Higher Education and Research Bill

Lord Willetts Excerpts

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

[Baroness Garden of Frognal (LD)]

My Lords, I have added my name to amendments in this group as set out by the noble Lords, Lord Stevenson and Lord Lucas, and the noble Baroness, Lady Wolf. I also support Amendment 57, as introduced by my noble friend Lord Addington. They relate to the general duties of the Office for Students and reflect some of the concerns over the unprecedented powers of this new body. We have already addressed the issues in Amendment 41 to do with part-time study and lifelong learning.

Amendment 42 comes from MillionPlus, which is the Association for Modern Universities and has as much interest as anybody in maintaining confidence in the sector, which they have all joined relatively recently, and promoting the reputation which has been hard earned and needs to be protected.

Of the other amendments in the group, Amendment 43 is on the provision of higher education which meets the vocational and professional needs of the students. In the 20 years that I worked for City & Guilds, my work involved linking in with universities, professional bodies and the higher reaches on trying to gain transferability and acceptance for different types of awards. Anything that can be done to try to promote that transferability between types of qualification has to be commended—particularly, I suppose, in view of the degree apprenticeships coming up. Again, recognition of vocational achievement within an academic context there would surely be for the good.

The noble Lord, Lord Stevenson, has introduced amendments on supporting and working with student representatives. As we have addressed previously, if the Office for Students is to live up to its name it would be quite useful if students had something to do with it. Amendment 67 suggests that they could even have current experience of being a student.

The amendments on the financial health and viability of the sector are all self-explanatory and seem good. My last comment is on the right reverend Prelate’s amendment. I entirely agree with the noble Baroness, Lady Wolf, about the importance of diversity and how having providers with a denominational characteristic has to be a good part of the mix that we are trying to promote in higher education.

[Lord Willetts (Con)]

My Lords, I would like to comment on some of the interventions we have heard expressing concerns about alternative providers. Sometimes, it has been an unhappy story and alternative providers have not delivered what they were supposed to but some of the criticisms are unfair, for two reasons.

First, we should remember that these organisations have no access to research funding or funding for higher cost subjects, so there is a large range of university activities for which they have no access to public funding to engage in. In fact I know that for some of them, their grievance is that they would rather like to have access to some of these strands of funding so that they could provide a greater range of subjects.

Secondly, it is not entirely true to say that they are all of a sort. In my experience, they are quite astute at identifying where there are gaps in provision. For example, modern music is not a subject which is particularly accessible and well taught in higher education institutions. If you want some qualifications of higher education standard for modern music, you by and large go to an alternative provider. Many of them have focused on vocational courses. There is increasing interest in alternative models for delivering medical education. I am being wary as I see the noble Lord, Lord Winston, is poised but there is beginning to be debate about whether medical education could do with some innovation, and some new providers would like to come in.

The argument on this was very well set out at the time of Robbins. There was a lively debate then about new ways of delivering higher education, and the conclusion of some of the leading universities at the time and of the UGC was that the best way to get innovation in higher education was to allow in new institutions to deliver it, as that was a better way of achieving it than expecting the existing ones to do things differently. The new Robbins universities were of course set up without any prior track record. They got university title straightaway and came in with great ambitions for doing things differently.

As we go through these clauses there are lots of genuine concerns, which we need to focus on, about the weight given to competition and collaboration. I may come to those when we debate those clauses, but we should just remember that the story of the advance of British higher education is successive waves of new entrants coming in and doing things differently. That is why we have the diversity that we currently celebrate, and we should, as a minimum, expect it to be as possible in the future for new entrants to come in as it was at the time of Robbins and of the great Victorian reforms.

[Lord Adonis (Non-Afl)]

My Lords, I am glad I am following rather than preceding the noble Lord, Lord Willetts, because the point I wanted to make was about geographical diversity. Mindful of the injunction he gave earlier on that we do not want to load still more duties and responsibilities on the Office for Students, I am not suggesting that there should be an amendment on this, but it is very important that the OfS, and indeed public policymakers at large, have regard to the importance of fostering and improving the geographical diversity of our higher education institutions. One of the things that is surely clearest to those of us who have been engaged in the big and increasingly challenging debate on regional regeneration is the importance of higher education institutions in the regions serving a steadily higher proportion of our larger communities across the country.

What is interesting about Robbins is that of the big developments in the 1960s, although it is true that there was some significant innovation in terms of the type of higher education being introduced, by far the biggest and best example was not in fact a Robbins institution but the Open University, which was quite strongly opposed by some of the established institutions at the time. It was only—how can I put it?—a significant exertion of prime ministerial power on the part of Harold Wilson, along with Jennie Lee, that got the Open University going.

[Lord Willetts]

I completely accept the heroic success of the Open University. But is the noble Lord, Lord Adonis, saying that he very much welcomes the fact that it got university title straightaway?

[Lord Adonis]

The OU was a wise and sensible innovation, although there is a wider issue here of alternative providers and profit against trustee status, which I will come back to. The 1960s universities were of course set up on the trustee model. The most significant change that Robbins made was not innovation in terms of types of university, but in extending university institutions to large parts of the country where they either had not existed at all before or could offer only other people’s degrees. The University of London was basically the institution which enabled large parts of the country to have any higher education system at all in the past.

Three years ago, on behalf of the North East local enterprise partnership, I was asked to lead a review of policies to promote economic regeneration in the north-east. One of the things that became clearest to me in our work was that the single most important class of public institutions, in terms of fostering regeneration and innovation in the north-east, were the five universities in the region. Without them, what was an exceptionally challenging area for growth, innovation, the location of businesses and creating higher education opportunities would be in a much worse condition. Underlying this, a particular issue which we face as I see it in the higher education sector is the propensity of students, particularly those from less-advantaged backgrounds, to study at local universities rather than to aspire to go to national universities. If the local universities are not there or do not themselves offer the quality—there will often not be a choice there because of the nature of their communities —then there are no higher education opportunities at all in those communities. When it comes to objectives for public policy for the period ahead, maintaining and enhancing the geographical diversity of high-quality institutions is hugely important.

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[Lord Willetts]

My Lords, I would like to follow on from that speech by asking the Minister, who has been so helpful this evening, to clarify how collaboration might work. I listened attentively to what he said in his intervention on the previous group of amendments and he seemed to make the argument that this overarching aim of serving the interests of students would encompass both competition and collaboration. It would be helpful to me and perhaps to other Members of the Committee to have that explained.

We have had examples from academics of what might happen in the world of universities. Let me give an example from the area of policy, which is that sometimes a university may have got into significant financial difficulties. What HEFCE did was essentially to broker a merger of universities. Sometimes that involved sending a rather weak swimmer to rescue a drowning man and created another set of problems, but nevertheless what HEFCE can do when an institution gets into difficulties is promote mergers.

It is an unhappy parallel and I am reluctant to raise it, but we have seen examples in health legislation of bringing in a duty to promote collaboration. Reportedly, that subsequently led to occasions when it was rational for two underfunded and financially exposed hospitals to come together, but that was not possible because there was a competition requirement on Monitor with no scope for promoting collaboration. So it would be helpful if we could hear from the Government that they do indeed understand these types of functions and that there could be circumstances where it remains desirable, and—here I follow on from what was said by my noble friend Lord Jopling—whether the way to tackle it is through a long list of duties or a simpler overarching statement. It would be helpful to understand the logic.

What is partly going on here, if I may say in my final observation, is that we are dealing with a problem of trust. Indeed, we may have someone who is an expert on trust here in the Chamber with us. The odd feature is that HEFCE had an extraordinarily wide range of powers, which it operated with extraordinarily high levels of discretion and a minimal legal framework. It got away with that because, by and large, people understood and trusted HEFCE. The more we can think of this body as a successor to HEFCE in a different financial environment—it does not have grant-giving powers as its ultimate source of responsibility, so it needs a legal power as a regulator instead—the more we can think of it as the heir to HEFCE, apart of course from the research side, and exercising the range of functions that HEFCE had. At one moment, HEFCE was promoting cold spots and at another it was brokering mergers because, by and large, it was trusted by the sector to do that kind of thing. Some statement about the spirit of HEFCE living on, combined with a broader approach, might be a better way of tackling this than setting out a very long list of duties and obligations of which I continue to remain wary. There is no evidence that that promotes trust in any other area, and I have to say that the advice I was given by parliamentary draftsmen when I was a Minister was that they hated long lists of duties in undifferentiated lists. They never regarded that as a good way of defining a legal framework within which a body would operate.

[Lord Adonis]

My Lords, I turn to the issue of geographic diversity. One of the prime areas where there has been collaboration is in creating campuses and a university presence in areas of the country where it otherwise would not have been either an economic or a prime mission of a university to seek to make such provision. The example that comes to mind from my time as a Minister, and where quite a lot of work was done by government bodies to foster collaboration, was in Medway. As I recall, that was a collaboration between the University of Greenwich, the University of Kent and, I think, another institution to enable higher education provision to be made in a very challenging and deprived area. A sole provider would not have been prepared to move in there. The same was true of the creation of higher education provision in Cornwall, which, as I recall, was a collaborative vision on a similar basis. Looking at the need to spread geographical provision more widely, fostering collaboration between institutions, and further education institutions where necessary, will be very important to making any provision at all.

Collaboration is not only between prestigious institutions, although I should add that in my experience the Government can foster collaboration of any kind where they are prepared to sign very large cheques, which has a large part to do with Crick. However, where we want to see more provision in areas of the country where it is not at the moment in the prime mission of any institution to provide it, collaboration between different types of institution may be a prime way to see that come about.

Higher Education and Research Bill

Lord Willetts Excerpts

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

[Baroness Brinton (LD)]

My Lords, my name is attached to Amendments 14 and 16. I thank the Minister for the amendments tabled in his name. I have a couple of questions on them, but I reiterate the importance of the role of the Director for Fair Access and Participation. I think we can say that all parties and the Cross Benches in this Committee agree that widening access is a goal that we all want. In coalition we certainly pushed that quite heavily and there was some limited success—the bursaries, scholarships and supports for students from low socioeconomic background —which sadly now looks as if it is going downhill again. However, the figures on improving access for those least likely to apply to Oxbridge and to the Russell group universities had not significantly improved, and it must remain a priority for the Government and for the Office for Students to make sure that this changes as we move into the next phase of the Bill.

That is why when the White Paper came out I was really rather encouraged by the tone and the language, which talked about,

“an OfS executive board member with responsibility for fair access, the Director for Fair Access and Participation, whose role will be enshrined in law”.

It said that this person would take on responsibility and that it would be,

“a continuation of the current approach”.

There was real concern when the Bill was published to see that this role had been significantly downgraded. I am grateful that the omission has been rectified, but I just want to rehearse the reasons why it is so important that the Director for Fair Access and Participation is a senior role enshrined in law. This person must have the power to negotiate with institutions, which would undoubtedly be compromised if he or she could not approve or refuse access and participation plans. The person recruited needs to be someone with a high profile in the sector, who will have senior-level respect within our institutions. I know from working at a college for mature students—the previous debate was about distance learning, mature access and part-time—that all the institutions need to take this on board. It should not be the specific responsibility of one or two parts of the sector. The only way that the Director for Fair Access and Participation will be taken seriously is if he or she has credibility within the sector. That comes back, absolutely clearly, to the director having the power to approve or refuse access and participation plans. That is why our amendments refer to the director being “responsible”, echoing the language of the White Paper.

My questions for the Minister are as follows. What is the difference between being responsible for and the words used in the government amendments, which talk about “overseeing the performance”? For me, there is a distinction and I wish to understand exactly why that is there. In Amendment 27, it seems sensible that any OfS annual report should report on,

“the period or periods in that year during which those functions were not delegated to the Director, and … the reasons why they were not so delegated”,

but what might those reasons be? Clearly it could be if the director were away, off on sick leave or other things, but I want to be absolutely clear that this is not a backdoor power-snatching route by the Secretary of State or the director of the OfS.

With those details satisfied, I will stop carping on about the distinction between the two but we must make it clear that the role of the Office for Students is as important in widening participation because it remains a consistent priority. Anything less than that will tell the sector that access and participation is no longer a priority of the Government.

[Lord Willetts (Con)]

My Lords, I will briefly comment on the very interesting interventions we have already had, which reflect the shared belief across all sides of the House in the importance of access and participation. Since the original Blair Government fees and loan system and the increases that we introduced, despite all the fears, we have seen a doubling of the proportion of people from the poorest backgrounds going to university, but there is still a lot more to do.

I did not completely agree with the point that the noble Lord, Lord Stevenson, made that this was about restoring the status quo as it has so far existed. I will try to explain why I do not think that that is quite the case. There have been proposals to get rid of OFFA and make it part of HEFCE. The report of the noble Lord, Lord Browne, in 2010 envisaged something rather like that. I was one of the many who did not want to see OFFA, with its distinct responsibilities, disappear into some wider body. However, there is a dilemma here and it is made more acute by the wider responsibilities that go with access and participation.

One thing that can easily confuse us is that “participation” is now being used in this Bill in a rather different sense from how it has been traditionally used, where “access” meant getting through to the most prestigious universities and “participation” meant getting through to higher education. My understanding is that in this Bill “participation” is used in the rather different sense of continuing engagement with the student experience so that, through their years at university, students from more disadvantaged backgrounds continue to get help. I know from my conversations with the excellent Les Ebdon that one of his frustrations was that his remit on access agreements was quite narrowly defined, and there were some initiatives that might have been very worth while but it was not totally clear that he could press for them.

I am not at all clear how this example would apply in the current legislation but if there is an internship programme—a very good way of getting into some job or profession—which requires that you live in London during the summer holidays at the end of your second year, is it legitimate to help meet the housing costs of a low-income student so that they can participate in that internship programme? Is that part of an access agreement or is it going beyond getting into university and something different? My understanding of this new role of access and participation is that it is an attempt to broaden responsibilities so that as well as focusing on getting into university, it is about the nature of the support that disadvantaged students get during their three years, or whatever, at university.

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[Baroness Brinton]

Might I use an example to try to answer the question that the noble Lord raised? I have amendments later on in the Bill about the support for students with disabilities; they have issues about both access and participation. I would welcome a director who had responsibility for overseeing support for a specific group who have problems with participation, whether that is financial support or extra support because they have a disability and might need support in different ways, rather than those students being subsumed into a general participation pot.

[Lord Willetts]

It is certainly the case that mainstreaming can be a euphemism for a solitary and nasty death, delivered invisibly. A lot of programmes get mainstreamed and it is a euphemism for their disappearance. My view is that when the Office for Students has the kind of ambitious responsibilities for the student experience envisaged in the Bill, it is reasonable to expect participation—in the sense that it is used in these clauses —to be a responsibility for the OfS as a whole. I would argue that that is a better way of ensuring that the noble Baroness’s concerns are met than narrowing it down to one specific function within one part of OfS.

[Lord Giddens]

My Lords, I am afraid that my comments on fair access reflect my general worries about the Bill, which in some respects seems like a dinosaur that has lumbered into the room. It seems to have no relationship structured into it in relation to the tremendous changes that we face in this disruptive period, which are bound to invade education and will crucially affect social mobility.

Fair participation is about social mobility. If the Committee will forgive me being a bit didactic, almost all mobility in the 20th century was what sociologists call absolute mobility. It was made possible by the decline of manual work and the creation of white-collar and professional jobs. As my noble friend Lord Winston mentioned, we have to take really seriously the possibility that this process will actually go into reverse for the next generation, and potentially in a relatively short time, as supercomputers, robotics and other aspects of the transformation of labour markets invade professions. What happened to manual work in a previous generation is almost certain to happen to large segments of professional work over the next 15 to 20 years.

This means that the so-called graduate premium, on the basis of which younger people are encouraged to amass huge levels of debt, reflects the market conditions of two or three decades ago. Somebody must think about the crunches ahead in the relationship between education, social mobility and massive technological innovation. Will that be one of those two offices, and how will it set about it? Why is there not more emphasis on planning in relation to the trends and transformations that we as an economy and a society face?

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[Lord Krebs (CB)]

My Lords, I want very briefly to endorse the comments of the noble Baroness, Lady Brown of Cambridge, on the role of access and engagement in postgraduate education and training, particularly in relation to taught and vocational master’s degrees, where there is virtually no funding from the Government any more and people have to rely on their own resources. However, if students from less well-off backgrounds are to benefit from their university education, for many career paths they will need to undertake a higher degree, particularly taught master’s degrees. I hope that we will hear something more about that from the Minister.

[Lord Willetts]

Before the noble Lord sits down, of course, he and other Cross-Benchers are absolutely right about the importance of access to postgraduate education. I am sure he would not want to miss the opportunity, therefore, to welcome the extension of student loans to master’s students, so that they will be funded on a greater scale than has ever been possible before.

[Lord Krebs]

I certainly welcome that, but it still leaves open the question of the accumulated debt.

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[Lord Stevenson of Balmacara]

They were the Minister’s words, not mine, but I hear what he says. I hope that he is taking account, rather than just listening, as that would give us a more satisfactory sense of what we are doing.

Secondly, I was struck by the thinking behind the point made by the noble Lord, Lord Willetts, and I will read Hansard very carefully. He is very wise and has thought about this issue. I came to it in a rather simplistic way, reading access and participation as effectively one word—that the participation was the access having been granted, which I think was the sense understood by the noble Baroness, Lady Brinton. However, in his explanation, whether wittingly or unwittingly—I am sure it was wittingly; I would never assume that he would act in any other way—he led a slightly different line of thought, which I think we may want to come back to at a later stage. Is this office about access and participation in the combined sense—following up those who have been given specific access because of a disability or a disadvantage, and making sure that they have the chance to benefit—or is it about the wider question of participation, which would be a completely different sense? I shall be happy if the noble Lord can help us on that point.

[Lord Willetts]

It is not simply about the participation of people who come from a disadvantaged background and benefit directly from an access agreement; getting into university is only the start of the journey. It is fair to say that Les Ebdon himself has sometimes felt constrained by operating within a framework which assumes that his job is to get the students in. Having got them in, we all know that there is another set of challenges, as the noble Baroness, Lady Blackstone, said. My understanding is that the word “participation” is intended to give a wider set of responsibilities also covering the process of whomever it may be through university.

[Lord Stevenson of Balmacara]

I thank the noble Lord. That is very helpful and extremely interesting if we are talking about giving somebody within the structure of the OfS the capacity to engender among people a much better sense of engagement with an institution once admitted, whatever their background—that is the point. The noble Lord knows what I am going to say next. Those are the ends of the policy, but where are the means by which it is going to happen? I am sure that it would involve cost because we are looking for a change from where we are, and there may be additional responsibilities. I do not see those mentioned anywhere in the Bill. We may want to come back to this point but I agree with the noble Lord that it changes the whole nature of what we are talking about, and we should reflect on that. In the interim, I beg leave to withdraw.

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[Lord Willetts]

My Lords, I very much agree with the proposition behind the amendments—the importance of collaboration and co-operation between the two new bodies being created. With the disappearance of HEFCE and the creation of these two new bodies, we have to agree the divorce settlement. This is not as painful as Brexit, but we have to work out how these bodies that are now separating will work together. I support the idea of some kind of duty on them to collaborate. The idea of an annual report is also a very good one and I hope that the Government will look sympathetically at it.

However, I will add one further point, taking a step back. Because one can detect across the House a certain degree of scepticism or concern about the way the two bodies may function, we are piling on them duties, committees and specifications about what they should do. When I look at the idea in Amendment 22 that we would require a committee and an annual report, which I have some sympathy with—the amendment lists 10 items that the annual report would include—and then look ahead to some of the other amendments we will discuss in the course of today and later in our consideration of the Bill, I think that we need to give some capacity for the people who will run the OfS and UKRI to operate as grown-ups with a degree of discretion—which, incidentally, is how HEFCE functions. HEFCE operates with a minimum of specification in legislation about how it should be structured, what its committees should be and what its duties are to report.

When any one individual proposal seems attractive, when we look at them all in aggregate and ask how an organisation is really supposed to function, apart from with a lawyer endlessly advising on all the legal obligations we would add, we have to be careful. That is why I would prefer a duty to collaborate. We may be getting a bit carried away by specifying committees and the exact subjects each individual committee would discuss.

[Lord Jopling (Con)]

My Lords, I will follow what my noble friend Lord Willetts just said—but first perhaps I should say that I am afraid I was unable to participate at Second Reading because I was on parliamentary duties abroad. In Monday’s debates I did not have the temerity to participate among the serried ranks of vice-chancellors and other highly important academics. I felt that it was far beyond my pay grade. I have two degrees, one from Durham—I never attended any university function in the city of Durham—and one from the University of Newcastle, for which I had to do no work whatever. I am a former member of the court of the University of Lancaster, and for many years I have been a member of the court of the University of York.

The debate has made me look at Clause 106, which deals with co-operation and information sharing between the OfS and UKRI. The first two subsections of Clause 106 say:

“The OfS and UKRI may cooperate with one another in exercising any of their functions”,

and that the two bodies must,

“if required … by the Secretary of State, cooperate with one another in exercising any of their functions”.

My noble friend Lord Willetts rather questioned whether we need to pile obligations that may not be necessary on these organisations.

I hope that the Minister will tell us the Government’s view, because I hesitate as to whether we need to insist that there be an annual report with all these specific things. I would have thought that the bodies were likely to do that anyway and that the Secretary of State, if he found it necessary, would insist that they produce such a report. He would have the right, if he thought it necessary, to insist on the topics that should be covered in that report.

Over many years working in this building, I have always had a rather dismal view of imposing on people duties that are not really necessary. I remain to be convinced that what is proposed is necessary and await what the Minister says in reply.

Higher Education and Research Bill

Lord Willetts Excerpts

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

[Lord Krebs (CB)]

My Lords, it is perhaps not surprising that those of us who are academics are concerned about definitions because one of the things we always teach our students is to define their terms. Hence, I support this amendment which seeks to define what we are talking about. At the same time, we should recognise that over the centuries universities have changed. In England, between the 12th and the 19th centuries, there were just two universities—Oxford and Cambridge—which served largely as institutions for educating people for careers in the Church or in canon law. The modern university as we understand it, an institution which combines research and teaching, was essentially invented in Germany by Alexander von Humboldt in 1810, when he founded the University of Berlin. However, in spite of the changing details of what universities do, they have certain enduring qualities and properties that we should cherish and ensure are retained during the passage of the Bill.

I offer two quotes. We have already heard one excellent quote from the noble Baroness, Lady Wolf. One of my quotes is from the then Poet Laureate, John Masefield, when he was offered an honorary degree by the University of Sheffield in 1946. He said, among other things about a university:

“It is a place where those who hate ignorance may strive to know, where those who perceive truth may strive to make others see; where seekers and learners alike, banded together in the search for knowledge, will honour thought in all its finer ways, will welcome thinkers in distress or in exile, will uphold ever the dignity of thought and learning, and will exact standards in these things”.

That is the spirit in which, during the passage of the Bill, we should consider what a university is. My second quote reverts to perhaps the most famous treatise on universities, written by John Newman in the middle of the 19th century. I will not attempt to read the whole book to your Lordships, but just one brief quote. He says that,

“a University training is the great ordinary means to a great but ordinary end; it aims at raising the intellectual tone of society, at cultivating the public mind, at purifying the national taste, at supplying true principles to popular enthusiasm and fixed aims to popular aspiration, at giving enlargement and sobriety to the ideas of the age, at facilitating the exercise of political power, and refining the intercourse of private life”.

These are high-flown ambitions for universities, but ones that we should uphold today, not resorting to a purely instrumental view of universities that are there for economic benefit and training in technical skills.

[Lord Willetts (Con)]

My Lords, I declare my interests in the Bill as a visiting professor at King’s College London, chairman of the advisory board of Times Higher Education and adviser to 2U.

We heard at Second Reading, and have already heard this afternoon, the deep concern in the House about the autonomy of our universities. I am sure that in the process of our discussions we will want to find ways of enhancing the protection of the autonomy of our universities. However, this clause is not the right way to set about it. As we have heard, this clause is the first attempt ever in British primary legislation to define what a university is. It is an ambitious project, and if I were to set up a committee to define a university, I could think of none more distinguished than the Committee in this House this afternoon. It has, however, the paradoxical effect that the first clause we are debating is a set of obligations on universities; it is formulated as a series of “musts” that universities have to do. It reflects a view of the university that is rather narrow and traditional. Of course, it is absolutely right that academic freedom is there, but it also says, for example:

“UK universities must provide an extensive range of high quality academic subjects”.

When I was Minister, I was proud to have given university status to institutions that focused on particular subjects—the Royal Agricultural College, for example, which is now a university. Are we really going to put into law a requirement that there must be an extensive range of subjects before an institution can be a university? That sets back a set of reforms not only from my time as a Minister; it goes right back to the Labour Government of 2004.

There is a long list of ways in which universities,

“must make a contribution to society”.

I do not know quite what this “must” is, but it says that they have to contribute “locally, nationally and internationally”. Does that mean that if a relationship with a local authority leader in the area breaks down, you can turn up and tell the university that it is in breach of its obligations to contribute locally? My personal view is that we should be protecting universities by putting obligations on Governments and regulators to respect their autonomy, not trying to define universities and put obligations on them.

[Baroness Bakewell (Lab)]

My Lords, I declare an interest as president of Birkbeck. I support the amendment for the following reasons.

It has taken decades if not centuries to build up the network and infrastructure of UK universities, and it would be folly to damage their standing and reputation in the world as it stands today. That is not to deny that the sector needs updating and amending. But from the start we must assert, as this amendment does, the age-old academic values that are at the centre of what universities stand for. Those are: reliance on reason, argument and evidence; critical and creative thinking uninhibited by limits on free speech; rigorous analysis and use of data; and precise and meaningful communication between academics and pupils. I hope that we will seek to embrace those values as we scrutinise the Bill, and I invite the noble Lord, Lord Willetts, to endorse those values.

Since the abolition of the block grant and the arrival of student fees, other concerns have come to the fore in the sector: universities have increased resources to extend their marketing, and management values have come to matter. Universities have become businesses—there is nothing wrong with that—and competitive listing has been one of their recruitment tools. Now, we are told, new providers will, by increasing competition, drive up standards. However, there is no evidence that that will necessarily follow. Indeed, experience elsewhere—in the energy market, for example—indicates that this may not be so at all. For-profit organisations seek first to please shareholders before they please consumers—which is what we are now told we should call students.

Therefore, from the start and throughout the consideration of the Bill we must reassert and defend the prime values of our university sector and resist the Government’s plans to seek central control via their own appointed, unhappily named, Office for Students.

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[Lord Lucas (Con)]

My Lords, the amendment begins very well:

“UK universities are autonomous institutions”,

but the rest of the subsection abolishes that effect entirely. I am really worried about the ability in the Bill of a quango to abolish Oxford, to put it in cartoon terms. This proposed subsection gives anybody the right to abolish Oxford. The moment that anybody can argue that Oxford has not upheld the principles of academic freedom, and if that is argued in court and it goes against Oxford, it is no longer a university. That is an astonishing level of control. You really do not need the rest of the Bill. There would be complete government control over all universities just by having this amendment as the Bill. There is so much in here that allows universities to be controlled because it is mostly about telling universities what they have to do.

If we are going to have a clause such as this—and I really support the idea of it—let us have something that gives universities rights, declares that they are autonomous, and other things that we can think of that work, but let us not keep all these unstructured obligations on them, which can go only in entirely the opposite direction from that which is intended by the proposers.

[Lord Willetts]

My noble friend is making a really important point, which I strongly agree with. Will he accept that when we turn later to, for example, Amendment 65 in the name of the noble Lord, Lord Kerslake, we then have an approach which might be better at achieving this objective than the approach we are debating now?

Higher Education and Research Bill

Lord Willetts Excerpts

Monday 9th January 2017 Lords Chamber

[Baroness O'Neill of Bengarve (CB)]

My Lords, I should like to ask the noble Lord, Lord Stevenson, what meaning is intended by,

“primarily located in the United Kingdom”.

There is a large number of examples across the globe of franchised campuses, sometimes franchised by extremely reputable universities in this country and in the United States but operating in other countries. Is it a matter of where the majority of their students are in the world, where the governing body is or where the financial control is? I feel that some clarification may be needed.

[Lord Willetts (Con)]

My Lords, perhaps I may put three questions to the noble Lord, Lord Stevenson, about this proposed new clause. First, there is a classic model of a university—a kind of trusteeship model—in which the university has no interest in profit, it is located in a particular place, and its academic staff and the people running it at any one time wish to enhance it and pass it on to the next generation in roughly the same form. That is a completely noble and understandable model of a university and it is what most British universities are like. However, it is not the only form of universities. There are enterprise universities, global chains of universities and for-profit chains of universities.

Personally, I rather regret the fact that there is not a single British-based global chain of universities, as that is probably the only way in which we will meet the surge in demand for higher education around the world. Organisations such as Amity and Laureate meet this demand but no British organisation does so. Pearson College perhaps comes closest to the model but it is not the same. The amendment seems to propose a kind of anti-globalisation measure. If MIT or an American chain wanted to set up a university in Britain, we would not allow that. If an organisation is not located primarily in the United Kingdom, it does not count.

My second point concerns the not-for-profit stipulation in the proposed new clause. It is very important that a higher education institution and a university have very high academic principles. Personally, I do not think that we should require that they should not be for-profit organisations, given that we know that if you really want to provide higher education on a large scale and grow rapidly, some combination of commercial management and access to commercial capital markets is probably the way to do it. Again, the amendment takes a view about what a university is and eliminates a model. It is a model that barely exists in the UK, although we now have some examples of it, and it is a pity that the amendment tries to stop the process of creating enterprising universities alongside trusteeship universities.

My third point concerns the assertion:

“UK universities are public bodies”.

There is a very attractive rhetoric about the public value of universities, and they do indeed contribute to society in the way that is described here. If, through legislation, we define them as public bodies, we are no longer simply making an attractive rhetorical point about their public purpose; I presume that we are saying something real about their status. We went through this very issue only in the past few years with FE colleges, which were defined as part of the public sector. When people realised what that meant—the colleges being subject to public expenditure controls and borrowing counting as part of the PSBR—even some of the people who rather liked the idea that these were public bodies ran away from the implications. Are we really saying that we think that universities are part of the public sector and subject to the rules and constraints of being in the public sector? You could argue that one reason why our universities have done rather well is that they are not part of the public sector. If this is to be anything other than rhetoric, I assume it means that we think that in future universities should be part of the public sector. Therefore, we are invited to consider a future where universities are not part of global chains and not allowed to make a profit, and, instead, we are going to define them as part of the public sector. Sadly, I do not think that that is the future of higher education in this country.

Higher Education and Research Bill

Lord Willetts Excerpts

2nd reading (Hansard): House of Lords
Tuesday 6th December 2016 Lords Chamber

[Lord Willetts (Con)]

My Lords, I declare my interest as a visiting professor of King’s College London, a chair of the advisory board of Times Higher Education, advice to 2U and an honorary fellow of Nuffield College, Oxford. The exceptional number of Members of your Lordships’ House intending to speak in this debate is evidence of the significance of the Bill and the care with which it will be scrutinised in this Chamber. Today’s Second Reading debate is an opportunity to look at the Bill as a whole, and I welcome it. Indeed, one of my regrets is that we did not legislate in the last coalition Government as we intended to do, and I am pleased that the Government are now grasping that nettle.

The key feature of the Bill is a shift to an open and transparent regulatory model for higher education. That seems the logical consequence of a process that started under the Blair Government and carried on under the coalition of rebalancing the funding of our universities away from HEFCE grants to fees and loans. HEFCE was in practice the regulator, using the power of the purse to exercise its regulatory authority. It is right, now that universities are much less dependent on HEFCE grants, to have an explicit and transparent regulatory function instead, and one responsibility of the regulator must certainly be to continue to promote the opening up of the sector to a wider range of providers. So I welcome this new regulatory regime, which builds on a series of reports, many from independent bodies calling for such a structure.

The Bill’s second key feature is the creation of UKRI. I was initially sceptical about this proposal, because the old structure of research councils worked well. Indeed, I pay tribute to the noble Lord, Lord Waldegrave of North Hill, who designed much of that structure. I was not convinced by the argument that Governments could not change the balance of funding between different research councils, as clearly Ministers did have that power and could draw on expert advice. But two very significant events have swung the argument.

First, there is Brexit, which does not weaken the argument for change—it means that change is more necessary. There are several options, which we have considered in your Lordships’ House, about how the United Kingdom could remain more closely involved with European research and science funding in future, perhaps by making a direct contribution to Horizon 2020 and its successors, perhaps by setting up some arrangement to shadow EU funding decisions, or perhaps by creating a new intergovernmental research council to which we could contribute. We do not know which of these models may be possible, but I am convinced that they would all be much easier to negotiate and operate if we had a UKRI at our disposal. The second event is the exceptionally good financial settlement for science and research in the Autumn Statement. I am persuaded by the argument that that settlement was possible only because of the Treasury’s confidence in the proposed new structure. That makes an important difference—and I believe that it is right to establish UKRI.

Next, of course, the Bill will be carefully scrutinised in Committee. There will be many legitimate concerns, some of which have already been expressed this afternoon. I hope and believe that Ministers will address those concerns. Perhaps the biggest is about the autonomy of our universities. Some of the earlier government documents could have been read by some as implying that universities were a kind of poorly performing part of the public sector that needed a bit of a doing over. That is, of course, not the right approach—I do not believe that it is how Ministers see it—and the autonomy of universities is not a gift from government. It is a right that they enjoy as independent bodies. I do not believe that it is the Government’s intention to draw universities into their ambit, and I hope that the Bill can be amended further to make that clear.

I welcome the overall thrust of the legislation and look forward to opportunities for careful scrutiny in future.

Brexit: Impact on Universities and Scientific Research

Lord Willetts Excerpts

Thursday 3rd November 2016 Lords Chamber

[Lord Willetts (Con)]

I congratulate the noble Lord, Lord Soley, on bringing this debate to the House and posing the crucial questions he has. I draw the House’s attention to my entries in the register of interests, particularly my post as a visiting professor at King’s College London and serving on the board of the Crick Institute.

I shall keep my remarks short because so many Members of this House wish to speak. In many ways, that is my central point: there is a range of concerns in the university and science community about Brexit, and we need some structure or framework in which they can be considered explicitly by the Government, the different arguments can be weighted and we can have an indication of how they could be addressed as part of the negotiations on Brexit. There is a range of exercises in learned societies, in individual universities and their representative groups, but I press on the Minister the need for some kind of framework and explicit consultation by the Government.

The Government have already made some very welcome announcements. I welcome in particular that the Minister for Universities and Science has announced a continuation of funding for schemes that have already been successful in the EU and the extension of continuing funding of students from the EU at British universities. But the Government need to go further.

A crucial issue that needs to be addressed is what kind of relationship we might have in future with Horizon 2020. I rather regret that the way that the debate went in the referendum focused so much on funding and not very much on networks, which are as important as the funding, if not more so. Maintaining those networks is crucial and there are several ways in which it could be done. We could continue to participate in Horizon 2020; other countries do so that are not members of the European Union, so that would be one option. I think I have picked up some concerns among Ministers that Horizon 2020 is cumbersome and has high overhead costs. On the other hand, those costs may arise simply because it is creating partnerships between institutions in more than one country, which is an inherently more complicated activity. Those pros and cons should be explicitly identified.

Another option would be for Britain to set up a parallel fund to enable universities and research institutes in our country to be funded by the UK Government if they wanted to align themselves with the Horizon 2020 programme. Another option, which I know is being considered in some places, is for universities and research institutes in the UK to set up a new operation within the EU which would be—they hope—still eligible to receive EU funding. The relative pros and cons of those options and the frameworks for them are exactly the kind of thing on which a consultation exercise led by the Government could provide very useful guidance and advice.

The noble Lord, Lord Soley, also referred quite rightly to student mobility. Of course, that means attracting students—and young people in general—into Britain. There is an ingenious visa regime for young people aged under 31 from certain, specified countries to come and work in Britain for up to two years. We currently apply it to nationals from Australia and New Zealand, for example. Could we make that offer to nationals from many EU countries as a very powerful signal—and a practical offer on visas—that showed that they would still be welcome here? Equally important is that we continue to make it possible for British students to go and study abroad. In fact, we would gain if more British students had the opportunity to study abroad. Another idea to consider, therefore, would be that fee loans—currently available only for study at a British university—could be made available to cover the costs of studying abroad at universities in specified countries, which could of course include member states of the European Union. These kinds of ideas need to be properly investigated and I hope that the Government will do so.

There are of course enormous challenges for universities and research institutions from Brexit; there are also opportunities. Many universities that I have visited, and it is also the experience of the Crick Institute, would love to have a commercialisation unit alongside their research lab, but have been told that if they did so the VAT exemption on the building of their new facility would be lost and the whole facility would pay VAT at 20%. The ad hoc rule of thumb is that they should therefore have only 5% of commercial activity. It would be a powerful boost to the sector at a time of such anxiety if the Treasury signalled that this is exactly the kind of tax rule that could change if we left the EU and that, in future, there would not be a VAT liability if our publicly funded institutes and universities created places for commercialisation on a much larger scale.

There are widespread concerns and I am sure that they will expressed in the course of our debate today. I very much hope that, in a systematic and considered way, the Government will set up a framework in which they can be addressed.

Oral Answers to Questions

Lord Willetts Excerpts

Thursday 26th March 2015 Commons Chamber

[Greg Clark]

No. In fact, the success of the Government’s policy reforms are reflected in the hon. Lady’s own constituency. In October 2009, 20.8% of young people in her constituency went to university, whereas this October it was 30.2%—nearly a 50% increase. What is extraordinary is that a day before the general election campaign begins, the Labour party has not worked out how to pay for its university policies. Labour’s chaos would plunge the successful policy that we have introduced into chaos—a very good reason not to have a Labour Government.

[Mr David Willetts (Havant) (Con)]

Does my right hon. Friend agree that our higher education reforms have delivered more students, especially from disadvantaged backgrounds, more funding for teaching in universities than ever before and have lowered the monthly repayments by graduates, which is the key sum that mortgage lenders take into account when people are trying to get started on the housing ladder?

[Greg Clark]

My right hon. Friend is absolutely right. I pay tribute, as the whole House should, to his work in achieving this transformation. This is a proud moment for him to leave the House, in a year in which more young people have been to university in this country than ever before as a result of the far-sighted policies that he championed in the House.

--- Later in debate ---

[Vince Cable]

That process is already under way. I have met representatives of RBS to discuss it. They have acknowledged that there are failings in the way in which they operated the scheme, and they have given assurances that anyone who was a recipient of the loan and who has been disadvantaged by the way RBS handled it will receive recompense.

[Mr David Willetts (Havant) (Con)]

May I warmly congratulate the Secretary of State on his very substantial record during his five years in office, and invite him particularly to welcome the agreement across all three parties on the importance of Government support not just for science and research, but for innovation and the eight great technologies?

[Vince Cable]

I thank the right hon. Gentleman for his kind comments. We worked extremely well together and I thank him for his contribution to that. One of the legacies was the creation of the catapult network. We built on the initial foundations of the Advanced Manufacturing Research Centre. It has now become internationally recognised as an excellent way to promote innovation.

Oral Answers to Questions

Lord Willetts Excerpts

Thursday 12th February 2015 Commons Chamber

[Greg Clark]

Tempting though that invitation is, I am not sure I will be hearing the hon. Gentleman speak, although I enjoy his contributions in this House. Manufacturing has been enjoying a stunning revival during the last few years, and it is supported by the investments made through the local growth fund and the regional growth fund. Some £1.1 billion of funding has been put into manufacturing. Is there further to go? Of course, but this Government’s strategy is clear: by reviving the sectors in which we have strengths that are famous around the world, we can build the prosperity that will provide the security for our country for many years to come.

[Mr David Willetts (Havant) (Con)]

Will the Minister confirm that when we talk about “tech” we mean not just the software, but the hardware as well, and that there are enormous prospects for British manufacturing, especially supported through the RGF, to be world leaders in the high-tech industries of the future?

[Greg Clark]

My right hon. Friend is absolutely right. He and I had the privilege to be at the Royal Society last night, where awards were presented for some of the key figures who are translating some of our most brilliant ideas into practice, especially in advanced manufacturing. Across all the sectors there is confidence that the prospects for this country are better than ever. That is a tribute in large part to the work that my right hon. Friend did in office.

--- Later in debate ---

[Matthew Hancock]

We now put all procurement online. Also, from this month, a new rule is coming into place: not only must all procurement from Government be paid within 30 days, but the whole supply chain must be paid within 30 days. It is a big step forward to help small businesses engage in Government procurement.

[Mr David Willetts (Havant) (Con)]

Will the Minister confirm that one of the best ways of getting funding into innovative life sciences companies is for them to get contracts from the NHS earlier? He just referred to his very important early access review. What are the ambitions for that, and the timetable?

[George Freeman]

My right hon. Friend and predecessor makes an important point. Since we launched the life science strategy at the start of this Parliament, as set out and led by my right hon. Friend, this country has attracted over £3.5 billion of inward investment into the sector and created more than 11,000 jobs, so something is going very right. He makes a key point: the next step is to ensure that our NHS is driving quicker access. We shall shortly be announcing the chair of the review, and we have already started to gather evidence. My right hon. Friend will have noticed on his recent trip to America the support and the interest that it is gaining overseas for driving our sector forward.

Oral Answers to Questions

Lord Willetts Excerpts

Thursday 8th January 2015 Commons Chamber

[Greg Clark]

As the hon. Lady knows, probably the most respected expert in the world on this subject, the OECD, has been clear that “the UK higher education system is excellent for individuals and for the Government” and offers the “most sustainable” system in the world. The system is in robust good health and works well. It offers good value for the taxpayer and students.

[Mr David Willetts (Havant) (Con)]

Will the universities Minister confirm that overseas students will continue to receive a warm welcome in this country, and will he assure me that we will not expect them to leave the country after they graduate and apply for a post-study work visa from abroad?

[Greg Clark]

That is not the Government’s policy and I do not agree with the suggestion. I take great pride in the fact that the brightest and best people in the world want to come and study at our excellent universities. It is great news that we heard just before Christmas that we have record numbers of overseas students applying for admission to university in this country next year. When they come here, they will receive the most cordial of welcomes.

Oral Answers to Questions

Lord Willetts Excerpts

Thursday 20th November 2014 Commons Chamber

[Greg Clark]

I do not agree with that report. Our system of student finance is in rude health. The OECD reviewed higher education systems throughout the world, and concluded that the

“UK is…one of the few”

countries

“that has figured out a sustainable approach to higher education finance”

and that

“that investment…pays off for individuals and tax payers.”

This year more students are going to university than ever before, and that would not have been possible without the reforms that we introduced.

[Mr David Willetts (Havant) (Con)]

Does my hon. Friend agree that the resource accounting and budgeting charge is not a fixed cost, a cost that is being incurred today or public expenditure, but, essentially, a highly speculative forecast of what income tax receipts might be up to 2050? He is right: we have a system that is in rude health, with more people applying to universities, more funds for universities, and more applications from low-income families.

[Greg Clark]

My right hon. Friend is absolutely right. We take a very cautious view of the RAB charge. The OECD is amazed that we take such a conservative view. For example, we take no account of the fiscal benefit that results from people paying more taxes because they earn more as a result of having a degree. The average salary of a non-graduate is £21,000, but the average salary of a graduate is £33,000. The graduate’s salary means extra tax for the Treasury, but that is not taken into account. We are expanding student numbers, and we have a record number of students with the most disadvantaged backgrounds. It is a tribute to the work done by my right hon. Friend that we are able to say that.

--- Later in debate ---

[Vince Cable]

I can give the hon. Gentleman exactly that assurance. We should listen to what he has to say. Of course, we are concerned that the British steel industry should succeed.

[Mr David Willetts (Havant) (Con)]

With the extraordinary technical achievement of the Rosetta landing last week and the announcement of crowdfunding for Lunar Mission One this week, will the Minister responsible for science take this opportunity to congratulate the British space community on its scientific excellence and its enterprise?

[Greg Clark]

I will indeed do that. I had the great pleasure of visiting Stevenage earlier this week to congratulate in person many of the scientists and engineers who worked on that brilliantly successful Rosetta mission. They demonstrated the Mars Rover, which is going to be the next source of excitement.