Higher Education: Loans
Viscount Younger of Leckie Excerpts(8 years, 3 months ago)
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Viscount Younger of Leckie (Con)
My Lords, I start by thanking the noble Lord, Lord Stevenson, for tabling this Motion. Before I respond, I shall, if I may, take the opportunity to say a few words about the noble Lord. The House now knows from remarks he made towards the end of Third Reading of the Higher Education and Research Bill last night that he is stepping down from his current spell of active Front- Bench responsibilities. This is certainly a surprise to me, and I am genuinely very sorry to hear it.
I have engaged with the noble Lord fairly intensively on a number of Bills in this House over several years, as he will know, as have some of my colleagues. It is fair to say that we usually know where we stand with him. He can be direct; he sometimes tells it as is, which he should certainly take as a compliment. He also looks to be helpful and constructive—while emphasising his party’s perspective, of course. Above all, I will miss his humour, sometimes cryptic, often sharp and always quick. My colleagues on these Benches have great respect for him and regard him as a bit of a magician—a member of the Magic Circle, perhaps—for his ability to juggle several Bills at the same time with relatively little support, although I am sure it is quality support. He will not be leaving the Front Bench entirely, I understand, but we all wish him well for the future.
These words have nothing at all to do with me trying to warm the seat for the noble Lord as I move on to respond to the concerns he has raised this afternoon. We take pride in the fact that Britain has some of the best universities in the world. To make sure that this continues, it is important that we put universities on a strong, sustainable financial footing. Indeed, Andreas Schleicher of the OECD said in September 2016 that,
“the UK had been able to meet rising demand for tertiary education with more resources … by finding effective ways to share the costs and benefits”.
However, the £9,000 fee cap that was set in 2012 is now worth £8,500 in real terms. If we leave it unchanged, it will be worth £8,000 by the end of this Parliament. As my noble friend Lord Willetts alluded to, the Labour Government under Prime Minister Tony Blair sensibly put in place new legal powers in 2004 which allow Governments to maintain university fees in line with inflation through a negative procedure. Rather than increasing the fees for everyone, we are allowing only high-quality providers to increase their fees in line with inflation. Universities UK and GuildHE, the two main representative bodies that collectively represent more than 170 higher education providers in England, Wales, Scotland and Northern Ireland, have made it clear that allowing the value of fees to be maintained in real terms is essential if our providers are to continue to deliver high-quality teaching.
The importance of this was expressed by Gordon McKenzie the CEO of GuildHE when he wrote that,
“fees had to rise by inflation at some point and it was fairer for students if those rises were linked to an assessment of quality.”
The vote on Report of the Higher Education and Research Bill was obviously disappointing. However, I remind noble Lords that the parliamentary process is still ongoing, and I look forward to Peers’ further engagement on this matter. Our policy intention remains to link maximum fees to the quality of provision via the teaching excellence framework as part of our wider reform package, as we are doing through these regulations. It is counter to government policy to see fee caps rise under any other circumstances.
As I mentioned, the fee link has been strongly supported by sector organisations GuildHE, as well as Universities UK, which said,
“allowing the value of the fee to be maintained in real terms is essential to allow universities to continue to deliver a high-quality teaching and learning experience for students”.
The noble Lord, Lord Stevenson, stated that the TEF was not ready and that we needed to move to the subject-level TEF. His opposition to TEF flies in the face of the support given to it by the sector bodies—and I have just added a few quotes to support that. It is absolutely our intention to move to subject-level assessment, but carefully, after two years of rigorous pilots.
I refer to the points raised in the Motion about the importance of ensuring access to university for everyone. Through universities being sustainably financed, we have been able to lift the student number cap, meaning that more people than ever before have been able to benefit from a university education, as my noble friend Lord Willetts said. Many people said, when fees were increased to £9,000, that it would dissuade people from disadvantaged backgrounds, but the opposite has happened. For this academic year, 2016-17, the entry rate for 18 year-olds from disadvantaged backgrounds is at a record high—namely, 19.5% in 2016, compared with 13.6% in 2009. So far, that has continued into 2017, with record applications for the 15 January deadline. Disadvantaged young people are now 43% more likely to go to university than in 2009, or 74% more likely to go to university than in 2006. In addition, those who go to university have more funding available to them. By replacing maintenance grants with loans, we have been able to increase the funding for living costs that some of the most disadvantaged students receive. It is an increase of over 10% in the current academic year, with a further 2.8% increase for 2017-18.
The noble Baroness, Lady Garden, stated that there were too few BME students, and of course we would always want more. However, we have record numbers of black and minority ethnic students going into higher education, and we want to go further still. We are legislating for greater transparency that will provide unprecedented access to anonymised applicant data on gender, ethnicity and socioeconomic background, as I think she is aware.
Universities, too, are spending even more to help those from disadvantaged backgrounds to access higher education. In 2017-18, institutions are expected to spend over £800 million on measures to improve the access and success of disadvantaged students, which is more than double what was spent in 2009-10 and can continue to increase if fees are allowed to keep pace with inflation. The Government’s policy will further build on this success, as stated by Les Ebdon, the director of the Office for Fair Access who said that,
“TEF will ensure that higher education providers have to carefully consider about how to provide excellent teaching for all their students, whatever their background”.
On the repayment of loans, I wish to assure noble Lords that our repayments system offers a fair deal to students. The current student loan system is heavily subsidised by the taxpayer and universally accessible to all eligible students, regardless of their financial circumstances. While the Motion in front of us states that the Government retrospectively change the terms of loans, I would remind the House that nothing in fact has changed. Our repayments system is based on income and not the amount borrowed. Again, my noble friend Lord Willetts alluded to that issue. Graduates with post-2012 undergraduate loans pay back only when they are earning more than £21,000, and then only 9% of earnings above that threshold. After 30 years, any outstanding debt will be written off, with no detriment to the borrower. That is entirely different to a commercial loan. The maximum fee cap is rising only by inflation, so it will not increase in real terms for anyone going to university.
We believe that it is right for those who benefit most from higher education to contribute to the costs. We should not forget that higher education leads to a better chance of being employed compared to those holding two or more A-levels, and an average net lifetime earnings premium that is comfortably over £100,000.
The noble Lord, Lord Stevenson, asked about reporting to Parliament on student loans, which is a fair question. I reassure the House that the debt repayments and costs associated with the present system of student loans are already reported annually to Parliament in the Department for Education’s annual report and accounts, the next set of which is due to be published this summer. In addition, student loans also feature regularly in the economic and fiscal outlook publications from the OBR, which are laid in Parliament twice a year.
Finally, I reassure your Lordships that the fee increase under these regulations is open only to those institutions who meet high quality standards. For this year this meant that they passed a quality review carried out by highly respected bodies such as the QAA, and those that wanted to charge the highest fees will need an access agreement.
As the TEF is fully implemented, the assessment process that universities will have to meet to be judged as good enough to raise their fees in line with inflation will become even more rigorous and more robust. The TEF will provide strong reputational and financial incentives to prioritise the student learning experience. We are linking funding to quality of provision, not just quantity of students, and ensuring that providers demonstrate high-quality teaching if they wish to maintain their fees by inflation.
The TEF has been strongly supported by organisations such as OFFA and the Sutton Trust, bodies whose fundamental purpose is to support the life chances of those from disadvantaged backgrounds. The Sutton Trust, for example, has said that,
“we need to shake the university sector out of its complacency and open it up to a transparency that has been alien to them for far too long. It is good that they are judged on impact in the research excellence framework, and that the teaching excellence framework will force them to think more about how they impart knowledge to those paying them £9000 a year in fees”.
Ensuring that people from all backgrounds are able to go to university is an essential part of the Government’s ambition to support all people to realise their potential, whether they are young or mature students and whether they study full or part time. The increases to maximum fee caps set out in these regulations are critical to achieving that objective. They ensure that our university sector has a sustainable financial footing so that it remains world class. I remind noble Lords that we are allowing fee caps only to keep pace with inflation—and in real terms they will be less than in 2012. Equally, we remain firm that these fee increases should not be automatically given but awarded to those that provide high-quality teaching and value for money to students.
I will answer some points on student funding made by the noble Lords, Lord Stevenson and Lord Bew. We believe our student funding system is fair and sustainable. The resource accounting and budgeting charge is not an unintended loss nor a waste of public money. It is the policy subsidy required to make higher education widely available, achieving the Government’s objectives of increasing the skills in the economy and ensuring access to university for all. After I answered an Oral Question from my noble friend Lord Flight the other day, I wrote quite a lengthy reply to him on this matter, and I am more than happy to put a copy of that letter in the Library if it is not already there.
The Government’s policies increase the number of people who are able to benefit from university education, resulting in record numbers of young people from disadvantaged backgrounds applying to university. Those opposing the increase in fees in line with inflation have not explained how they will find the £16 billion of which they will be depriving our universities over the next decade, risking universities’ financial sustainability and depriving universities of the funding they need to provide a high-quality education.
Therefore, in the light of my remarks, I hope that the noble Lord, Lord Stevenson, will consider withdrawing his Motion.
Lord Stevenson of Balmacara
My Lords, I thank noble Lords very much indeed for their comments, particularly about me. I am a deeply private person, and I hate it when the spotlight suddenly swings round and catches you like a rabbit—which I am here today. I did not want that or expect it, and I certainly did not want it to spoil the debate. I hope it has not, because the contributions have been on a serious level, and I thank the Minister in particular for dealing with the issues as they were presented.
The question of personality in this House is interesting. When you first come into the House, the thing that is impressed most on you is how it has to be treated as a third person in a passive sense—namely, as your Lordships’ House. You never speak about individuals. You certainly do not use first names. So the sudden emergence of an individual who has something to say is really rather shocking, and I hope that it does not get repeated—certainly not to me.
We have had a good debate. I have now realised, after nearly seven years here, that the way to tackle these issues is by tabling this sort of Motion because in the normal cut and thrust of debate and in the discussion of legislation and questions, one can never get down to a serious debate about serious issues. Therefore, I agree with the noble Lord, Lord Willetts, that a Motion such as this is a good thing to have now and again—not all the time, but just occasionally—to enable us to have a detailed discussion of issues causing concern. I fully accept what the noble Lord, Lord Bew, said—some of these issues are rather worrying.
The Minister said in his conclusion that he thought we had a fair and sustainable student finance system. It may or may not be fair—I am reminded of Zhou Enlai who, when asked about the impact of the French Revolution, said that it was too soon to say—and we will not know that for 30 years until we look back at the system when it has ended. However, we cannot wait that long. Therefore, the suspicion is that it is not fair. Is it sustainable? We cannot tell that because the figures are very difficult to interpret. The noble Lord, Lord Willetts, with several brains working full time, has not been able to crack it all and will be able to give us lectures and seminars to end all seminars. I look forward to those. However, I cannot cope with that. I just want something simple. If we cannot interpret this system on the basis of the DfE’s published accounts, perhaps tabling another Motion at an appropriate time agreed with the Minister, because he is a friend as well, would be the way forward. However, in the interim, we should get things started by testing the opinion of the House on whether it would like to see more information on this interesting area.
Higher Education and Research Bill
Viscount Younger of Leckie ExcerptsTuesday 4th April 2017
(8 years, 3 months ago)
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Baroness O’Neill of Bengarve (CB)
My Lords, I am not against collecting information because it is always interesting, but I would regret seeking information under all the protected characteristics set out in this Bill, among other reasons because I do not think asking intending students whether they are pregnant is a good idea. Age has the advantage, as the noble and learned Lord, Lord Wallace, said, that it is quite objective; people know how old they are. However, one characteristic which is not in the list of protected characteristics is socioeconomic background. I think that it is separate from the socioeconomic one and it depends on the utility of the information for the purposes at hand. The noble and learned Lord, Lord Wallace, has made the case that it is useful because of the decline in participation rates among older students. I do not think we know the significance of that decline. It has happened in an age group of whom many more have had the opportunity to participate in higher education when they were younger, and it is in that context that I would be uncertain whether it is of tremendous informational value. I am not against the amendment but I do not believe that it will yield very much additional information.
Viscount Younger of Leckie (Con)
My Lords, the transparency duty has generated much debate in both Houses and I am pleased to note that there is an appetite for further transparency to be brought to higher education as a whole. Indeed, this Bill and our accompanying reforms will mean that more information than ever before is published and made available to students. I thank the noble and learned Lord, Lord Wallace, for his engagement with the Bill. Let me assure him that I have reflected carefully on the comments he made in Committee, including those of adding attainment as one of the life cycle points in the transparency duty. We did respond to his suggestion and I was pleased to table an amendment on Report which will require higher education providers to publish data on attainment broken down by gender, ethnicity and socioeconomic background, something which the noble Baroness, Lady O’Neill, has just referred to. This will mean that the whole student life cycle is covered by the transparency duty and will support its focus on equality of opportunity.
I would like to take a moment to reassure the noble and learned Lord, Lord Wallace, about the consultation. We will be setting out our expectations for the consultation in our first guidance to the Office for Students. That guidance will be issued before the OfS comes into being in April 2018, so there is no question but that it is definitely a priority.
Let me also make the important point that the transparency duty is focused on widening participation. We have been at pains to balance the need for greater transparency on admissions and performance against the robustness of the available data and burdens on providers. This means that we have prioritised those areas where a renewed emphasis on widening participation will have the most impact. However, we have continued to listen and respond. The noble and learned Lord tabled further amendments on Report and I was grateful for the further opportunity to discuss this important issue. I was delighted to make a firm commitment in response to the points raised, which I will reiterate.
(aa) must monitor the extent to which the arrangements monitored under paragraph (a)”
Viscount Younger of Leckie
My Lords, this group of minor and technical amendments simply clarifies the drafting of the Bill, ensuring that it is consistent across the board. It also contains an amendment that I committed on Report to bring forward at Third Reading. I do have longer speaking notes, but I intend to keep this very short—so if noble Lords have any questions I would be happy to address them in my closing remarks. In the meantime, I beg to move.
“( ) section 11(9) (mandatory fee limit condition for certain providers),”
“(3A) Where the OfS has a consultation function involving registered higher education providers, references to registered higher education providers in the provisions describing the consultees are to be read as references to English higher education providers—(a) for the purposes of applying subsection (2) at any time when there are no registered higher education providers, and(b) for the purposes of applying subsection (3) in relation to anything done under subsection (2) in reliance upon paragraph (a) of this subsection.(3B) For the purposes of subsection (3A), “a consultation function involving registered higher education providers” is a function of consulting—(a) registered higher education providers (whether generally or a description of such providers), or(b) persons with a connection (however described) to such providers.(3C) In subsections (3A) and (3B), “English higher education provider” and “registered higher education provider” have the same meaning as in Part 1 (see sections 83 and 85).”
Lord Stevenson of Balmacara
My Lords, it is otiose to add very much to what was a wonderful account of the ramifications that one can get into when one moves to question some of the wording in the schedules to some of our more complex Bills. As a guide, the noble and learned Lord has been a wonderful education for a higher education specialist such as me. To have gone through a higher education Bill and then to have learned something right at the very end is a touch of magic—a bit of fairy dust that will sprinkle down across all of us. All we now need is for the noble Viscount to stand up and measure up to the relatively low but still quite precise hurdle that has been set for him. He is an elegant, small chap; he has light feet; he has had a brilliant career in dealing with difficult questions that we have thrown at him across the Dispatch Box. I am sure that this is well within his capabilities. He would be strongly advised, given the rather glowering face behind him, to do it right this time.
Viscount Younger of Leckie
My Lords, with that introduction, how can one fail? I thank another noble and learned Lord—this time, my noble and learned friend Lord Mackay—for his helpful and astute contributions on this issue both in Committee and on Report. We are very grateful for the expertise that he brings to bear. As my noble and learned friend said, this amendment has had an interesting history and has done the rounds, but, on a serious note, let me offer my apologies if the department’s letters to him on this issue have misunderstood his area of concern.
I shall briefly reiterate why the powers to enter and inspect higher education providers, set out in Schedule 5, are needed. These powers will allow suspected breaches of registration and funding conditions which are considered by a magistrate to be, to quote directly from Schedule 5,
“sufficiently serious to justify entering premises”,
such as financial irregularity, to be tackled swiftly and effectively through the new power of entry. This will safeguard the interests of students and the taxpayer, and protect the reputation of the sector. As the NAO said in its 2014 report on alternative providers, at the moment the department has no rights of access to providers, and this affects the extent to which it can investigate.
We agree that it is vital, of course, that strong safeguards are in place to ensure that these powers are used appropriately. As set out in Schedule 5 as drafted, a magistrate would need to be satisfied that four tests were met before granting a warrant: first, that reasonable grounds existed for suspecting a breach of a condition of funding or registration; secondly, that the suspected breach was sufficiently serious to justify entering the premises; thirdly, that entry to the premises was necessary to determine whether the breach was taking place; and fourthly, that permission to enter would be refused, or else requesting entry would frustrate the purpose of entry. These criteria will ensure that the exercise of the power is appropriately limited. Further limitations are built into Schedule 5, including, first, that entry must be at a reasonable hour, and secondly, that the premises may be searched only to the extent that is reasonably required to determine whether there is or has been a breach.
I believe that the thinking of the Government and that of my noble and learned friend is very largely aligned in relation to these safeguards. I fully understand that this amendment does not seek in any way to alter the conditions which must be met for a warrant to be granted, or prevent warrants being granted where they otherwise would have been. Rather, as my noble and learned friend has set out, the amendment makes a small change to the powers so that the search warrant to enter a higher education provider must state that all the conditions for grant of the warrant specified in Schedule 5 have been met. I am grateful for my noble and learned friend’s valuable contribution and have discussed this with him outside the Chamber and reflected on this matter very carefully. As he said, he spoke with my honourable friend in the other place, Jo Johnson, on this matter today, and with officials from HM Courts and Tribunals Service. I hope that these conversations were helpful. However, the Government remain of the view that this schedule should stand as drafted, as we believe that a requirement to state that the conditions have been met would not provide an extra legal safeguard.
We agree that it is imperative that the conditions in the schedule are fully met before any warrant is granted. However, we believe that this is already the effect of the Bill as drafted, specifically paragraph 1 of Schedule 5. Furthermore, paragraph 3(1)(f) already provides that the warrant must, as far as possible, identify the funding or registration condition breach which is suspected. We understand that, in the past, magistrates may have taken an insufficiently robust approach towards scrutinising warrant applications but, as I have impressed upon my noble and learned friend, the position is markedly different now: the specifics of applications are carefully scrutinised and it is not uncommon for warrants to be refused. I should acknowledge to my noble and learned friend that there may have been a misunderstanding as to the requirement for a magistrate to certify that the statutory requirements for the issue of a search warrant have been met. I want to reassure him that a magistrate will be required to set out the reasons for their decisions in writing, and to add their signature to their reasons. I accept that this may be described as a certificate.
I want to go into a little more detail, bearing in mind the comments of my noble and learned friend. He asked whether an application under Schedule 5 is within the ambit of the criminal procedure rules. The criminal procedures apply to a magistrates’ court,
“when dealing with a criminal cause or matter”.
Although an application for a warrant under Schedule 5 can be granted only where the breach under investigation is sufficiently serious, there is no requirement that the investigation must relate to possible breaches of the criminal law. However, in the absence of any specific guidance to the contrary, it is the practice of magistrates’ courts to deal with applications for a warrant to enter premises in accordance with the CPR and the criminal practice directions and using the prescribed form of application and warrant. Magistrates’ courts do not seek to make fine distinctions as to whether an application is civil or criminal. It is the nature of the application that is important.
As I said earlier, I can confirm that a magistrate will sign a separate form which certifies that the statutory criteria are met. In addition, of course, the magistrate will sign the warrant. With that reassurance, with the extra detail that I have set out and the reasons we believe this amendment is not necessary, I respectfully ask my noble and learned friend to withdraw his amendment.
Lord Mackay of Clashfern
My Lords, I am extremely happy because the purpose of my original intervention has been fully met by the description that my noble friend has given of the practice of the court. It is a little odd that the form is to be used only for criminal matters, but practice sometimes overcomes that. I am constrained to add a personal note. When I came to politics rather late in life, I had a very skilled, shrewd and experienced person to guide me. He was operating in a very hostile atmosphere and I gathered from him that if you could do anything to allay the concerns of those who were concerned about your activities, so long as it did not alter your own position it was wise to do so. I have used that criterion for most of my time in these offices. The person to whom I owe this tuition was the father of my noble and learned friend. I beg leave to withdraw the amendment.
Viscount Younger of Leckie
My Lords, before the Bill does, I hope, indeed pass, I want to say a few words. At this milestone in the Bill’s passage, I, along with my colleague, the Minister in the other place, would like to take a moment—and I hope that noble Lords will indulge me as I use this term one last time—to reflect, and perhaps I should say reflect carefully, on how far it has come since being introduced to this House last November.
The Bill is the most significant piece of legislation that the higher education sector has seen in 25 years. As is fitting for such an important piece of legislation, we have heard powerful speeches from distinguished noble Lords, many of whom have held respected posts in our world-class higher education and research institutions, on key aspects of the Bill. For example, the importance of protecting institutional autonomy has been an area on which we have reached agreement. The amendments on this issue that were brought forward by noble Lords on Report, which the Government supported, were welcomed across these Benches. The Government listened carefully and responded on this issue, as we did on many others. I believe that the Bill is better as a result of this reflection. I look forward to continued discussions on the changes that the Lords is sending to the Commons, but I am truly grateful for the extensive debate, discussion and consideration of all aspects of this important piece of legislation from all sides of the House.
I express particular gratitude for the constructive engagement of numerous noble Lords. Before I forget, I want to thank my noble and learned friend Lord Mackay for his very kind words about my father. It was moving and I am very grateful. I start by thanking noble Lords opposite, particularly the noble Lords, Lord Stevenson, Lord Watson and Lord Mendelsohn, who have led the Bill from the Opposition Benches. The noble Baroness, Lady Garden, and the noble Lords, Lord Storey and Lord Addington, played a key role for the Liberal Democrats. A wealth of experience has been brought to bear from the Cross Benches: to name just a few, I thank the noble Lords, Lord Kerslake, Lord Lisvane and Lord Krebs, and the noble Baronesses, Lady Brown, Lady Wolf in particular, Lady O’Neill, who is in her place today, and Lady Deech. I also thank the right reverend Prelates the Bishops of Durham, Portsmouth and Chester. Of course, I thank my noble friends behind me: my noble and learned friend Lord Mackay, who I have mentioned already, and my noble friends Lord Lucas and Lord Selborne. Above all, I pay tribute to my noble friend Lord Willetts, who may or may not be in his place—I do not have eyes in the back of my head, I am afraid—whose higher education White Paper in 2011 paved the way for the reforms outlined in the Bill.
Finally, I thank my colleagues—my noble friends Lady Goldie, Lord Prior and Lord Young—for their admirable support throughout the passage of the Bill so far; I stress “so far” because there is a little way to go. I also thank the officials in the Department for Education and the Department for Business, Energy and Industrial Strategy, along with officials in the Home Office, the Cabinet Office and the Ministry of Justice who have supported the Bill. I particularly thank the officials in the higher education and research teams and the Bill team. Having mentioned all those departments, I think the Bill has been a great example of how departments can work together effectively. Once again, this House has demonstrated the value of the scrutiny it adds to the legislative process. While we are by no means at the end-point of the Bill, as I have said, I thank all those involved in reaching this significant milestone.
Lord Stevenson of Balmacara
My Lords, I gather from the Public Bill Office that the Bill may have broken all records for the number of amendments tabled during its passage. That is an indication of the interest it generated across the House, which allowed the House to play a full and important role, as just mentioned by the Minister, as we scrutinised every clause and, indeed, virtually every line.
The Minister was kind to say that he felt that the Bill had been improved in this process. Ministers do not always feel that way about Bills that have been torn to pieces and not always put back together in the form that they originally liked. He is right that there were things we could do with the Bill to make it, within the context of its overall shape and form, slightly better and more accommodating of the needs of the sector it was intending to regulate. As the Minister says, there is further to go and perhaps it will change again, but we have certainly made a lot of progress. My noble friend Lord Watson said earlier on another Bill that the work we had done here is what we do best. It is something your Lordships’ House should continue to do.
I add my thanks to those expressed by the Minister, starting with him and his colleagues—the noble Lords, Lord Young and Lord Prior, and the noble Baroness, Lady Goldie, who all contributed to various areas within the Bill—for their unfailing courtesy and willingness to meet and, of course, to write. We have the epistolary Minister in front of us, who writes letters almost as easily as he breathes. We benefited a lot from those because they were very detailed and gave us a lot of information. We also appreciate, as has been mentioned, the substantial involvement of the Minister for Universities and Science in the other place, who, unusually, is not here today but has been seen around as we have discussed the Bill.
I also thank the Bill team. They were very good at organising meetings and often anticipated what we needed. But they also produced some very helpful factsheets, which have not been mentioned but I found very useful. These were necessary, because for those not involved in higher education it was a bit difficult to get down into the detail of the Bill. The factsheets were very useful in exemplifying what was meant by the various regulatory frameworks and what the architecture would do in practice, and we found them very helpful.
My Front-Bench team was superb. I am grateful to my noble friends Lord Watson and Lord Mendelsohn, who covered large areas of the Bill and obtained many of the concessions now in it. Our legislative assistant, Molly Critchley—we have only one—was extraordinary and superb and kept us going with grids and other materials so necessary for an effective Opposition, as well as dealing with the Public Bill Office and all those amendments. We are very grateful for its work as well in that respect.
One of the greatest pleasures of the Bill has been the experience of working closely with the other groups in the House. We quickly discovered that our views on the Bill were shared by the Liberal Democrats and a substantial number of Cross-Benchers, and indeed some Members on the Government Benches. We found that by meeting regularly and sharing intelligence about what Ministers were saying in bilateral meetings, we could make better progress than perhaps would otherwise have been the case. As I approach the end of my current spell of active Front-Bench responsibilities in your Lordships’ House, the close working relationship we built up over the Bill is one of the memories I will cherish the most.
Educational Attainment: Boys
Viscount Younger of Leckie Excerpts(8 years, 3 months ago)
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Viscount Younger of Leckie (Con)
My Lords, this has been a short but fascinating debate, and I thank my noble friend Lord Lingfield for raising this important and complex issue. I shall start by setting out what we know about the issues affecting boys’ performance at school and describing the measures that we are putting in place to address many of the problems.
We have known for decades that boys develop at a different rate from girls and that there are certain areas of the curriculum, such as English, in which girls tend to outperform boys, but it is only in recent years that a pervasive gender attainment gap has begun to open up in state schools in England, with girls now outperforming boys at all educational stages and in most curriculum subjects. The gap opens early and persists—indeed widens—through school. Let me give some statistics. Last year, 75.4% of five year-old girls achieved the expected levels for all the early learning goals, compared with 59.7% of boys. As my noble friend Lord Lingfield said, at the end of primary school, 50% of boys—I think that he said 49%—and 57% of girls achieved the expected standard in reading, writing and maths. By the end of secondary school, girls outperformed boys across all the GCSE headline measures. I could give more statistics that confirm this pattern.
As a result, it is not surprising that boys are less likely to go on to further study at 16 or to apply to university, but let us look at the reasons why. What is clear is that the early years are critical. The noble Lord, Lord Watson, raised the issue of research, which highlights stark differences in early cognitive and social development. Girls start school with more advanced social and behavioural skills and, for example, more well-developed language and attention skills, which have been shown to account for two-thirds of the gender gap in reading observed at age 11. While girls outperform boys across all major ethnic groups, there is considerable variation. Boys from particular ethnic backgrounds, including Chinese and Indian, do much better than others, notably white British and black Caribbean boys.
As the noble Lord, Lord Addington, said, boys are much more likely than girls to be identified as having special educational needs, although he also said that the underdiagnosis of SEN among girls may also be an issue. There is a much higher incidence among boys of social, emotional and mental health needs, speech, language and communications needs and autistic spectrum disorder. Boys are much more likely than girls to be temporarily or permanently excluded from school, yet it is not clear from research evidence whether negative behaviour in school is a cause of poorer academic attainment or one of its consequences. Similarly, there is a lack of good research into how educational outcomes are affected by family structures and, in particular, the absence of a male role model. One recent study found that families with single mothers are associated with greater gender gaps in children’s non-cognitive skills, but it did not look at academic attainment.
My noble friend Lord Farmer asked what was being done to improve the rates of active fatherhood and how we are supporting families to prevent family breakdown. There can be no doubt that parental conflict causes heartache and damages children’s upbringing, potentially harming their opportunities well into the future. We now understand more about the mechanism through which children’s outcomes are affected by parental conflict and that it impacts directly on children’s well-being, as well as getting in the way of good parenting. We must make reducing conflict between parents our priority, regardless of whether they are together or separated. That means making support to reduce parental conflict a part of local provision. To achieve that, we will continue to work with local authorities to help them to embed this work into local services.
We understand the importance of both mothers and fathers to children’s future outcomes, regardless of whether couples are together or separated, but we often hear that services are less likely to identify men as parents and to consider them as having responsibilities to their children. We are ensuring that both mothers and fathers are supported through our parental conflict work and will look at whether more can be done to ensure that services recognise fathers and help them to play a full and active role in their children’s lives.
International studies suggest that boys and girls differ in their behaviour and attitudes towards school and academic study. Girls are more likely to use self-regulation strategies, to do their homework and to respond to school work more positively. Noble Lords may agree that this is a rather obvious conclusion. However, the impact of school factors on the gender attainment gap is not obvious. There is some research that shows no conclusive link between the size of the gap and overall school performance. However, we know that schools with little or no gap have a positive attitude to study, high expectations of all pupils, excellent teaching and classroom management and rigorous tracking of individual pupils’ achievement.
Some common assumptions about boys’ underperformance in school are not supported by evidence. For example, there is no evidence that the emphasis on coursework at GCSE, which has been thought to be a factor favouring girls, has adversely affected boys. Similarly, some people have suggested that boys are held back by a lack of male teachers, particularly in primary schools, but there is no conclusive evidence to back this up.
My noble friend Lord Farmer asked what was being done to increase the number of male teachers, especially in certain hot spots where there might be more of a plethora of lone parents. Current data show that in 2015 there were more than 119,000 male teachers, full-time equivalent, compared to 115,000 in 2011. Men comprise 26% of teachers in state-funded schools in England, a proportion that has remained broadly stable over time. We are aware of concerns around the number of male teachers in our classrooms and we want all schools to be able to recruit high-quality teachers, regardless of their gender, since evidence shows that quality of teaching is the single most important factor in determining how well pupils achieve. Research has not found that the gender of teachers has a differential effect on boys and girls, but we will continue to monitor the composition of the teaching workforce by gender and will consider what if any steps would be appropriate to increase the number of men entering the profession.
Having set out the scale and nature of boys’ underperformance and briefly described its causes, I now turn to how the Government are tackling this issue. We are committed to tackling educational underachievement wherever it exists, not by targeting specific pupil groups but by setting high expectations for all pupils and building a self-improving school system offering world-class education to every pupil. I begin with the early years—which are so important, as the noble Lord, Lord Watson, said. Every three year-old and four year-old is entitled to 15 hours per week of free early education. Numbers of qualified staff and graduates in the early years workforce are rising, and we have introduced early years teachers, who must meet the same entry qualification requirements as teachers of older children. At primary school, we have introduced a stretching national curriculum with higher standards in English and maths so that all pupils secure the basics in literacy and numeracy by age 11. At secondary school, through the English baccalaureate, we have set a strong expectation that all pupils will receive a rigorous academic education that prepares them for further study and employment.
Beyond the core curriculum, we want to ensure that all pupils can develop essential life skills—qualities such as resilience, perseverance and self-control. We actively encourage schools to develop these qualities in their pupils through activities such as team sports, volunteering, arts, drama and cadet training. I am minded of the anecdote that my noble friend Lord Lingfield mentioned at the beginning of his speech.
Our vision for a self-improving schools system is fast becoming a reality. The growing network of teaching schools and multi-academy trusts ensures that schools can collaborate and be supported to raise standards. We are working hard to create a sustainable pipeline of high-quality head teachers and school leaders, and have put in place reforms to improve teaching quality at all levels. My noble friend Lady Bloomfield highlighted the importance of good teachers and Teach First. I also acknowledge the point made by the noble Lord, Lord Storey, about the need for more experienced teachers in deprived schools. He is, of course, quite right.
However, while there are now nearly 1.8 million more pupils in good or outstanding schools than in 2010, there are still a million pupils in schools which are inadequate or require improvement. A good school place remains out of reach for too many, particularly those from less well-off families. The ban in place since 1998 on opening new selective schools makes it harder to create good school places and limits access to the most stretching academic education to those who can afford to move near to existing grammar schools or pay for independent schooling. That is why we propose to scrap the ban on new grammar schools and allow them to open where parents want them, with strict conditions to make sure they improve standards in local schools and beyond. However, recognising that highly academic routes are not for everyone, we are also reforming technical education, offering training for highly skilled occupational areas such as engineering and manufacturing, health, science, construction and digital. We continue to develop the increasingly popular apprenticeships route, with which noble Lords will be familiar, through a strong partnership between government and industry, equipping young people with the skills that employers need to grow.
I am fast running out of time. A very important point was raised by the noble Baroness, Lady Morris, on the link with poverty. If I had more time, I would speak about that. I shall write to her and copy in all noble Lords who took part in the debate, because there is a link and some very important messages there which we are aware of and need and seek to address.
To conclude, as my noble friend Lord Lingfield said so eloquently, this is a complex topic. I think that all noble Lords recognised that there are no quick fixes, yet the far-reaching reforms of education set in train by this Government, covering the early years right through to higher education, are equipping schools with the tools to tackle these entrenched issues. I passionately believe in the transformative power of high-quality education, that that is a right for all children—both boys and girls—and that strong leaders in good schools are in a unique position to make it happen. Above all, and as noble Lords said, there is undoubtedly more work to be done to tackle these issues. The focus of the Secretary of State for Education must be and is on the 1 million boys and girls stuck in underperforming schools and how to ensure that each one is able to reach their potential. Only then can her and the Prime Minister’s unerring focus on improved social mobility truly become a reality.
Public Sector Apprenticeship Targets Regulations 2017
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Viscount Younger of Leckie
That the draft Regulations laid before the House on 6 March be approved.
Viscount Younger of Leckie (Con)
My Lords, these regulations are the first use of the power under Sections A9 and A10 of the Apprenticeships, Skills, Children and Learning Act 2009 which enables the setting of apprenticeship targets for prescribed public bodies. There is a fair amount of ground to cover so I hope the House will forgive me if my remarks take slightly longer than usual.
I will start by setting out what we are trying to achieve, the scale of our ambition and how these regulations enable that to be met. The public sector comprises bodies ranging from large government departments, such as the Department for Work and Pensions, to more independent institutions such as local NHS trusts. With 4.2 million people working in the public sector, in professions stretching from front-line nursing to local council administration, it is vital that all those employed have the skills they need to succeed.
Apprenticeships are the cornerstone of our skills strategy and across the country employers are hiring apprentices as part of the workforces of the future. Therefore, to encourage public sector bodies to incorporate apprentices into their own workforce planning, these regulations set an apprenticeship target for prescribed public bodies. The apprenticeship target is for the number of apprentices who start working for the public body over the target period to be equal to 2.3% of the public body’s headcount in England. The target period is from 1 April 2017 to 31 March 2021.
I do not intend to go into the formula used to set the target at 2.3% of a public body’s headcount but I will say that this figure reflects the public sector’s proportional share of our broader target to achieve 3 million apprenticeship starts by 2020. Across the public sector, 2.3% means a goal of more than 80,000 new, employer-led, quality apprenticeships in each year the target is in effect, with the positive impact felt by everyone from police forces to schools to government agencies, and the public benefiting throughout from the delivery of world-class public services.
To realise this, the regulations prescribe the public bodies in scope of the target, how public bodies can calculate their progress towards meeting the 2.3% target, and the information they must publish and send to the Secretary of State. The regulations enable the Government to effectively set and monitor this target, and they will be supported by statutory guidance, assisting public sector bodies to understand how they can best have regard to the target.
I will now focus on quality and benefit. Historically, the public sector has employed far fewer apprentices than the private sector and that is why it is necessary to establish the target, to ensure that all parts of the economy are able to benefit from a skills revolution. Through these regulations we are creating more opportunities for people to earn as they learn in an apprenticeship.
Quality remains at the core of the Government’s apprenticeship reforms. New, employer-led standards will ensure that each apprentice will be fully competent in their profession, and the Institute for Apprenticeships, which is coming on stream on 1 April 2017, will oversee the quality of apprenticeship standards and assessment plans. We have also legislated to protect the term “apprenticeship” by creating an offence for a person to provide or offer a course or training as an apprenticeship in England if it is not a statutory apprenticeship. This is crucial as we must uphold quality in order that the strong benefits of apprenticeships may continue.
Employing apprentices makes sense for everyone involved. It makes economic sense and delivers a high return on investment, with research indicating that adult apprenticeships at level 3 bring £28 of economic benefits respectively for each pound of government investment. Employers benefit, too. In a 2015 survey 87% of employers said they were satisfied with their apprenticeship programme. That is the latest survey that we have.
Finally, the financial benefits to apprentices themselves are immediately apparent. Apprenticeships boost current earnings by 11% and 16% for levels 2 and 3 apprenticeships respectively.
Although we are not intending to set sub-targets for individual groups, we remain committed to improving access to apprenticeships for all, including those from BAME backgrounds, those with learning difficulties or disabilities, care leavers, and those from deprived areas. We are taking a range of actions to make apprenticeships more accessible, including implementing the recommendations of the Maynard taskforce for people with learning difficulties or disabilities, and establishing the Apprenticeships Diversity Champions Network.
We are also investing over £60 million in supporting apprentices from deprived areas. As a priority, we are establishing parity of esteem to ensure that doing an apprenticeship is no longer seen as a secondary choice to the academic route. This is particularly important as we ensure that apprenticeships are valued by all and remain opportunities open to all. Apprentices no longer fit the image of old; now they work in all sectors from education to planning and administration, at all levels from first job even up to management level, and they are from all backgrounds.
During the passage of the Enterprise Act 2016, which inserted this provision into the Apprenticeships, Skills, Children and Learning Act 2009, this House debated and voted on provisions enabling the Government to set apprenticeship targets for prescribed public bodies. At that time there was cross-party support for what was rightly recognised as an opportunity to improve public services and provide more opportunities for people of all backgrounds.
We consulted extensively on the proposed bodies and scope and the calculation of the target, and heard from a wide range of 180 public bodies and representative groups of different sectors. The majority of respondents felt it vital that the public sector engaged with our reforms and that public sector bodies also benefited from the growing apprenticeship movement, with one trade union commenting that they,
“welcome the extension of good quality apprenticeships”.
We also listened to concerns raised. For example, some respondents were critical of the target being assessed on an annual basis. As such, while still continuing to monitor public bodies’ progress in annual returns, for grouped bodies the target is calculated as an average over the target period. For all other public bodies, the target is calculated with respect to only those years in which the public body has 250 or more employees. This will enable organisations to plan their training and recruitment of apprentices to meet their workforce needs, and for government to monitor and support public bodies where needed.
Following consultation, we will also allow local authorities to separate the headcount of those bodies where they employ staff but do not direct the workforce planning—including schools and emergency services—in their information returns. We have also responded to those who were concerned about how the target may impact them given their high proportion of part-time workers. We suggest that these bodies can, should they choose to, use their full-time equivalent number in parallel under their obligation to report on headcount, in order to explain any underachievement of the target as necessary.
I will move on to reporting requirements. In order to promote transparency, public bodies will be required to publish and/or provide information relating to their progress. They must do this in the six months following 31 March, in each year of the target period in which the body is in scope. There are two parts to this requirement. First, to make it clear which bodies are leading in their investment in apprenticeships, public bodies must publish and send information about their progress towards the target. This includes how many apprentices they employ as a percentage of their total headcount.
Secondly, public bodies will have to send an “apprenticeship activity return” to the department, detailing the actions they have taken to have regard to the target, why they may not have met the target, and their intended future actions to do so. This information does not have to be made available publicly but will instead be used by government to determine which bodies have had regard to the target before offering suitable support and guidance thereafter. To be clear, we do not intend to use a heavy hand in our approach to public bodies in this respect but rather consider the details that they have provided in the return, before assessing whether they have had regard, or enough regard, to the target.
We do not wish to overburden the public sector unnecessarily and we remain aware of the challenges faced by different bodies. That is why the Department for Education is liaising with the Department for Communities and Local Government, the Department for Health, the Home Office and other departments across Whitehall to support them in delivering apprenticeships throughout their own wider public sectors. Departments will also work with public bodies to develop new, employer-led apprenticeship standards and increase the number of quality apprenticeships, thereby directly improving services delivered to the public.
Viscount Younger of Leckie
My Lords, I thank the noble Lords, Lord Watson and Lord Storey, for their comments and questions. First, I am pleased that in general they welcome what we are doing. As the noble Lord, Lord Storey, said, these initiatives started under the previous Government. We realise that this is long-term work. We fully intend to roll this out and stick with it over the long term. It takes many years to ensure the success of this sort of initiative.
The noble Lord, Lord Watson, asked about the Department for Education in relation to apprenticeship participation. This is a fair point. The Department for Education is confident that it will meet the target. I shall write to the noble Lord setting out precise numbers and the wider plan in the education sector. I shall also cover his other points as to the percentage of apprenticeships in the department and the percentage of women apprentices. I can certainly do that.
The noble Lord also asked whether the House of Commons or the House of Lords were in scope of the targets. In other words, would we and the other place be taking on apprenticeships? While we are not imposing this target on this House and the other place, there is nothing to prevent us or the other place from creating apprenticeships. We do not fall in scope because we do not seek to have Ministers tell us what to do.
Lord Watson of Invergowrie
I understand that the Minister cannot direct either House and I accept that. That is why I referred to smoking in the workplace. That, equally, cannot be enforced. However, it is de facto, if not de jure. I welcome the noble Viscount’s response because he is encouraging both Houses to adopt this measure. It is interesting to have that on the record. We shall see what figures emerge over the next two to three years and proceed with that, perhaps even jointly.
Viscount Younger of Leckie
I entirely agree with the noble Lord that having this recorded in Hansard encourages the Houses to initiate it.
Perhaps more important, though, is the question that the noble Lord raised about the target and the clarity of the target—in other words, the 80,000 which I mentioned. I may have to write to clarify this matter further because it is somewhat complex. I say, to be helpful, that this is a proportional target. It is based on the proportion of public sector employees as part of the total workforce in 2015. As this target is set from 2017-18 up to 2020-21, the number is not an exact copy of the 2015 number. In addition, following reaction to the consultation, we have excluded certain bodies who presented a good reason for not being included. We reiterate that this remains an ambitious and transformative target. It is important to have targets, but it is not set in stone. However, the 80,000 figure is there, and it is meant to be.
The noble Lord, Lord Storey, asked about the support offered to engage those from BAME backgrounds. We are taking action in this area, as he will know. We have launched the diversity champions network, chaired by Nus Ghani MP, to champion equality and diversity. Public sector organisations, including councils and NHS trusts, are among our diversity champions. We are also celebrating the BAME apprenticeships in our Get In Go Far publicity campaign. The question that he really asked concerned what we would do if there was concern about the targets not being met. I reassure him that the targets in these areas will be kept under review. Although I cannot promise any particular action, being kept under review means that, if there were any concerns, they should rightly be addressed.
The noble Lord, Lord Watson, asked about child benefit eligibility in an apprenticeship. Ministers fully understand the intention behind the noble Lord’s amendment. The Government need to analyse costs and the impact on the wider system. It is best for the Government to respond to this in the other place.
The noble Lord, Lord Watson, also asked about supply chains in the target. Supply chains are mostly, normally, in the private sector, so they are not included. However, the Government are using their procurement for contracts of over £10 million to take this forward. In the Department for Transport, for example, we should see 30,000 apprenticeships in the road and rail sectors through the use of the Government’s procurement programme. We anticipate that this will be about 2.3% of employees in those workforces.
The noble Lord also asked about the target of 2.3% and whether a higher target would be achievable in later years. That is a fair question. As I mentioned, we are asking public bodies to have regard to this figure. Some will achieve it each year, and some may not. But where they do not achieve it in the early years, we will look to employers to make further progress. We will do our best to support them to make that progress.
I hope that answers all the questions. I will, of course, read Hansard to check what questions were raised—quite a few questions were asked by the two noble Lords—and I will, of course, write to them if there are other questions to be answered.
Industrial Training Levy (Engineering Construction Industry Training Board) Order 2017
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Viscount Younger of Leckie
That the draft Order laid before the House on 23 February be approved. Considered in Grand Committee on 21 March.
Brexit: Gibraltar
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Lord Boswell of Aynho (Non-Afl)
My Lords, I am delighted to have this opportunity to debate our report and I am hugely grateful to the business managers for making time available at such short notice. This short debate is particularly timely given the presence tonight in the Gallery of the Chief Minister of Gibraltar, the honourable Fabian Picardo, who gave eloquent evidence to our inquiry, and the Deputy Chief Minister, the honourable Dr Joseph Garcia. Although I cannot of course direct my remarks formally in their direction, perhaps I may say to the House at large that I hope they found our report constructive and helpful. I underline my committee’s continuing openness to dialogue with the Gibraltarian Government and people.
As our report states very clearly, Gibraltar is part of the European Union and its citizens were able to vote in the referendum last June. Just under 96% of votes cast in Gibraltar were to remain—but Gibraltar, as a dependent territory of the United Kingdom, is now set to leave. In these circumstances, particularly, the United Kingdom Government, I suggest, have a unique moral responsibility to ensure that Gibraltar does not suffer as a result of a Brexit that its people almost unanimously opposed. I hope that the Minister will acknowledge that responsibility tonight.
There can be no question that Gibraltar has benefited hugely during our membership of the EU. I say “during” rather than “as a result of” our membership because I do not wish to assert any necessary causality. But we just have to remind ourselves of the position in the 1970s, when Spain was still under the rule of General Franco and the border was closed, to see that Gibraltar today, with its vibrant, service-based economy, is in a far better place. The existence of an open border, which allows more than 10,000 workers—40% of the total workforce in Gibraltar—to cross from Spain every day, is absolutely fundamental to Gibraltar’s long-term prosperity, as it is to that of Andalusia, the neighbouring region of Spain.
We urge the Government here to do everything possible to maintain Gibraltar’s access to that pool of cross-border workers. That will require intense diplomacy with Spain, the European Union institutions and the other 26 member states, which have played an important part in promoting dialogue between Gibraltar and Spain and which have a strong interest in maintaining the prosperity and stability of Gibraltar going forward. That diplomacy will become even more important after our withdrawal, when United Kingdom Ministers have ceased to participate in regular European Council meetings, and have lost that forum for frequent and informal dialogue with their Spanish counterparts.
I do not underestimate the challenges that the Government may face. Some are technical. The Government will need to explore the options in legal terms for maintaining a free-flowing frontier and we flag up the Chief Minister’s suggestion to us that the Local Border Traffic Regulation could provide a suitable basis for this. We also note that in the area of policing, the land frontier becoming part of the European Union’s external border could create difficulties. As in the case of the Irish land border, close co-operation between police forces on both sides of the border and flexible extradition arrangements will be vital.
There are other important issues such as aviation, Gibraltar’s access to the single market in services, particularly financial services, and Gibraltar’s territorial waters. I am sure that other noble Lords will touch on some of these tonight and I look forward to their contributions to this debate. Reaching solutions on these issues, in particular on the vital issue of the border, will require compromises on all sides and I hope that the Minister in responding to this debate will take the opportunity to outline the Government’s approach in more detail than we have heard thus far.
However, on one key issue no compromise is possible. The Government have made a commitment never to enter into sovereignty discussions against the will of the Gibraltarian people, and our Committee fully endorses that commitment. The reaction in Madrid immediately following the referendum was watched closely in Gibraltar and there is always the risk that someone will seek to inflame tensions with a view to their domestic political gain. The United Kingdom Government therefore need to be alert to any attempts by Spain to advance territorial claims over Gibraltar, by whatever means.
I emphasise that the rest of the European Union is potentially a useful ally in this process. The European Union and its member states have invested in Gibraltar. They have a real stake in the stability and prosperity of neighbouring states, and will not take kindly to any attempt by Spain to derail a Brexit deal over Gibraltar. It would be unwise and potentially counterproductive for the Government here to try to play off Spain against the other 26 member states. I hope that the Minister will agree that, as we approach the Article 50 negotiations, the last thing the Government should do is to try to undermine the unified approach of the EU 27. The challenge, in contrast, is to identify common interests and shared practical solutions that will underpin a durable continuing partnership.
Within the United Kingdom that partnership has to be built up across our constituent nations and regions. It needs to embrace Gibraltar, the Crown dependencies and the other British Overseas Territories, which each have a distinctive constitutional relationship with the United Kingdom and European Union. There also needs to be a partnership between the United Kingdom and European Union—that is, the whole European Union, including Spain—if we are to maintain a fruitful relationship for the future. It is important to acknowledge the strong bilateral relationship that the United Kingdom enjoys with Spain and to accept that that relationship should not be seen solely through the prism of the dispute over Gibraltar.
I will end as I began. Our view is that the United Kingdom Government have a unique moral responsibility to ensure that Gibraltar’s voice is heard and its interests respected as we approach Brexit and beyond. I look forward to the noble Baroness’s reply, in which I hope that she will clearly set out how the Government plan to fulfil that responsibility.
Viscount Younger of Leckie (Con)
My Lords, timings are particularly tight for this 90-minute debate and I therefore request that Back-Bench speeches are wound up as the Clock reaches four minutes, and no later.
Industrial Training Levy (Engineering Construction Industry Training Board) Order 2017
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Viscount Younger of Leckie
That the Grand Committee do consider the Industrial Training Levy (Engineering Construction Industry Training Board) Order 2017.
Viscount Younger of Leckie (Con)
My Lords, I start by setting the scene. The Government are committed to delivering a bold, long-term industry strategy. We start from a position of strength, as the fifth biggest economy in the world with an employment rate that has never been higher and world-leading industries, from car manufacturing and satellite engineering to financial services and the creative arts. Engineering construction is at the forefront of that industrial strategy. To support delivery of this industrial strategy we are building a high-quality technical education system to improve basic skills, address shortages in STEM skills and ensure that people have the skills that employers are looking for, now and in the future. It is integral that through this system we provide opportunities for lifelong technical education learning.
There are several ways in which we are doing this. The first is through the establishment of 48 university technical colleges, with a further six in the pipeline to provide high-quality technical education to 14 to 19 year-olds. Secondly, there is the implementation of the Sainsbury panel’s 15 new technical routes and wide-reaching reforms to improve the apprenticeship offer. We are committed to raising the prestige of further education and apprenticeships. Thirdly, the Engineering Construction Industry Training Board plays a key role in helping delivery of this programme. The engineering construction industry encompasses much of the nation’s key national infrastructure work. We must ensure that skills exist in the engineering construction workforce to deliver such critical new infrastructure projects as Hinkley Point C and HS2. Much like mainstream construction, engineering construction is characterised by significant levels of project working, where demand can be unpredictable. Workers in the sector are often highly skilled, and in high demand both domestically and internationally.
The Engineering Construction Industry Training Board works to help retain these vital skills within the UK economy and to drive innovative working practices within the industry, such as the development of drone technology. The order enables the ECITB to raise and collect a levy on employers in the engineering construction industry. The board has been providing vital industry support since its creation in 1991. Established under the Industrial Training Act, its core activity is to invest money that it receives by way of the levy in skills training for the engineering construction workforce. The board develops the skills of the existing workforce and new entrants into the industry through providing training grants and puts in place strategic initiatives that will benefit industry over the long term and secure a sustainable pipeline of skills. The ECITB is led by industry and has a central role in training the workforce in the engineering construction industry. It provides a wide range of services including setting occupational standards, developing vocational qualifications and offering direct grants to employers who carry out training. In doing all this, the Government look to the board to minimise bureaucracy and to ensure that support to employers is relevant and accessible.
The ECITB also has a key role in encouraging greater diversity across the engineering construction industry. Currently, only 7% of the engineering construction workforce are women. This lack of diversity needs addressing. The board is running extensive careers programmes in schools and promoting female engineering role models and will continue to support the department in its continued drive to increase the number of woman undertaking STEM qualifications. The Department for Education is also investing £20 million in business mentors, which will help disadvantaged and vulnerable young people to access the right information about a fulfilling education or training route that is right for them.
Industry support is fundamental to the success of the ECITB. The vast majority of employers in the engineering construction industry continue to support a statutory framework for training and the ECITB levy. The order will enable these statutory levy arrangements to continue.
I move on to how the levy is calculated. The Industrial Training Act allows an industrial training board to submit a proposal to the Secretary of State for raising and collecting a levy on employers to ensure the effective provision of skills in the industries that they serve. This order will give effect to a proposal submitted to us for a levy to be raised by the ECITB for levy periods ending 31 December 2017, 31 December 2018 and 31 December 2019.
Given the history of this levy and our wider reforms, the Committee may ask how the order interacts with the apprenticeship levy. Let me explain. After the introduction of the apprenticeship levy, the ECITB reviewed its levy arrangements and made the decision to reduce its rates as follows. The levy rate attributed to site employees will be reduced to 1.2% of total emoluments—and by emoluments I mean all salaries, fees, wages and any other earnings of an employee—plus net expenditure on subcontract labour. This is down from 1.5% of total emoluments in the 2015 order. The rate in respect of off-site employees, often referred to as head office employees, will be reduced to 0.14% of total emoluments, plus net expenditure on subcontract labour. This is down from 0.18% of total emoluments in the 2015 order.
The Industrial Training Act requires the ECITB to take reasonable steps to ascertain the views of persons who are likely to be liable to pay the levy as a consequence of the proposals. This involves ascertaining the views of the majority of employers who together are likely to pay the majority of the levy. The proposal for the levy obtained the support of the majority of employers in their respective industries. The three major employer federations in the industry, the ECIA, the OCA and BCECA, supported the levy. All levy-paying members of the employer associations, 84 in total, were deemed to be supportive. Of the 149 employers not represented by these federations, 41 did not respond and only 10 declined to provide their support. On that basis, 78% of levy-paying employers were supportive of ECITB’s proposal, and such employers are likely to pay 87% of the value of the levy.
The Industrial Training Act also requires that the board includes within its proposal a proposal for exempting small employers from the levy. This order therefore provides that small firms are exempt from the levy if their total emoluments are below a threshold that the industry considers to be appropriate. If the total gross emoluments and total gross payments are less than £275,000, no training levy will be payable in respect of site-based workers. If the total gross emoluments and total gross payments are less than £1 million, no training levy will be payable in respect of off-site based workers. Those employers who are exempt from paying the levy can and do continue to benefit from support from the board, including grants. The ECITB determines that 375 establishments are considered to be in the scope of the levy. Of that, 120 establishments are exempted due to their size, which means that 32% of establishments are exempted. This order is therefore expected to raise around £78 million for the ECITB in levy income over three years.
To conclude my opening remarks, this order will enable the ECITB to continue to carry out its vital training responsibilities alongside the introduction of the apprenticeship levy and, aligned to our wider skills reform programme, it will help the Government meet their industrial strategy goals. Accordingly, I commend it to the Committee. I beg to move.
Lord Watson of Invergowrie (Lab)
My Lords, I thank the Minister for his introduction to this order, which I think it fair to say is not particularly controversial and need not detain us for too long.
Preparing for this took me back some time. In a previous guise, I was the full-time official of a trade union in the engineering sector, and I well remember dealing with many industry training boards on a number of different issues. When the Department for Business, Innovation and Skills published its final report in December 2015 on the combined triennial review of the industry training boards, it mentioned the background to the industrial training levy itself, which was introduced as part of the Industrial Training Act 1964. That is of course where the industry training boards can be traced back to as well.
It is to be regretted that there are now only three industry training boards left. I certainly remember that there were more than 20 in the 1980s, and they were significantly reduced by the Industrial Training Act 1982. Apart from the film sector, only the Construction Industry Training Board and the Engineering Construction Industry Training Board are still in place today, both of which are of course accountable to Parliament. They raise most of their funds through training levies and various commercial activities. In 2016, the ECITB raised £32 million in levy and returned £28 million to the industry. It is interesting that the ECITB itself made the proposal to reduce the industrial training levy rate for employers, which appears to be a direct result of the impending introduction of the apprenticeship levy. That is reasonable and I understand the thinking behind it.
I made notes but if I read them out I would largely repeat what the noble Viscount said in his introduction, and I see little purpose in doing that. However, the listed exemptions seem reasonable and are set at reasonable levels with regard to the overall pay bill of establishments. I was interested to hear the noble Viscount say that a total of 275 establishments would qualify for the levy, with 120 exemptions. I will not mention the details of the exemptions, but they meet the needs of the industry. It is instructive that the consultation carried out by the ECITB found that 78% of levy payers were in favour of the proposals, and together they will pay a total of 87% of the value of the forecast levy. There is fairly broad support, therefore; I certainly have not been made aware of any opposition.
As the noble Viscount himself pointed out, and I thank him for doing so, less than 10% of the engineering workforce is female. Again, going back to my days as a trade union negotiator, I remember the attempts that were made to get more women into the union, particularly the predominantly engineering-based union that I looked after. It was very difficult, and I pay tribute to WISE—Women into Science and Engineering, which is backed by my union, Unite. We want as many women as possible to come forward and fill jobs in the manufacturing sector, particularly in engineering.
This issue goes back to the requirement for qualifications, particularly STEM qualifications, and will impact on what I am going to say about the next set of regulations for consideration. The pressure on schools to find enough teachers to make sure they can deliver teaching in these subjects cannot be ignored. A lot more work has to be done on that, because they provide the building blocks to get the initial qualifications to get women into university, or through the technical routes into engineering. It is important that the Minister highlighted that, and it is to be welcomed.
The order is not controversial and is to be welcomed. It has been welcomed in the industry, and on that basis I can only hope it will achieve what it sets out to achieve and assists the development of the industry.
Viscount Younger of Leckie
My Lords, I thank the noble Lord, Lord Watson, for his comments and for his contribution today. I was particularly interested to hear of his background, which I did not know about. I appreciate his general support for the order.
Before I make some very brief concluding remarks, I shall pick up on his very important point about the need to encourage more females into engineering. I am delighted that my noble friend Lord Nash is in Committee today because I am sure he agrees with me that this is a very important part of what the Department for Education is doing. It is starting from the very early years to encourage more women to study STEM subjects and then, through proper career guidance, to encourage them to take roles in science and engineering. It is one of the major priorities and major thrusts—the noble Lord is right about that.
Noble Lords will be aware from previous debates that the ECITB exists because of the support it receives from employers and employer interest groups in the sector. There is a firm belief that without this levy, there would be a serious deterioration in the quality and quantity of training in the engineering construction industry, leading to a deficiency in skill levels. It continues to be the collective view of employers in the engineering construction industry that training should be funded through the statutory levy system in order to secure a sufficient pool of skilled labour. I commend this order to the Committee.
Motion agreed.
Universities: European Union Students
Viscount Younger of Leckie Excerpts(8 years, 3 months ago)
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Baroness Royall of Blaisdon
To ask Her Majesty’s Government when they plan to give guidance to students from other European Union member states wishing to commence study at United Kingdom universities in 2018-19 about the costs of their studies and their eligibility to access student loans.
Viscount Younger of Leckie (Con)
My Lords, EU students make an important contribution to our universities and we want that to continue. Existing student finance rules on fees and student support for eligible EU students who either are currently studying or will be beginning courses in the academic year 2017-18 will remain in force until students finish their courses. Applications for 2018-19 do not open until this September and we are working to ensure that students applying have information well in advance of this date.
Baroness Royall of Blaisdon (Lab)
My Lords, I am grateful for that Answer but I really do not think it is good enough. Universities—including Bath and Oxford, where I declare an interest—need to plan long term. There is clear evidence from UCAS, the BMA and others that student applications from the EU are going down this year. Prospective EU students for 2018 are already considering their options; without certainty about fees and student loans, they will look elsewhere. When will the Government say that they will extend current transitional arrangements? I urge them to make it soon.
Viscount Younger of Leckie
The noble Baroness makes the important point that there are uncertainties arising from Brexit, but the Government have moved rapidly to give assurances to this sector. Within five days of the referendum result being announced we gave assurances on the 2016-17 year, then we followed up in October 2016 with assurances for the 2017-18 year students. We have also provided similar assurances that EU nationals starting courses in 2016-17 and 2017-18 remain eligible for Research Council postgraduate support. As I have said, we will ensure that students starting in 2018-19 have the information well in advance.
Lord Polak (Con)
My Lords, I agree with the noble Baroness, Lady Royall; I think that the Government could be doing a bit more here. It is not just overseas students who need reassurance—staff and lecturers and their families who may move here need some certainty. What we are doing for them?
Viscount Younger of Leckie
My noble friend is absolutely right and, on the statistics for 2015-16, there were 33,700 EU national academic staff at UK higher education institutions, accounting for around 17% of the total academic workforce—so it is an important point. The Prime Minister has been clear that we want to guarantee rights for EU nationals in Britain and British nationals in the EU as early as we can. Our European partners agree with this and, as my noble friend Lord Bridges said the other day,
“the Polish Prime Minister has said: ‘Of course, these guarantees would need to be reciprocal. It is also important what guarantees the British citizens living and working in other member states of the European Union will have’”.—[Official Report, 13/3/17; col. 1719.]
Baroness Garden of Frognal (LD)
My Lords, among the many concerns of present and potential EU students are not just financial considerations but the fear that they may be refused entry back into the UK if they have spent time abroad—on a third-year abroad scheme, say, or other things that take them out of the country for several months. What assurances can the Government give both to current and prospective students that they will be able to travel freely in and out of the UK in the course of their studies?
Viscount Younger of Leckie
The noble Baroness makes a good point. These are reassurances that we are looking to give, and I reassure her further that we are maintaining our dialogue with the sector about the risks and the opportunities that Brexit presents. Jo Johnson, the Minister for Universities, has established a high-level stakeholder working group on the EU exit for universities, research and innovation.
Lord Clark of Windermere (Lab)
My Lords, the noble Viscount will be aware that the regulations abolishing the bursary system for nurses in the UK, including places for students from the European Union, have been laid on the Table of this House. The first indication is that there is a 23% fall in applications, and, on the specialist courses, that the number of applications from European Union countries is down by 95%. If by the following year these figures prove to be as dismal as they seem, will the Government promise that they will look again at the whole bursary scheme for nurses?
Viscount Younger of Leckie
The noble Lord is correct on the figures. They are somewhat as expected. Data published by UCAS for nursing applications from English domiciled applicants show a dip of around 23%, so he is correct. However, at a national level, these figures will still allow the NHS in England to fill the 20,000 or so student nursing training places, assuming that students meet the entry requirements of their offer from their course provider.
Lord Cormack (Con)
But, my Lords, there is concern throughout the academic community, as my noble friend made clear a moment or two ago. What plans do my noble friend and his ministerial colleagues have to meet some of the 35 heads of Oxford colleges and the vice-chancellor, who wrote to express this concern on Monday of this week?
Viscount Younger of Leckie
I have read that letter in the Times. I will certainly need to write to my noble friend on what plans there are to meet them. However, I am sure that Jo Johnson is very much aware of this.
Lord Stevenson of Balmacara (Lab)
My Lords, could the noble Viscount comment on the issue that has been raised, and was also raised within the question asked by my noble friend—namely, who actually runs the admissions system for universities in this country? Is it his department or is it the Home Office, given that the Home Office runs independent interviews of all persons selected in-country, imposes penalties if students who are recruited do not complete their courses and imposes quotas on the number of persons on a course? The Minister always says that there is no limit on the number of overseas students but it seems to me that the Home Office has one. Is that correct?
Viscount Younger of Leckie
The Department for Education takes the lead on this. However, as the noble Lord would expect, there are cross-departmental links with the Home Office, and that will continue.
Lord Campbell of Pittenweem (LD)
My Lords, I declare an interest as the chancellor of the University of St Andrews, of which the noble Viscount is a distinguished graduate. May I invite him to pay an early visit to his alma mater so that he can hear for himself the anxieties and apprehensions of both staff and students at the failure of the Government to specify precisely what steps they are going to take to preserve the quality of university education after Brexit?
Viscount Younger of Leckie
I would be delighted to take up the noble Lord’s offer and visit my alma mater again. I am aware of the concerns expressed not just in Scotland but south of the border. Again, my honourable friend in the other place is taking note of all the concerns expressed.
Lord Flight (Con)
My Lords, the last figure I saw of the estimates of student loans likely to have to be written off was a pretty horrific £45 billion. What is the Government’s present estimate?
Viscount Younger of Leckie
I will need to write to my noble friend to give that figure.
Armed Forces: East of Suez
Viscount Younger of Leckie Excerpts(8 years, 4 months ago)
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Lord Wallace of Saltaire
To ask Her Majesty’s Government what proportion of the United Kingdom’s Armed Forces will be deployed east of Suez, in the light of the Foreign Secretary’s speech in New Delhi on 18 January.
Viscount Younger of Leckie (Con)
My Lords, a significant proportion of the UK’s Armed Forces are deployed in the Gulf. As the Prime Minister said last December, Gulf security is our security. This figure fluctuates according to operational demand. However, with the advent of major exercise programmes, British defence staff in Dubai, the regional land training hub in Oman and the UK naval facility in Bahrain, we will have the permanence and presence to deepen our partnerships in the region.
Lord Wallace of Saltaire (LD)
My Lords, it is 50 years since the then Government announced that we would withdraw from east of Suez. They published a White Paper and there was substantial debate in the Houses of Parliament. The Foreign Secretary, first in Bahrain and then in Delhi, has spoken of deploying an aircraft carrier group to the Indian Ocean and of Diego Garcia being a major UK and US base. I am told that to maintain an aircraft carrier group in the Indian Ocean would take almost half the surface vessels available in the fleet. Presumably, there would be a significant air and land element on Diego Garcia. Will the Government bring this major shift in policy to Parliament, or does the MoD think that the Foreign Secretary was speaking a little out of turn and a little unbriefed?
Viscount Younger of Leckie
My Lords, there is no question but that the UK and US military facility in Diego Garcia contributes significantly towards regional and global security. The UK footprint may not be major in size, but it represents a significant contribution to our bilateral defence and security relationship with the US. At the moment the Royal Navy has 41 personnel permanently deployed in Diego Garcia, with a capacity to surge that for contingent operations in the wider region from 2021. That could include a carrier strike task group, should the situation change.
Lord West of Spithead
My Lords, a carrier battle group is the perfect platform for power projection east of Suez, but whenever one goes east of Suez one might be going in harm’s way. A carrier battle group is not a carrier on its own. When I took a battle group to the Far East for the Hong Kong withdrawal, it was 14 ships, including two nuclear attack submarines, because of those sorts of risks. Does the Minister really believe there is sufficient money in the naval programme to ensure adequate support shipping for a carrier operating in the Far East?
Viscount Younger of Leckie
Yes, indeed. The noble Lord will know that these matters are kept constantly under review. The new class of Queen Elizabeth carriers are going to be the biggest and most powerful warships ever built for the Royal Navy, so the capability is certainly there. Their deployment to the Gulf will depend very much on what the demand will be.
Lord Robathan
My Lords, some of us may be able to remember the speech by Harold Wilson, some 50 years ago, in which he said that withdrawing from east of Suez would leave the Americans and Chinese facing each other eyeball to eyeball. Does the Minister consider that the current difficulties in the South China Sea are similarly dangerous, and what contribution can the UK make there?
Viscount Younger of Leckie
The situation in the South China Sea is certainly also being kept under review, but this Question relates to the Gulf. At the moment we see it as extremely important to be sure that our presence in the Gulf is strong enough for our interests there and to work with our Gulf partnerships.
Lord Singh of Wimbledon (CB)
My Lords, we are in the 21st century, not in the 19th. Is this macho posturing really helpful to the cause of world peace? Russia and China could argue, with similar logic, to have a naval presence west of Suez, much closer to home. Should we not be thinking in 21st-century terms?
Viscount Younger of Leckie
We believe that we are thinking in 21st-century terms. Let me say a little more about the build-up of our presence in the Gulf. It is very important to have a strong defence presence with the naval facility in Bahrain, HMS “Jufair” and the regional land training hub in Oman—and to have a stronger engagement with the creation of the British defence staff in Dubai. We are also building more short-term training teams to build our partners’ capacity. For example, in 2018 exercise Saif Sareea 3 will take place.
Lord Touhig (Lab)
My Lords, in his Bahrain speech the Foreign Secretary said:
“Britain is back East of Suez”.
He also said:
“We are spending £3 billion on our military commitments in the Gulf over the next 10 years”.
Yet the SDSR barely mentions it, merely speaking of “setting our vision” in the “Gulf Strategy”. When will that strategy be published? The noble Baroness, Lady Anelay of St Johns, said in March last year—almost a year ago—that it would be published in due course. When have we heard those sorts of words before? Does the Minister agree with me that a major shift in our military profile in the Middle East should be put before Parliament first and not used as a headline-grabbing speech for the Foreign Secretary on a world tour?
Viscount Younger of Leckie
When we get to the point where we want to build up our presence in the region, it is absolutely right that it is announced. It was announced as part of a speech, which is perfectly normal. Over the next decade we will spend £3 billion on defence in the Gulf region. That will very much help us build up our maritime land and air bases in Oman and give us a persistent and increasingly permanent naval defence there. Therefore, what has happened is perfectly normal.
Baroness Jolly (LD)
My Lords, last year, an extra £800 million was committed to defence projects east of Suez. As the Minister said, we currently use bases in the Gulf, Diego Garcia and, of course, the Sultanate of Brunei. Are there plans for more? With hard power comes soft power, so are human rights ignored in these countries as part of these deals?
Viscount Younger of Leckie
The noble Baroness may be referring to arms sales as well as human rights. We consider our arms export licensing responsibilities very carefully. As well as having an increased presence in the Gulf to tackle terrorist issues, it is very important that we look at cybersecurity and all those matters to which I think the noble Baroness alluded.
Higher Education and Research Bill
Viscount Younger of Leckie ExcerptsWednesday 8th March 2017
(8 years, 4 months ago)
Lords ChamberRead Full debate Higher Education and Research Act 2017 View all Higher Education and Research Act 2017 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 97-II(Rev)(a) Amendments for Report, supplementary to the revised second marshalled list (PDF, 51KB) - (8 Mar 2017)
Lord Oxburgh (CB)
I apologise for not being faster to my feet to intervene slightly earlier before the last speaker, but there are a couple of points that still need making. I declare an interest as an honorary professor at the University of Cambridge and before that as rector of Imperial College. Probably more relevantly, over the past 15 years or so I have been much involved in the assessment of universities in Hong Kong and Singapore.
I have two main points to make. First, the assessment as proposed at present by government is simply not useful to students. It may satisfy administrators or others, but it is not useful for students in so far as it does not have sufficient granularity. Within a university there may be departments that are outstanding in their teaching and others which are not, and that is the information that is of value to students—not some blanket assessment of the university as a whole.
Secondly, there is an implicit assumption in all this that, if a university is not teaching well or if a department is not teaching well, it is because it is not trying hard enough. That might or might not be the case, but it may also be that there is insufficient resource in that university to do better. Indeed, the proposal to link the level of support or the ability to increase fees may initiate a vicious downward spiral of despair, discouragement and pessimism in those institutions which are given the lowest ranking.
Viscount Younger of Leckie (Con)
My Lords, it is clear from today’s debate and those that preceded it that many noble Lords feel passionately about the teaching excellence framework, or TEF. Many noble Lords agree with the need for a renewed emphasis on improving teaching quality. Many noble Lords have also said that they agree that students need clear information to make well-informed decisions. These concerns are important motivational factors behind why the Government have chosen to introduce the teaching excellence framework and why it featured in the Conservative manifesto in 2015.
I understand that some noble Lords may feel that we have not listened to their concerns. I assure them that we have listened closely, considered carefully and responded thoroughly. I thank the noble Lord, Lord Blunkett, for his words and the general spirit in which this Bill has been handled across the Chamber so far.
Noble Lords expressed concern that the speed of implementation was too fast. In response, the Minister Jo Johnson committed to further piloting subject-level TEF for an additional year. Two full years of piloting is in line with the best practice demonstrated in the development of the REF. As with the REF pilots, these will be genuine pilots, involving a small number of volunteer institutions, with no public release of individual results and no impact on fees or reputation. Noble Lords expressed concerns, too, about the metrics and ratings and whether both would be interpreted appropriately. I shall return to this point later in my speech but, just briefly, the Minister has responded by committing to a comprehensive lessons-learned exercise, following the trial year that is already under way, to explicitly consider all those points.
I say again that we have listened and we have responded—but we must keep sight of the intended purpose of this policy. On that note, I turn to Amendments 62 to 66, 88 and 93 from my noble friend the Duke of Wellington. I reflected carefully on the point that my noble friend made about the use of the word “assessment” instead of “rating” in the drafting of the Bill. However, while these amendments are well intentioned, an assessment without an outcome will neither help to better inform students nor provide the incentives needed to elevate the status of teaching in our system.
I note that my noble friend raised the issue of the sector, specifically Warwick, buying into the TEF only because of the link to fees. However, I can cite contrasting views. I will quote no less an institution than Cambridge University as an example of the type of comments sent to us by the sector. We need to establish a balance here. Cambridge University states:
“Cambridge welcomes the Government’s desire to recognise teaching excellence, and supports the continued emphasis on a higher education system that embeds principles of diversity, choice and quality”.
I will expand on those points by turning to Amendment 72, which also features in this group and was tabled by the noble Lord, Lord Blunkett. Amendment 72 goes even further than the amendments suggested by my noble friend the Duke of Wellington and would turn the TEF into a pass or fail system. This amendment overlooks the fact that we already have a system that determines whether or not providers have or have not met baseline minimum expectations: it is run by HEFCE and the QAA and is called the quality assessment regime. It plays a critical role in maintaining standards and we do not need another system to do the same thing.
What the TEF offers is differentiation. In order to be eligible for a TEF rating of any kind, a provider must be meeting the baseline standards expected of a UK higher education provider. Therefore, a provider must at least “meet expectations” before they can receive a bronze award. Let me be clear that receiving a bronze award is not a badge of failure, as has been suggested by noble Lords today and during recent debates, including in Committee. I strongly reassure noble Lords that we are working closely with the British Council, Universities UK International and others to ensure that a provider that attains a bronze is recognised globally for its achievement. However, the Government are not complacent about the worries and concerns that—
Lord Smith of Finsbury
I am very grateful to the noble Viscount for giving way. I am trying very hard to understand his argument. It seems to me that it may not be the intention of the Government or of the Office for Students that a bronze rating will be seen as a badge of failure. However, it is the perception of everyone else who looks at it that is the problem.
Viscount Younger of Leckie
I take note of what the noble Lord has said. I will be saying more about this in a moment. I understand the concerns on this issue. I say again that the Government are not complacent about the concerns that the noble Lord, Lord Smith, and others have. We have explicitly committed to consider the ratings and their international impact as part of the lessons learned exercise. Not all providers will be able to get a bronze award. The Government have listened to the concerns raised by this House and noble Lords and I am pleased to announce that the Office for Students will label providers without a quality assessment as, “ineligible for a teaching excellence award” on both the register and in key information for students. Let me be quite clear that this indicates to students, parents and employers that there is a level that sits below bronze.
In contrast, the implication of this amendment is that the vast majority of the sector will end up being labelled wrongly as “meets expectations”—unless the intention is that much of the sector will actually be termed a failure, as in pass or fail. Without clear differentiation it is impossible to tell students where the best teaching can be found. GuildHE and Universities UK wrote to noble Lords last week expressing their support for the Government’s approach. Steve Smith, vice-chancellor of Exeter University, said:
“Some of the most controversial aspects of the TEF are … essential to its success. Genuine, clear differentiation is critical if we are truly to incentivise teaching”.
Lord Bilimoria (CB)
I thank the Minister for giving way. Will he confirm that when the Government carried out the consultation on the teaching excellence framework, one of the questions asked was: do you agree with the descriptions of the different TEF ratings proposed? Will he also confirm that an overwhelming 55% said no? On the basis of that, the Government came up with the gold, silver and bronze. Now the Minister is hearing unanimously from noble Lords and university leaders that this will not work for universities, will damage the sector and will create the wrong perception. So surely the Government should listen again. If they have listened before, they can listen now.
Viscount Younger of Leckie
We continue to listen, and I have said that we are beefing up our lessons-learned exercise. To come back to the point that the noble Lord raised, it is true that we consulted everybody, and a number of ideas were put forward, including pass and fail and the one to 10 rating. It is not true to say that everyone was against the gold, silver and bronze system. We have come to this decision and think that it is right to go ahead on this basis. It is not just the higher education providers who believe that differentiated assessment is the right methodology. Alex Neill, director of policy and campaigns at Which?, said:
“Our research has shown that students struggle to obtain the information they need to make informed decisions about university choices. We welcome measures to give students more insight into student experience, teaching standards and value for money. These proposals could not only drive up standards, but could also empower students ahead of one of the biggest financial decisions of their lives”.
I know that the noble Lord, Lord Blunkett, raised student opposition to the TEF—I think that he may have indicated that no students were in favour—but students are not opposed to the principle of differentiation and ratings, which, as he knows, rests at the heart of the TEF. For example, in a survey for Times Higher Education, 84% of university applicants said that a good score in the TEF would definitely make them consider choosing a particular institution. So there is another side to this argument.
Furthermore, without differentiation, there will be no incentive for the vast majority of higher education providers to improve. Retesting whether providers “meet expectations” does nothing to encourage excellence beyond this—
Lord Lucas
But is it not true that in the Government’s proposed system 20% of universities will always be in the bottom ranking? This is not a situation where the system can improve performance; it is a system that will always punish 20% of universities.
Viscount Younger of Leckie
I think that my noble friend is making an assumption that 20% represents bronze. The gold, silver and bronze system is a good thing and we should look at it positively. For example, if a new provider opens its doors, as it were, after three years and is already at the bronze level, with the opportunity to go up to silver and gold, surely that has to be a positive thing, and it is also something that students from here and abroad can look at.
Lord Willis of Knaresborough (LD)
Does the Minister accept that he is missing one of the key points of this debate? A university is made up of a whole host of different departments that contribute to teaching. There may be one lecturer who is excellent but in the next department there may be a lecturer who is pretty poor. You cannot classify all the staff in an institution simply on the basis of a gold, silver or bronze rating. Students apply for courses within those institutions and, unless a course has some badge of honour in terms of its teaching, we will be missing the point altogether. This is about people; it is not simply about institutions.
Viscount Younger of Leckie
I respect the noble Lord’s experience. We have had discussions outside the Chamber about the data aspect and I will be coming on to speak about the data and about how the assessments are made. I would argue that this is not just looking at the high levels—the gold, silver and bronze—
Viscount Younger of Leckie
Perhaps I may complete my sentence. It is not just looking at the gold, silver and bronze ratings. Yes, they are the high-level ratings but every student has the opportunity to look at the levels below those to find out what they mean and what the detail and data are within those assessment levels.
Baroness O'Neill of Bengarve
My Lords, the Minister quoted the University of Cambridge. In its most recent briefing, dated 3 March, recommendation 4 reads:
“The Bill should place an obligation upon the OfS to undertake a consultation to determine the most suitable quality assessment body, which should be separate from the OfS. The OfS should not be permitted to act unilaterally with regard to assessing quality”.
Viscount Younger of Leckie
Perhaps I may make some progress, but I would like to say again that the lessons-learned exercise is one that we take seriously, having listened to noble Lords both today and in Committee. I hope that the House will respect the fact that we will be looking at this a great deal over the next two years.
Baroness Deech
My Lords, I might have misunderstood him, but would the Minister kindly clarify that he is now proposing a fourth category so that we will have gold, silver, bronze and ineligible? That is a bit like a gentleman’s fourth at Oxford years ago, which was a badge of shame. Is that the case?
Viscount Younger of Leckie
There is no badge of shame. It is simply that we want to clarify that gold, silver and bronze occupy a particular platform of award level. Most international students would respect the fact that bronze is an award, not a badge of failure. But I want to clarify that there is a level below it, which is in effect a sort of non-level. I hope that that clarifies the position.
Let me move on. I appreciate that noble Lords want to ensure that whatever format the assessment takes, it is carried out rigorously and is based on reliable sources of evidence. I can assure noble Lords that the Government feel just the same. For example, we have already commissioned an independent evaluation of the metrics, which was carried out last year by the Office for National Statistics. Given that this evaluation has already taken place, repeating it, as proposed in Amendments 69 and 72, is unnecessary. The report proposed minor amendments to the metrics being used for the TEF, and the Government are already working with HESA and HEFCE on addressing those concerns for future TEF assessments. All of the metrics used for the TEF are credible, well established and well used by the sector.
Baroness Wolf of Dulwich
My Lords, I feel as though I must have read a different ONS report from the one given to the Minister. You can clearly identify the outliers in the NSS data, those at the bottom and those at the top, but the rankings in the middle are so uncertain that you cannot discriminate or put in order the vast bulk of English higher education institutions. So, to say that minor amendments were called for uses the word “minor” in a way that I personally would not.
Viscount Younger of Leckie
Perhaps I may move on to the NSS, in particular to the amendments spoken to by the noble Lords, Lord Bew and Lord Lipsey. I would like to reassure the House on some of the specific concerns that they have raised about the TEF in today’s debate, and I shall start with the NSS. While we recognise its imperfections—I did listen carefully to the speech of the noble Lord, Lord Lipsey—we consulted with the sector, which echoed the types of remarks made jointly by Professor Anthony Forster, vice-chancellor of the University of Essex, and Professor David Richardson, vice-chancellor of the University of East Anglia, who said:
“The National Student Survey (NSS) provides the most robust and comprehensive basis for capturing students’ views about the quality of their education and student experience”.
As I say, we recognise its drawbacks and we have put in place appropriate safeguards. For example, we use specific questions from the NSS that are directly relevant to teaching, not the overall satisfaction question, about which concern has rightly been raised.
I would also like to use this opportunity to do some further myth-busting about the TEF. First, the TEF is not just about metrics. Providers can give additional qualitative and quantitative evidence to the TEF assessors through their provider submission. My noble friend Lady Eccles alluded to the human element of the TEF, and she was right to do so. Secondly, the metrics are not worth more than the provider submission. The TEF assessors will consider both the metrics and the provider-submission evidence holistically before making a judgment. Thirdly, all assessors get contextual information about the providers they are assessing, including maps reflecting employment in the region and the make-up of the students studying at that provider. Fourthly, although I have made the important point that the metrics are not perfect, they are robust datasets which have been used by the sector for more than 10 years. This means that a TEF rating is not a box-ticking exercise and it is not an equation. It is a rigorous and holistic assessment process that is overseen by one of the sector’s most respected figures, Chris Husbands, vice-chancellor of Sheffield Hallam University. I know that he has been given fulsome praise by many in the House today, including the noble Lord, Lord Blunkett, and my noble friend Lord Lucas.
Highly qualified assessors, vice-chancellors, pro vice-chancellors and other experts in teaching and learning, as well as student and employer representatives, weigh up and test the evidence they receive before reaching a final judgment, which again reflects the human element. The noble Baroness, Lady Wolf, suggested that we should not throw away information. We are not throwing away information. The OfS will publish all the underlying metrics and provider submissions. However, composite measures have value. Why else would the vast majority of universities represented by noble Lords today award their students a specific degree class? We have to think about that.
I remind noble Lords that the Government listened carefully in Committee and made a number of important changes to the TEF in light of the suggestions made by noble Lords. We have slowed the implementation timetable and we have committed to revisit key concerns raised by the House in the lessons-learned exercise. I reiterate that the lessons-learned exercise will consider the following: the way in which the metrics have been used by the TEF assessors; the balance of evidence between core metrics and additional evidence; whether commendations should be introduced for the next round of TEF assessments; and the number and names of the different ratings and their initial impact internationally.
The lessons-learned exercise will survey all participating providers. The Department for Education will also collect feedback from panellists and assessors and involve further desk-based research. I am sure your Lordships will agree that the department has responded to the concerns raised by planning a thorough exercise.
Where we have not made changes we have done so with good reason. Following the Committee stage, we considered carefully the suggestion made by the noble Baroness, Lady Garden, that all those in universities must have a teaching qualification. However, such a requirement would fly in the face of the points that noble Lords have made about institutional autonomy. Indeed, the amendment agreed by noble Lords on Monday covers the freedom of English higher education providers to determine the selection and appointment of academic staff.
The amendments in this group challenge the fundamental nature of the TEF. The words in the manifesto were carefully chosen to echo the way that the REF is described. It said that the Conservative Government would,
“introduce a framework to recognise universities offering the highest teaching quality”.
A framework that allows only for a pass or fail assessment offers no gradients. A framework that offers no opportunity to recognise the highest teaching quality simply does not meet the Conservative commitment. I do not want noble Lords to misinterpret these amendments as offering constructive tweaks. They strike at the very foundations of what we want to achieve.
However, I reassure noble Lords that the Government remain committed to developing the TEF iteratively and working with noble Lords to do so. Developing the framework to date has involved two formal consultations and thousands of hours of discussions with the sector and with students, and we have only just begun. Universities UK has offered to engage with any noble Lord who wishes to provide input into its feedback to the department as part of this lessons-learned activity.
Many of the concerns we have heard throughout the course of the Bill were made in the early days of the research excellence framework introduced by a Conservative Government more than 30 years ago. We are still iterating that framework now. The noble Lord, Lord Bew, suggested that the REF was bureaucratic and encouraged gaming. We have designed something substantially less bureaucratic than the REF and have put in a number of safeguards at every stage to prevent gaming. I am sure the noble Lord has read the fact sheets, which I hope help him with his view on that.
The TEF has already started to change sector behaviour for the better and, given the same opportunities as the REF, will propel the quality of higher education teaching to new heights. I hope that this House will be able to look back 30 years from now with pride at what the TEF has achieved. I ask that the amendment be withdrawn.
The Duke of Wellington
My Lords, I am grateful to all noble Lords who have participated in this debate about various amendments. Every noble Lord who has spoken has criticised the gold, silver and bronze proposal. The Minister said that it will be reviewed after a year. However, Clause 26 requires a system of rating, and the spirit of my amendment was to delete the word “rating” and put in “assessment”. If the Government had been prepared to accept my amendment—I regret that they did not—it would have drawn the teeth of much of the opposition in this House to Clause 26. Other amendments go much further than mine. Therefore, sadly, I hereby beg leave to withdraw Amendment 62.
(a) ”
Viscount Younger of Leckie
My Lords, I beg to move Amendment 74 and I shall speak to our government amendments first, before we can all turn to Amendment 116A. These amendments respond directly to concerns raised in Committee about the need for expert advice for any decisions relating to degree-awarding powers. They will ensure that only institutions that can demonstrate evidence of high-quality provision, or the clear potential to do so, should be granted such powers.
We have been clear that we will create a level playing field for new providers, with the option of a direct route to entry into the sector—one that does not depend on the need for validation by incumbent providers. We recognise that, for many providers, validation agreements can work well and are the preferred way to develop a track record. This will continue to be the case under the new regulatory framework, particularly for providers that are not yet able to demonstrate the potential to award their own degrees. For these providers it is important that the validation services on offer are comprehensive and accessible to them. Unfortunately, this is not always the case, which is why I will be resisting Amendment 119 when we come to debate it later.
We also want to create an alternative, direct route to entry for those providers committed to the higher education sector for the long term who can clearly demonstrate the potential to award their own degrees. Therefore, our proposals deliberately provide for two routes to DAPs. The first is via validation, although we propose to reduce the track record requirement for DAPs to three years. The second is via an additional test and close supervision for the first three years. This approach has been endorsed by Independent Higher Education. Alex Proudfoot, writing today on our proposals for degree-awarding powers and validation said:
“The Office for Students must be empowered to press ahead with regulation which better supports validation … And where validation is not the most appropriate route, the OfS also needs the power to identify this and provide an alternative route for these providers”.
We listened closely in Committee and considered carefully the amendment which the noble Baroness, Lady Wolf, tabled and to which Universities UK gave strong support. The amendments I am tabling today directly address these key concerns and I am pleased to see that they have the support of the noble Lord, Lord Stevenson, and the noble Baroness, Lady Wolf. We agree with Universities UK and the noble Baroness on the importance of a high quality threshold for new providers. We will absolutely not risk the reputation of the sector as a whole and the livelihoods of students by permitting poor-quality providers to have degree-awarding powers. We also recognise the value and importance of diverse and informed perspectives in determining whether a provider is competent to award its own degrees. This is why we have tabled these amendments that ensure that the OfS must seek and have regard to expert advice from the designated quality body or, where no designation has been made, a committee of the OfS, before awarding degree-awarding powers to any provider. It must also request such advice in relation to a variation or revocation of such powers. In both cases, the advice in question should be informed by the expertise of persons who are not part of the OfS. We expect this to include strong representation from persons who have experience of awarding degrees, as well as representatives of challenger institutions, further education providers, students and employers—as set out in the amendments. In cases of research degree-awarding powers, the advice must be informed by the views of UKRI.
Viscount Younger of Leckie
My Lords, I thank the noble Baroness, Lady Wolf, and all noble Lords for their comments on our amendments. Let me assure the noble Baroness and the House that we are in agreement that we must assure the quality of degree-awarding powers and that the OfS must request expert advice before granting degree-awarding powers. The amendments that I have tabled and have already explained achieve this.
However, I do not believe that the Secretary of State should have a role in this process. The OfS, as the independent regulator, is best placed to make such decisions, taking them independently of government. It is also important that we streamline the currently bureaucratic degree-awarding power processes while ensuring that the focus is on quality. In addition, I question the value the Secretary of State would add, given the robust checks and balances in place in awarding and revoking degrees, in particular with the addition of our amendments. They require the OfS to seek independent, expert advice in making any decisions regarding degree-awarding powers. A role for the Secretary of State runs counter to the desire of the sector to have such decisions taken by an independent body, as distant from government as HEFCE is today, and not to politicise the process.
We are all in agreement on the importance of setting a high quality bar for new providers, and I thank noble Lords for their challenge in this area. I reassure noble Lords that protections for quality are provided for under our planned reforms. All providers would need to meet rigorous quality tests similar to those set out in the UK quality code. They would also need to meet robust tests for financial sustainability, management and governance that demonstrate their ongoing commitment to their students and to higher education. To award, degree providers would have either a track record or meet additional quality tests. Independent, expert advice must be sought on all DAPs awards and for their variation and revocation where that is on the ground of quality. Finally, there is an ability in Clause 15 to set a public interest governance condition.
The noble Baroness, Lady Wolf, asked whether the deletion of Clause 48 is consequential. There are two routes into the sector: validation or direct entry. I therefore do not agree with the noble Baroness that the proposed deletion of Clause 48 is consequential to Amendment 116A. She also questioned the Secretary of State’s role. She said it is needed because it is a big thing—I think that was the expression she used. As I said earlier, we believe that the regulator is best placed to make the decision on degree-awarding powers, but the Secretary of State is able to issue guidance and, where necessary, to give directions. We therefore feel that the power she has suggested is too great.
The noble Lord, Lord Storey, asked what happens if a provider goes into liquidation. All providers that are registered in the approved or approved fee cap categories are expected to have student protection plans in place to ensure that students can complete their courses and obtain their degrees, even if their provider has to exit the market. That takes account of their loans, which was the gist of his question.
(b) the functions of the relevant body under section (Grant, variation or revocation of authorisation: advice on quality etc)(advice on quality etc to the OfS when granting degree awarding powers etc).”
“( ) the Secretary of State is satisfied that the designated body is failing to perform in an effective manner its functions under section (Grant, variation or revocation of authorisation: advice on quality etc), or”
“( ) In performing those functions, subsection (1) applies instead of section 3(1)(za) (duty of OfS to have regard to the need to protect institutional autonomy) in relation to the freedoms mentioned in subsection (7)(b) and (c) of that section.”
“Duty to monitor etc the provision of arrangements for student transfers
(1) The OfS—(a) must monitor the availability of schemes or other arrangements provided by registered higher education providers for student transfers and the extent to which those arrangements are utilised by students generally or students of a particular description,(b) must include in its annual report a summary of conclusions drawn by it, for the financial year to which the report relates, from its monitoring under paragraph (a), and(c) may facilitate, encourage, or promote awareness of, the provision of arrangements by registered higher education providers for student transfers.(2) For the purposes of this section, “a student transfer” is where—(a) a student transfers from a higher education course (“course X”) provided by a UK higher education provider (“the transferring provider”) to a different higher education course (“course Y”) provided by the same or a different UK higher education provider (“the receiving provider”),(b) the receiving provider recognises, or takes account of, the study undertaken, or a level of achievement attained, by the student—(i) on course X, or(ii) on another higher education course provided by the transferring provider,when the receiving provider is determining the study to be undertaken, or the level of achievement attained, by the student on course Y, and(c) either the transferring provider or the receiving provider is a registered higher education provider, or both are registered higher education providers.(3) For the purposes of subsection (2), there may be an interval between the student ceasing to undertake course X and starting to undertake course Y.(4) The duty under subsection (1)(a) may be discharged by the OfS monitoring as described in that provision—(a) arrangements for student transfers provided by all registered higher education providers or a particular description of such provider;(b) all such arrangements for student transfers or a particular description of such arrangement or student transfer.(5) In this section—“annual report” means the annual report under paragraph 13 of Schedule 1; “financial year” has the same meaning as in that Schedule (see paragraph 12(6));“higher education course”—(a) in the case of a provider in England or Wales, has the meaning given in section 79 (1);(b) in the case of a provider in Scotland, means a course falling within section 38 of the Further and Higher Education (Scotland) Act 1992;(c) in the case of a provider in Northern Ireland, means a course of any description mentioned in Schedule 1 to the Further Education (Northern Ireland) Order 1997 (S.I. 1997/1772 (N.I. 15));“UK higher education provider” means an English higher education provider or a higher education provider in Wales, Scotland or Northern Ireland.(6) For the purposes of applying the definition of “higher education provider” in section 79 (1) to the reference in the definition of “UK higher education provider” in subsection (5) to a higher education provider in Wales, Scotland or Northern Ireland, the reference to “higher education” in the definition of “higher education provider” in section 79 (1)—(a) in the case of an institution in Wales, has the meaning given in section 79 (1);(b) in the case of an institution in Scotland, has the same meaning as in section 38 of the Further and Higher Education (Scotland) Act 1992;(c) in the case of an institution in Northern Ireland, has the same meaning as in Article 2(2) of the Further Education (Northern Ireland) Order 1997 (S.I. 1997/1772 (N.I. 15)).”
Baroness O'Neill of Bengarve
My Lords, this is quite a complicated matter for higher education providers—as I have learned to call them—as the reasons why students come to a halt on their journey are very varied. Sometimes, they are not really committed to continuing, sometimes they are not really able to continue on the course, and sometimes there is another course with slightly different requirements to which they would be very well suited. It has to be a very hands-on process, and does not always go successfully, but nor would it even with this amendment.
One has to be very careful. In my experience, academic staff and the student counselling services have a great deal to do when an individual student hits one of these vicissitudes, and the process is not always successful. But we should also remember that in countries where they ostensibly have more of a credit transfer system than we have ever managed to achieve here, you cannot say, “Oh, I am not really enjoying my course here; I would prefer to be on that course there”. The process will be extremely difficult and very expensive for the institutions. On balance, “must” facilitate may not, for those additional reasons, be quite the verb that we want here.
Viscount Younger of Leckie
My Lords, the Government take the views of the noble Lord, Lord Willis, on student transfer very seriously, and I have appreciated the short discussions I have had with him. This is why, as we discussed on Monday, we have proposed Amendments 100, 139 and 141. I appreciate the warm words expressed on our amendments by the noble Lord, albeit they were perhaps rather lukewarm on Amendment 100.
The new clause will place a duty on the OfS to monitor arrangements put in place by registered higher education providers to enable students to transfer within or between providers and monitor the take-up of those arrangements. Furthermore, the OfS will have a duty to report annually on its findings. As my noble and learned friend Lord Mackay said, the government amendment will also enable the OfS to facilitate, encourage or promote awareness of arrangements for student transfer, so that the OfS can help ensure students understand the options for changing course or institution and so that best practice is promoted among higher education providers.
I thank the noble Lord, Lord Willis, for his Amendment 100A, which reflects the importance he attaches to this issue. It is well intentioned, and we have genuinely considered it. However, given the Government’s assessment of the evidence of barriers to student transfer, it is not desirable to adopt the amendment, some of the reasons for which were put rather eloquently by the noble Baroness, Lady O’Neill. Such an approach would reduce the flexibility available to the OfS as it develops its understanding, particularly through its monitoring, and could be overprescriptive, burdensome and interfere with institutions’ autonomy.
The government amendment will achieve our shared aims without interfering with or overly mandating how the OfS responds to its findings on student transfer, so, with respect, I ask the noble Lord to withdraw his amendment.
Lord Willis of Knaresborough
My Lords, I thank noble Lords who have spoken in this brief debate. It was certainly worth raising the issue. In particular, I thank my noble friend Lady Garden for her support. I never like to disagree with the noble and learned Lord, Lord Mackay, because he is usually right on this matter. The reason I wanted a “must” is that otherwise, this issue will go into the long grass. I hope I am wrong and that the Office for Students, when it reports, will be able to keep a close eye on what is happening. That will be the real test.
I listened with interest to the comments of the noble Baroness, Lady O’Neill. Again, I was disappointed, because I value her comments enormously. It saddens me that we are unable in this country to adopt what we see working incredibly well in the States, particularly with community colleges, where with sufficient credits students can move to Ivy League universities where they show real talent. We seem to have a silo-based higher education system, and this was an attempt to move away from that and ensure that all learning gained in higher education systems can be accredited and used as a credit for further learning. With those few comments, I thank the House for listening, and I beg leave to withdraw the amendment.
“( ) See sections 42, 43 and (Grant, variation or revocation of authorisation: advice on quality etc) which make further provision about orders under subsection (1).”
“( ) The OfS may make such an order revoking an authorisation given to a provider only if condition A, B or C is satisfied.”
Viscount Younger of Leckie
My Lords, we have always been clear that the OfS’s powers to revoke degree-awarding powers or university title would be used only as a last resort. However, we heard concerns both in this Chamber and from the Delegated Powers Committee that the Bill is not clear enough in limiting the OfS’s powers in this area. The concern was that it would leave it wholly to the discretion of the OfS when and in what circumstances the powers should be exercised. We have listened to these concerns and responded. We are introducing further, strong safeguards, setting out in precisely which circumstances the OfS can revoke degree-awarding powers or university title.
I will keep my remarks relatively brief, and I am pleased to see that the amendments have support from the noble Lord, Lord Stevenson. Put simply, the amendments carry forward the position that DAPs and university title holders should normally be registered, and allow for DAPs to be revoked where there are serious quality concerns, and for university title to be revoked where all DAPs, other than the ability to grant foundation degrees, have been lost. As we discussed earlier, if the OfS wants to revoke DAPs on grounds of quality, it would need to seek advice from the designated quality body.
Additionally, condition C in Clauses 43, 44 and 54 relates to changes in circumstances, which covers sales, mergers or similar structural changes. This reflects current policy, where eligibility for DAPs and university title is reviewed following such changes.
Currently, providers need to demonstrate that they continue to be the same institution that was granted DAPs originally—and are therefore competent to continue to award degrees—and that they can still meet all university title criteria. If providers fall short of such requirements, so that there are serious concerns around quality, the OfS will be able to revoke DAPs. University title could also be lost.
I turn to government Amendments 195, 196 and 199, and the subject of royal charters. Let me briefly address our amendments, which are closely related to revocation. We have always said that the power of the Secretary of State to make consequential changes to a royal charter under Clause 112 is not intended to be used to revoke an entire charter. Our amendments now make this clear in legislation, which I hope will provide further reassurance that we do not seek to unduly interfere with the autonomy of institutions. I now invite other noble Lords to speak should they wish.
Lord Stevenson of Balmacara
My Lords, I briefly express our support, as shown by the fact that we have signed up to those amendments on revoking degree-awarding powers, introduced by the Minister. We had a good discussion of this in Committee, and it was an area of concern to many noble Lords. We had thought of tabling an amendment to try to pick up on a couple of areas that seemed unresolved. However, after discussion and reflection with both the Bill team and the Minister we were able to sign up to the group and we are therefore happy with what is now before us.
We are also pleased that the amendment in the name of the right reverend Prelate the Bishop of Winchester has been accepted by the Government. We have all had trouble when we have had to address right reverend Prelates in their place, and the idea that we also have to stumble over the words “holder of degree-awarding powers” when referring to the most reverend Primate the Archbishop of Canterbury is another thought that will make it even more difficult to engage with them in future. We are very pleased that the Archbishop has these powers and, since 1533, an unbroken record of awards of degrees that we will recognise in future through this legislative process.
There is only one question left in my mind. The Government have been very good in bringing forward Amendment 196, which records in the Act that no provision of the Bill may be used to revoke an institution’s royal charter—with the rather weasel words—“in its entirety”. It does not mean to say that the Government will not revoke parts of the royal charter. I do not expect a response today, but perhaps the Minister might write to us with some examples of how that power might be used in future. I ask the slightly deeper question: since we are now fully aware of the powers of the Privy Council—which seem to include the ability to go and get from Her Majesty the Queen in Council changes to any royal charter, including that of the BBC, without much publicity ever occurring—why on earth have the Government decided to put this forward in the Bill at all? I would be very interested to receive that answer. With that slight aside, I am happy to support the amendments.
Viscount Younger of Leckie
My Lords, first, I will be happy to write a letter to the noble Lord, Lord Stevenson, which I hope on this occasion will be a short one, to clarify some aspects of our Amendment 196.
I want to make some very brief remarks on Amendment 119A, tabled by the right reverend Prelate the Bishop of Winchester, and spoken to by the right reverend Prelate the Bishop of Oxford, which we fully support. We fully recognise the unique position that the most reverend Primate the Archbishop of Canterbury is in when he awards degrees to those who have served the Church. We agree that the Archbishop’s ability to award such degrees, which do not require a course of study, supervised research or assessment, should be left untouched by the OfS. This amendment achieves this, while being clear that any taught or research degrees awarded in the usual manner—for example, following a course of study as part of the Archbishop’s Examination in Theology—will remain covered by the Bill.
I am pleased with the progress we have made on these matters. With these amendments added, it leaves the Bill in very good shape by giving the OfS the powers it needs while being crystal clear that these are underpinned by strong safeguards. It strikes the right balance between institutional autonomy and protecting students, and the quality and reputation of our HE sector.
“Grant, variation or revocation of authorisation: advice on quality etc
(1) The OfS must request advice from the relevant body regarding the quality of, or the standards applied to, higher education provided by a provider before making— (a) an order under section 41(1) authorising the provider to grant taught awards or research awards,(b) a further order under section 41(1)—(i) varying an authorisation given to the provider by a previous order under section 41(1), or(ii) revoking such an authorisation on the ground that condition B in section 43(4) is satisfied, or(c) an order under section 44(1)—(i) varying an authorisation given to the provider, as described in that provision, to grant taught awards or research awards, or(ii) revoking such an authorisation on the ground that condition B in section 44(5A) is satisfied.(2) In this section “the relevant body” means—(a) the designated assessment body, or(b) if there is no such body, a committee which the OfS must establish under paragraph 8 of Schedule 1 for the purpose of performing the functions of the relevant body under this section.(3) Where the OfS requests advice under subsection (1), the relevant body must provide it.(4) The advice provided by the relevant body must be informed by the views of persons who (between them) have experience of—(a) providing higher education on behalf of, or being responsible for the provision of higher education by—(i) an English higher education provider which is neither authorised to grant taught awards nor authorised to grant research awards,(ii) an English further education provider, and(iii) an English higher education provider which is within neither sub-paragraph (i) nor sub-paragraph (ii),(b) representing or promoting the interests of individual students, or students generally, on higher education courses provided by higher education providers,(c) employing graduates of higher education courses provided by higher education providers,(d) research into science, technology, humanities or new ideas, and(e) encouraging competition in industry or another sector of society.(5) Where the order authorises the provider to grant research awards or varies or revokes such an authorisation, the advice provided by the relevant body must also be informed by the views of UKRI.(6) Subsections (4) and (5) do not prevent the advice given by the relevant body also being informed by the views of others.(7) The OfS must have regard to advice provided to it by the relevant body under subsection (3) in deciding whether to make the order. (8) But that does not prevent the OfS having regard to advice from others regarding quality or standards.(9) Where the order varies or revokes an authorisation, the advice under subsection (1) may be requested before or after the governing body of the provider is notified under section 45 of the OfS’s intention to make the order.(10) Where there are one or more sector-recognised standards, for the purposes subsections (1) and (8)—(a) the advice regarding the standards applied must be advice regarding the standards applied in respect of matters for which there are sector-recognised standards, and (b) that advice must be regarding those standards as assessed against sector-recognised standards.(11) In this section—“designated assessment body” means a body for the time being designated under Schedule 4;“humanities” and “science” have the same meaning as in Part 3 (see section 107).”
Baroness Wolf of Dulwich
My Lords, I agree with what the noble Lord, Lord Stevenson, has said and with his response to the letter, which is encouraging. I am particularly encouraged by the fact that there will be better consultation. Although I agree that we need a final long stop, what we have at the moment is that the regulator has to put itself on the register and then award degrees, and that could be addressed with a little more care.
Viscount Younger of Leckie
My Lords, we recognise that many validation arrangements are highly successful and beneficial to the institutions involved and to students. Validation will remain the chosen route to entry for many under the new regulatory framework. Under our reforms we plan to put in place an alternative route for high-quality providers to obtain DAPs without a track record, but this will not be the right route for everyone. We want providers to be able to choose the right option to meet their specific needs. It is therefore important that the validation services on offer are comprehensive and accessible to providers.
Unfortunately, this is not always the case at the moment, as Members of this House have recognised. In compiling his review of higher education funding, the noble Lord, Lord Browne, said he and his panel spoke to many organisations and found that in many instances validation arrangements simply did not work. Highly lucrative for the established providers, they created a closed shop that stifled innovation and competition among new entrants and, as a result, reduced student choice. As the noble Baroness, Lady Garden, acknowledged, protectionist practices are sometimes adopted when it comes to current validation arrangements. This is why the Bill enables the OfS to take concrete steps aimed to improve validation services. Should this prove to be insufficient, the OfS may enter into commissioning arrangements with other providers.
The OfS cannot force registered higher education providers to enter into such commissioning arrangements. However, once a provider enters into the arrangements, the OfS could then require that provider, in line with the terms of the arrangement, to offer to validate. This is not unlike other arrangements where, for example, a party to a contract may require, in line with the terms of the contract, another party to do something. We in no way expect the OfS as part of this arrangement to require validation where the provider had legitimate concerns regarding the quality of provision. I cannot imagine a scenario where a provider would agree to such terms or where anyone would think it beneficial. Clause 3 sets out clear factors that the OfS must have regard to when exercising its functions, which include the promotion of quality.
The protections set out in Amendment 117A are therefore not required. Remedies for failing to act in accordance with the arrangements and for resolving disputes about them are expected to be provided for in the commissioning arrangements. Where they are not, other laws, such as the law of contract, may apply.
Turning to Clause 48 and Amendment 119, we anticipate that in the event that the OfS is still unable to address significant shortcomings in the validation market through other means, the Secretary of State may make regulations to allow the OfS to become the validator of last resort. I understand that there are still concerns about how this would work in practice and how the OfS would set up such a function. Let me help to this extent. Noble Lords may have received a letter I circulated today. I wish that this letter could have been circulated earlier. For very good reasons it was not able to be. To that extent, I apologise to the House.
I can confirm that, as part of the regulatory framework consultation, we will consult on how the OfS could best establish a validation service to ensure it is underpinned by the necessary expertise and that it is delivered in a way that prevents or effectively mitigates any conflicts of interest. This would enable the OfS to have a blueprint that has been stress tested with the sector through consultation and to be ready to act, subject to Secretary of State and parliamentary approval, as a validator of last resort should this become necessary. I stress that these regulations are subject to parliamentary scrutiny, so there will be an opportunity to scrutinise these powers. We expect the OfS to make a case to the Secretary of State as to why it is necessary for it to act as a validator of last resort, clearly setting out the nature and severity of the issues in the validation market.
There are further safeguards, in that the Secretary of State may attach conditions, such as ensuring that the service the OfS provides is underpinned by the necessary expertise and is sufficiently independent from its regulatory function, for example by being housed in a separate division. We have heard arguments that this would be unprecedented, but that is simply not true. For example, the Bank of England regulates many aspects of the financial sector to maintain financial stability in the UK, but in extremis will also act as the lender of last resort, or a market maker of last resort—that is, buying and selling assets such as government bonds to provide liquidity—at a time of financial stress.
There are also strong mechanisms in place to ensure that the quality of the OfS’s validation provision is high. We would expect the OfS’s advice to the Secretary of State to clearly set out how it will ensure its validation service is best in class. This could, for example, involve the OfS drawing on sector-recognised best practice principles, exemplar templates and processes. If the Secretary of State designates a body to fulfil the OfS’s quality assessment function, I would also expect the OfS to draw on information from the designated quality body to help formulate its advice and recommendations to the Secretary of State, and to help inform how it can develop the capacity and reach of existing validation services while safeguarding the quality and standards of awards granted. These would be nominally in the OfS’s name, but, importantly, would bear the overall branding of the institution being validated, which answers some of the questions that were raised. I hope that full explanation also answers the question my noble friend Lord Willetts asked about what “last resort” means.
Before I finish, I shall briefly address Amendment 118 and—without too much surprise, I hope—reassure my noble and learned friend Lord Mackay that Clause 48(6) replicates a standard provision relating to the awarding of degrees. These powers are simply designed to enable the degree-awarding body—in this case the OfS—to deprive students of their degree should this become necessary: for example, if it is discovered that it was wrongly obtained, such as through plagiarism.
Without Clause 48, the OfS would be left without adequate powers to ensure full and ongoing provision of good-quality validation services. As I said earlier, we will consult on how the OfS can best establish a validation service as part of the regulatory framework consultation, which will enable further input from the sector. With that explanation, I hope the noble Baroness will withdraw Amendment 117A.
Baroness Wolf of Dulwich
I thank the Minister very much for his words, which I have listened to with interest and optimism. On that basis I am very happy to withdraw the amendment.
“Saving for right to grant degrees under the Ecclesiastical Licences Act 1533
Nothing done under this Part is to affect the right of the Archbishop of Canterbury, or any other person, by virtue of the Ecclesiastical Licences Act 1533 to grant a degree where the recipient is not required—(a) to complete an appropriate course of study or an appropriate programme of supervised research, or(b) to satisfy an appropriate examination, test or other assessment.”
“( ) The OfS may make an order under subsection (1) only if condition A, B or C is satisfied.”