Student Finance Update

Lord Johnson of Marylebone Excerpts

Monday 9th October 2017 Written Statements

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

I am today confirming the earnings threshold above which individuals are required to make contributions to the cost of their education from April 2018. I am also confirming the maximum tuition fees for the 2018-19 academic year.

Earnings threshold

The earnings threshold will be increased from 6 April 2018. From its current level of £21,000 the threshold will rise to £25,000 for the 2018-19 financial year. Thereafter it will be adjusted annually in line with average earnings.

The new threshold will apply to those who have already taken out and will take out loans for tuition and living costs for full-time and part-time undergraduate courses in the post-2012 system and those who took out or will take an advanced learner loan for a further education course.

The lower threshold for variable interest rates for post-2012 student loans will also rise to £25,000 on 6 April 2018, and the upper threshold will rise to £45,000 from £41,000 on the same date. Both the repayment and variable interest thresholds will be adjusted annually in line with average earnings thereafter. In 2018-19 around 600,000 borrowers will benefit from the threshold changes. Most of those 600,000 borrowers will both make lower contributions and have a lower rate of interest applied.

The repayment thresholds applicable to pre-2012 student loans, the older mortgage style loans and master’s loans are not affected by these changes.

Tuition fees

Maximum tuition fee caps will be maintained at 2017-18 academic year levels in the 2018-19 academic year.

For HEFCE funded providers that have a current Teaching Excellence Framework (TEF) award and have an access agreement with the Office for Fair Access (OFFA), the maximum tuition fee for full-time courses will remain £9,250 in 2018-19. For HEFCE funded providers that have a current TEF award but do not have an access agreement with OFFA, the maximum tuition fee for full-time courses will be £6,165 in 2018-19. For HEFCE funded providers that do not have a current TEF award, the maximum tuition fee for full-time courses in 2018-19 will remain £9,000 for providers with an OFFA access agreement and £6,000 for providers without an OFFA access agreement.

Maximum fee loans for all new students and eligible continuing students who started their full-time courses at publicly funded providers on or after 1 September 2012 will be maintained at £9,250 in the 2018-19 academic year.

For continuing students who started their full-time courses before September 2012, maximum tuition fee and fee loan caps at publicly funded providers in 2018-19 will be maintained at £3,465.

For HEFCE funded providers that have a current TEF award and have an access agreement with OFFA, the maximum tuition fee for part-time courses will be £6,935 in 2018-19. For HEFCE funded providers that have a current TEF award, but do not have an access agreement with OFFA, the maximum tuition fee for part-time courses will be £4,625 in 2018-19. For HEFCE funded providers that do not have a current TEF award, the maximum tuition fee for part-time courses in 2018-19 will be £6,750 for providers with an OFFA access agreement and £4,500 for providers without an OFFA access agreement.

Maximum fee loans for all new students and eligible continuing students who started their part-time courses at publicly funded providers on or after 1 September 2012 will be maintained at £6,935 in 2018-19.

For all new students and eligible continuing students who started their full-time courses on or after 1 September 2012 and are undertaking courses at private providers that have a current TEF award, the maximum fee loan will be £6,165 in 2018-19. For private providers that do not have a current TEF award, the maximum fee loan for full-time courses will be £6,000 in 2018/19.

For all new students and eligible continuing students who started their part-time courses on or after 1 September 2012 and are undertaking courses at private providers that have a current TEF award, the maximum fee loan will be £4,625 in 2018-19. For private providers that do not have a current TEF award, the maximum fee loan for part-time courses in 2018-19 will be £4,500.

The Government will set out further steps on HE student financing in due course.

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Oral Answers to Questions

Lord Johnson of Marylebone Excerpts

Tuesday 12th September 2017 Commons Chamber

[Adam Afriyie (Windsor) (Con)]

6. What steps he is taking to support growth in the UK space sector.

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

The UK has a world-leading space sector. A quarter of the world’s satellites are either built in the UK or have major components from the UK. At the last European Space Agency ministerial in 2016, the Government agreed €1.4 billion of new funding for space programmes, and we have recently introduced the Space Industry Bill, which will enable UK firms to participate in a sector worth £25 billion.

[Mr Jayawardena]

I thank the Minister for his very encouraging answer. The tender for the next stage of the ground control segment of the Galileo programme, in which the UK has a leadership role, is currently live, so will he make sure that the European Commission’s request for UK-based companies to clarify how they will repatriate activities to the EU does not undermine them in winning contracts?

[Joseph Johnson]

My hon. Friend raises an important point. British expertise has been absolutely fundamental to the development of the Galileo and Copernicus programmes. The “Collaboration on science and innovation” paper we published just last week made it clear that the UK would very much welcome an agreement to continue to collaborate with our European partners on major science, research and technology initiatives. My right hon. Friend the Secretary of State and I have made it clear that we want our companies and our universities to continue participating in key EU space programmes.

[Adam Afriyie]

The ingenuity, expertise and experience of our UK space sector enables us to punch well above our weight and to collaborate globally in bodies such as CERN, ESA and many others that predate the EU. Does the Minister agree that we should continue fully to support the role that British companies play in both other European space agencies and the EU space programme?

[Joseph Johnson]

My hon. Friend has great expertise in this area, through his association with the parliamentary space committee. I can reassure him, as I did a moment ago, that we are committed to continuing to collaborate closely with European countries to develop our space sector to the benefit of all those in employment in this sector in this country.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Minister probably knows that precision engineering companies in Huddersfield are very much involved in the Mars probes and the space programme, but does he know that they are increasingly worried, as is the University of Huddersfield, about the future of partnerships across Europe and the funding from Europe that makes that exploration and the existence of those cutting-edge companies possible?

[Joseph Johnson]

At the ESA ministerial council in December, the UK committed a record sum of €1.4 billion to ESA. We are committed to continuing to participate in ESA, which, as the hon. Gentleman knows, is not part of the EU but a separate organisation entirely. We see great value in continuing to participate in the programmes it administers.

[Jim Shannon (Strangford) (DUP)]

The Minister is right to address the space sector. He will also be aware of issues within the aerospace sector, in particular at Bombardier. He will be aware of Boeing’s attempts to stop the contract and to add $30 million to every C Series plane coming out of Belfast. What is he doing to ensure that Bombardier’s contract is secured?

[Joseph Johnson]

None the less, I assure the hon. Gentleman that we are engaging very closely with the companies involved and will follow up on his points.

[Vicky Ford (Chelmsford) (Con)]

14. In my constituency of Chelmsford, more than 500 jobs at Teledyne e2v are directly involved in the space sector. We are making the cameras that will go on satellites out in space to see whether there is life on other planets. Will the Minister reassure my constituents that the UK’s ongoing contribution to the European Space Agency is being considered?

[Joseph Johnson]

Absolutely; we are committed to our ongoing membership of the European Space Agency. As I said a second ago, we have just provided €1.4 billion of new funding for its programmes. Teledyne e2v in my hon. Friend’s constituency makes an important contribution to the success of the programmes that ESA is running.

[Mr Laurence Robertson (Tewkesbury) (Con)]

5. What recent assessment he has made of the UK’s manufacturing capacity.

--- Later in debate ---

[Jo Churchill (Bury St Edmunds) (Con)]

T3. The life sciences industry is worth £64 billion to the UK, and Sir John Bell’s report last week indicated how important manufacturing was. Will the Minister therefore join me in welcoming the opening of the cell and gene manufacturing unit and welcome further jobs in this industry in the east of England, particularly in my constituency?

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

We indeed welcome that. Medicines manufacturing is key, which is why we have launched a £146 million medicines manufacturing programme under the industry strategy challenge fund. That includes £12 million for expansion of the cell and gene therapy manufacturing centre. The other centres, a vaccines centre, a medicines manufacturing innovation centre and three advanced therapy centres, are open to competition and could be located anywhere in the country, including in the east of England.

[Jessica Morden (Newport East) (Lab)]

T5. This week’s electricity grid connection deal would make the Cardiff tidal lagoon the UK’s largest renewable energy project, generating some of the cheapest power in the country, and it would be a big boost to Newport, but its potential can be realised only with the Government first backing the pilot project in Swansea bay. When will that happen?

The 2016 Government Chemist Review

Lord Johnson of Marylebone Excerpts

Tuesday 12th September 2017 Written Statements

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

The 20th annual review of the Government Chemist has been received. The review will be placed in the Libraries of both Houses and those of the devolved Administrations in Wales and Northern Ireland. The review will also be laid before the Scottish Parliament.

The Government Chemist is the referee analyst named in Acts of Parliament. The Government Chemist’s team carry out analysis in high-profile or legally disputed cases. A diverse range of referee analysis work was carried out during 2016, including measurement disputes relating to mycotoxins, authenticity, protein allergens and sulphites.

[HCWS123]

Tuition Fees

Lord Johnson of Marylebone Excerpts

Wednesday 19th July 2017 Commons Chamber

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

The Labour party wants to talk about process because its policy platform is disintegrating before our eyes. I welcome the opportunity to set out once again the Government’s approach to the student fees regulations. This is hardly new terrain for Parliament. The Government made it clear as far back as the Budget in June 2015 that maximum tuition fees would rise in line with inflation, and I set out changes to fees in detail for 2017-18 in a written ministerial statement in July 2016. Changes to fees were subsequently extensively debated during the passage through both Houses of the Higher Education and Research Act 2017, with numerous votes on student finance issues that were all won by the Government.

The regulations are not “proposed” as the hon. Member for Ashton-under-Lyne (Angela Rayner) suggested: they have been in force for six months. This debate, which cannot change arrangements for 2017-18, is therefore a sham exercise. I suspect that this is simply more of the same cynical politics we saw over the weekend, when Labour broke its own pre-election pledge—about which we have heard so much this afternoon—to write off historic student loan debts.

Let us recall precisely what the Leader of the Opposition told the NME seven days before the general election. He said:

“I don’t see why those that had the historical misfortune to be at university during the £9,000 period should be burdened excessively compared to those that went before or those that come after. I will deal with it.”

That was a clear pledge to young voters. The first sign of trouble came when the shadow Education Secretary said a few days ago that she was still trying to work out the costs of that policy on a big abacus. The penny dropped completely over the weekend when we heard from the shadow Chancellor and others that that pre-election promise was being downgraded to the lowly status of an ambition. We all know what that means. It means that it is never ever going to happen. It does not do anything for the credibility of the Labour party to abandon such a striking commitment to young people just a few weeks after the general election.

[Simon Hoare]

I may be becoming a little forgetful, but was the manifesto to which my hon. Friend just referred the “fully costed” manifesto from the Labour party?

[Joseph Johnson]

My hon. Friend has exposed the truth, which is that the Labour party is delivering what is perhaps the biggest act of political deception we have seen in decades. It is the old game of bait and switch, saying one thing before a general election and another thing immediately after. Of course, given that this would be a £100 billion hit to our public finances, which would hurt hard-working taxpayers across the country and deliver a significant addition to our national debt and the interest burdens of the next generation, I am glad that the Labour party has done this spectacular and embarrassing U-turn. I suspect that it will not be too long before it abandons the rest of its unaffordable, unfunded and fantastical policy platform. It is a programme that it has clearly taken wholesale from the statist playbooks of 1970s tax-and-spend regimes that all ended up needing the International Monetary Fund to step in.

The policy that Labour proposed before the general election would have increased our national debt by a whole five percentage points of GDP, adding no less than £3,500 to the debt carried by every household in the country.

[Kwasi Kwarteng (Spelthorne) (Con)]

At what point does my hon. Friend think the hon. Lady decided to make that U-turn? Can he enlighten the House on that? It seems a real puzzle.

[Joseph Johnson]

I suspect that the Opposition decided to do that spectacular U-turn when they realised what impact it would have on hard-working taxpayers up and down the country. As I have said, the proposal to write off student debt will add £3,500 to the debt carried by every household in the country.

[Ms Karen Lee]

The decision to scrap the maintenance grant means that the most disadvantaged students will graduate with the highest level of debt. Does the Minister think that is fair?

[Joseph Johnson]

A better way of looking at it is that the Government are making the most resources available to the people who are most in need of them. We want people from disadvantaged backgrounds to go to university. We are delighted that they are doing so in record numbers, and that they are now 43% more likely to do so than they ever were before.

[Sir Desmond Swayne (New Forest West) (Con)]

If we were to put the best possible gloss on what the Leader of the Opposition said, and imagine that he was merely misunderstood in his intentions by students when he said that he would “deal with it”, what faith can we put in the new language that is being used? It is now being said that the Opposition will merely “look at” a number of propositions. If we cannot trust what “deal with” means, how can we possibly trust merely “look at”?

[Joseph Johnson]

That is exactly right. The Opposition’s policy platform is collapsing before our eyes. The inevitable next step is their abandonment of the albatross around their neck that is their policy of abolishing tuition fees in their entirety. They are currently saddled with it. They are trying to wriggle off the hook of their clear promise to abolish student debt, and they will soon be trying to get rid of that appalling albatross of getting rid of tuition fees in total. As I have said, abolishing student debt would mean a huge addition to our net debt. The proposal to abolish tuition fees and reinstate maintenance grants would add £12 billion to the national deficit, which is equivalent to 0.7% of GDP and to an additional 2.5p on the basic rate of income tax.

[Chris Bryant]

Let me make a very simple procedural point to the Minister. If the Government want to make dramatic changes in schemes, they should take those changes through the House fairly and properly so that Members can vote on them. Ministers have said repeatedly in the House that if the Opposition pray against a statutory instrument, including those that are relevant in this case, there will be a vote. That promise has not been fulfilled. Will the Minister make it again now?

[Joseph Johnson]

As I said in my opening remarks, we have had lots of votes on student finance issues, and we won them all. [Hon. Members: “What about the statutory instrument?”] The statutory instrument in question has been in force for six months. It went through all the parliamentary processes. Labour Members had plenty of opportunity to push for votes at the correct time; they are now six months too late.

When we reformed student finance in 2011, we put in place a system designed to make higher education accessible to all. Students are now supported by a system of Government-subsidised loans, which are repayable only when borrowers are earning more than £21,000 a year. Controlling the cost of higher education to the general taxpayer who has to fund public spending in this way allowed us, critically, to remove the cap on student numbers and ensure that higher education was available to all with the potential to benefit from it.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

The Minister rightly points out that funding higher education will involve a cost to the public purse. His own Government will be aware that 45% of all loans that are taken out are never repaid, and that after the 30-year rule period has elapsed, 70% of students have a debt outstanding. Has he worked out the figures to establish whether that money, which the Government must ultimately pay off, could be better used to reduce the cost of tuition fees up front so that more students could go to university?

[Joseph Johnson]

The hon. Gentleman is correct in saying that there is a Government contribution towards the loan book. It is a conscious, deliberate Government subsidy towards the skills base of the country, and towards giving more people from disadvantaged backgrounds a chance to go to university with finance being absolutely no barrier. We want people to pursue worthwhile, socially valuable careers that may not lead to high earnings—careers in social work, for instance—and we also want people to be able to take on childbearing and family-rearing responsibilities. Those are all reasons why the state will continue to make a contribution towards the cost of the loan book

[Several hon. Members rose—]

[Joseph Johnson]

I have already given way a number of times, and I am now going to make some progress.

The move to a predominantly loan-based system has enabled us to increase the level of financial support available to disadvantaged students. I am pleased to say that the application rate for 18-year olds from disadvantaged backgrounds is at an all-time high. We have also seen record numbers of black and minority-ethnic students going into higher education in recent years. There is more to be done, but we are making progress. The effectiveness of our system and our reforms has been recognised by the OECD. In September 2016, its head of education, Andreas Schleicher, said

“the UK has been able to meet rising demand for tertiary education with more resources…by finding effective ways to share the costs and benefits”.

The Government remain committed to providing a fair deal for students and ensuring that England’s universities are sustainably and properly financed. That has enabled them to maintain their world-class standing, with funding per student per degree up 25% as a result of our changes.

[Layla Moran (Oxford West and Abingdon) (LD)]

There are two great universities in my constituency, and they are both telling me that they face huge uncertainty because of Brexit, not least because they do not know their own fee arrangements for EU students. They are worried about not attracting those students. What is the Minister doing about that, if he wants to ensure that they are well funded tor the future?

[Joseph Johnson]

We have provided significant clarity in that respect. EU students will continue to be eligible for access to student support in 2016-17, 2017-18 and 2018-19. We have provided the clarity that they need. They know that for the duration of their studies they will be able to come here, access home fee status and access student support.

The £9,000 fee cap that we set in 2012 is now worth £8,500 in real terms. If we leave it unchanged, it will be worth just £8,000 by the end of this Parliament. We simply cannot let that happen, as it would inevitably put the quality of teaching in our universities at risk and undermine the financial sustainability of the sector.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I chair the Business, Energy and Industrial Strategy Committee. Before tuition fees were trebled in 2012, the Committee held a session during which it interviewed the then Secretary of State for Education. He said—I quote from the report—

“When the Government’s economic policies have produced the successful outcome that we all expect, we can return to the question of how universities can be supported in a more generous way, but at the moment we face a massive financial crisis.”

The current proposals are actually less generous, not more generous. Are we still experiencing a financial crisis? If not, when will the present Minister and the current Government live up to the commitment given by that Minister?

[Joseph Johnson]

I am puzzled by that intervention. Our per-university, per-student funding has risen by 25% as a result of our reforms. If the hon. Gentleman wishes to read the report published last week by the Institute for Fiscal Studies, he will see that, on a per-student basis, our universities, per degree, are better funded than they have been at any point during the past 30 years.

[James Cartlidge]

May I pursue the logic of that point? Is it not the case that if these fee increases do not take place, we will effectively be cutting spending on universities? Should we not be fighting cuts and opposing Labour’s plan to cut spending on higher education?

[Joseph Johnson]

Indeed. Our system of student finance is enabling our universities to be funded sustainably. As I have said, per-student, per-degree funding is up by 25%, but we will put all that at risk if we move anywhere near Labour’s policy platform.

[Mims Davies (Eastleigh) (Con)]

Is it not true that Labour Members are now feigning confusion over parliamentary process on this, having previously deliberately created their own confusion? The reality on the doorsteps across Eastleigh was that Labour’s promise to deal with tuition fees included the possibility of covering bank overdrafts. Does the Minister agree that this is an empty promise from a mathematically illiterate party? People felt bank overdrafts, as well as student loans, were being dealt with.

[Joseph Johnson]

That goes to show the extent to which the Labour party misled the country in the run-up to the general election, and I think my hon. Friend’s constituents are owed an apology.

Let us not forget that it was a Labour Government under Prime Minister Tony Blair who sensibly put in place these legal powers, which we used some six months ago, to uprate fees in line with inflation through a negative procedure. However, under the regulations we are debating today, rather than increasing fees for everyone, we are only allowing providers to maintain their fees in line with inflation if they can demonstrate that they are using these resources well in terms of providing high-quality teaching and good outcomes for their students. Universities UK and GuildHE, the two main representative bodies that collectively represent over 170 higher education providers, have made it clear that allowing the value of fees to be maintained in real terms is essential if our providers are to continue to deliver high-quality teaching. Gordon McKenzie, the chief executive of GuildHE, made it clear that

“fees had to rise by inflation at some point and it was fairer for students if those rises were linked to an assessment of quality”,

as the Government are doing.

[Julian Knight (Solihull) (Con)]

University education is also a route to higher earnings, worth up to a quarter of a million pounds over a lifetime. If we go forward with Labour’s policy to abolish tuition fees, it would have a damaging effect on those from disadvantaged backgrounds, as we have seen in Scotland, where there is a fall in the number of people from disadvantaged communities applying to university.

[Joseph Johnson]

My hon. Friend is absolutely right. Labour’s policies would do the opposite of what it says they would do; they would represent a huge step backwards for social mobility in this country, they would be bad for taxpayers, who would be left shouldering the entire cost of the higher education system, and they would leave the finances of our university system in tatters.

As Professor Steve Smith, vice-chancellor of Exeter University, has said:

“The Teaching Excellence Framework presents us with an opportunity to invest in our students’ futures and the long-term economic success of our country, and to be recognised for outstanding teaching at the same time…The Government rightly wants ‘something for something’, for the economy and for students.”

[Wes Streeting]

I am shocked that vice-chancellors want tuition fees to rise—this comes as a complete surprise to everyone!

Vice-chancellors want fees to rise every year. Surely the Minister will be able to confirm today that tomorrow he is very likely to use powers to once again increase tuition fees to a higher level, and that once we get to 2019-20, under the Higher Education and Research Act 2017, passed just before the general election, we are going to have to have votes in Parliament in order to allow and facilitate fees rises. If we are going to be doing that in the future, why not do it now?

[Joseph Johnson]

As I have already made clear on a number of occasions, these regulations have been in force for the last six months; they are already law—they are already applying across the sector.

Widening participation is an important policy objective for this Government. Alongside incentivising improvements in teaching, the Government’s policies on student fees have also allowed us to lift the student number cap. This is allowing more people than ever before to benefit from a university education. As I said, disadvantaged 18-year-olds are now 43% more likely to go to university than in 2009, and 52% more likely to go to a high-tariff institution. For the last application cycle, the entry rate for 18-year-olds from disadvantaged backgrounds is at a record high: 19.5% in 2016, compared with 13.6% in 2009. The application rate and actual number of English 18-year-old applicants is at record level in this entry cycle.

This Government have made it clear that finance should not be a barrier to going to university, which is why we have made more funding available to students. By replacing maintenance grants with loans, we have been able to increase the funding for living costs that some of the most disadvantaged students receive. It is an increase of over 10% in the current academic year, with a further 2.8% increase for 2017-18. We have worked with the Office for Fair Access to encourage universities to do more to help disadvantaged students. In 2017-18, institutions are expected to spend over £800 million on measures to improve the access and success of disadvantaged students. This is more than double the amount spent in 2009-10.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I am sure my hon. Friend is aware that our education exports last year exceeded those of our insurance industry, mainly fuelled by the excellence of our universities. If we do not fund them properly, we will not maintain world-class education at our universities.

[Joseph Johnson]

My hon. Friend is entirely right. Sustainable funding of our system is essential for our universities to continue to attract international students from around the world. Moving to the system Labour is advocating would leave their finances in tatters and be hugely damaging to the quality of teaching they can offer.

Although we are making good progress on widening participation, more can be done, and we are doing more. For example, in the latest guidance given to the Director of Fair Access we acknowledged that selective institutions, including Oxbridge and parts of the Russell Group, already do much to widen access, but we have asked the Director of Fair Access to push much harder to see that more progress is made. In the Higher Education and Research Act 2017, we are strengthening our approach to widening participation by placing an overarching duty on the Office for Students to consider the promotion of equality of opportunity in relation to access and participation in all that it does. The new Director for Fair Access will have a clear role looking across the full student lifecycle.

The hon. Member for Blackpool South (Gordon Marsden) has been chuntering about drop-out rates for several minutes. I would like to inform him that drop-out rates are lower now for all students—young, mature, disadvantaged and those from black and minority ethnic backgrounds—than when we came into office in 2010, and we are taking all the steps I have just mentioned to ensure they stay among the very lowest in the OECD. The Act also requires individual higher education providers to publish their respective student application, offer, acceptances, drop-out and attainment rates, broken down by gender, ethnicity and socioeconomic background, through the transparency duty on the Office for Students. Greater transparency will push universities into further action in this area, to build on what has already been achieved.

[Mike Amesbury (Weaver Vale) (Lab)]

Will the Minister confirm that applications from mature students were down by 18% in the last year alone? In 2011-12, applications from part-time students were down by a massive 30%.

[Joseph Johnson]

The hon. Gentleman makes an important point, and I acknowledge the fall, but he needs to understand that there are complex reasons for it, including the rapid increase in the proportion of people entering higher education at the young age of 18. This means that there is a smaller stock of students seeking to participate in part-time and mature study later in life. We also have one of the most buoyant labour markets of any economy anywhere in the world, which increases the opportunity cost of study for people later on in life, at a time when they would otherwise be earning significant sums of money. But we recognise that there is a fall, and we are taking significant steps to address some of the financial barriers that mature students face. That is why from the next academic year we are introducing a part-time maintenance grant on the same basis as the current full-time equivalent grant.

[Andrew Percy]

On the point about disadvantage, before young people get to university they have to go through the FE system. Will the Minister therefore congratulate North Lincolnshire’s Conservative council, which has confirmed this week that its post-16 student bus passes will again be set at £30 for the coming year, down from £200 a year under Labour? Does this not demonstrate once again that, when it comes to students, Labour says one thing when in opposition and does something very different when in power?

[Joseph Johnson]

My hon. Friend makes some superb points, and he is a tireless champion of his constituents.

On the repayment of loans, our repayment system offers a fair deal to students. The current student loan system is deliberately subsidised by the taxpayer and is universally accessible to all eligible students, regardless of their personal financial circumstances or credit history. Our repayment system is based on income, not on the amount borrowed. Graduates with post-2012 loans pay back only when they are earning more than £21,000, and then only 9% of earnings above that threshold. After 30 years, all outstanding debts will be written off altogether with no detriment to the borrower, and the Student Loans Company has no recourse to their other assets. The maximum fee cap is being maintained in line with inflation in 2017-18, so it will not be increasing in real terms for anyone going to university. We believe that it is right for those who benefit most from the higher education they receive to contribute to the cost of it. We should not forget that higher education leads to an average net lifetime earnings premium that is comfortably over £100,000.

Labour continues to scaremonger about the changes to higher education. The Conservative-led coalition and this Government have introduced important reforms. The Opposition have promised to write off student debts, to cut tuition fees and to restore maintenance grants. However, they have failed to set out a credible plan on how to fund their promises, and are now shamelessly abandoning them just weeks after the general election. That is hardly surprising, given that they had not even managed to persuade key figures in the Labour party who served in their previous Government. For example, Lord Mandelson described their policy offer as “not credible” and urged Labour to

“be honest about the cost of providing higher education”.

Of course, it is not just Lord Mandelson who has commented on this. The former shadow Chancellor, Ed Balls, said that his party’s failure to identify a sustainable funding mechanism was a “blot on Labour’s copybook”.

I therefore challenge the Opposition to explain how they would fund their alternative proposals on tuition fees, maintenance grants and the write-off of student debt. We estimate the annual cost of their policy on tuition fees to be £12 billion a year over the next five years of this Parliament. In addition, a one-off expenditure would be required to make good the promise of writing off historical student debt to the tune of £89.3 billion in cash costs. If Labour wanted to go the whole hog, a further £14 billion would be required to compensate graduates for historical borrowing that they had already repaid.

Make no mistake, Labour’s policy of abolishing fees would be a calamity. It would be ruinous for our world-class university sector, leading almost certainly to a fall in per-student funding of the same magnitude we saw in the decades before the introduction of top-up fees—a fall of around 40% in terms of the unit of resource. It would lead to the inevitable re-imposition of student number controls, which would cause the poorest and most disadvantaged to miss out on university, throwing social mobility into reverse. It would do all this at an eye-watering cost to the hard-working general taxpayer, whether he or she had been to university or not. Gone would be the concept of a fair sharing of the costs of university between graduates with higher-than-average lifetime earnings and society at large; taxpayers would foot the entire bill. That would be bad for universities, bad for students and bad for the taxpayer. It is no surprise that in the one place where Labour is in power, it has chosen a different approach. Last week, the Labour Government in Wales quietly increased their tuition fees for 2018-19 to £9,295 a year, making them marginally higher than the current rates in England. Labour in Wales at least knows that the party opposite’s plans are unfair to students and ruinous to universities. Perhaps it should tell the Labour party leader.

[Angela Rayner]

On a point of order, Mr Speaker.

--- Later in debate ---

[Wes Streeting]

As someone who has always campaigned for wider access to higher education and who believes strongly that we should have more, rather than fewer, better educated people in our country, I welcome the fact that more students are in higher education than ever before. I am glad that the hon. Gentleman raises that point, because it brings me to the issue of Government complacency. It is not really a surprise that more young people are going to university than ever before: there are more young people than ever before. In addition to the shocking record on part-time and mature access—students in those cohorts tend to be from non-traditional and under-represented backgrounds in higher education—the Government are hugely complacent about the extent to which working-class young people are being deterred from accessing higher education by fear of tuition fees and debt.

[Joseph Johnson]

The hon. Gentleman has made a specious point. It is the rate for people from disadvantaged backgrounds that is 42% higher than it was in 2009-10. That has nothing to do with the number, although that is also higher.

[Wes Streeting]

The Minister is right that there has been progress—I do not doubt that—but once again he underlines my point about complacency. Research published by the distinguished academic Professor Claire Callender of University College London warned:

“When we compared working and upper-class students with similar GCSE results, taking account of differences in gender, ethnicity and type of school attended…a lower percentage of working-class students had applied to university…compared with those from an upper-class background…because of these fears.

Our study is an important reminder that academic achievement at school cannot adequately explain the lower proportion of students from poorer backgrounds. High fees and fear of debt play a crucial role.”

I caution the Government against complacency on this issue. They have been consistently complacent about it since they decided to treble fees. If they were not complacent, they would never have abolished the maintenance grants, which was one of the most terrible policies of the last Parliament.

It is not surprising that so many people—not just young people, but parents and grandparents—are angry about the extent to which students and graduates have been plunged into record levels of debt. It is not surprising that the issue has hit the top of the political agenda. It is not only Ministers who are to blame; university vice-chancellors should take some responsibility, too. There is scant evidence that trebling university tuition fees has led to a better quality of experience for undergraduate students. In fact, the student experience survey suggests the opposite. Students believe they get less value for money than they did before. Frankly, looking at retention rates and graduate destination data for certain courses at certain universities, those vice-chancellors who continue to award themselves inflation-busting pay increases should be ashamed.

The truth is that if people from a disadvantaged background take the plunge, go to university, take on the risk of the debt and, for whatever reason, are unable to complete the course, the cost to them is far higher than if they had never been to university—not just in terms of the debt that they still have to repay, but because on their CVs they will forever be branded failures by employers. Having been awash with cash, thanks to higher fees, in a way that the rest of the public sector has not, universities have not demonstrated the duty of care or responsibility to students that I would expect for the fees that they charge and the level of debt that results. We have to be much firmer with universities.

My final point is a broader one about where social mobility in this country is headed and the state of political debate about that. I am horrified by the number of housing cases that I deal with involving children, and the impact on their education. As I said in Communities and Local Government questions this week, I did a school visit last week, and at the end of the Q and A with a group of year 6 students, I was pulled aside by an 11-year-old boy who told me that he, his mother and his two brothers have been living in one room in a hostel, in so-called temporary accommodation, for more than a year.

I will never forget the conversation that I had in my surgery with a mum and her teenage daughter. Again, they were living in one room, in a bed and breakfast. The daughter has to do her homework under the covers at night, with a torch. She does not want to disturb her mother’s sleep, because her mother works all hours to try to make ends meet—evidently not very successfully, which is why they are stuck in poverty in a single room in a hostel.

I will certainly never forget another mother who came to me, a victim of domestic violence living in Ilford with three children, two of primary-school age and one teenager. Her daughter had admitted that she had considered taking her own life because her circumstances were so appalling. That family do not live in Ilford any more; they were moved to Harrow in west London, and then to Wolverhampton.

This is what really upsets me, as someone who grew up on a council estate and did not enjoy the experience: however bad I thought my childhood was—growing up in poverty and relying on the benefits system; living in a council flat that was not nice and to which I did not want to invite friends round to play, because it was not the sort of environment in which they would feel welcome—I realise how lucky I was now. The policies of successive Conservative Governments have led us to a point at which we are disrupting children’s education by moving them from pillar to post in temporary bed-and breakfast accommodation, with huge consequences for their education today and their life chances tomorrow.

If the Government were serious about social mobility, it would be an overriding priority running through every single Department. However, their policies and their pet projects—grammar schools, free schools and everything else—are so far removed from the reality of most people in the country, and from policies that would genuinely make a transformational difference, that they really ought to be ashamed. Theirs may be the largest party, but there is a reason for their failure to win a majority at the general election, and that is their deep detachment from the everyday lives of most people in this country.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to follow the hon. Member for Ilford North (Wes Streeting), although I did not concur with all his points. I will address one or two of them in my speech. First, however, let me join others in congratulating the hon. Member for Blaydon (Liz Twist). She made a very touching and well-delivered speech, and it was wonderful to hear about her work in the Samaritans, which—in addition to her work as a Member of Parliament—shows that she is a true public servant. Whatever the public or the media may say, I believe that the vast majority of people who decide to enter the world of parliamentary politics do so because they want to make the world a better place, and it is clear that that is why the hon. Lady is sitting on the green Benches today. I welcome her to the House.

I think that all of us, when we remember our time at school, describe someone as our favourite teacher. Mine was a gentleman called Ken Hudson, my physics teacher. Ken was a pipe-smoking, bespectacled gentleman with a haircut like Ray Reardon’s—hon. Members may remember that he was a snooker player. Ken was definitely my inspiration, although I did not do tremendously well in physics at A-level or at college.

I remember the day we did our physics mock O-level. None of the class did particularly well. Ken walked into our classroom, stood by the blackboard, wiped it down, and just looked at us until we all went very quiet. Then he wrote across the blackboard in chalk, “The world does not owe you a living”. That has stuck with me for 37 years, and it has stuck with my children, too, because I tell them about it an awful lot—the principle that the world does not owe anyone a living. I also tell them that their parents do not owe them a living.

My son, who had just left his sixth form, had to choose whether to go to university or enter the world of work. Was he going to invest in his education? Was he going to university? If a person can provide for themselves at 18, the world does not owe them a living. At that point, it is their decision whether to invest their money—tuition fees and student accommodation away from home—and time. All that would add to my son’s debt in the future. Did he want to spend up to £30,000, £40,000 or £50,000 on his education, which might pay in the future? As we have heard, it could pay up to a quarter of million pounds over a lifetime, so that might have been a sensible choice to make. He decided not to do that, but instead to move into the world of work. Do I think it is right that he, having made that decision, should fund others who choose to go down a different route and enter higher education and university? I do not think it is right that he should have to bear that burden; surely the burden should be carried by those who benefit most from that education.

Of course other people benefit from the fact that our society is better educated, but there is a clear correlation between someone’s education and their investment in it, and the long-term return that they will see from it. A balance needs to be struck; somebody has to pay. We do not have a bottomless pit of money; that is an absolute fact. So who will pay is the key question.

I tried to intervene on the hon. Member for Ilford North (Wes Streeting), because I wanted to ask him a question. He has a very sensible economic perspective. At a time when we are spending £60 billion more every year than we are collecting in taxes, does he honestly feel that the £11.2 billion a year allocated to this policy in the Labour manifesto is the best way to spend that public money at this time, with all the other demands we have, including on our healthcare and our pre-18 education? Does he honestly feel that is the best use of that public money? I do not.

We have to make ends meet in this country, and therefore must choose where to allocate our resources for the best effect. [Interruption.] I am happy to take an intervention, but the point is that the Labour manifesto clearly has £250 billion of extra spending, plus £25 billion a year in infrastructure spending, which is another £125 billion. It would also nationalise the water companies and the railways. That amounts to £500 billion of extra debt. That same manifesto also says that if Labour had been in government they would have reduced the national debt over the course of this Parliament. How is that possible? How does any of this stack up? It is uncosted spending after uncosted spending.

The issue of past student debt was not in the manifesto, of course, but what the Leader of the Opposition said about that is clear, and not every party commitment needs to be in the manifesto for people to have a reasonable degree of expectation that it will be delivered. He said:

“I will deal with those already burdened with student debt.”

That was a clear commitment. So on top of that £500 billion, there is another £111 billion—uncosted debt after uncosted debt. That is the reality, and we cannot carry on like that. We must not go back to the 1970s, which is when I grew up; my household had uncollected rubbish and the TV used to go off at 10 o’clock. I am old enough to remember that, and we will return to it if we do not maintain a sensible economic policy.

It is wrong to think that we on this side of the House are not worried about student debt. Of course I am worried about student debt—both that of the many students across the country, and potentially that of my children, as I have three more children, some of whom might choose to go to university. We should be talking about constructive ways of allowing students to go through university and benefit from higher education without incurring so much debt. One way of doing so would be to have shorter courses. My daughter is looking at a psychology course.

[Joseph Johnson]

My hon. Friend will be pleased to know that the Higher Education and Research Act 2017, enacted on the last day of the last Session, makes it possible for universities to offer shorter courses, such as two-year degrees.

[Kevin Hollinrake]

That is an example of ideas in action, and it is tremendous news. I should have been following that more closely, but—[Interruption.] I see that you want me to conclude, Madam Deputy Speaker, but I will make a couple of quick points, if I may.

We should look at the US system, with its modular courses. Students can also live closer to home and not incur the accommodation and living costs involved in moving away. There are ways to reduce the financial impact on students, but overall this is about choice and who pays for those choices. I believe the burden of the cost should be borne by those who benefit from the education.

Oral Answers to Questions

Lord Johnson of Marylebone Excerpts

Tuesday 27th June 2017 Commons Chamber

[Layla Moran (Oxford West and Abingdon) (LD)]

8. What discussions he has had with Cabinet colleagues and other key stakeholders on the potential effect of the UK leaving the Euratom treaty on energy suppliers and on the availability of radioisotopes for the NHS.

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

We have discussed the UK’s exit from Euratom across the Government and with key stakeholders. Our objective is to ensure that leaving Euratom has no adverse impact on energy suppliers or on our international commitments on nuclear non-proliferation. Medical radioisotopes are not special fissile nuclear material, and are not subject to international nuclear safeguards. Therefore, their availability should not be impacted by the UK’s exit from Euratom. As the hon. Lady will have seen, the Queen’s Speech announced the Government’s intention to legislate to establish a domestic nuclear safeguards regime.

[Layla Moran]

Yesterday The Times reported that officials from the Minister’s Department estimated that it would take seven years to negotiate equivalent terms to this treaty. Given that experts have warned that, above all, we must avoid a cliff-edge withdrawal, does he not agree that leaving on the current timeline is infeasible and that it would be in the UK’s best interests to stay in Euratom and avoid this mess?

[Joseph Johnson]

I should have welcomed the hon. Lady to her place in the House. Our objective in these proceedings is clear: we want to maintain the UK’s leading role as a responsible nuclear state, with world-leading nuclear research and development and a flourishing nuclear power industry. We will establish a regime that ensures that nothing changes in that regard as we leave Euratom.

[Alex Norris (Nottingham North) (Lab/Co-op)]

9. What the Government’s policy is on zero-hours contracts.

--- Later in debate ---

[Chris Green (Bolton West) (Con)]

T8. Our emerging technology and universities sectors welcomed our manifesto commitment to increase R and D spending from 1.7% to 2.4% of GDP, but it was not in the Queen’s Speech, so what has happened to that commitment?

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

Fear not, Mr Speaker, legislation is not required to deliver on that commitment. It remains a priority for the Government and for the delivery of our industrial strategy. We want to get to 2.4% of GDP for our R and D spend, and we have a longer-term ambition of 3% after that.

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

T3. Research by Citizens Advice found that half the people on zero-hours contracts, and two thirds of people on temporary contracts, worryingly believe that they are not entitled to paid holiday. Kirklees citizens advice bureau has found employers deliberately misleading workers about their rights. What steps is the Minister taking to make sure that workers are aware of their rights to a fair holiday? What repercussions will there be for companies that mislead staff? Can the Minister confirm when the Taylor review will be published?

--- Later in debate ---

[Justin Tomlinson (North Swindon) (Con)]

Having access to the next generation of skilled workers is vital for business confidence and growth. Will the Minister consider promoting the opportunities of our ambitious apprenticeship programme through the annual business rate mailer to increase awareness?

[Joseph Johnson]

Significant attention was given in the Queen’s Speech to commitments to roll out new institutes of technology, to the extra £0.5 billion of spending that will be given to further education and to our target to deliver 3 million apprenticeship starts by 2020. High-quality further and technical education is an absolute priority for this country and this Government.

[Ruth Smeeth (Stoke-on-Trent North) (Lab)]

T6. The British ceramics industry owes its current success and future survival to the innovation and development of breakthrough technologies. With funds such as Horizon 2020 potentially disappearing along with our EU membership, will the Government assure me that domestic projects such as the advanced manufacturing research centre will receive support to keep us at the cutting edge?

[Joseph Johnson]

We remain committed to ensuring that the UK remains the go-to place for science, innovation and tech investment in the years ahead. We want to remain open to collaboration and research partnerships with institutions across the European Union and around the world as we negotiate our departure from the EU.

Higher Education and Research Bill

Lord Johnson of Marylebone Excerpts

Wednesday 26th April 2017 Commons Chamber

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

I beg to move, That this House disagrees with Lords amendment 1.

[Madam Deputy Speaker (Natascha Engel)]

With this it will be convenient to discuss the following:

Government amendments (a) to (d) in lieu of Lords amendment 1.

Lords amendments 2 to 11.

Lords amendment 12, and Government motion to disagree.

Lords amendment 209, and Government motion to disagree.

Lords amendment 210, and Government motion to disagree.

Government amendments (a) to (g) in lieu of Lords amendments 12, 209 and 210.

Lords amendments 13 and 14.

Lords amendment 15, Government motion to disagree, and Government amendments (a) and (b) in lieu.

Lords amendments 16 to 22.

Lords amendment 23, Government motion to disagree, and Government amendments (a) to (c) in lieu.

Lords amendments 24 to 70.

Lords amendment 71, Government motion to disagree, and Government amendment (a) in lieu.

Lords amendments 72 to 77.

Lords amendment 78, and Government motion to disagree.

Lords amendment 106, and Government motion to disagree.

Government amendments (a) to (h) in lieu of Lords amendments 78 and 106.

Lords amendments 79 to 105.

Lords amendments 107 to 155.

Lords amendment 156, Government motion to disagree, and Government amendments (a) to (c) in lieu.

Lords amendments 157 to 182.

Lords amendment 183, and Government motion to disagree.

Lords amendment 184, and Government motion to disagree.

Lords amendment 185, and Government motion to disagree.

Lords amendments 186 to 208.

Lords amendments 211 to 244.

[Joseph Johnson]

The Higher Education and Research Bill sets out the most significant legislative reforms of the sector for 25 years. The world of higher education has changed fundamentally since the Further and Higher Education Act 1992, leaving a regulatory system that is complex, fragmented and out of date. The sector has consistently called for new legislation to update the regulatory framework and just yesterday the two main sector groups, Universities UK and GuildHE, reiterated their full support for this important legislation.

Given its scale and importance, this Bill has understandably received robust and constructive debate as it has progressed through this House and the other place. I would like to put on record my thanks to all Members and noble Lords who have engaged with it during the process, throughout which we have listened, reflected and responded. This group includes no fewer than 240 amendments agreed in the other place which strengthen and improve the drafting of the Bill. They cover a range of issues including institutional autonomy, the inclusion of collaboration and diversity of provision in the Office for Students’ duties, student transfer and accelerated degrees. The other place also agreed amendments to strengthen the research provisions in the Bill, including putting the Haldane principle into legislation for the very first time. Today, I am pleased to show once again that we are willing to engage and respond. I hope that hon. Members will bear with me if I speak at some length: there are many important points that I would like to set out clearly.

Turning first to Lords amendment 1, we listened carefully to the debate in the other place about the role and functions of universities. At its heart was the importance of protecting institutional autonomy, which we fully support. We responded to this with a significant package of amendments designed to provide robust and meaningful protection of institutional autonomy across the whole of the Bill, which I was pleased to see receive support from all parties. On the definition of a university, in a limited sense a university can be described as predominantly a degree-level provider with awarding powers. 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 to provide excellent learning opportunities for people. 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 a 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 analysis.

Further, the strength of the university sector is based on its diversity and we should continue to recognise that a one-size-fits-all approach is not in the interests of students or of wider society. In particular, small and specialist providers that support, for example, the creative arts, theology and agriculture have allowed more students with highly specialised career aims the opportunity to study at a university. Indeed, as we have said in our White Paper and throughout the passage of the Bill, the diversity of the sector and opportunities for students have grown as a result of the important changes introduced by the previous Labour Government in 2004, including the lifting of the requirement for universities to have students in five subject areas and to award research degrees. No one would want, and we would not expect, to go back on the specific changes that the party opposite made.

To protect the use of university title, we have tabled amendments (a) to (d) to Lords amendment 1 to ensure that before allowing the use of that title, the Office for Students must have regard to factors in guidance given by the Secretary of State, and that before giving the guidance, the Secretary of State must consult relevant bodies and persons. This consultation will be full and broad. It will reference processes and practice overseas, for example in Australia, and provide an opportunity to consider a broad range of factors before granting university title. Those factors might include a track record of excellent teaching; sustained scholarship; cohesive academic communities; interdisciplinary approaches; supportive learning infrastructures; the dissemination of knowledge; the public-facing role of universities; academic freedom and freedom of speech; and wider support for students and pastoral care.

In the other place, we tabled an amendment based on a proposal from Baroness Wolf requiring the Office for Students to take expert advice from a relevant body on quality and standards before granting, varying, or revoking degree-awarding powers. I can confirm that the role of the relevant body will be similar to that of the Quality Assurance Agency for Higher Education’s advisory committee on degree-awarding powers, and the system we are putting in place will build on the QAA’s valuable work over the years.

Amendment (a) in lieu of Lords amendment 71 further strengthens that provision. Specifically, the amendment makes it clear that, if there is not a designated quality body to perform the role, the committee that the OFS must establish to perform it must feature a majority of members who are not members of the OFS. Further, in appointing those members, the OFS must consider the requirement that the committee’s advice be informed by the interests listed in the proposed new clause, which will ensure that the advice is impartial and informed. The amendment also makes it clear that the advice must include a view on whether the provider under consideration can maintain quality and standards, and it requires the OFS to notify the Secretary of State as soon as possible after it grants degree-awarding powers to a provider that has not previously delivered a degree course under a validation arrangement.

I also confirm that I expect the Secretary of State’s guidance to the OFS on DAPs to continue to require that a provider’s eligibility be reviewed if there is a change in its circumstances, such as a merger or a change of ownership. The OFS has powers under the Bill to remove DAPs from a provider where there are concerns as to the quality or standards of its higher education provision following such a change. We expect the OFS to seek advice from the relevant body on any such quality concerns before taking the step of revocation.

In the other place we made amendments providing additional safeguards on the revocation of DAPs and university title, recognising that those are last-resort powers. Amendments were also made relating to appeals against such decisions. Amendments (a) to (h) in lieu of Lords amendments 78 and 106 achieve the same aims as the Lords amendments but will align the wording more closely with terminology used elsewhere in legislation. The amendments allow an appeal on unlimited grounds, and permit the First-tier Tribunal to retake any decision of the OFS to revoke DAPs or university title.

Over the course of the Bill’s passage we have seen complete consensus in both Houses on the importance of teaching in higher education. We have always been a world leader in our approach to higher education in this country, but we cannot and should not be complacent. The teaching excellence framework offers us the opportunity to safeguard the UK’s best teaching and to raise standards across the sector. For the TEF to work properly, however, there must be reputational and financial incentives behind it. We propose to disagree with Lords amendments 12 and 23, which would render the TEF unworkable.

Almost 300 providers took part in the first round of assessments, and we have received vocal support for the TEF from the major sector representatives. The sector has voted with its feet and has demonstrated real confidence in the framework. It would not be appropriate to stop or fundamentally alter the TEF now.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

I hear what the Minister is saying about the TEF, but does he accept that, although there might be widespread consent across the sector for a TEF-type exercise, the sector is not happy about the traffic light system and wants to see the review he is establishing?

[Joseph Johnson]

I thank the hon. Lady for raising that point, which enables me to discuss the amendment that the Government have tabled precisely to address those concerns.

I am pleased to present to the House a series of amendments that demonstrate our continued commitment to developing the teaching excellence framework iteratively and carefully. We have consulted widely on the TEF, and we want to continue drawing on the best expertise as we develop this important scheme. That is why I am pleased to have tabled amendment (c) in lieu of Lords amendment 23, as it requires the Secretary of State to commission an independent review of the TEF within one year of the TEF clause being commenced. Crucially, the amendment requires the Secretary of State to lay the report before Parliament, ensuring parliamentary accountability for the framework as it moves forward.

The report must cover many aspects that have concerned Members of this House and the other place, including whether the metrics used are fit for use in the TEF; whether the names of the ratings, to which the hon. Lady alluded, are appropriate for use in the TEF; the impact of the TEF on the ability of providers to carry out their research, teaching and other functions; and an assessment of whether the scheme is, all things considered, in the public interest. I am happy to confirm that the Secretary of State will take account of the review and, if he or she considers it appropriate, will provide guidance to the OFS accordingly, including on any changes to the scheme that the review suggests might be needed, whether in relation to the metrics or any of the other items the review will look at.

We have also heard concerns about the impact of the link between TEF and fees. We recognise the important role of Parliament in setting fee caps. That is why I am also pleased to propose amendments (a) to (g) in lieu of amendments 12, 209 and 210, which amend the parliamentary procedure required to alter fee limit amounts, to ensure that any regulations that would raise fees would be subject, as a minimum, to the affirmative procedure. That provides a greater level of parliamentary oversight on fees than the measures originally put in place under the Labour Government in 2004. I have also today brought forward a further motion to disagree with Lords amendments 183 to 185, which are no longer required as a consequence of these amendments. That is a purely technical change as a result of the wider set of amendments regarding fee amounts.

Furthermore, today’s amendments demonstrate our commitment to a considered roll-out of differentiated fees. Amendments in lieu (c ) and (d) will delay the link between differentiated TEF ratings and tuition fee caps, so that this will not come in for more than three years, with the first year of differentiated fees as a result of TEF ratings being no earlier than the academic year beginning autumn 2020.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

If I have understood it correctly, the linking of the TEF and the fee level is just being postponed, and these things are not being completely decoupled. I wonder whether the Minister might be able to provide reassurance to the University of West London in my constituency, which has 17,000 students who are worried about this. They like Lords amendment 156, which relates to international students, and fear that they are going to go completely bankrupt if things are not kept as they are in the Lords amendment.

[Joseph Johnson]

I can reassure the hon. Lady that we are committed to ensuring that universities are able to increase their fees in line with inflation, provided they can demonstrate that they are delivering high-quality outcomes through the TEF. We are going to be introducing this scheme gradually and we are not going to be differentiating according to the fee uplift that institutions are able to get before the academic year starting August 2020; until that point there will be no differentiation of fee uplift based on performance in the TEF.

This means that differentiated fees will not be introduced until after the independent review has reported to the Secretary of State and to Parliament. Until that point all English providers participating in the TEF will receive the full inflationary uplift. It will be up to devolved Administrations, as before, to determine whether they are content for their institutions to participate in the TEF and what impact participation may have on their fees. I can confirm today that the ratings awarded under the TEF this year will not be used to determine differentiated fees, unless a provider actively chooses not to re-enter the TEF after the independent review. In practice, this means that this year’s ratings will only count towards differentiated fees if, after the review, a provider does not ask for a fresh assessment before their next one is due—that is an opportunity that will be open to all participants.

Before moving on to our other amendments, I would like to reiterate our commitment that the TEF will evolve to assess the quality of teaching at subject level, as well as institutional level. We recognise that subject-level assessments are more challenging, which is why I have already announced an extension to the roll-out of subject-level TEF pilots, with an additional year of piloting. This follows the best practice demonstrated in the research excellence framework, and means the first subject-level assessments will not take place until spring 2020.

--- Later in debate ---

[Paul Blomfield (Sheffield Central) (Lab)]

I thank the Minister for his comments on the work that we have done on this issue. The Cabinet Office has been extremely helpful from the very start in supporting the initiative with the University of Sheffield. Nevertheless, does the Minister recognise that the critical game-changer is the seamless integration of electoral registration and student enrolment? When other universities—not only Sheffield—have taken that up, they have seen levels of registration that the simple promotion of the voter registration portal, or giving direction towards it, have not succeeded in achieving. In monitoring the effectiveness of the Government’s proposals, will the Minister look at effective outputs? If universities’ outputs through methods of co-operation with electoral registration officers do not deliver the sort of 70% mark that integrated systems have delivered, will he expect them to be pushed in that direction by the Office for Students?

[Joseph Johnson]

I thank the hon. Gentleman for his continued and thoughtful engagement with this issue. We look forward to continuing to work with him as we develop the guidance that will be given to the OFS. As we have said previously, we do not expect that there will be a one-size-fits-all approach. We need an approach that recognises the particular circumstances at different institutions. We look forward to continuing to engage closely with the hon. Gentleman in the coming weeks and months, subject to the results on 8 June.

It is vital for this country that we have a healthy democracy that works for everyone. The Government share the aim of increasing the number of students and young people who are registered to vote. It is vital that the views of students and young people are taken into account in the democratic process, and our amendments will help to deliver that.

Last but by no means least, amendments (a) to (c) in lieu of Lords amendment 156 relate to international students. I reiterate that the Government value and welcome international students who come to study in the UK. We recognise that they enhance our educational institutions, both financially and culturally, enrich the experience of domestic students, and become important ambassadors for the UK in later life. It is for those reasons that we have no plan to limit the number of genuine international students who can come to study in the United Kingdom. I need to be very clear that that commitment applies to all institutions. We have no intention of limiting any institution’s ability to recruit genuine international students. We have no plans to cap the number of genuine students who can come to the UK to study, or to limit an institution’s ability to recruit genuine international students based on its TEF rating or on any other basis.

[Richard Fuller (Bedford) (Con)]

Can the Minister explain the logic of including in a statistic which the Government wish to limit a statistic that they have no desire to limit?

[Joseph Johnson]

I can reassure my hon. Friend that this Government welcome international students, who deliver huge value to our institutions, our economy and our learning environment. However, it is also important to recognise that the independent Office for National Statistics classifies students as part of migration. The ONS has an independent status and it applies that definition accordingly. It is appropriate that the matter is treated in the way that it is at present in our immigration system.

[Neil Carmichael (Stroud) (Con)]

I thank the Minister for these amendments, as they reflect very well what the Education Committee said in its recent report on the university sector and implications of leaving the European Union. I, like the Minister, believe that it is important to ensure that our sector—this very important sector—is attractive abroad.

--- Later in debate ---

[Joseph Johnson]

Indeed. No one would disagree with that. It is good news that the UK continues to be a highly attractive place in which international students can come to study. Numbers of international students are running at record highs, and we have more than 170,000 non-EU entrants to UK higher education institutions for the sixth year running. The latest Home Office visa data show that, since 2011, university-sponsored visa applications have risen by around 10%.

[Several hon. Members rose—]

[Joseph Johnson]

I will take one more intervention—[Interruption.] I will take two more interventions on this subject.

[Wes Streeting (Ilford North) (Lab)]

I am grateful to the Minister for giving way, but he is being rather selective with the statistics, because the UK is losing market share across the world when it comes to international students. In fact, the Higher Education Statistics Agency shows that the UK has seen a reduction of more than 50% in students coming to the UK from India. More than half of international students in the UK say that they do not feel welcome. Does he recognise the scale of that problem?

[Joseph Johnson]

Perhaps the hon. Gentleman is being selective. I can easily point to the 8% increase in visas from Chinese nationals in 2016. Overall, if we look at the numbers since 2011, visa applications are up by 10%, but let us not get distracted further. I will take a further intervention and then I shall move on.

[Ben Howlett (Bath) (Con)]

My hon. Friend has been a great advocate on this issue for a long time. I personally thank him for delivering these amendments. Given that there will be a new duty on institutions to give out their numbers of international students, what will happen to institutions that, for any reason, do not give that information to HESA under the terms of the enforcement powers?

[Joseph Johnson]

I thank my hon. Friend for his intervention. We would expect all higher education providers on the OFS register to be compliant with the duties and conditions imposed on them. If they are not, the OFS has a range of regulatory tools at its disposal to deal with such eventualities.

[Paul Blomfield]

Will the hon. Gentleman give way?

[Joseph Johnson]

For the last time.

[Paul Blomfield]

I thank the Minister for giving way. I understand his discomfort on the issue. He talked about numbers, but does he not recognise that in the latest year for which numbers are available—2014-15—new enrolments of international students fell by 3%, so he cannot say that the numbers are going up?

[Joseph Johnson]

We can certainly say that visa applications have risen by around 10% since 2011, although there might be fluctuations from year to year. That has been the case for many periods in the history of international students coming to study in this country. There has not been a story of continued growth; there have been ups and downs. Since 2010, which is a longer timeframe, we have seen applications up by around 10%.

Lords amendment 156 could do real damage. For example, it would prevent international students being treated as long-term migrants. The internationally recognised definition of a long-term migrant is anyone moving countries for a period of more than a year. If we were not able to apply to international students the key features of our work immigration regime, such as the need to obtain a time-limited visa that specifies the terms on which the migrant can come and a requirement to return home upon expiry of the visa, that could undermine our whole student migration system. I cannot advise the House to agree to that amendment.

Secondly, the Lords amendment would prohibit any change to the future student migration regime that could be interpreted as more restrictive than that in force when the Bill is passed. Any future changes—even minor technical changes—would require fresh primary legislation rather than being made by immigration rules laid before Parliament. I do not believe that that would be sensible or helpful, particularly given how crowded the forthcoming legislative programme is likely to be.

That said, I recognise the strength of feeling on the issue, so I am pleased to ask the House to support amendments (a) to (c) in lieu of Lords amendment 156. The Bill already creates for the first time a requirement for information on higher education providers to be published. It also puts in place a statutory duty to consider what would be helpful to students on higher education courses here, prospective students and higher education providers. Our amendments expressly extend that important new duty to cover what information would be useful to current or prospective international students in higher education and to the providers that recruit them or are thinking of doing so. They will also specifically require a consideration of the publication of international student numbers. All this is designed to help to ensure that as much information as possible is available about the UK’s offer to international students. We have a good story to tell and the Government are keen to ensure that it is told.

The Bill is long overdue. It will streamline the higher education system’s regulatory architecture. It will give students more choice and opportunity. It will strengthen our world-class research and innovation capabilities, and it will enhance the competitiveness and productivity of our economy. I thank all Members for their constructive engagement throughout the Bill’s passage.

[Gordon Marsden (Blackpool South) (Lab)]

It is a great pleasure and privilege to speak on these amendments this afternoon. I join the Minister in thanking the various teams of drafters and Clerks for all the work they have done. He and I have had some intense discussions in the past three to four days, and they must have put great pressure on the Clerks to produce the substantial amendments that are before us today. I want to give special thanks to the Public Bill Office. Most people who have been in opposition, of whatever party, know that it is very much, in terms of resources, a David and Goliath process and we are enormously grateful for the professional work of the Public Bill Office in assisting us.

I want to place on record, because we are talking about Lords amendments, my gratitude and that of many in the House for the robust exercise by the House of Lords of its historic privilege, which is to revise, to remind and to warn. It has done all three things with this raft of amendments, which, combined with the intense pressure that was applied across the sector by numerous groups, the work that we have put in and the Minister’s co-operation in recent days, has brought us to where we are today.

I am sorry that the Minister, in his measured presentation, did not find time to talk about the contribution of the people who work in universities. Their contribution is just as important as that of students and teachers, because without them we would not have universities or other higher education institutions. I place on the record also my thanks to the various sector groups who have assisted us: the National Union of Students, which delivered thoughtful and trenchant critiques that helped us get to where we are today, as did the other unions involved—the University and College Union and Unison—and the Council for British Universities, as well as the whole range of universities, modern and traditional. I must not forget the submissions from the further education sector and the Association of Colleges, because as I frequently remind the Minister, 12% and rising of higher education in this country is provided by further education colleges.

This process has been about the dialogue with university vice-chancellors and junior lecturers. We are in a much better place because of the specialist critique and the Lords amendments that the Minister has accepted on UK Research and Innovation, and on research. As the hon. Member for Glasgow North West (Carol Monaghan) is in the Chamber, I pay tribute to her and her team for the points they made about the importance of the devolved Administrations.

--- Later in debate ---

[Gordon Marsden]

My hon. Friend knows that I cannot be responsible for the Minister’s mood music. I can only respond to what he has committed to do in the Bill, and its commitment to an independent review is very important. A whole raft of people, not just the Lords, are concerned. The combined efforts of an outside challenge, the wisdom of the Lords, who constrained the Minister by inserting the original amendment, and our determination have resulted in welcome concessions.

[Joseph Johnson]

To reiterate what I said in my speech, I am happy to confirm that the Secretary of State will take account of the review and, if he or she considers it appropriate, will provide guidance to the OFS accordingly, including on any changes to the scheme that the review suggests are needed, whether they be in relation to the metrics or any of the other items that the review will look at.

[Gordon Marsden]

I am grateful to the Minister for that important clarification. It is also important that all fee regulations under the Bill that were previously subject to negative procedure will now be subject to affirmative procedure. That puts daylight on issues related to rocketing fees, and I believe that it will be entirely possible that the Secretary of State, whoever it will be, will have to listen to a dogged independent statutory review that says, “This ain’t working. Either it won’t ever work, or it certainly won’t work for the time being.” It is in all of our interests to make sure that that statutory review is as potent as we wish it to be.

I welcome the Government’s electoral registration amendment, which strengthens the current position to some extent. We would have preferred a full commitment to ensuring block registration, but nevertheless we wholeheartedly welcome anything that will facilitate greater student interest in and awareness of political affairs. I pay tribute to the fantastic work of my hon. Friend the Member for Sheffield Central and to the pilot work undertaken at the University of Sheffield and the University of Bath. I also praise my fellow member of the Bill Committee, my hon. Friend the Member for Ilford North, and my hon. Friends the Members for Ealing Central and Acton (Dr Huq) and for West Bromwich West (Mr Bailey), all of whom have concerns about students and feel very strongly about the matter. It is important to note that we are not just relying on nudges. The Minister was kind enough to refer to the involvement of the Cabinet Office in this regard, and there will be specific powers to impose an electoral registration commitment to deal with HE providers not doing enough.

Finally, let me turn to the amendments on international students. I praise and welcome the doggedness with which Lord Hannay pursued this matter with the coalition that worked across Parliament to insert the original amendment. I hoped and thought that the strength of that coalition might have moved the Government, but unfortunately it is not a question of the warm words, values and welcomes which the Minister talked about and to which, I am sure, he signs up—he was a dedicated remainer before the election. Unfortunately, he has a Prime Minister who has been at best curmudgeonly and at worst obstructive on this issue. The sharp questions from the hon. Member for Bedford (Richard Fuller) and the contribution of the Chair of the Select Committee on Education, the hon. Member for Stroud (Neil Carmichael), show where we are on this matter.

At a time when Brexit is throwing up fresh problems for the higher education sector, the Government’s stance is threatening both the sector and our reputation worldwide. Those new issues are about whether we will be able to stay in Erasmus or get funding for beyond Horizon 2020, and about European structural funding, but the university and HE sector has enough to contend with without having a Prime Minister who appears to wrinkle her nose and, sometimes, attach manacles to her colleagues in Cabinet every time they suggest a different path.

--- Later in debate ---

[Paul Blomfield]

I thank the hon. Lady for her intervention. She pre-empts me perfectly, because that was the point I was coming to. We are talking not simply about an extraordinary opportunity in an ever-smaller world for UK students to learn and study alongside those from many other countries, but about the contribution to research. I see that not only from our universities, but from my local businesses that benefit in Sheffield, and it is of huge importance.

To that list we should add the enormous benefits of the lasting relationships we build with those who study in this country. Last year I was talking to the high commissioner of a country that is one of our major trading partners and an important ally. He said to me, “Do you realise that more than half our Cabinet were educated at UK universities?” According to the Higher Education Policy Institute, 55 world leaders from 51 countries studied here. That is the sort of soft power that other countries would die for—political influence and commercial contracts based on the affection that people feel around the world because of their experience of studying in the UK.

All those things are in addition to economic benefits—almost £11 billion of export earnings. One would imagine that the Government would be celebrating that great British success and trying to make it stronger, but that is not the case. Throughout the last Parliament, to growing concern, the Government undermined our ability to keep up on international student recruitment. The Minister contests that claim and says that the numbers have stayed broadly level. I agree that largely they did—they dip off, and I will return to that point—but staying level in a growing market represents a failure. Holding level is not good enough when it means that we are reducing our market share, to the benefit of our competitors. As I said earlier, in 2014-15, the latest year for which numbers are available, new international student enrolments fell by 3%. He says that these things go up and down, but we can contrast that figure with the position in the United States, which has the biggest share of international students and where enrolments increased by 7%. The situation also contrasts with what is happening in Australia, where enrolments increased by 35%. Seeing our weakness, it put in place a strategy that was deliberately designed to take students from the UK. Canada is also planning to double its numbers, all at our expense.

Throughout the last Parliament, new measures introduced by the Government made the UK a less attractive destination. Those measures were put in place to help the Government to hit their net migration targets, and this is why the point made by the hon. Member for Bedford is so relevant. The problem is that the Government view international students as part of the migration debate, but that is not how the public see them. As he said, polls show that 75% of the public want international student numbers to stay the same or go up. It is also not the way this place sees them, because in the last Parliament an unprecedented five Select Committees of the House of Commons and the House of Lords called for change and for taking international students out of the net migration targets. These are challenging times for our country as we chart our course in the post-Brexit world. We need to win friends, not alienate them. As the Prime Minister’s trade mission to India last year demonstrated, many of those friends will put access to our universities at the heart of their discussion about our future trading relationships. We need to build on our successful sectors.

In terms of export earnings, universities are a huge success, but that is put at risk by Brexit. This is about not just the 125,000 EU students who are here, but the 30% of non-EU students who said that the UK would be a less attractive destination if we left the EU. We face losing up to half our international students if we do not get this right, and that will have an impact on the economy of every town and city across the country that has a university. As the Minister knows, it puts at risk critical courses, particularly in STEM subjects at a postgraduate taught level, which depend on numbers of international students.

A sensible Government and Prime Minister would look at those facts and say, “How can we strengthen our appeal to international students?” While our competitors are doing just that by developing recruitment strategies to win more students, the Prime Minister is saying no. There is no other sector in our economy that the Government would treat this way. The die is cast for this Bill but, as the hon. Member for Bath said, Members on both sides of the House will ensure that this issue will return in the next Parliament. Ultimately, common sense will prevail.

[Joseph Johnson]

With the leave of the House, I wish to say a few words of thanks to Members and others for their contribution to the development of the Bill and, most pertinently for this afternoon’s purposes, for the insightful points made during this debate. We have heard agreement that the Bill is an important one that has been carefully developed through dialogue on the Floor of the House, in Committee and in the other place, as well as through the extensive consultations dating back to the initial Green Paper in November 2015. It has benefited tremendously from thoughtful input from experts, reviews and independent reports. It was introduced right at the beginning of this parliamentary Session—perhaps even on its very first day—and it will still be going strong on its last day, so it is fair to say that no opportunity to scrutinise it has been missed. I am pleased that both sides of the House recognise that today’s amendments will strengthen the legislation still further.

I shall address briefly some of the questions asked during the debate. The hon. Member for Glasgow North West (Carol Monaghan) asked about the role of the independent review with respect to the TEF. The independent reviewer will consider the devolved Administration providers as part of the review. The Bill will allow the devolved Administrations to continue to decide whether they wish to allow their providers to participate. She also asked about UKRI’s executive committee. As UKRI is established, we will work closely with the devolved Administrations to ensure that the UK’s research and innovation base remains one of the most productive in the world. I can confirm that we amended the Bill on Report to require the Secretary of State to have regard to experience of working in the devolved Administrations when appointing the UKRI board. The executive committee is, though, an internal management committee for UKRI.

The hon. Lady also asked about post-study work for international students, a subject on which many Members focused. I reiterate that there is no limit to the number of international students graduating from UK universities who can move into skilled jobs in the UK. They do not count against the tier-2 limit and, actually, numbers have been rising year on year for the past three years.

The hon. Member for Sheffield Central (Paul Blomfield) asked about the transfer of ownership of degree-awarding powers. The answer is that, yes, should a provider with no track record buy a provider with degree-awarding powers, a full review of the provider’s continuing eligibility for degree-awarding powers would be undertaken.

I thank the Members who have given such time and so much energy during the many hours of debate we have had. I particularly thank the members of the public Bill Committee, which sat in the autumn, and pay tribute to the Opposition Members involved, especially the hon. Member for Blackpool South (Gordon Marsden).

[Gordon Marsden]

The Minister will recognise that on such occasions certain things have to be said, and said forcefully, but I put on record how courteous he has been to me and the rest of our team.

[Joseph Johnson]

I am grateful for that. It has been a pleasure to work with the hon. Gentleman and his colleagues, including the hon. Member for Ashton-under-Lyne (Angela Rayner). I also pay tribute to the devolved Administrations who have played a full part in the scrutiny of this Bill, especially the members of the Scottish National party, including the hon. Member for Glasgow North West who has been tireless in her scrutiny of the measures.

The other place has excelled itself, with extensive and very thoughtful debate on this legislation. I thank all those who have given their time and energy to this Bill, including the very large number of highly distinguished academics, former Ministers and those who have extensive experience of the university and research sectors in the other place. Their passion for the sector has been clear to all those who have followed these proceedings.

I also add my thanks to those more widely in the sector, including the two main representative bodies, Universities UK and GuildHE, which have given their time in abundance to ensure that the sector’s views have been fully heard and understood and reflected in this legislation. That explains why they have repeatedly expressed their support for passing this Bill into legislation.

There is absolute agreement on the importance of our world class HE sector and our globally leading research. I am pleased that we in this House have agreed a Bill that finally fits this important sector for the 21st century, putting students, choice, value for money and global competitiveness centre stage.

Lords amendment 1 disagreed to.

Government amendments (a) to (d) made in lieu of Lords amendment 1.

Lords amendments 2 to 11 agreed to.

Lords amendments 12, 209 and 210 disagreed to.

Government amendments (a) to (g) made in lieu of Lords amendments 12, 209 and 210.

Lords amendments 13 and 14 agreed to.

Lords amendment 15 disagreed to.

Government amendments (a) and (b) made in lieu of Lords amendment 15.

Lords amendments 16 to 22 agreed to.

Lords amendment 23 disagreed to.

Government amendments (a) to (c) made in lieu of Lords amendment 23.

Lords amendments 24 to 70 agreed to.

Lords amendment 71 disagreed to.

Government amendment (a) made in lieu of Lords amendment 71.

Lords amendments 72 to 77 agreed to.

Lords amendments 78 and 106 disagreed to.

Government amendments (a) to (h) made in lieu of Lords amendments 78 and 106.

Lords amendments 79 to 105 and 107 to 155 agreed to, with Commons financial privilege waived in respect of Lords amendments 138 and 139.

Lords amendment 156 disagreed to.

Government amendments (a) to (c) made in lieu of Lords amendment 156.

Lords amendments 157 to 182 agreed to.

Lords amendments 183 to 185 disagreed to.

Lords amendments 186 to 208 and 211 to 244 agreed to.

Motion made, and Question put forthwith (Standing Order No. 83H(2)), That a Committee be appointed to draw up Reasons to be assigned to the Lords for disagreeing to their amendments 183 to 185.

That Jo Churchill, Chris Heaton-Harris, Joseph Johnson, Gordon Marsden, Carol Monaghan, Wendy Morton and Karl Turner be members of the Committee.

That Joseph Johnson be the Chair of the Committee.

That three be the quorum of the Committee.

That the Committee do withdraw immediately.—(Andrew Griffiths.)

Question agreed to.

Committee to withdraw immediately; reasons to be reported and communicated to the Lords.

Higher Education and Research Bill: EVEL Analysis

Lord Johnson of Marylebone Excerpts

Wednesday 26th April 2017 Written Statements

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

I am pleased to announce the publication of the Government’s analysis of English votes for English laws in relation to amendments made to the Higher Education and Research Bill in the House of Lords.

The English votes for English laws process applies to Public Bills in the House of Commons. To support the process, the Government have agreed that they will provide information to assist the Speaker in considering whether to certify a Bill or any of its provisions for the purposes of English votes for English laws. Bill provisions that relate exclusively to England or to England and Wales, and which have a subject matter within the legislative competence of one or more of the devolved legislatures, can be certified.

The memorandum also provides an assessment of Government amendments tabled in lieu of Lords amendments, for the purposes of English votes for English laws. The Department’s assessment is that the amendments do not change the territorial application of the Bill.

This analysis reflects the position should all the Government amendments be accepted.

The memorandum can be found on the Bill documents page of the Parliament website at: http://services. Parliament. uk/bills/2016-17/highereducationandresearch.html and I have deposited a copy in the Libraries of both Houses.

[HCWS616]

Coty Manufacturing Plant (Seaton Delaval)

Lord Johnson of Marylebone Excerpts

Thursday 20th April 2017 Commons Chamber

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

I congratulate the hon. Member for Blyth Valley (Mr Campbell) on securing a debate on this important issue. I recognise the importance of the Coty manufacturing plant to his constituency and to the region as a whole. It has been part of the industrial fabric of the north-east, and the culture of this country, since the factory was opened by Shulton some 55 years ago. The announcement on 15 March that the company proposed to close the plant before the end of 2018 has clearly come as a bitter blow to the employees concerned, their families and the communities in which they live. I fully appreciate the uncertainty this will cause and its potential implications for the region.

The proposed closure is a commercial matter for Coty, but if the decision is confirmed at the end of the statutory consultation period the Government will ensure that those employees affected receive all available government assistance to help them get back into work as soon as possible. We will encourage the company to contact Jobcentre Plus as soon as possible to discuss appropriate support that can be delivered locally. The Jobcentre Plus rapid response service is delivered in partnership with a range of national and local partners. Where no partner support is available, there is dedicated funding that may be used to fill gaps in provision.

Decisions about appropriate support are made locally. This is because a decision that is based on the specific redundancy situation, an individual’s own transferable skills and experience and the availability of jobs in the local area is far more likely to be the right decision. Typical support for an individual might include matching to local known job vacancies, or helping to construct or improve CVs. Where there is scope to do so, support might be delivered on a group basis, for example by bringing redundant workers and employers together at a jobs fair.

My officials are part of a locally arranged and organised taskforce to ensure that the potential for continuing manufacturing on this site is maintained. The taskforce will be led by Northumberland’s economic development company, Arch. We will work with it to explore opportunities for retaining manufacturing at this site. We will highlight the economic strengths and opportunities of the site and the workforce, as well as how to support economic growth opportunities. If closure is confirmed, I would expect the taskforce, working with the Department for Work and Pensions, Northumberland County Council and the North East local enterprise partnership, to support any affected workers to enable them to transfer as smoothly as possible into local growth sectors.

The Government are supporting the economy of the north-east by providing £380 million of local growth funding and improving infrastructure, skills, innovation and transport. That funding will lever in £300 million of public and private investment, and will create about 8,000 jobs. It forms a critical part of the newly refreshed strategic economic plan for the north-east, published by the local enterprise partnership last month.

We are also providing funding for the growth hub in the north-east in order to identify, target and support scale-up businesses more effectively. That will include the creation of a scale-up development model and the introduction of new systems to ensure robust measurement of impact on economic growth and productivity. It will have a significant impact in enabling companies that are ready to grow to expand quickly, and will ensure that there are more opportunities for those affected by Coty’s decision.

Question put and agreed to.

Intellectual Property Office: Performance Targets

Lord Johnson of Marylebone Excerpts

Thursday 30th March 2017 Written Statements

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

As an Executive agency and trading fund of the Department for Business, Energy and Industrial Strategy, we set targets which are agreed by Ministers and laid before Parliament. For 2017-18 our targets are:

We will have ratified the Geneva Act of the Hague Agreement for international registration of designs by 31 March 2018 and be in a position to launch the service on 6 April 2018 (the common commencement date).

We will publish 90% of acceptable applications for national trade marks for opposition within 90 days of filing.

We will offer faster handling of patent applications, by providing an examination report with a search report when both are requested at the application date, and meeting at least 90% of requests for an accelerated two-month turnaround for search, publication and examination.

We will ensure that overall customer satisfaction is at least 80%.

We will work with industry and enforcement partners to build a co-ordinated response to the growth of illicit streaming, including robust analysis of current legal sanctions and developing proposals for change as appropriate.

We will increase the number of businesses that better understand how to manage their IP: at least 35% of an expected 100,000 businesses we reach will make an informed decision regarding management of their IP.

We will provide market-specific IP advice to 5000 current and prospective British exporters. As part of this work, we will deliver bespoke one-to-one business support activity to at least 200 companies annually.

We will demonstrate our commitment to diversity by securing external validation for our approach to inclusion for under-represented groups.

We will achieve return of capital employed of at least 4%.

We will deliver an efficiency gain of 3.5%.

[HCWS575]

Intellectual Property (Unjustified Threats) Bill [Lords]

Lord Johnson of Marylebone Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 21st March 2017 Commons Chamber

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

This new clause would require the Secretary of State to issue a report on the impact of the Government’s plans for exiting the European Union on the provisions in the Bill within 12 months of it coming into force.

The Bill does not take forward any EU obligations. The IP unjustified threats provisions do not derive from EU law. They are “home grown” provisions that were first enacted for patents back in the 19th century. The important protections provided by the Bill will not in themselves be changed by Brexit. Businesses pushed for clarity and certainty about how they can contact others over IP disputes, and the Bill will deliver that. Our leaving the EU does not alter that. Of course some IP rights are EU-wide, and the Bill will apply properly to those rights. The threats regime will be consistent across all relevant rights that have effect in the UK.

Furthermore, the Bill will ensure that our UK threats regime works appropriately with the proposed unitary patent and unified patent court when they come into effect. The hon. Member for Sefton Central (Bill Esterson) asked about the UPC following our exit from the EU. The options for the UK’s intellectual property regime after our exit, including our relationship with the unified patent court, will be the subject of negotiation, and it would be wrong to set out unilateral positions in advance. None the less, our efforts will be focused on seeking the best deal possible in negotiations with our European partners, and we want that deal to reflect the kind of mature co-operative relationship that close friends and allies enjoy.

As long as we are members of the EU, the UK will continue to play a full and active role, and making sure the IP regime continues to function properly for EU-wide rights is an example. The UK’s involvement in the EU IP framework after exit is not a matter for the Bill; it will be part of the EU exit negotiations, which of course have not yet begun. It is likely that those negotiations will still be in progress at the point at which the new clause would require us to report. Publishing the suggested report would be unnecessary and could well undermine our ability to negotiate the best deal for Britain in this area.

The hon. Gentleman asked about EU-wide IP rights on Brexit. Of course we are already talking to businesses and to other stakeholders about this important issue. There will be time to address it fully and properly during exit negotiations. Naturally, we will want to see the best outcome and one that supports our innovative businesses. He asked also about EU trade marks and designs. We recognise that users will want clarity over the long-term coverage of those rights. We acknowledge the importance of involving users in the consideration of these issues, and we are working with stakeholders at the moment to gather views on how to address their concerns.

The hon. Gentleman asked on a number of occasions about the EU trademark reform package and the directive. On balance, we think that the reform package is a good one, with modernisations that will make the overall system easier and cheaper for businesses to use.

We are committed to getting the right deal for the UK and we will work with Parliament to ensure a smooth and successful exit. The new clause would not help us in any of this work; it is unnecessary and potentially harmful to the UK’s interests. For that reason, I ask the hon. Gentleman to withdraw the new clause.

[Bill Esterson]

I am glad that the Minister said that he was already having discussions with businesses; that is incredibly important. I urge him to make it clear very publicly, sooner rather than later, exactly what the nature of those discussions are. Businesses are already exceedingly worried about the consequences for intellectual property. I thank him for picking up the points that I made about the relationship between EU patent law and UK patent law. I think that he understands that a great deal of reassurance is needed. I do not agree that we would make life more difficult by having this requirement on Government. In fact, it is a sensible move. I would be surprised and very concerned if we did not see a degree of reporting back during negotiations on these and many other matters. None the less, he has put forward the Government’s view in response to the points that I have raised, so I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.



Clause 1

Patents

--- Later in debate ---

I am afraid that I did not follow some of the Minister’s counter-arguments to the amendment in Committee—for example, that the amendment would make it harder for rights holders to approach alleged primary infringers with confidence. In fact, our intention is precisely to increase confidence, especially among smaller businesses as they attempt to protect their intellectual property. Again, if the Minister will not do this through amendment 2, how will he? If CIPA is wrong, in what way is it wrong? If the language is vague—a point that the Minister made in Committee—why has his Department not suggested clearer language? With all the expertise here today and in the Department, it should be possible for the Minister to obtain the clarity of language to address the concerns we have raised. Did he actually ask for that kind of advice, clarification and language that would have addressed the problems, provided the additional assurance to smaller businesses and helped to alleviate some of these concerns? If not, why not?

[Joseph Johnson]

One of the key purposes of the Bill is to simplify an important but complex area of intellectual property law, making it more accessible and easier to use. One way in which it does this is by setting out a clear statement of those acts that a rights holder can safely refer to in a communication, and that will not trigger an unjustified threats action. This helps to encourage rights holders to communicate with the trade source of an alleged infringement. It would include those who manufacture or import patented products or use patented processes, for example. Such acts are known as primary infringements.

Amendments 1 and 3 seek to make it allowable to approach someone who explicitly claims to be a primary infringer. I am not convinced that there is problem that needs to be solved, but, in any event, there are two key points. First, under the reforms as they stand, a rights holder can already communicate with potential infringers of all types, including those identified by amendments 1 and 3. The Bill provides clear guidance on how this can be done. The provisions therefore make it easier for parties, including small and medium-sized enterprises, to communicate and resolve issues without the need for litigation. Secondly, it is perfectly allowable to make a threat to anyone so long as that threat refers only to manufacturing and importing, or other primary acts. Someone making such a threat would not be at risk of being sued, even if the recipient was falsely claiming to do those acts. For these reasons, as well as the additional complexity introduced, I do not accept that amendments 1 and 3 are appropriate.

Moving on to amendment 2, I agree it is important that issues of infringement can be raised early, before real commercial damage is done. For that reason, the Bill already allows threats to be made in relation to future or intended acts of primary infringement, so amendment 2 adds nothing in that regard. Furthermore, the Bill already allows the rights holder to refer to certain secondary acts when communicating with an alleged primary infringer. When someone is manufacturing an allegedly infringing product, the rights holder can also discuss the retailing of that same product. Users wanted this, as it is pragmatic and helps to save time and money, but it would not be right to extend this further and allow threats to be made to that same manufacturer about the retail or stocking of other products that they did not make themselves. That could damage businesses that retail products acquired from a legitimate manufacturer, and would disrupt the ability of that legitimate manufacturer to operate in the marketplace—an outcome that the threats provisions exist to prevent.

Finally, it is highly uncertain for businesses what would be considered to be “fundamentally similar” acts of infringement, as set out in the amendment, and litigation on the meaning would no doubt ensue. If the intention is to capture only similar products, I do not think that is achieved.

These amendments would introduce additional and unwelcome complexity. They would blur the line between who is protected from threats and who can safely be approached. Rather than benefiting rights holders, this could instead make getting legal advice more difficult and costly. For those reasons, I ask the hon. Gentleman to withdraw his amendments.

[Bill Esterson]

We appear to have rehearsed, more or less word for word, what happened in Committee. I am disappointed by the Minister’s responses, because he does not appear to have picked up on the concern about the imbalance between larger and smaller businesses—a fundamental element of what we think is missing from the Bill as drafted. I would like greater clarity from him, but perhaps that will come as the Bill is implemented. I urge the Government to consider the impact on smaller businesses. On own label, apparently once the rights holder has found out that an own label product is not made by a supermarket, such action would have to cease or it would be covered by the legislation. That was certainly our intention in the amendment.

I hope that our points about the need to protect smaller businesses have been well made. I thank the Minister for his responses, and beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Third Reading

[Joseph Johnson]

I beg to move, That the Bill be now read the Third time.

Intellectual property is crucial to supporting economic growth and a key part of our industrial strategy. I am therefore pleased that this small but important Bill is completing its passage today. The Bill will ensure that businesses, especially SMEs, are best able to make use of the IP regime. In doing so, it will help to deliver the Government’s manifesto commitment to make the UK the best place in Europe to innovate, patent new ideas, and set up and expand a business. The Bill brings clarity and consistency, making it easier and cheaper to solve infringement issues quickly and without litigation. It clearly defines how information can be exchanged to resolve disputes over IP infringement. It also means that legal advisers will now be better able to help to settle disputes without becoming embroiled themselves.

The reforms contained in the Bill are widely supported by stakeholders, not least because of careful research and consultation by the Law Commission. I thank the Law Commission and the Scottish Law Commission for their hard work and expertise in developing these reforms, and for the excellent support they have given the Bill during its passage. I would like briefly to highlight the value of the Law Commission special parliamentary procedure used in the passage of this Bill. The Bill has been strengthened by, in particular, the detailed scrutiny in the other place afforded by that procedure. I am grateful to hon. Members in this House, particularly those who served on the Committee, for their interest and for giving this Bill due consideration. My thanks also go to the hard-working Bill team and to Intellectual Property Office officials for their exceptional work.

The unjustified threats provisions are a valuable part of the wider IP regime and provide much needed protection. These reforms will ensure that those provisions are fit for purpose and make a real difference to our innovators, designers and businesses. I commend the Bill to the House.