My noble friend is right, and that is why we recently announced an upgrade from 20 to 40 hubs. The whole point is that there is a co-ordinated response, with careers leaders in schools and careers advisers, one to one and in small groups, linked to the enterprise advisers, so that there is a cluster of help for these young people.
My Lords, the Minister may have heard that the Education and Employers Taskforce found that more direct contact between employers and young people from an early age has a direct impact on their ability to make informed choices between the different options and routes available. How can he see that that is embedded in all schools? Should we make money directly available to schools and colleges to make this happen?
The emphasis is on the Careers & Enterprise Company and the careers service to take this forward, which indeed they are doing. We must make sure that employers have the opportunity to go into schools and meet pupils one to one. That is happening: there are some very good statistics, particularly on the back of the pilots we have done up in the north-east, to show that we are making progress.
Yes, and that plays nicely into the question raised by my noble friend Lord Cormack about careers advice. My noble friend is absolutely right that it is very important that, through schools and bringing employers into schools, the right advice and opportunities are given to all young people to suit their particular needs, talents and skills. That must be done, in my opinion, at an early age. I note that in Australia, career management or development is started as young as eight. Presumably, that is done at a pretty childish level, but it is important to get the young to think about what they might want to do and to take that as a seamless line right through their careers and onwards.
My Lords, everybody seems to be very much in support of the Augar review. I have real reservations about the funding proposals for higher education. When the noble Lord, Lord Bassam, and my noble friend Lady Garden raised the issue of how the funding model, interest charges, the extension and all the rest will favour the rich and not the poor, the Minister kept saying that we will see it in the round. What does “in the round” actually mean? I agree with the noble Lord, Lord O’Shaughnessy, but we have to be very careful, because there are degree courses that are undersubscribed. We are seeing those courses cut, but they are courses that we need to develop, such as modern foreign languages. Fewer students are doing modern foreign languages because there are fewer studying them in secondary schools. It is the same with music. Music is hugely important to the creative industries, which is one of the major growth industries in this country, and yet we are seeing music in secondary schools, because of the EBacc, being scaled back and back. That has a knock-on implication for our universities, where music degree courses are declining as well. If we took the idea of the noble Lord, Lord O’Shaughnessy, all these courses would be cut, much to the detriment of our country.
I must admit, I was hoping that the noble Lord would be slightly less pessimistic about the Augar review. What I meant by “in the round” in response to questions raised by the noble Lord, Lord Bassam, was that the proposals in the review for the tuition fee cut, the in-study reduction in the interest rate, the reduction in threshold and extending the repayment period from 30 years to 40 years are all interrelated. By “in the round”, I meant that they are all interrelated and that therefore it is quite right that we take the time to look at them all and come back to give our review, which we intend to do at the spending review.
My Lords, we obviously welcome this statutory instrument. I have three very brief questions. First, we have of course talked about disadvantaged and underrepresented groups, but what about dis- advantaged schools? How do we ensure that we break the cycle of the top independent schools sending far more pupils to some of our top universities than your average maintained school? Are we ensuring that the gap between independent schools, maintained schools and academies is included?
Secondly, do the access and participation plans include numerical targets for each university? Thirdly, I am quite taken with my noble friend Lady Garden’s point about the fines not going into some black hole in the Treasury. You could do quite a lot in disadvantaged areas with schools doing outreach work to encourage young people to go to university. If there was money available, it would be a much easier proposal to operate.
I thank all noble Lords for their participation in this fairly short but interesting debate. I will do my best to answer in short order the questions that were raised on these Higher Education (Monetary Penalties and Refusal to Renew an Access and Participation Plan) Regulations.
I thank the noble Lord, Lord Bassam, and all other noble Lords for being broadly supportive of these regulations. I welcome the remarks that the noble Lord made towards the end of his speech, saying that it is welcome that more efforts are being made towards access and participation to ensure that more disadvantaged pupils go to university. He is right that there is more to do; I think I said that in my speech.
The noble Lord, Lord Bassam, and the noble Baroness, Lady Garden, raised a point about impact assessments on the fees and penalties. I will spend a little time on that. There was a full consultation on the penalties. The maximum level of penalty is set at 2% of the income that the provider receives through grant funding from the OfS and from tuition fees in a 12-month period, or £500,000. To clarify, by this I mean that the maximum level of penalty is 2% of income, unless that calculation produces a figure that is less than £500,000. If that is the case, the maximum is £500,000. The maximum penalty is set at a level to allow the OfS to ensure that there are visible and meaningful consequences for a provider that is in breach of an ongoing registration condition, without being unduly punitive. The OfS has discretion as to whether to impose a monetary penalty and to set the level of that penalty up to the maximum mentioned.
It is envisaged that the OfS would impose the maximum level of penalty only in the most exceptional circumstances. These regulations set out the factors that the OfS must consider. These factors are intended to help ensure that the imposition of a monetary penalty and the amount of any penalty is appropriate, reasonable and proportionate, given the circumstance of a particular breach of a registration condition. There was broad agreement on these factors in the consultation response. On the question of whether a higher maximum was suggested in the consultation, I can say that no provider suggested a higher maximum penalty in the consultation.
The noble Lord, Lord Bassam, asked about the appointment of a statutory reviewer. I can reassure him that a statutory reviewer has already been appointed to focus particularly on access and participation. This appointment is in line with the principles of public appointments and will be under review. She is getting up and running; we will see what other resources she might need—at the moment, we are perfectly happy that she has a role, but of course it will depend slightly on what the demands of her role are. I hope that is understood.
The noble Baroness, Lady Garden, asked where the money from the penalties will go. Money from monetary and financial penalties, as well as income derived from interest, is required under the Act—under HERA—to go to HM Treasury’s Consolidated Fund, from which government expenditure is funded. This prevents the OfS from imposing penalties or charging interest to raise income. That is a long-winded way of saying that the money goes to the Treasury, which I suspect is an answer that she—
I understand exactly the point that the noble Baroness is making. I can certainly take that back to the department, and possibly to the Treasury, but I am pretty sure it is a matter which is tied down; as I have made clear, it is tied down in legislation, and was set out in the Higher Education and Research Act. However, the point is well made.
The noble Lord, Lord Bassam, asked about an impact assessment. No impact assessment was prepared for this instrument because these regulations do not introduce further burdens that would have an impact on businesses, charities or voluntary bodies. A provider’s compliance with its registration conditions—and so avoiding OfS sanction—is within the provider’s own control.
It is worth noting that the mandatory factors in Regulation 4 require that the OfS must have regard to the impact of imposing a penalty on higher education students at the provider in question and on higher education students more generally. The OfS will also take into account other matters that it considers to be relevant, including financial stability. However, with the greater emphasis that the OfS has given the regulator in terms of looking at the providers and their progress or otherwise, there is a process which the noble Lord will be aware of, to the extent that the financial sustainability of the providers is monitored very closely indeed. If there is any hint of difficulties, much closer monitoring will take place. I hope that is helpful.
The noble Lord, Lord Storey, asked about disadvantaged schools and the targets. The OfS is encouraging all the providers to work with schools through outreach access and participation plans, which should include targets set by providers and agreed by the OfS.
In terms of the help that independent schools can give to maintained and secondary schools, the noble Lord will be aware that—I am pleased to say—much work is going on between and by independent schools to ensure that resources, including teaching resources, are given where appropriate to secondary or maintained schools in a particular area. That is deliberately to help to raise standards within the community and give those who are less advantaged a greater chance to go on to either vocational training or a university.
Yes, they are numerical. I will certainly write to the noble Lord with more information about the targets that we have in mind.
I believe I have covered all the questions that were raised—
I am pleased that the noble Lord said toward the end of his remarks that the UK university sector is very successful. I want to say just that: its successes are highly regarded around the world, and that explains why more students than ever are coming to UK universities and wanting to study in Britain.
On the noble Lord’s main point, there is no delay. Looking back to last year, for the year 2019-20 the announcement that we made was in July 2018. As I said in my Statement, between now and September 2019 we will make it clear what the plans will be for the year 2020-21.
My Lords, the Minister said that no decision has been made yet. I suppose that this was a leak, but it gives us an opportunity to consider the Government’s thinking on this particular matter. Have they considered the impact of their proposals on the number of students applying to English universities, given that we already know that Cardiff, Reading, Gloucester and Birkbeck have announced redundancies this year? Is now a good time to gamble with our universities’ financial sustainability? How can the Minister convince the House and the public that pulling up the drawbridge against EU students will not backfire spectacularly?
I should say first that the leak is very regrettable, and I do not want to say anything more about that. It is very important that we make the point that the UK remains open to overseas students to study here, including those from the EU. The UK Government value international exchange and collaboration in education and training as part of their vision for a global Britain, so I go back to the point that, while the leak is very regrettable, it does not reflect what the thinking is.
To ask Her Majesty’s Government what plans they have to ensure that all alternative education providers are providing a quality education.
My Lords, it is vital that young people in alternative provision receive a high-quality education. We need to be just as ambitious for pupils in alternative provision as we are for those in mainstream schools. That is why my department is committed to reforming alternative provision, and published its road map for doing so last March. We have already made progress and launched a £4 million AP innovation fund, which is delivering projects to improve outcomes for children in AP.
I am delighted to hear what the Minister said. As he knows, these young people, who have behavioural problems, have often been suspended from school, either permanently or temporarily, and are put in alternative provision. They are the most vulnerable young people. In a full curriculum, they should receive 25 hours of lessons. However, the problem is the many unregistered providers with no safeguarding or criminal checks, and which undercut costs. Local authorities and schools are placing young people in such provision. I know of a case where people with police records are teaching those children. Little wonder they get involved in gangs and drug culture. We must do something about this, and we can, by having no unregistered provision at all.
The noble Lord makes a very good point about the need to monitor and inspect these premises. The Ofsted team has achieved considerable success in identifying unregistered schools to stop them operating unlawfully. Between January 2016 and August 2018, 274 inspections of suspected unregistered schools took place; 63 settings were issued with a warning notice and 52 settings closed. I can say for the first time that on 24 October 2018, in the first trial of its kind, the courts found two defendants and the company guilty of operating an illegal school.
The problem of funding is compounded by the financial issues arising from pension liabilities that universities face. The Government are offering additional funding to schools and colleges to cover the shortfall created by the revaluation of the teachers pension scheme. Will the Minister tell us why not universities too?
The thread of Brexit runs through the problem of funding. Vice-chancellors warned as far back as 2017 that British universities were already losing out on millions of pounds of funding from, for example, the Horizon 2020 programme, as a result of the outcome of the Brexit referendum. Will the Minister tell us how far the UK’s share of funding from that programme has fallen since the referendum? What additional moneys will the Government put into scientific research this year, given the assurances made about underwriting scientific research funding?
I shall first answer the question about the pension scheme. The noble Lord may know that Her Majesty’s Government have a consultation on the teacher pension scheme changes which closes on Wednesday—in two days’ time. The Department for Education has limited financial resources and can afford to fund only part of the increase in employer contribution costs relating to the TPS. Schools, further education colleges and other publicly funded training organisations are in great need of additional support for those costs. The live consultation seeks views on the proposal’s impact on higher education institutions. We will finalise funding decisions once that consultation has concluded.
On the Horizon programme, the noble Lord may know that negotiations are ongoing. As he said, it is important that we continue to engage in that programme, and we very much hope that will be the case.
Absolutely. The noble Baroness will know that we have raised the amount—doubled it, in fact—for postgraduate students. But I reassure her that the Government are committed to improving the economic efficiency and effectiveness of disabled students’ allowance. The DSA evaluation research that we commissioned late last year is due to report soon. Some useful information will come out of that, I hope.
My Lords, the Minister says he thinks it is fair that a student should make a £200 contribution but if you are disabled and poor, finding £200 can be very difficult. Will he look at how students who cannot find that £200 could be supported?
This is continually being looked at but I know, as I have said in the Chamber before, that three-quarters of students—including disabled students—own their own laptop and that the average spent is £253. Given that we top up the £200 by whatever is required for the disabled students, we think it is reasonable for them to pay the first £200. Some help can be gained from individual higher education providers.
I note what the right reverend Prelate says, but coming to this decision was a result of much cross-departmental work and liaison with the industry. Now is the time for clarity, which we have given, and we need to go ahead. We expect the companies to implement this by the date that we have given.
My Lords, the Minister talks about jobs and businesses, but what about the thousands of young people who become addicted to gambling? What about the 500 suicides? Does the Minister not think it is time to look at the whole issue of television advertising, which the noble Lord, Lord Alton, mentioned? Young men are seen regularly in betting adverts during the cricket, and football players have betting companies’ logos on their shirts. Is it not time that we regulated the industry and looked again at a review of gambling?
I answered the question from the noble Lord, Lord Alton, about whether the levy was mandatory or voluntary. The Government take suicide prevention extremely seriously and much work is being done, particularly with the National Health Service. Support is available. GamCare provides the national gambling helpline and a national network of counselling services. It is very important that we run this in parallel with the lead-up to the date that we bring in this change to the fixed-odds terminals.
To ask Her Majesty’s Government what action they are taking to ensure that every university in the United Kingdom is taking action to prevent contract cheating.
My Lords, contract cheating is unacceptable. It devalues the work of those students succeeding on their own merit and undermines the reputation of the sector. That is why the DfE worked with the QAA, Universities UK and the NUS to publish guidance last October to help providers tackle this issue. We have given the OfS power to take action if providers are complicit, including imposing fines or, ultimately, deregistering providers—the highest possible punishment.
I thank the noble Viscount. He will know that essay mills and contract cheating are part of a billion-pound worldwide organisation, with dozens of companies registered at Companies House. He will recall that in debate on an amendment of mine to the then Higher Education and Research Bill the Government agreed that, if this matter could not be dealt with by voluntary means, they would consider legislating. What issue would bring that legislation about?
I concur that in the passage of that Bill we did not discount the idea of legislating, but we are firmly of the opinion that we should look at the non-legislative approach. I know that the noble Lord is a key member of the academic integrity advisory group, which is doing some good work in conjunction with the QAA to look at the whole area of cheating. It is of course a fast-moving process because much cheating can be done over the internet.
The noble Lord is quite right that although the apprenticeships programme is a major one for us, it sits alongside other programmes. He will know that we announced in our industrial strategy in November 2017 that we wanted to up the progress, covering technical education. For example, we are investing an additional £406 million in maths, digital and technical education to address the shortage of science, technology, engineering and maths. This is a complementary programme.
The Minister will know that the Chartered Institute of Personnel and Development says that a fifth of employers and a third of SMEs are writing off the levy as a tax, rather than investing it into apprenticeships. Will the Government consider extending the deadline for spending the apprenticeship levy from 24 months to 36 months, to give sufficient time to develop new and more rigorous apprenticeship standards?
We have already extended it from 18 months to 24 months and we think that that is fine. We are seeing strong signs that it is picking up, with the employers buying into the system. We always said that it would take some time, as I think the noble Lord knows. For example, we are seeing vacancies up and that is very encouraging.
My Lords, the noble Lord asked a number of questions and I will attempt to answer them. On the question about delay, we understand that this was the first formal investigation under the Government’s code, and formal timelines had not yet been identified for such an investigation. This necessitated liaising with colleagues in the Cabinet Office who led on the Government’s code. Much has been said about the failings in respect of the Toby Young appointment, as the noble Lord put it, and I informed the House of our views on that. As I promised, lessons are being learned and have been learned. The department has set up a nominations committee as a result of the issues that have arisen, so action is being taken within the department to ensure that these problems do not occur again. That action particularly focuses on the due diligence involved. I emphasise that the 40,000 to 50,000 tweets were obnoxious and salacious and must not occur again; the department must improve the due diligence. I assure the noble Lord that the Office for Students is independent, but as he will of course know from the debates on the Higher Education and Research Bill, the ultimate responsibility lies with the Secretary of State.
My Lords, clearly, the Minister, who is an honourable person, is as annoyed and embarrassed as we are about this report, and I understand that. The Government have failed in every respect to follow their own governance code: they interfered in an appointments process that was not transparent, fair or open. To secure the appointment of Mr Young, the Minister invited him to apply; inadequate due diligence was undertaken in respect of a person infamous for his extreme views, and inaccurate press statements were issued that were not immediately corrected. The Government also took steps to ensure that other candidates for the student places were not appointed. The failure of the Government to follow their own code is a damning indictment and will do nothing to restore public confidence in the probity of such appointments. Will the Minister assure us that Ministers will not be inappropriately involved in future appointments and that the governance code will be followed to the letter?
The Minister mentioned the establishment of a nominations committee. Perhaps he can tell us its terms of reference and its membership. Mention was also made of social media. I understand that the DfE has already put into place changes in its approach to social media. Will the Minister go a bit further and talk some more about that? Finally, Mr Young is also the chief executive of the New Schools Network, and the work of supporting free schools—the raison d’etre of the New Schools Network—has been put out to tender. Bids are currently under consideration for this multi-million pound contract. Will the Minister assure us that the award of this contract will be properly managed and that correct procedures will be followed in every detail?
First, in response to the noble Lord’s comments about the Office for Students, I have made it clear that lessons needed to be learned. Altogether there were 14 appointments, and the process of due diligence normally went well for the other appointments. Let me make it clear, however, that we are learning lessons from the Toby Young appointment. It is important to get a bit of perspective on this. On the student appointment, we have said that lessons need to be learned about the Government’s failure to make it clear that this was an interim appointment. I reassure the noble Lord that, for future appointments, with the lessons learned, this will not happen again. In putting some perspective on this, however, it is in order for Ministers to recommend names, but it is not in order for them to go further than that. They can recommend names, and then it is over to the panel to independently select suitable candidates. On the make-up of the nominations committee, it is led by a number of non-executive directors—three to be precise, but I will need to confirm that with him.
On social media, I feel that I have covered that already, notwithstanding the Urgent Question today. Lessons have been learned on undertaking due diligence in looking at the social media issues that arose over the Toby Young appointment.
As for the noble Lord’s question about the New Schools Network, that is very much a matter for it. The New Schools Network is a small independent charity. I do not want to go further on that front.
My Lords, we on these Benches welcome this review. Without seeking to prejudge its outcome and indeed the Government’s response, we need a post-18 education system with a guarantee that it is accessible to all. I am particularly delighted that the noble Baroness, Lady Wolf of Dulwich, is to be a member of the panel. She will bring a tremendous amount of wisdom and understanding to the question of vocational education.
As the noble Lord, Lord Hunt, said, one term that is not mentioned in the Statement is “interest”—but I am sure that every single young person racking up a huge debt on their student loan will wonder why they are paying way above the market rate. The word “maintenance” appears only once, as does the word “grants”—and unfortunately they do not appear consecutively. Maintenance grants must be an essential recommendation of the panel. I wonder if the Minister could comment on that.
The review does not seem to do anything to improve opportunities and financial support for people who enter higher education at a later stage in life. Will equalising funding support for older students be part of the review? I go back to the point made by the noble Lord, Lord Hunt, on the subject of variable degree course costs dependent on the subject being studied. What will that do to help boost application rates for courses that are more expensive to deliver and which universities might expect to charge more for, such as medicine and engineering, in which it is incredibly important that we continue to train enough people? Will this not exacerbate skills shortages in those areas and mean that people from disadvantaged backgrounds in particular are deterred from studying these subjects?
Finally, we have talked about universities going down the market route. I fear that they have already gone down it with a vengeance. UK higher education allows publicly funded universities to both validate and franchise degrees, and they can subcontract the teaching of their students to private providers. Students are registered with the university and subcontracted colleges provide the teaching. We see tiny companies with no track record getting subcontracted teaching. They can be part of a larger group of firms that are owned by equity companies which are registered in places like Jersey and Luxembourg. I hope that the review might be permitted to look at some of the excesses in current practices. However, overall I welcome the review.
My Lords, I thank the noble Lords, Lord Hunt and Lord Storey, for their input and their questions, which I will attempt to answer. The first point raised by the noble Lord, Lord Hunt, was about the panel. First, I echo what was said by the noble Lord, Lord Storey, about the appointment of the noble Baroness, Lady Wolf. I am sure that she will be a valuable addition to the panel. I can reassure the noble Lord, Lord Hunt, that it is absolutely clear that Philip Augar and his panel will be independent. It is vitally important that it can carry out its work without interference—perhaps that was the word that he used—by the Government. Again, it must be fully independent.
Both noble Lords referred to the issue of differential pricing between courses. The noble Lord, Lord Hunt, raised the issue that has been much in the press in recent days about the difference between arts courses and engineering courses, and perhaps some comments that might have come from Ministers. I must admit that I have not read any of those comments. Those issues are in scope. I have no doubt that the independent review panel will look at the different courses between, say, humanities and engineering or science subjects as part of the review. I am not willing to be drawn on any other comments about that. I am sure that it will come up with some conclusions on that.
Equally, both noble Lords raised maintenance loans. It is the case that some students are finding it quite tough to live in expensive areas, including London. I know that maintenance loans are within scope. It will be up to the panel to decide whether they wish to look at that, but I clarify that it is within scope.
On the review of tertiary education, I reassure noble Lords that we are looking at a complete review of post 18 education. That includes those who are post-18 in further, higher and technical education; it is catch-all post-18. Again, it is one of the issues that the panel will look at.
The noble Lord, Lord Hunt, asked about interest rates. Again, interest rates have been much in the press and have been much discussed. They will indeed be in scope. I am not willing to comment on the difference between RPI and CPI. I note what the noble Lord said, but that is again something for the panel to look at.
Both noble Lords are correct that we are still looking to be sure that students have value for money. They must be sure that, for their choice of course, they go in with a transparent view as to what they will be paying, the course that they are doing and the outcomes that will come from it. Obviously, the advice to them is very important.
There were a number of questions from noble Lord, Lord Hunt, on loan repayments. I will need to write to him with the detail on that, but he will know that the RAB charge, as we might call it, has gone up to 45%. That is the write-off rate. There is always a subsidy, which has gone up to 45% because the thresholds were raised recently, as he knows—up to £25,000 and at the higher level up to £45,000. Along with a number of questions that he has raised, I will write to him with those specific details.
Finally, on the comments made about the market, one thing that is certain is that we absolutely believe that the basics behind the tuition fee system should remain in place. It is right that there should be a marketplace, that students should be in the lead and that they should be able to choose the right universities and courses. What we are leading on to, which is linked to the TEF, is to have assessments of courses, not just universities. That was always the intention behind the base laid during the passage of the Higher Education and Research Act. I hope that I have answered the questions from the two noble Lords.
To ask Her Majesty’s Government what processes were followed for the appointment of Board members of the Office for Students.
My Lords, the Office for Students board needs members who bring a broad range of skills and experience to deliver its objectives. In the recent recruitment round, six people were appointed to the OfS board, although, following this morning’s resignation, the board stands at 14 members. Appointments to the Office for Students board were made in line with the Governance Code on Public Appointments, which, as is conventional, included open advertisement, an applications process, shortlisting and interviews.
I am sure the Minister would agree that there is no place for cronyism in public appointments. Given that public appointments are based on Nolan principles, and the fact that somebody was appointed to this position who had posted on social media the most appalling comments, do those principles need to be strengthened?
I say at the outset that this is very much a time of reflection following the resignation this morning. We will want to learn from this. It is regrettable that the offensive tweets were not picked up on or before the appointment. The Prime Minister herself made it clear that a repeat of any such language from someone within a public position would not be acceptable. There is always a balance of proportionality in undertaking due diligence. In this case, there were more than 50,000 tweets, some of which were completely abhorrent. We need to learn from this and be sure that the due diligence is improved.
I thank the noble Lord for his questions. First, as I said, the Prime Minister indicated that there would be a review. Actually, the tuition fee system is kept under constant review, so what she announced was that more detail and information would come out towards the end of the year on what is proposed. However, I cannot go into further detail at present.
The noble Lord also asked about maintenance grants. No, there is no plan to bring back maintenance grants, but he will have to wait until the end of the year to see what further announcements might come, as Jo Johnson said earlier in the Commons.
As the noble Lord will know, the resource and accounting figures come out regularly. I understand that the latest figures will be out soon. They will show that we are on track in effect to write off—as of before the announcement—around 30% of all the loans. This is all part of the complicated funding formula used for the tuition fee system. Of course it should be noted that, with the changes that we have announced, the write-off will go up slightly to between 30% and 40%.
My Lords, I am grateful to the Minister for this Statement. I do not want to go into the issue of maintenance grants again because he has replied to that. The Office for Fair Access showed that, in 2014-15, 8.8% of full-time students from low-income backgrounds did not continue at university beyond their first year.
I am taken with the phrase “an education system that works for all”. Yet we know that 60% of young people do not go to university. Those who pursue a vocational route must enjoy parity of esteem with those following an academic option. People should be able to access further or higher education at any age. Will the Government consider the issue of student finance more broadly, so that people can choose for themselves when to access government funding for education and training, rather than feel pressured into attending university at 18 or 19 when it may not be suitable for them?
First, I recognise—as the House will recognise—that there is concern about student debt. We know that some students have accumulated a considerable amount of debt. This is part of the reason for the announcement today and the Written Statement on Monday, thereby raising the threshold from £21,000 to £25,000 and freezing the increase. These changes are designed to be helpful to students.
The noble Lord is absolutely right about creating parity of esteem between vocational and academic entry. This is part of the range of educational reforms that this Government have been making and which we wish to continue. I know that the noble Lord has been at the forefront in trumpeting these issues.
Linking to that, whatever may be decided in terms of student funding will—or may—come out towards the end of the year as part of the regular reviews going on.
(7 years, 2 months ago)
Lords ChamberTo ask Her Majesty’s Government whether they plan to bring forward proposals to cap university vice-chancellors’ pay.
Universities are autonomous institutions and the Government have no wish to set a cap on vice-chancellors’ pay. However, given the investment in our world-class higher education system by students and taxpayers, value for money must be of the utmost priority. Exceptional pay should be justified by exceptional performance, and that is why the Minister for Universities has announced that the Office for Students will act to ensure transparency and justification of senior staff pay.
I am grateful for the Minister’s reply. The 2017 survey of vice-chancellors’ pay showed the top eight vice-chancellors earing over £400,000. Similarly, the salaries of chief executives of multi-academy trusts can be counted in hundreds of thousands of pounds. Only today, an education report from the OECD says that teachers are worse off today than they were in 2005. Paraphrasing what the Prime Minister said—that industry fat cats were the unacceptable face of capitalism—does the Minister not consider that some vice-chancellors are the unacceptable face of education?
There is a mood in the country, and there has been a lot of interest in the press, about vice-chancellors’ pay. That is an obvious point to make. However, as a result of the work that we did on the Higher Education and Research Bill, particularly in this House, we are empowering the new Office for Students to act to ensure value for money in focusing on senior staff pay. This is happening in a number of ways. We are introducing a new condition of registration, requiring the governing bodies of approved fee cap providers to publish key figures so that in future the number of staff paid more than £100,000 per year will be published, broken down into pay bands of £5,000. Also, the names of staff paid more than £150,000 per year, along with the justification for those salaries, will be produced by the OfS, and I think that that is a good step.
(7 years, 2 months ago)
Lords ChamberI have those figures but I will have to write to the noble and learned Lord with them; they are in my facts somewhere.
My Lords, when student loans were introduced by the Government, students were promised that the threshold of £21,000 would increase in line with average earnings. Why has that commitment not been delivered?
That is because it is not necessary to do so. The proportion of borrowers liable to repay when the £21,000 threshold took effect in April was significantly lower than could have been envisaged when the policy was introduced. The threshold would now be set at £19,000 if it were to reflect the same ratio of average earnings.
We will have to see what comes out of this initiative from the Queen’s Speech, but the noble Baroness is right that a lot of organisations help schools in terms of the information they have—the British Museum is a very good example. This initiative came out of last year’s Educational Excellence Everywhere White Paper, in which we said that the Government would increase support for teachers to deliver a more ambitious curriculum successfully, including better access to high-quality, evidence-based teaching materials. There is work to be done, but this is the beginning.
My Lords, given that we are seeing arts subjects being cut in schools, that there has been a 31% reduction in the funding by local authorities to museums and that 64 museums have already closed, would it not be better, rather than giving money to already wealthy establishments, to give the money to deprived areas to turn the corner so that young people have access and are able to go to visit local museums and art galleries?
First, we are focusing on so-called opportunity areas. So we are focusing on those areas we believe are deprived, to be sure that there is better social mobility. In terms of the arts, which I think was the gist of the noble Lord’s question, we fund a number of programmes to enhance children’s arts education. As the noble Lord will know, these are extensive and include 120 music education hubs, and we have provided £300 million between 2016 and 2020. These ensure, for example, that every child between five and 18 has the opportunity to learn a musical instrument through whole-class ensemble teaching.
(7 years, 10 months ago)
Lords ChamberMy Lords, in moving these government amendments, I look forward to potentially hearing contributions from the noble Baroness, Lady Garden, and the noble Lords, Lord Storey and Lord Stevenson, about the amendments that they have proposed in this group. However, I believe the amendments we have tabled will have a similar effect to that which their amendments seek to achieve. The Bill is not as clear as it could be on exactly what types of providers can apply for what type of degree-awarding powers, and what awards this then entitles them to make. I believe this is why noble Lords tabled Amendments 242 and 243.
The simplest way of dealing with the issues at play here is for me to explain the purpose of the government amendments. We listened carefully to the discussions in the other place and, as the Minister for Universities and Science promised, we have reflected on and re-examined how Clause 40 may have been read as impacting on the further education sector. Although there are over 30 government amendments in this group, most of them are consequential and there are really just two main areas that we seek to address. First, we want to remove any doubt that institutions within the further education sector can continue to apply for powers to award foundation, taught and research degrees. We believe that the amendment to Clause 40(1)—whereby what was subsection (1)(b) has been removed—will achieve this. Under that amendment, the definition in Clause 40(3) of a “taught award” clarifies that this may include a foundation degree. Removing what was Clause 40(1)(b) should help to remove any impression that providers in the further education sector that obtained powers under this route could not go on to obtain powers also to award higher-level degrees. As before, a further education provider must also be a registered higher education provider before it can apply for authorisation to grant awards under Clause 40.
Secondly, these amendments should remove any doubt over which providers can award foundation degrees. While we wish to retain the current position where only higher education providers that are also further education providers may apply for powers to solely award foundation degrees, it should nevertheless continue to be the case that institutions that can award taught degrees should also be able to award foundation degrees. It remains the Government’s policy that a provider that wishes to be authorised to award foundation degrees only should be required to provide a satisfactory progression statement. We believe it is important that the provider in question can demonstrate that it has in place clear progression routes for learners wishing to proceed to a course of higher-level study on completion of the foundation degree. The amendment to Clause 43 is therefore to ensure that, were a variation of a provider’s powers to result in it being left with the powers to award only a foundation degree, that provider would need to be able to satisfy the Bill’s requirements in respect of a progression statement. I beg to move.
My Lords, I thank the Minister for his comments. I am speaking to Amendment 243 in this group. We welcome the government amendments. I agree very much that there needs to be clarity. There is a need to ensure that certain procedures within the Bill are applied fairly and proportionately and accommodate smaller providers of higher education such as further education colleges. It is also the case that the recently published BEIS post-16 skills plan includes proposals for colleges to make their own technical education awards, and it is important that there is joined-up thinking in this area. Unlike universities, colleges that offer foundation degrees are currently unable to provide both a foundation degree and a certificate of higher education to provide a flexible level 4 qualification option for students. The amendment would remedy this.
(7 years, 10 months ago)
Lords ChamberMy Lords, of course we need as much information as possible about universities so that parents and young people can make the right decisions about which university they choose. I am delighted that we are now focusing on the quality of teaching. The noble Baroness, Lady Royall, was right to say that it must be about high quality. That means high quality throughout the university sector, in teaching, provision, and simple things, such as the ability to make sure that essays and dissertations are properly marked, and to make sure that there is high quality with regard to the size of tutorial and lecture groups. A whole host of issues will ensure high quality.
We sometimes forget that choosing a university is a huge decision for a young person and their parents. They do not pick one at random but do the research, looking very carefully. Again, not only do they choose carefully but they visit those universities. I know from my own experience that students and their parents will have put two or three universities down and will have one in mind as where they want to go to, because of the course they want to do. However, noble Lords will be surprised at how often they get there and do not like it. They do not get a sense of there being the right ethos about the place or they do not like the staff they meet. One of my friends, who is doing creative writing, had two universities at the top of her list. She went to visit them and they gave her sample lectures. Guess what—she went to the third one, because she found that the response and the quality of the lectures were not good enough for her. Let us not kid ourselves: when parents and students come to choose the university they will go to, they are already in the driving seat.
I have grave reservations about the notion of getting this matrix together, putting in things such as employability, and then, suddenly, there is a mark. Currently it is proposed that it be gold, silver or bronze. As I said at Second Reading, I cannot see many universities boasting that they have a bronze award—they will not do that. But you can bet your bottom dollar that those rated as gold will display that for everybody to see. That will be damaging to the university sector as a whole and, as we have heard many noble Lords say, it will be damaging for students coming to our universities from overseas. We therefore have to tread very carefully. The Minister told us on Monday that he was very much in listening mode. Speaker after speaker, right across the House, has raised considerable concerns about this issue. If the Minister is in listening mode, I am sure that he will want to ensure that when we come to Report he will take our points on board.
I do not have any interests to declare regarding universities but I have interests in mainstream education. We have been down this road of labelling schools. In my wildest imagination I never thought that we would see a maintained school system in which schools advertise their success on the backs of buses and on banners hung outside their schools. Parents are caught in this trap, wondering, “Do I send my child to an outstanding school or a good school?”. Of course, if a school needs improvement, while it is improving it has the problem of parents saying, “I’m not sending them to that school”. We have been there before in higher education. We can remember the days of universities and polytechnics. Polytechnics—higher education providers—were regarded as the poor relation. People would say, “I’m not sure I want my son or daughter to go to a polytechnic”, although in many cases the provision was as good and, in some areas, better than at universities. Thank goodness we decided to ensure that higher education institutions as a whole were labelled universities.
I hope that the Minister gets the message and that we provide as much information as possible and look at the quality of teaching. A noble Lord said that of course in the mainstream sector, your teaching is observed, and if you are not up to the mark, you will not teach. If we want to improve the quality of teaching in universities, maybe there has to be some sort of requirement to teach students. Teaching is not just about knowledge but also about how you relate to young people. The most knowledgeable and gifted professor may be unable to relate to a young person, and therefore cannot teach the subject. I therefore welcome the notion of improving teaching.
I know that it will be a small part of the matrix, but I have reservations about the concept of a student survey, or students marking teaching. Students should give their views; that is good and right. But students will rate highly teachers, lecturers and professors who give it to them on a plate: “Here is what you need to know—take it away”. Lecturers who are challenging, who want to push the students and make them think for themselves, are quite often marked down. I therefore have reservations about how we develop this idea of student feedback. That is not to say that student voices should not be heard, but that they should be a very small part of the whole. I hope the Minister will take that on board as well.
My Lords, I have today sent a letter setting out some further detail following Monday’s debates, and attached a briefing note on the teaching excellence framework which I hope noble Lords have found helpful.
I am grateful for the thoughtful comments made in this prolonged debate on the teaching excellence framework, which is in the manifesto commitment. These comments go to the heart of what we are trying to achieve in incentivising high-quality teaching. I am pleased that there is no disagreement on the importance of high-quality teaching, and the importance of incentivising this. Many Peers have acknowledged this, and Governments from all sides have wanted it for many years. This is an important element of these reforms and this has been a key debate, so I hope that noble Lords will forgive me and that the House will bear with me if I speak at a reasonable length on the points raised.
A number of Peers raised a point on whether the TEF should be tested more and, in effect, go more slowly. This was raised by the noble Baroness, Lady Royall, the noble Lord, Lord Watson, and other noble Lords. In effect, the question related to a pilot scheme. I reassure noble Lords that the TEF has been, and will continue to be, developed iteratively. We have consulted more than once, and year 2, which we are currently in, is a trial year. Working groups, including those in the sector, are under way on the subject-level TEF. That was raised by the noble Viscount, Lord Hanworth, and I will say a little more about that later. Therefore, the sector has recognised this trialling aspect, and Maddalaine Ansell, the chief executive of University Alliance, has said:
“We remain confident that we can work with government to shape the TEF so it works well as it develops”.
The noble Baroness, Lady O’Neill, commented on the detailed metrics. She also spoke about iterating and reviewing the metrics, and made some constructive comments. The TEF metrics will continue to evolve. I stress again that, where there is a good case to do so, we will add new metrics to future rounds. I have no doubt that I will also be saying a bit more about this later.
I want to respond quickly to the amendments on the TEF and immigration. This picks up a theme raised by the noble Baroness, Lady Garden, my noble friend Lord Jopling and the noble Baroness, Lady Royall. Following our useful debate last week, and as I set out in my subsequent letter, I confirm again that we have no plans to cap the number of genuine students who can come to the UK to study, nor to limit an institution’s ability to recruit genuine international students based on its TEF rating or any other basis. This applies to all institutions, not just to members of the Russell group.
The noble Lord, Lord Watson, raised the issue of international students, and I move on to the proposal to publish the number of international students. The TEF will be a world-leading assessment of the quality of teaching and student outcomes achieved by higher education providers. Students should have a better idea of what to expect from their studies here—better than anywhere else in the world. However, a dataset that simply links the TEF to international student numbers fails to recognise the much broader international student recruitment market place. I should add that all the relevant information requested by the noble Lord, Lord Stevenson, is in the public domain.
Moving on, I remind the Committee that the ability to raise fees according to inflation is not new. As the noble Lord, Lord Watson, said, it has been provided for since 2004. Indeed, as I think he said, the process was established under the then Labour Government and was routinely applied from 2007 to 2012. I reassure noble Lords that, as the Government set out in the White Paper, our expectation is that the value of fee limits accessible to those participating in the TEF will, at most, be in line with inflation.
As the Liberal Democrats will recall, the coalition Government used the legislation that had been put in place in 2004 by the Labour Government to increase tuition fees above inflation in 2012. We have no such plans to increase the value of fee limits above inflation. Increasing the upper or lower limits by more than inflation would, under the Bill as currently drafted, require regulations subject to the affirmative procedure, which requires the approval of Parliament. In the case of the higher amount, it would also require a special resolution. That is in line with the current legislative approach to raising fee caps.
I now turn to the link between the TEF and fees. Schedule 2 builds on well-established procedures in setting fee caps. Under the schedule, different fee limits will apply depending on whether a provider has an access and participation plan, and what TEF rating they have been awarded. Crucially therefore, this schedule will, for the very first time, link fees to the quality of teaching and thus increase value for students. This will recognise and reward excellence, and will drive up quality in the system. It will mean that only providers who demonstrate high-quality teaching will be able to access tuition fees up to an inflation-linked maximum fee.
The noble Lord, Lord Watson, said that since the increase in fees in 2012 there has been no increase in teaching quality. Therefore, this Government are, for the first time, putting in place real incentives, both reputational and financial, to drive up teaching quality. My noble friend Lord Willetts picked up on this theme. We believe that this is the right way forward. I have already mentioned the iterative aspect of this process.
The principle of linking funding to quality is familiar from the research excellence framework, which was introduced in the mid-1980s, and it has been an effective incentive. The REF has driven up the quality of our research, ensuring that we continue to be world leaders in global science. Tuition fees have been frozen since 2012 at £9,000 per year. This means that the fee has already fallen in value to £8,500 in real terms and, without the changes we propose, it will be worth only £8,000 by the end of this Parliament. Therefore, these changes are important if we want providers to continue to deliver high-quality teaching year after year.
As far back as 2009 the noble Lord, Lord Mandelson, said:
“We … need to look in my view for ways of incentivising excellence in academic teaching”.
He went on:
“We have to face up to the challenge of paying for excellence”.
I believe that the measures in Schedule 2 finally deliver that. The schedule allows a direct link between fees and the quality of teaching, with differentiated fees for different TEF ratings—a principle supported by the then BIS Select Committee and the wider sector—along with a clear framework of control for Parliament. This will ensure that well-performing providers are rewarded so that they can continue to invest in excellent teaching.
(7 years, 10 months ago)
Lords ChamberMy Lords, we have had another good but much shorter debate on this important Bill. Once again it goes to the principle of autonomy, which is the cornerstone of our higher education system. I would like to say at the outset that I am sorry to hear that the noble Baroness, Lady Wolf, is indisposed. I am sure that all noble Lords will wish her a speedy recovery.
Before I speak about this group of amendments, let me be very clear. I heard the strength of feeling expressed in Committee last week about the need to protect institutional autonomy. I would like to inform noble Lords that, along with the Minister in the other place, I am actively considering what further safeguards may be needed to protect institutional autonomy and academic freedom as the Secretary of State and the OfS carry out their duties under the Bill. No doubt we will return to this issue on Report, so I will keep the rest of my remarks relatively brief.
We certainly want an open dialogue between the Government and the OfS, and the systematic involvement of the OfS in the policy-making process, just as there has been with HEFCE over the past 25 years—something to which my noble friend Lord Willetts alluded. As currently drafted, the Bill does not constrain the OfS from giving open and honest advice and analysis to the Government on matters within its regulatory remit. Let me also reassure noble Lords that the Bill prohibits the Secretary of State from framing guidance, setting terms and conditions of grant or giving directions to the OfS in terms of course content and how courses are supervised or assessed. The powers we have discussed today relate directly to the spending of public money and the accountability of the OfS. The Government have a legitimate role in setting priorities in these areas. That is why we are taking the time to think carefully about how we are going to ensure an appropriate level of oversight while at the same time properly protecting the vital concepts of institutional autonomy and academic freedom.
The noble Lord, Lord Storey, raised the issue of guidance and stated that there was a reversal of the 1992 Act. No reference is made to guidance in that Act, and we are strengthening the protections on ministerial guidance by making reference to institutional autonomy and academic freedom. An express power to issue guidance means that the Government do not automatically need to have recourse to setting the terms and conditions of grant or directions, which are less light-touch, so this is surely a sensible intermediate step.
I will now address the issue of parliamentary oversight, about which we have heard some speeches this afternoon. We have thought carefully about the use of these powers. The general focus of the contributions of my noble friend Lord Norton and the noble and learned Lord, Lord Judge, was that the guidance must be subject to parliamentary scrutiny. But the duty in Clause 2 is to “have regard to” guidance. As my noble friend Lord Norton said, where the OfS has cogent reasons, it can act outside that guidance—so the provision does not impose any obligation other than that the OfS should consider it. Directions under Clause 72 are different: they must be followed. That is why there is parliamentary scrutiny when those are made.
It is absolutely right that the Secretary of State should be ultimately responsible for the guidance that he or she gives the OfS, especially when it relates to directing public money towards government policy priorities. We envisage that the Government will issue regular guidance to the OfS in much the same way as they do to HEFCE. Imposing parliamentary oversight and approval on the giving of the Secretary of State’s guidance to the OfS would create a far less flexible process and would risk inhibiting the ability of the Secretary of State rapidly to issue ad hoc guidance in response to changing events. However, I reassure my noble friend Lord Norton that our approach to guidance will be transparent in a similar way to the guidance given to HEFCE—for example, with a published annual grant letter.
I hope that I have given a flavour of the careful balance that we continue actively to work to achieve here. I have noted the points raised and will actively take them into account ahead of Report. In the meantime, I ask the noble Lord to withdraw the amendment.
My Lords, I think that it was a former Prime Minister who used the phrase, when losing the vote on bombing in Syria, “I get it”. I think that the Minister now gets it. I was pleased to hear him say that autonomy goes to the heart of our higher education, that he heard last week the strength of feeling on this issue and that the Government will actively consider that. At this stage, I beg leave to withdraw the amendment.
My Lords, I am grateful to the noble Baroness, Lady Garden of Frognal, and the noble Lord, Lord Storey, for raising the important issue of mental health support for students. I know that there has been some discussion in the Corridors not far away on this very subject. The noble Baroness and the noble Lord will know how seriously I take this subject.
We have heard today from noble Lords how deeply mental health issues can affect students, staff and families. I particularly listened to the very sobering anecdotal evidence from the noble Lord, Lord Storey, and I am sure that many of us could relate our own experiences that illustrate similar issues.
Mental health is a priority for this Government. Noble Lords will be aware that just last week the Prime Minister announced a package of measures to transform mental health support in our schools, workplaces and communities. The reforms will have a focus on improving mental health support at every stage of a person’s life. This will include a major thematic review of children and adolescent mental health services across the country, led by the Care Quality Commission, which will identify what is working and what is not. A new Green Paper on children and young people’s mental health will set out plans to transform services in schools, and importantly universities, and indeed for families.
As we have discussed at length, higher education institutions are autonomous bodies, independent from the government. Each institution is best placed to identify the needs of their particular student and staff body and to develop appropriate support services. There are many examples of universities providing excellent support for their students and, of course, their staff, which the noble Baroness, Lady Garden, raised, both for mental health and in the context of wider pastoral care. But as we know, there are also too many examples of universities that could certainly do more. The higher education sector itself is working to improve mental health support. Universities UK recently launched a programme called Wellbeing in Higher Education. It will focus on the need for a whole university or institution approach to mental health and well-being.
UUK is working closely with Public Health England, expert voices from student services and charities such as Student Minds. Let me be clear: the Government expect higher education providers to provide appropriate support services for all their students and staff, including those with mental health issues. This is a deeply important issue. The upcoming Green Paper provides the excellent opportunity to look at this issue in greater detail. We believe that we should not pre-empt the issues or any recommendations that may come out of this particular Green Paper.
The noble Lord, Lord Storey, raised the link between mental health and retention. We agree that retention is extremely important for universities and that is why we will take retention metrics into account as part of the TEF. The Director for Fair Access and Participation will be looking beyond just the point of access to the whole student life cycle, which is something that I have spoken about in previous debates in Committee.
Once again, I am grateful to noble Lords for their contributions, but ask that the amendment be withdrawn.
My Lords, I thank the Minister for his thoughtful reply. I am delighted that mental health is a priority for the Government. The Minister said that the Government expect universities to make provision, so as well as “shall” or “must” or “maybe” we now have “expect” on the list. I just want an amendment that makes it happen. At this stage—we will no doubt come back to it—I will withdraw the amendment.
(7 years, 11 months ago)
Lords Chamber
To ask Her Majesty’s Government what plans they have for further regulation of private colleges.
The Higher Education and Research Bill, which is currently undergoing scrutiny in this House, will introduce a single regulatory system administered by a new body, the Office for Students. This will replace the current fragmented, complex and outdated system and will regulate all higher education providers, including private providers, by the same standards and conditions proportionate to their risk. While the Bill progresses through Parliament, we remain committed to strengthening the current alternative provider system.
I am delighted to hear the Minister’s reply. Does he not agree that while it is important that more students from disadvantaged backgrounds get the opportunity to pursue higher level courses, when some private colleges enrol them they have problems with basic English and numeracy and they need extra support? When colleges have a progression rate meaning that 50% fail and the pass rate is very low, that does not help and support these young people.
I note what the noble Lord says but the recruitment practices and academic performance of alternative providers, including available progression rates, are all taken into account by the department and, as he will know, by the Quality Assurance Agency for Higher Education. We can and do take action when these fall below acceptable standards. Validation agreements are different for every provider but the degree-awarding body is ultimately responsible for the quality of the learning programme. Under our planned reforms we will give the Office for Students enabling powers to improve validation agreements, including regular monitoring.