Higher Education (Fee Limits and Fee Limit Condition) (England) Regulations 2018

Lord Liddle Excerpts

Tuesday 24th July 2018 Lords Chamber

[Baroness Garden of Frognal (LD)]

My Lords, building on the reviews by the noble Lord, Lord Adonis, can the Minister say what progress the Government have made in appointing the independent reviewer of the teaching excellence framework? I can only apologise if I have missed the announcement somewhere along the line.

What assurances can the Government give that the independent reviewer of the teaching excellence framework will be a genuine exercise that influences the future design of the scheme? We would oppose any attempts to link tuition fee rises to the quality of teaching as determined by the TEF, which we maintain has flawed metrics, several of which have nothing to do with teaching.

Have the Government considered replacing fees with a graduate tax? This statutory instrument makes no attempt to find a solution to the position set out in the recent Economic Affairs Committee report, which estimates that in 30 years’ time the Government will have to find:

“an extra £8.4 billion to cover expected losses on the 2017/18 student loans”.

Does the Minister have any comment on the immense debt with which the current scheme is burdening future generations?

We are pleased to see in these regulations that the Erasmus year continues to be mentioned. Can the Minister give us any further assurance on government plans to ensure that we continue to be part of Erasmus, whether or not we leave the EU? It is a programme that brings great benefits to participants and to the economy, as students return with a more significant skill set to offer to employers. Does the Minister have any certainty to offer us on Erasmus?

We continue to be concerned about the changes to nursing funding, and would strongly support reinstating student bursaries. It is good to read here about the exemptions on equivalent and lower qualifications for health professionals. Might that lead to a wider exemption for ELQs in other areas? As we know, loss of ELQ funding is one of the key factors in the disastrous decline in adult education, and we would welcome some good news on that front.

Will the Government carefully monitor the effect on nurse recruitment and retention of the recent changes to funding? We note that the number of applicants to undergraduate nursing courses in the year after the abolition of bursaries was announced fell by 11,750—a reduction of 18%. This compounds the existing shortage of nurses in the UK. Almost every hospital is dangerously short of nurses, and the Royal College of Nursing estimates that there are 40,000 nursing vacancies across the health and social care sectors. That shortage will only worsen if nurses cannot be easily recruited from the EU. I hope the Minister can offer some reassurances on those various aspects.

[Lord Liddle (Lab)]

My Lords, may I add something from a university perspective? I declare an interest as chair of the council of Lancaster University. I welcome the fact that the £9,250 maximum fee is being extended for another year—although of course that has denied to universities for the past two years the inflation increase that they were promised.

The review is necessary given the political climate surrounding fees, and the Government have to take into account the risky financial situation now facing the university sector. Any significant cut in fees would have a big impact on the excellence of our universities, unless it were wholly made up for by an increase in teaching grant. I ask the noble Viscount whether he is in any position to offer the sector any assurance that any cut in fees would be made up for by an increase in teaching grant. If it is not, there will be consequences, particularly for universities like mine, which has ambitious plans for expansion, and also, for a leading academic institution, has one of the best rates of state school pupils and people from deprived backgrounds in the country. We are good on equity as well as excellence, and the possibility is a real cloud over our financial prospects for the future.

One of the issues the Government have to address is that if there is a significant cut in fees following the review and there is no increase in teaching grant, one of the areas that universities are bound to look at is the money set aside for widening participation. At the moment we give a lot of bursaries to poor students. I have met many students at Lancaster who say that the reason why they came there was that we could offer them a £1,000 bursary. With the withdrawal of the means-tested maintenance grant, this has become very significant. I hope that the Government are considering bringing back a means-tested maintenance grant, but the real point I want to make is that these regulations give universities financial certainty for only an additional year. The future prospect is very clouded. Universities need more certainty if they are to be one of the starring sectors of the British economy, as they have been for the last 20 years.