such situations occur. The record is not perfect; there is a greater duty and we do not know what we are supposed to be doing.

I hope that through this amendment, which is currently a probing amendment, we will get some clarity. Simply saying that the problem will be taken care of somewhere else is not good enough. We must know. Some 20% of the population are reckoned to have a disability; 20% of the school population are reckoned to have special educational needs. Many of those will be covered by a disability, if not the social sector, and the cross-over between them is far too complicated to be gone into at this time of night. There is a problem here. Unless we are going to remove whole sections of society, we must have a commitment and a way of making sure that such a provision is enacted and disabled people are allowed in.

It is a complicated, varied sector, covering everything from mild dyslexia to quadriplegia—I know I have missed a lot of people by going sideways in that description. How is this duty to be recognised, where is it going to be recognised and are we going to make sure that people are up to date and doing the job correctly? Somewhere in the Bill it should be stated clearly that we have to get on with it, because at the moment there is no great consideration of this issue. I look forward to hearing the Minister’s comments.

[Baroness Wolf of Dulwich (CB)]

I have a number of amendments in this group and before talking to them generally I want to say how much I agree with almost everything that has been said so far in this short debate. The Minister and other noble Lords have on a number of occasions emphasised the importance of not getting too hung up on detail, not giving too many detailed and restrictive instructions to the OfS. My concern is with these general clauses, which define what sort of institution this is and its general remit. The problem is that the definition it is not general enough. So much of what is said is focused on the development of individual institutions—their financial health; their particular policies and progression statements.

I strongly support Amendment 58 because it would insert the word “diversity”. Surely what we want in a 21st-century higher education system is not simply choice between lots of institutions that are actually very similar but genuine diversity. I do not think, for reasons that I could bore your Lordships with for an hour but will not, that the current approach will generate diversity. It will generate new institutions but it will not in and of itself generate diversity.

It is absolutely critical that the central office that represents our Government has as one of its concerns the need to generate not just competition between similar institutions—not just choice between ever more institutions that look much the same—but genuine diversity. That will require quite a lot of thought and active intervention—pump-priming, whatever. Many of these amendments, including those that have my name on them, are about the need to secure and improve the overall strength and quality of higher education provision in England, to maintain confidence in the higher education sector as a whole.

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[Lord Winston (Lab)]

My Lords, forgive me if I add a slightly dissonant note to this conversation about collaboration. The sentiments behind it are absolutely wonderful and I agree that the collaboration over outreach, for example, in Birmingham and over outreach and public engagement at the University of Bath are two very good examples of where it works. But essentially—and with respect to my Front Bench, who have done a fantastically good job at looking at some of the issues raised by the Bill—one of the problems is that it is very difficult to see how one can enforce this kind of collaboration in any meaningful way.

To take the issue of science, where we are inevitably competing in the REF and where we sometimes publish in collaboration, noble Lords should see the internal wrangling over who goes first on the paper and who goes last as the senior author on the paper, which happens again and again in universities. It is a massive problem. In my own career, I had a very important collaboration with University College London, where we were extremely innovative with a new technology that looked at chromosomes. Ultimately, the collaboration failed totally because, regrettably, we could not agree on how we would publish it. It became an issue when we looked at the scores.

Sadly and unfortunately this is still true. So much of science is published in a very testosterone-driven environment. It is not desirable, but it does happen. One reason why it is so important to have more women in science is to try and humanise our laboratories because women are so much more ready, in my experience and certainly in my lab, to collaborate, even when the collaboration may not be to their full advantage. Males are less ready to give way to this. While I absolutely accept that there is extreme value in the notion of this kind of collaboration, I wonder whether it would be terribly useful to have it included in the Bill in this form. It could be included in some other way and perhaps we will come back to it in time, but I suspect that it would be very difficult to implement.

[Baroness Wolf of Dulwich]

My Lords, I agree with a great deal of what noble Lords on both sides have said, but there is an issue here that the amendment gives me an opportunity to raise, since I am informed that one cannot ask questions once a Bill is in motion. One issue that faces us at the moment in the university sector is that we have the OfS, and we are not quite clear whether it is a regulator or not, and we also have the Competition and Markets Authority. One question that I have is whether there are incipient conflicts between these two important and powerful bodies. I would personally like to see collaboration included to make it clear that it is not outlawed, although it is extremely difficult to achieve—it is almost impossible to achieve.

I would like to take this opportunity to mention the Francis Crick Institute, which, thanks in good part to the good offices of the noble Lord, Lord Willetts, when he was Minister, achieved the utterly amazing feat of getting Imperial, King’s and UCL to collaborate.

[Lord Winston]

That is not true.

[Baroness Wolf of Dulwich]

Well, sort of.

Collaboration is not something that can be enforced. Competition becomes extremely naturally to us, but at the moment we have two bodies with very different views. The Minister has assured us, and I am happy to hear, that the drafting of Clause 2 does not preclude in any way thinking about the sector, thinking nationally and thinking about society.

My experience of how my own and other people’s institutions interpret the requirements of the CMA is that, basically, it does not think that you should ever speak to anyone else because that might be interpreted as interfering with competition. I know that this sounds a bit like a Christmas tree and a signal, but perhaps I can take this opportunity to ask the Minister to let me know, if not right now, whether officials have looked carefully at the possibility that we will see conflicts over this issue; that is, between what I take to be two regulators, or certainly one regulator and the Office for Students. I would be grateful for some information on that.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

Monday 9th January 2017 Lords Chamber

[Viscount Hanworth (Lab)]

My Lords, I wish to speak to my own Amendment, Amendment 66, and in doing so I declare my interests as I did at Second Reading. In common with many commentators, I fear that the Bill gives unprecedented powers to the Secretary of State to interfere directly in the academic business of universities and providers of higher education. As it stands, the Bill will allow the Minister to give direct instructions to the Office for Students and it will allow that office in turn to convey specific instructions to universities and other providers. A separation of powers is required to prevent any agency acting in a manner that exceeds its competence or expertise and infringes on other domains for which independence should be guaranteed.

The Office for Students should be an executive body and not be allowed in its own right to pass judgment on academic standards. An independent body of experts should be relied on to assess the quality of the provision of higher education and to judge the standards of accreditation. My proposed amendment would clearly limit the power of the Secretary of State to give specific instructions to universities. The Bill already proposes that any guidance given by the Minister must apply to the providers of higher education in general, but it would also allow the Minister to declare, for example, that, “the course in epidemiology at the University of Middleshire does not conform to the guidelines issued by the Secretary of State under Section 3 of the Higher Education and Research Act 2017”. In other words, the Minister could refer to a specific university relative to the general guidelines that have been enunciated. My amendment would preclude the Minister from making such statements in respect of a specific institution. It should be for the Office for Students to make observations about the conformity of courses with guidelines and standards, and it should be allowed to do so only on the advice of a designated body of experts. This point will be reinforced in later amendments that I intend to bring forward.

[Baroness Wolf of Dulwich (CB)]

My Lords, I rise to speak to Amendments 55, 62, 72, 426 and 432, tabled in my name and those of the noble Baronesses, Lady Garden of Frognal and Lady Brown of Cambridge, and I will be very brief. I want to say how excellent is the amendment tabled by my noble friend Lord Kerslake because it encapsulates all our concerns about autonomy. I also agree with the eloquent speeches made by my noble friends Lord Kerslake and Lady Deech.

Importantly, these amendments deal with the whole of higher education, not just with universities. We will probably say this on a number of occasions in the weeks ahead, but we are in a new world in which higher and tertiary education is involving more and more of our citizens. Allowing institutions to decide which courses they teach and to be in control of how they deal with their academic staff and their students is absolutely critical to their ability to maintain standards and retain the autonomy that has served us very well.

[Baroness Blackstone (Lab)]

My Lords, I, too, strongly support the amendment in the name of the noble Lord, Lord Kerslake, which is extremely well worded and very appropriate for the legislation in front of us. I am absolutely convinced that the current Minister responsible for higher education will respect the institutional autonomy of universities, but some future Minister may not. As a former Minister responsible for higher and further education, I was rightly constrained by the 1988 Act and what Lord Jenkins managed to do with his amendment. There were sometimes times when I did not agree with what was happening, but I was unable to interfere, which would have been wholly inappropriate. That is an extremely good thing.

There is a second reason why I support the noble Lord’s amendment. I, along with Jo Ritzen, a very distinguished former Dutch Minister of Higher Education, and two other former European Education Ministers—Eduardo Grilo from Portugal and the former Hungarian Education Minister—embarked on a project led by Jo Ritzen entitled Empower European Universities. It looked at the position of universities across Europe—north, south, east and west—in particular at some of the problems some universities in eastern Europe experience, as in southern Europe. There was an incredible amount of state control over what these institutions could do. One of the outcomes of that is you get no innovation. Therefore, one of the reasons why we should promote autonomy in our higher education institutions is that we should be concerned to make sure universities do not stand still, that they take into account a changed environment and that they are innovative. By being autonomous they are far more likely to be innovative than if they are controlled by Governments, as we saw from the project we did across Europe.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

Committee: 1st sitting (Hansard - continued): House of Lords
Monday 9th January 2017 Lords Chamber

[Baroness Garden of Frognal (LD)]

I, too, support the noble Lord, Lord Lipsey. The Office for Students was always a rather strange title for this all-encompassing and all-powerful body. It was particularly ironic because it took quite some effort to get students in any way involved with it or represented on it. The Office for Higher Education seems an eminently sensible title for it. As the noble Baroness, Lady Bakewell, said, that covers all the aspects that this strange body is going to be responsible for. The Minister should think very seriously about changing the title.

[Baroness Wolf of Dulwich (CB)]

My Lords, I agree that the Office for Students is a very strange name for this body. I take this opportunity to remind anybody in the House who does not already know how very opposed to much of what it is going to do most of our students are, and publicly so. Although the automatic response one gets when this is pointed out is, “Oh, they just don’t want their fees put up”, that is not the sole thing they are complaining about—not at all. I also take this opportunity to put on record my appreciation of the University of Warwick student union, with which I have no connection whatever, which wrote an extremely well-thought-out critique of the Bill back in June, which was the first thing to alert me to many of the things that I have become very concerned about since. I agree with the noble Lord, Lord Lipsey, that this is not an appropriate title and it would be very good if we could come up with another—but I do not think I will be collecting his champagne.

[Lord Stevenson of Balmacara (Lab)]

My Lords, of course the serious side to the light-hearted comments is that the name will conceal as much as it will reveal about what is going on here. I understand entirely my noble friend Lord Lipsey’s wish to raise this in a relatively light-hearted way and I do not want to be a party pooper but we need a lot more certainty about what exactly this new architecture, which was one of the great calling cards of the Bill when it was first introduced, is actually going to do and deliver.

A number of amendments further down the list will bear on this and we may well need to return to the name once—and only once—we have decided what we are going to have. For instance, we are now told that the Office for Fair Access will have a slightly different role in government amendments due to be discussed on the next day in Committee. That will change the nature of what the OfS does because, if the government amendments are accepted, it will not be allowed to delegate powers that would normally be given to the Office for Fair Access to anybody else, and it will have to ensure that the director of the Office for Fair Access has a particular role to play in relation to access agreements that are created under that regime. In that sense, the power of the OfS as originally conceived was already diluted at the Government’s own behest. We need to think that through before we make a final decision in this area.

The question of how registration is to take place is a quasi-regulatory function. We have an elephant parading around the Bill—it is supposed to walk around in a room but perhaps we ought not to extend the metaphor too far—in the role of the CMA, to which I hope the Minister will refer. If we are talking about regulatory functions, we need to understand better and anticipate well where the CMA’s remit stops and starts. The Minister was not on the Front Bench when the consumer affairs Act was taken through Parliament last year, but that Act is the reason why the CMA now operates in this area. It is extracting information and beginning to obtain undertakings from higher education providers regarding what they will and will not do in the offers they make through prospectuses, the letters sent out under the guise of UCAS, the obligations placed thereby on the students who attend that institution and the responsibilities of the institution itself. I do not wish to go too deep into it at this stage because there will be other opportunities to do so, but until we understand better the boundaries between the Office for Students and the CMA, it will be hard to know what regulatory functions will remain with the OfS and what name it would therefore be best put under. “Office” is common to many regulators but the letters in acronyms can also be changed.

We are back to where we were on the last group: we are not yet sure what the assessment criteria and regimes will be, but perhaps we know more about the criteria than the regime. It is one thing if a committee is to be established with responsibility for assessing the fitness to be on the register and the quality of the teaching as provided. But if an independent body were established and called the quality assurance office or some such similar name, as it would be under a later amendment, it would be doing a lot of the work currently allocated to the Office for Students. I do not have answers to any of these points. I am sure that the Minister will give us some guidance but it would be helpful, when he is ready and able to do so, if he set out in a letter exactly what he thinks the architecture might look like and what the justification therefore is for the name.

The most poignant point was that made by the noble Baroness, Lady Garden: that an Office for Students without student representation on it seems completely bonkers. I do not understand why the Government continue to move down this path. The amendment brought in on Report in the other place was one of sorts to try to move towards that. But it is a measure of the Government’s inability to grasp the issues here in a firm and convincing way that the person who is expected to occupy that place at the Office for Students, as provided for by the amendment, is somebody able to represent students. It is not necessarily a student, which seems a little perverse. I put it no more strongly than that.

Given that the current draft arrangements in the higher education sector for obtaining metrics relating to the grading of teaching quality in institutions has five students on the main committee and two or three students allocated to each of the working groups set up to look at individual institutions, there is obviously a willingness at that level to operate with and be engaged with students. Why is that not mirrored in the Office for Students? Regarding further use, it is really important that we get that nailed down. If it were a genuinely student-focused body—a provision which many governing bodies have—then the Office for Students might well be the right name for it. But until those questions are answered, I do not understand why the Committee would not accept my noble friend Lord Lipsey’s sensible suggestion.

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[Baroness Wolf of Dulwich]

It looks like I am going to be the last speaker, noble Lords will be relieved to know. I support the general tenor of all the amendments in this group, particularly Amendment 7 and the idea that people’s experience should be current or recent. That is extraordinarily important, particularly in an area such as higher education which changes very fast. A number of noble Lords have talked about the importance of further education and the importance of—and decline in the number of—part-time students. We are concerned about these extraordinarily important things, yet it seems that none of the current authorities and institutions which deal with higher education has much idea about why this has happened. We did not intend to have the decline in part-time students that we have. Government after Government have talked of the importance of increasing the role of further education colleges in higher education, because they are central to the availability of part-time courses, retraining and lifelong learning. Yet the role of further education has not in fact increased. The numbers have not increased and the proportion has tended to decline.

So these are real challenges. But it also seems to me that one of the reasons we have got ourselves into this situation is that we do not have enough people with current and recent experience involved at the highest levels of policy-making. Therefore, of all these amendments, I most strongly support the proposal that the Office for Students should look for people to join its board who are deeply involved in the sector in the areas which it is looking for, not people who can tick a box because 20 years ago they were on the board of governors of something. I hope very much that the Minister will take that point away and think about it. I cannot see any way in which it undermines the purposes of the Bill and of government policy. That one small thing might make a big difference to the effectiveness of the Office for Students.

[Viscount Younger of Leckie]

My Lords, I say at the outset that once again I have shortened my comments, bearing in mind the hour. Nevertheless, these amendments need to be properly addressed, so I hope that the Committee will bear with me.

I reassure noble Lords that the Government are committed to a fair and open appointment process for the OfS chair. The final appointment will be made by the Secretary of State, but the process will allow for scrutiny of the appointment by Parliament. We have previously stated our openness to a committee of Parliament scrutinising the nomination of the chair of the OfS before the final appointment is made. I confirm that there will be this opportunity for parliamentary scrutiny in the appointment of the first chair—for whom the selection process is well under way, as noble Lords may know. I note that the noble Lord, Lord Liddle, agrees that the chair of the OfS should not be ratified by a resolution of Parliament but that there should be parliamentary scrutiny. That is correct, despite some comments made this evening that were not particularly in favour of that.

Amendments 4 and 18 would be a departure from the accepted practice set out in the governance code. It is standard practice for the chairs of regulators to be appointed by the respective Secretary of State. We believe that our plans for scrutiny are sufficient and that it is right that the Secretary of State should retain the power to appoint the chair of the OfS board.

Throughout the development of this legislation, the Government have engaged and consulted widely with students and their representatives and we are committed to ensuring that this approach is reflected in the final OfS structure and arrangements. We have already amended the Bill in the other place to ensure that at least one of the ordinary members of the OfS must have experience of representing or promoting the interests of students.

As regards the comments just made by the noble Baroness, Lady Wolf, and the noble Lord, Lord Stevenson, requiring one member of the OfS board to be currently engaged in representing students, as proposed by Amendment 5, would narrow the choice of potential candidates for this role. It could potentially exclude someone who has excellent recent experience of representing students but who has since gone into the working world or further study, thus gaining valuable experience and skills. Furthermore, the standard length of term for public appointments is four years. As such, insisting that the student representative be a current student risks being incompatible with the standard time lines of most courses of study or sabbatical roles as student representatives. That is why we chose the form of wording that we put forward on Report in the other place.

I turn now to the desirability criteria for the OfS board appointments. The Government believe that it is essential that the OfS board should be representative of the broader range of stakeholders in the higher education system. The current legislation that sets out the appointment process for appointments to the current HEFCE board requires the Secretary of State to have regard to experience of higher education, business or the professions. I reiterate that this has worked well for many decades. None the less, this legislation goes further in ensuring a diverse range of board members by setting out seven desirability criteria. These include experience of providing higher education and experience of creating, reviewing, implementing or managing a regulatory system. The seven criteria have been framed broadly so that they allow for flexibility to include board members with the breadth and depth of experience and skills. The Bill in its current form preserves the crucial flexibility for the Secretary of State to constitute the OfS board in the most appropriate way for the challenges and opportunities of the particular day. I reiterate that we need to form a framework that allows us to look ahead a long period of time.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

Committee: 1st sitting (Hansard): House of Lords
Monday 9th January 2017 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, happy new year, and a particular welcome to our respected guest standing at the Bar, who for those of your Lordships who were not present at Second Reading set a new record for MPs standing listening to debates. I gather he is here again to do a repeat performance. We should welcome his interest and his commitment to this issue, which I know is shared by so many Members of the House. I am very grateful to the noble Baronesses, Lady Garden, Lady Wolf and Lady Brown, for joining me and supporting Amendment 1. I look forward to hearing their comments and those of other noble Lords across the Committee who have indicated to me that they support the amendment.

I declared my interests in higher education during the excellent Second Reading debate we held in the Chamber last month. Even if I had not been to a university, never worked in the university sector or not had my children educated in UK universities, I would have wanted to engage with the Bill because our excellent university sector—currently the second most successful higher education system in the world, with four universities ranked in the top 10—faces substantial challenges in the years ahead. It could, of course, be improved and it could, of course, be more innovative, and we support both those aims, but it also needs to be supported and protected, particularly if we go ahead with a hard Brexit, as now seems inevitable.

The abiding sense I have from our Second Reading debate is that the Bill fails to understand the purposes of higher education. I suggest that without defining these important institutions, there is a danger that the new regulatory architecture, the new bodies and the revised research organisation will do real and permanent damage. Universities across the world have multiple and complex roles in society, and there is no doubt that we all gain from that. They come in all sizes, and that too is good. They are at their best when they are autonomous, independent institutions which have the freedom to develop a range of missions and practices, while at the same time being public institutions, serving the knowledge economy and the knowledge society as well as being tools of economic progress and social mobility. They use the precious safe harbour of academic freedom to seek truth wherever it is to be found and publish it for all to see and discuss. They transmit and project values of openness, tolerance, inquiry and a respect for diversity that are the key to civilisation in an increasingly globalised world.

The purpose of the amendment is simple. The Bill before us does not define a university, and we think it will be improved if it does so. Our amendment does not simply itemise some of the core functions of a university, though it does that too, but also scopes out a university’s role, with its implicit ideals of responsibility, engagement and public service. A characteristic of all these functions is the expectation that universities take the long-term view and nurture a long-term stake in their local communities and wider society; that they embed scholarship and original and independent inquiry into their activities; and that they demonstrate a sustained commitment to serving the public good through taking up a role as critic and as the conscience of society.

I am confident that there is support for this approach across the House, based on the real sense of disappointment at the lack of ambition that the Bill currently exhibits. I hope the Government will feel able to accept the amendment. I say to the Minister that if he were minded to do so, not only would he improve the Bill but he would be signalling a willingness to listen to all the expertise, experience and wisdom that this House possesses and give us hope that he wished to use that for the benefit of this important sector and of the country as a whole. If he does not feel able to accept the amendment as it stands, perhaps he could offer to take it back and bring it back in an improved version on Report. If he did this, we would of course be very willing to work with him on how to improve the text—we have no pride of ownership.

I have to warn him, though, that if he does not want to engage as I have outlined, he will have to explain to this House what it is he cannot accept about specifying that universities have a secure and valued place in our society, and why he has difficulty in confirming that our universities should have statutory rights to institutional autonomy, academic freedom and freedom of speech. He will have to explain why he disagrees with his right honourable friend the Minister for Universities, Science, Research and Innovation, who is standing at the Bar, who said in response to questions in Committee in the other place:

“At its most literal, a university can be described as a provider of predominantly higher education that has got degree-awarding powers and has been given the right to use the university title. That is the most limited and literal sense. If we want a broader definition, we can say that a university is also expected to be an institution that brings together a body of scholars to form a cohesive and self-critical academic community that provides excellent learning opportunities for people, the majority of whom are studying to degree level or above. We expect teaching at such an institution to be informed by a combination of research, scholarship and professional practice. To distinguish it from what we conventionally understand the school’s role to be, we can say that a university is a place where students are developing higher analytical capacities—critical thinking, curiosity about the world and higher levels of abstract capacity in their thinking. In brief, that is my answer to what a university is”.—[Official Report, Commons, Higher Education and Research Bill Committee, 15/09/16; col. 271.]

I confess to a little plagiarism in drafting my amendment, which I acknowledge is clearly based on that Minister’s approach, which is the correct one. I beg to move.

[Baroness Wolf of Dulwich (CB)]

My Lords, the Bill we are debating today is an enormously important one. I declare an interest as a full-time academic at King’s College London.

The Government are creating the environment in which universities will operate and thrive or decline over many years, probably decades, and are changing it profoundly. Because a country’s universities and the nature of those universities are so central to what a country is—to its values, politics, culture, research and innovation—the Bill is truly important to the whole nation. Yet, curiously, the Bill has nothing to say about universities, as you will find if you have a quick search of the document. It says quite a lot about the university title, and at one point it refers to unauthorised degrees at,

“a university, college or other body”,

by grant, but that is it. Otherwise it refers consistently to “providers”.

Clearly, the Government do not think that the term “university” is meaningless. If it were, neither the Government nor higher education providers nor universities would be so occupied with the university title.

When I dug around a bit, I found that previous legislation also has extraordinarily little to say on the subject. The 1992 higher education Act refers simply to use of the name “university” in the title of an institution, and informs us hopefully that, if the power to change the name is exercisable with the consent of the Privy Council, it may be exercised, with that consent,

“whether or not the institution would apart from this section be a university”.

There is nothing more on what a university is. The Minister has kindly confirmed, in replies to Written Questions that the term is not defined in legislation but is a “sensitive” word under company law, which means that you need permission from the Secretary of State and a non-objection letter before you can use it in a business or company title.

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[Lord Triesman (Lab)]

My Lords, I should probably have declared my interests in my Second Reading speech—but they are in the register and I declare them now.

I will start with a theme that the noble Baroness, Lady Deech, and other noble Lords brought up: autonomy. I shall not, given how long the debate has gone on, repeat the points that the noble Lord, Lord Smith of Finsbury, my noble friend Lord Winston and other noble Lords made. In particular, my noble friend Lady Warwick made a substantive speech which I hope will command the attention of the House. I remind the House of the mechanisms that we utilised in the past to try to ensure that university autonomy was sustained whatever the Government of the day, however unpopular or controversial the issues that might be raised, and however much public sentiment might not approve of them.

All through the history of modern universities, this country has inserted buffer arrangements between the state and higher education—and that is not an accident. It was an absolutely deliberate intention to make sure that the great qualities of universities could be sustained, irrespective of the calamities—the world wars and the other huge movements in tectonic plates. There was the UGC, later HEFCE, and even, when the polytechnics were going through the process of becoming universities, the work of the CNAA, which was designed to make sure that the older universities played a part in ensuring that the quality of the newer universities would be sufficiently adequate or better than sufficiently adequate to take their place as universities among the entire group—a system which worked well in England, Scotland and, as far as I am aware, in Wales. However, in every single case, and in particular in relation to teaching, the processes were both thorough on the part of those buffer bodies and also a protection of the autonomy and independence of universities so that they could pursue matters with genuine academic freedom.

In the field of research, the work that was originally done on quality assurance was never made prescriptive in a way that interfered with the autonomy of universities but expressed a desire to see great excellence being achieved in those places where it was possible and a broader spread of excellence in those places which perhaps could not do some of the work in particle physics or whatever it might be. I can remember—it is one of the interests I have declared—the negotiations with the noble Lord, Lord Boswell, about the character of the research excellence framework that he wished to see. Even the annual letter from the Secretary of State, first to HEFCE and then through the more recent period, was a general outline of what the expectations of the country were. It was never a set of orders to which universities must subscribe, which would lead, were they not to do so, to them being closed, cut back or denigrated. These were genuine protections. I am not trying to repeat a Second Reading point but these were the values to which this country signed up in 1997 in the UNESCO normative treaty on academic freedom and the independence of institutions, which this Bill would tear up.

I think that very careful thought about this amendment, which I intend to support, would be repaid, and the Minister will have to give very convincing reasons why, even in Committee, we should not consider it. Some of the arguments that have been put forward in your Lordships’ House this afternoon do not bear much examination. For example, as my noble friend Lady Cohen said, it is not the case that universities must all provide the full range of subjects. The wording is “an extensive range”.

I put it to the noble Lord, Lord Willetts, for whom I have great admiration, that it is not the case that many of the more specialist institutions are so narrow that they do not do a wide range of things, as those of us who have had the privilege of being Ministers covering higher education will know. Imperial College London was mentioned a while ago. The college is rich in every science, including all the social sciences, and it has absolutely magnificent ratings in all those areas. Even the conservatoire music colleges have usually extended their range. SOAS is certainly another example—and there are many. For the avoidance of doubt, there may be an opportunity in what the Minister says to achieve greater specificity regarding what we mean, but in my view that is the bottom line.

In conclusion, I am absolutely astounded by our squeamishness in worrying about whether we can define a university. There have no doubt been massive debates right across time about whether we can do that. I remember recently reading an account of whether Bob Dylan really had created literature, and there was a huge debate about what literature might be. There are always debates about these broader concepts. However, broadly speaking, when you go around the world and talk to people about coming to a university in the United Kingdom, they know very well what you mean. It is not an accident that so many people apply to come to the United Kingdom to study in our universities and they do not all complain that the terminology is fusty and old. I can imagine a focus group saying, “If only we didn’t call them universities. Let’s call them ‘higher education providers’ and floods of people will suddenly appear. The marketing will be transformed”. People come because of their expectations.

I say to the noble Lord, Lord Hodgson, that there may very well be people who are dissatisfied, or whose children are dissatisfied—but, broadly speaking, when you look at the number of people who want to come here and who understand perfectly well what we offer, you do not see a system that has broken down, although of course it could do with some reform. I have looked high and low to see what crisis the Bill is intended to resolve and I do not believe that it can be found. If it could, I can tell your Lordships that three areas for which I used to have responsibility—the Chevening, Marshall and Commonwealth scholarships—would be devoid of people wanting them. On the contrary, every single one of them is fought for.

[Baroness Wolf of Dulwich]

My Lords, I apologise for taking more of the Committee’s time but I feel that we are losing sight of one of the major reasons why my name is attached to this amendment. I believe very strongly that we have to consider, up front, a definition of a university in the Bill. It is a question not of whether we do or do not have a definition but of who controls that definition. Absolutely rightly, the Bill distinguishes between degree-awarding powers and the title of “university”. So it should and so it must, because we are now in a world where many institutions which are not and will never wish to be universities give degrees. Further education colleges are a very obvious and important sector.

We are also, I am delighted to say, moving into a world with degree apprenticeships. The question is whether the definition of a university is perhaps not super-precise but clear and perfectly workable, like almost every other definition in legislation all over this land, or whether we leave the decisions about what a university is to the bureaucrats of the Office for Students, who will make those decisions but will never actually have to make them public.

So I come back to the purpose of this amendment and why we feel it is so important. If we do not have a definition in the legislation, there will be a definition but we will none of us have any control over it and we will never know what it is.

Private Colleges

Baroness Wolf of Dulwich Excerpts

Wednesday 21st December 2016 Lords Chamber

[Viscount Younger of Leckie]

One of our reforms is to set up the Office for Students, as I mentioned earlier. It will provide one register to set a level playing field. This means that if, in what would perhaps be an unusual case, a private provider does not meet the standards required, there are student protection processes in place. That is an important part of our checks and controls.

[Baroness Wolf of Dulwich (CB)]

My Lords, as the Minister will know, additional powers were taken recently to allow the Home Office and what was then BIS to place caps on numbers where there were concerns about quality and recruitment among private providers. It appears that that power will be lost under the provisions of the Higher Education and Research Bill, which will impose quality restrictions but, if provisional degree-awarding powers are given, will set no caps on numbers. In other words, the Government are actually getting rid of some of the powers that they have taken in recent years. I would be grateful if the Minister could clarify if this is indeed the case and whether it would not be wise to retain for new institutions the ability to place a clear cap on student recruitment numbers.

[Viscount Younger of Leckie]

The new alternative providers, such as the recently announced Dyson Institute, will include some student number controls, but there will be a rigorous risk-based approach to quality assurance and a moratorium on the designation of new higher national courses. There will also be a fit-and-proper-person test for the running of APs. The noble Baroness and I will meet later and I look forward to talking further to her about that issue.