Higher Education Funding

Lord Wallace of Saltaire Excerpts

Thursday 12th September 2024 Lords Chamber

[Lord Wallace of Saltaire (LD)]

My Lords, in welcoming the Minister to the Lords, I remind her that I have often thought that the academic lobby is the most powerful lobby in this place. If you add up the chancellors, chairs of councils, former professors and others, it certainly is overrepresented in the Lords and its voice is always quite loud. I welcome the maiden speech of the noble Lord, Lord Tarassenko. It reminded me that when I was a graduate student working on some of the most advanced computers available, you fed punch cards in at one end, got reams of paper out of the other and typed up the result on your typewriter afterwards. The world has moved on a great deal in the last 40 or 50 years.

I disagreed strongly with the interpretation of free speech in universities of the noble Baroness, Lady Fox of Buckley, just as I disagreed with the article by her former colleague Frank Furedi in the Times the other week, but that is a debate for another time. On the whole, the question of freedom of speech in universities is very complex.

We all know that our university sector is one of the jewels of our global reputation and our economy. The global rankings show that. I am particularly proud of having a child who is now on the staff at Imperial, which rose to second in the QS global rankings this year. My son works in another of the top 20 universities in this country. However, we must remember that universities do not necessarily stay at the top of the list. I am always conscious that 120 years ago, German universities were dominant in the world, far better than British universities and much better than American universities at the time. Of course, German universities collapsed when the Nazis came into power. Many of their best staff left to colonise British and American universities, which led to the dominance of American universities for some time.

Our universities have improved considerably over the last half-century. The quality of teaching in our universities has improved a great deal since I started out, without any training at all in how to teach at university, in a research university which often regarded teaching as an interference with the serious work of academic research. I therefore have mixed views on students as customers. We now have to pay more attention to our undergraduate as well as our graduate students, which we certainly did not do in universities that thought they were important in the 1960s, when I was first appointed to one.

We do not need a major restructuring of the current system or a royal commission. It is far better to promote a gradual evolution towards an even more varied higher and further education sector. We need to take higher education and further education together and to recognise that if we talk about the challenge to higher education funding, the challenge to further education funding is even more acute. The intermediate skills which we need in this country—construction, nursing, social care—we are desperately short of. That is part of what drives high immigration into this country: the Ghanaian nurses, the Latvian builders and others. Getting further education right is as important to improving the British economy and the quality of our society as getting higher education right.

We often underestimate the sheer diversity of our higher education sector. I have worked in three research universities, but I am very conscious in the north of England of the extent to which regional universities play a very important part in the regional society and the regional economy. I often hear people say that students who come to study in a particular place often stay on after graduation, which reinforces the local economy and society.

Therefore, we absolutely must go on supporting teaching universities as well as research universities. I look at Huddersfield University as an example: the quality of the classical and pop music it teaches its students becomes an important part of a different part of our economy, as does the quality of its teaching of textiles and other useful vocational elements. So I hope we will come back to talk about the further education sector in more detail; it is one we should never neglect.

The previous Government were incoherent about and often hostile to universities. I heard someone yesterday talking about the “war on universities” hopefully now being over. We are all conscious that the Home Office has done its best to push back against the Department for Education and those concerned with research in imposing the appallingly high visa and health charges on staff and students visiting Britain. I hope the Minister will take up with the Home Office the sheer damage that these charges do to international staff and staff exchanges.

My son is a systems biologist working on joint projects with academics in Germany, France and the United States. If you say to someone, “We would like you to come and work in our lab for 12 months but, if you want to bring your wife and two children with you, it may cost you £20,000 or more up front to arrive in Britain”, you are blocking academic exchange and academic quality. Good universities are unavoidably international universities and movement is a very important part of how they all behave. Getting universities right and having a coherent policy across Whitehall, with a sense that universities are again valued, is an important message which I hope this Government will get across.

Let us also recognise that there is a substantial problem in maintaining the quality of our universities in pay. Academic pay, as with teachers’ pay and even more so with further education pay, has sunk very badly over the last 20 years. My son has just been given a permanent contract, 14 years after he finished his PhD. On promotion, his salary is now larger than his mother’s professorial pension. I note that as an example of just how poorly academic scientists in key areas—he is a systems biologist—are paid now. That is another part of the funding challenge for our universities because, in a highly international world, we will not keep our academics. They will take jobs in the United States, Berlin or elsewhere unless we do something about pay.

Research funding has been mentioned, as well as research buildings and computers. The decision to review the Edinburgh exascale computer is extremely worrying, because we need to maintain global quality by maintaining the quality of resources for our research. That is all part of a very broad challenge to funding.

We are now at peak international student flow. Nearly a quarter of students in our universities come from abroad—almost too many from China, and I suspect more at the present moment than there will be in three or four years. That means that we need to think about other ways in which to fund our future universities. I would like to see our university and higher education sector moving towards a model that I saw when I went to the United States, to Cornell University. It is a comprehensive university that has a Nobel Prize winner teaching in its physics department, but also faculties of home economics, hotel administration and labour relations. I would like to see universities run from top to vocational, if you see what I mean.

We should have more part-time degrees, apprenticeship degrees and continuing education. I strongly agree with the noble Lord, Lord Rees, that we should think about two-year degrees as well as three-year degrees, and taking your higher education in bits as you move on. It is important to be more flexible and less snobby about that dimension of higher education.

We agree with the Quality Assurance Agency paper, which said:

“It is increasingly apparent that the current funding arrangements in England are unsustainable in the long term”.


They are unsustainable and they need to change. That probably means we have to increase student fees to some extent. We certainly need to increase research funding and we must also fundraise for bursaries, scholarships, endowments and buildings.