I note the noble Lord’s interest. The Government fully recognise the benefits that a British Sign Language GCSE would bring to the deaf community. I wish I was in a position to give the noble Lord a more definitive timeline. However, as I have said, the process of developing a new GCSE is complex. Typically, it takes at least two years from the start of a reform process to the first teaching of a new GCSE. In this case, it might take longer, as there has not been a GCSE in BSL previously.
I appreciate the detail that my noble friend has given. I would like to add to it, because there are complexities here. For example, GCSEs in other languages require students to demonstrate the four skills of reading, writing, speaking and listening; in BSL there are only two skills: production and reception. We also need to address the question of whether the GCSE would be aimed at students for whom BSL is their first language or at those learning it from scratch. This will have a significant impact on the level of difficulty at which it is pitched.
My Lords, there was a time when deaf children were punished for using sign language in schools. We have come a long way since then, but will the noble Lord comment on the outcomes for deaf children in the current educational system? We know that they are not very good at all, and I urge the Government to reflect on that. I welcome the review they are undertaking, but I hope they are prepared to make this decision, which would be a huge boost to many young deaf people.
The noble Lord is correct in that. Our vision for children with a hearing impairment, or any special educational need, is the same as it is for all children and young people. As the noble Lord will know, schools have to make best endeavours—it is a legal expression—to look after those with special needs; they have a duty to do this. By and large, schools adhere to this, but I am sure that more could be done, and I very much take note of what the noble Lord says.
I noted the question asked by the noble Lord. To answer that, as I said, no option is off the table. Of course the Secretary of State for Northern Ireland and the Prime Minister are very aware of the tremendous work that Senator George Mitchell did. That remains on the table and may or may not happen; I cannot give any reassurance at this time on that front.
My Lords, will the noble Lord return to the point raised by the noble Lord, Lord Empey, about the real pressure and crisis in the health service in Northern Ireland? Who will take responsibility for sorting this out?
The noble Baroness will know that all eligible students can access maintenance loans, and we believe that it is reasonable for any student to purchase a standard computer through that support. However, some universities provide additional help to students from low-income backgrounds, and some DSA equipment providers allow students to spread the cost.
My Lords, the Government’s stated aim, which is laudable, is to widen access to our universities. They have taken a measure which has clearly had an impact in reducing the number of disabled students in terms of the reduction of 4,600. Why do they not just reverse the policy?
The reason is because we believe that it is entirely reasonable to allow the first £200 to be spent by the student. In addition, for non-disabled students, full-time students spent an average of £253 on computers, and part-time students spent an average of £243. So again, it is a reasonable argument to ask for the £200 to be paid.
The Open University is a good example. The noble Lord may know that there is a restructuring exercise going on there, and the Open University is looking to change the way it operates to take account of changing conditions and the reduction in part-time study. That is something that we will be looking at.
My Lords, the Minister is being remarkably complacent. He and his colleagues have presided over a devastating reduction in the number of part-time students. That is madness when it comes to the priority to upskill people who have missed out on higher education in the past. The Sutton Trust report makes abundantly clear that the reason for the huge reduction is that the Government got rid of maintenance grants and put the fees up by a huge amount. Incidentally, in his Statement to this House in February, the noble Viscount did not mention part-time students. So instead of a review, why do the Government not reverse that decision and restore maintenance grants?
My Lords, the important thing is to look at the reasons for the decline, and they are indeed complex. Over the past five years, there have been wider changes to the economy and there was the removal in 2008-09 of the HEFCE teaching grant for equivalent and lower-level qualifications, so there are complex issues here that need to be addressed. I also point out to the noble Lord that the numbers have fallen not only in England. The noble Baroness is right that the number has fallen significantly—actually, I have a figure of 63%—so we understand the seriousness of this, but the number has also fallen in Scotland by 22% and in Wales by 46%.
To ask Her Majesty’s Government, following publication of the report of the Commissioner for Public Appointments on appointments to the Board of the Office for Students, what steps they are taking to ensure that future appointments made by ministers to the boards of public bodies are in line with the Governance Code 2016.
My Lords, the Governance Code on Public Appointments was introduced in January 2017. Ministers are required to make appointments in accordance with the code as well as the relevant legislation. The Commissioner for Public Appointments provides independent assurance that the governance code is followed. The Government are grateful for the commissioner’s report on the appointments process to the board of the Office for Students. We will consider his recommendations carefully to ensure best practice for future public appointments.
My Lords, in addition to his department’s lamentable performance over the appointment of Mr Toby Young, the commissioner’s report identified a number of problems which relate to many public appointments. They include all-male appointment panels, failure to provide information to the commissioner in good time and risking, as he said, the independence of boards by a too-partisan approach to appointments. The Minister referred to the code. What is the point of the code if Ministers such as Jo Johnson can ignore it with impunity? What action will be taken against Mr Johnson for so grievously breaking the code?
There is no evidence that the Minister broke the ministerial code. In terms of the governance code, there are some failings and the noble Lord will be aware of those. This Government set up the governance code following the independent review by Sir Gerry Grimstone and I am pleased that that is the case. The commissioner himself pointed out that in his experience, this episode is unrepresentative of the hundreds of public appointments that take place each year.
My Lords, I am grateful to the noble Lord, but I have to say that the response in no way measures up to the seriousness of the case and the commissioner’s report. The Government only recently told the House that the process to appoint Mr Young was a fair and open competition in accordance with the code of practice, but the commissioner has found that this was not the case. Indeed, it is a damning indictment of the department and of the Minister responsible, Mr Jo Johnson. The department delayed responding to the commissioner, which held up the investigation. The appointments were not conducted in respect of all the candidates on an equal basis, and an all-male appointment panel was used twice. Moreover, can the Minister tell me why it was impossible for the department to check Mr Toby Young’s past social media activity when it was quite easily able to check the social media activity of the candidate found suitable for appointment to the student experience representation role? Why was it not made clear in the advert that Ministers had decided not to appoint someone with close links to the National Union of Students? Will the Minister tell me why being elected by students somehow makes someone unsuitable to represent them?
The commissioner concludes that the code was broken. Can the Minister tell the House whether the Cabinet Secretary is now investigating that breach and other breaches raised by my noble friend Lady Prosser in a recent debate? Further, does the Minister believe that after this level of interference, we can possibly call the Office for Students an independent body? Finally, can the Minister tell me why Mr Jo Johnson, who was responsible for this debacle, has not resigned?
My Lords, the noble Lord asked a number of questions and I will attempt to answer them. On the question about delay, we understand that this was the first formal investigation under the Government’s code, and formal timelines had not yet been identified for such an investigation. This necessitated liaising with colleagues in the Cabinet Office who led on the Government’s code. Much has been said about the failings in respect of the Toby Young appointment, as the noble Lord put it, and I informed the House of our views on that. As I promised, lessons are being learned and have been learned. The department has set up a nominations committee as a result of the issues that have arisen, so action is being taken within the department to ensure that these problems do not occur again. That action particularly focuses on the due diligence involved. I emphasise that the 40,000 to 50,000 tweets were obnoxious and salacious and must not occur again; the department must improve the due diligence. I assure the noble Lord that the Office for Students is independent, but as he will of course know from the debates on the Higher Education and Research Bill, the ultimate responsibility lies with the Secretary of State.
The £200 student contribution towards the cost of a computer is something that all students get. I realise that some evidence and figures show a reduction in the cost. We are looking into that but we are adamant that all students, disabled or not, should receive the £200.
My Lords, will the review look at the fact that prospective students have to pay a charge, often amounting to hundreds of pounds, for the second assessment? Given that many of the people we are talking about come from lower-income households, how is that consistent with the Government’s approach to widening access? As I understand it, the review is not looking at the issue of charges. Will the Minister agree to extend it?
We have made it clear that the review is not considering the issue of who should pay for such a diagnostic assessment. The reason for that is that we want to see the result of this review as to whether the diagnostic assessment should occur post 16 or before that.
My Lords, I thank all noble Lords for their contributions. I was given prior warning that this debate on the regulations would turn into a broader debate on a number of issues raised during the long passage of the Higher Education and Research Act, and I welcome that. It is good to go over these issues again, and I hope that I can address all the questions asked by noble Lords. If I do not do so or need to get some more specific detailed answers to noble Lords, I will certainly do so and put a copy of the letter in the Library of the House.
I shall address the issues raised in no particular order. The noble Baroness, Lady Wolf, began by asking about the role of the OfS and the link with government. I think she said there was a danger that the Government might be seen to be telling universities what to do. I reassure the noble Baroness that the OfS is an arm’s-length body. The Secretary of State can give guidance or directions to it and, in doing so, they must have regard to the need to protect the institutional autonomy of English higher education providers. HERA sets clear limitations in this context in order to protect academic freedoms and institutional autonomy. For the first time, it also makes explicit that guidance cannot relate to parts of courses, their content, how they are taught or who teaches them, or admissions arrangements for students. The OfS will absolutely be left to do its job as the regulator. I know we had much discussion about this, but I further reassure the noble Baroness that this is the case.
The noble Baroness also raised concerns about specified persons or students. I reassure her that there is no intention to set targets or quotas. To do so would infringe institutional autonomy, one of the hallmarks of our world-class higher education system. The OfS, like the DFA under the 2004 Act, has a duty to protect academic freedom.
It is all very well saying that this body has institutional autonomy, but it is well known that Ministers put pressure on the chairman to appoint Mr Toby Young. That is not a very good sign of autonomy, is it?
I say at the outset that this is very much a time of reflection following the resignation this morning. We will want to learn from this. It is regrettable that the offensive tweets were not picked up on or before the appointment. The Prime Minister herself made it clear that a repeat of any such language from someone within a public position would not be acceptable. There is always a balance of proportionality in undertaking due diligence. In this case, there were more than 50,000 tweets, some of which were completely abhorrent. We need to learn from this and be sure that the due diligence is improved.
My Lords, with the greatest respect to the noble Viscount, the job specification required candidates to have “good judgement” and “high levels of integrity”; to,
“inspire confidence with a wide range of stakeholders”,
and,
“demonstrate high standards of … personal conduct”.
Is the noble Viscount saying that these objectionable tweets were not known to his department and Mr Jo Johnson? Is it not the case that Jo Johnson imposed this wretched man on the board of the OfS? Will he now tell me, as Jo Johnson has been removed, that the independence of the OfS, which the Government guaranteed during the passage of the Higher Education and Research Act only recently, will now be established?
My Lords, there is no imposition of a candidate into this particular position. The current make-up of the Office for Students is a broad church. It is a broad range of people, which is what we set out to do in the first place. On the noble Lord’s question: no, we did not know about the obnoxious tweets that came out. That is why I said at the outset that we need to do better. With 50,000 tweets, some of which were completely obnoxious, this is something that we should have known about. We need to learn lessons from this.
Yes, indeed, I am aware of the note that my noble friend Lord Agnew sent. The review will start to take evidence from those invited early in the new year, and we hope that it will report within a few months. I have a little more detail, in that it will consider the evidential requirements for students applying for disabled students’ allowances with specific learning difficulties, and particularly for those with dyslexia.
My Lords, with the greatest respect to the Minister, he is relying on the autonomy of the universities and various bits of guidance. However, as the noble Lord, Lord Addington, said, by July barely half of universities actually had a policy in place, so the experience of disabled students will be very variable where they have special requirements. Because the universities are producing such a patchy performance, we need reassurance that there will be some kind of regulatory intervention if they do not get their act together.
We do not think it is right to go for regulatory action or for legislation. This is not just because there is so much guidance, although there is, but there is also the HEFCE review, which had a 76% response rate. Nearly all respondents have recently carried out a review of support or have plans to do so in the near future. Some providers have made significant progress, particularly in lecture capture and accessibility audits, but the research also highlights the need for sustained investment in infrastructure by these institutions to support disabled students and for a continued and accelerated effort by providers to make the necessary changes. So there is more work to be done.
To ask Her Majesty’s Government what is their estimate of the number and percentage of students who will pay back their student loans in full.
My Lords, the Government estimate that, following the increase from £21,000 to £25,000 in the repayment threshold that applies to post-2012 student loans, 30% to 35% of borrowers with higher education loans and 40% to 45% of borrowers with advanced learner loans will repay their student loans in full. Of those starting courses in 2016-17, that would equate to 135,000 to 160,000 borrowers with higher education loans and 35,000 to 45,000 borrowers with advanced learner loans fully repaying their loans during their 30-year repayment period.
My Lords, I am grateful to the Minister. What he said was that the majority of students will never repay their loans in full. We also know that up to 45% of the total loan outlay will never be paid. The poorer students end up with the biggest debt. Last week, the National Audit Office said that two-thirds of students consider that universities do not provide value for money and that proper independent advice is not available to them when they make these decisions, which have such a large financial consequence for them. How can we have confidence in the forthcoming review when the Government resolutely and so determinedly defend the present wretched system? Will the Minister accept that the current system is failing and that we need a new system that is fair to students?
The noble Lord raises a number of points, but we believe that the student loan system is working well. There is always room for improvement. We believe that students do get good advice before they take on loans; indeed, they have to sign some papers for that.
On some of the noble Lord’s more major points, we are very keen to pursue the value-for-money approach, and Jo Johnson in the other place has made it clear that universities must provide value for money for students. The House knows that the whole graduate student payment system is designed with a deliberate subsidy in place, and we are on track with a complicated formula to achieve that.
To ask Her Majesty’s Government what steps they are taking to improve the performance of the Student Loans Company, in the light of the dismissal of Steve Lamey, the Chief Executive.
My Lords, the performance of the Student Loans Company remains strong, with customer satisfaction rates for applicants currently stable at around 85% and for borrowers in repayment at around 72%. So far in this academic year, the SLC has processed over 1.4 million applications for student funding and has paid out approximately £2.5 billion in maintenance funding and £2 billion in tuition-fee payments to providers. The SLC board acted swiftly to appoint a highly experienced individual as the interim CEO.
My Lords, the noble Viscount says that the company’s performance is strong, but it has long had a reputation for poor performance, bureaucracy and overcharging on student loans. The last chief executive, Steve Lamey, was appointed to improve performance, and it looked as though he was doing so. This year he had a performance appraisal in which the chairman commended him for re-energising the business, but two months later he was suspended and was sacked this month. Can the noble Viscount confirm that the reason for his dismissal, as recounted in the Times, was that he publicly informed people about the problems with the company? Will the noble Viscount publish the findings of an internal investigation in which 52 of the 58 allegations against Steve Lamey were dismissed?
First, the performance of the Student Loans Company has improved year on year for the past six years. I cannot go into the precise details of Steve Lamey’s dismissal; I can only say that his behaviour as a leader and a manager fell below that expected of the position that he held.
(7 years, 2 months ago)
Lords ChamberMy Lords, I am grateful to the Minister for making that Statement. In her speech at the Conservative Party conference, the Prime Minister promised a major review of university funding and student financing, yet details about that review were absent from what the Minister said this afternoon. What are the review’s terms of reference, who will conduct it, what is the timetable, and when will the Government make a Statement to both Houses on it?
Ministers did not say anything either here or in the Commons about the policy on maintenance. Are the Government considering restoring maintenance grants, as they briefed to the media? They have also said that they will publish the revised resource accounting and budgeting charge—the Government’s estimate of the portion of loan that will never be repaid by graduates, which has risen steadily under the jurisdiction of this Government. Have they calculated the impact on the RAB of this latest announcement? If so, why have not they published it with the announcement?
Separately, there is a question about the impact on the department’s own budget in this and future financial years. Will the Government make an additional allocation for the department to cover the costs of the announcement, or does it imply cuts in education spending? Will there be any reduction in funding for universities as a consequence of these changes?
I thank the noble Lord for his questions. First, as I said, the Prime Minister indicated that there would be a review. Actually, the tuition fee system is kept under constant review, so what she announced was that more detail and information would come out towards the end of the year on what is proposed. However, I cannot go into further detail at present.
The noble Lord also asked about maintenance grants. No, there is no plan to bring back maintenance grants, but he will have to wait until the end of the year to see what further announcements might come, as Jo Johnson said earlier in the Commons.
As the noble Lord will know, the resource and accounting figures come out regularly. I understand that the latest figures will be out soon. They will show that we are on track in effect to write off—as of before the announcement—around 30% of all the loans. This is all part of the complicated funding formula used for the tuition fee system. Of course it should be noted that, with the changes that we have announced, the write-off will go up slightly to between 30% and 40%.
(7 years, 2 months ago)
Lords ChamberTo ask Her Majesty’s Government how they intend to ensure that the benefits to the United Kingdom arising from European Union students studying at United Kingdom universities will be maintained post-Brexit.
My Lords, EU and international students enrich the UK financially and culturally. We will always ensure that our world-class higher education sector can attract students from Europe and elsewhere overseas. To support evidence-based decision-making on the future migration system we have commissioned the independent Migration Advisory Committee to report on the impact of EU and international students. To provide certainty to prospective EU students we have guaranteed that those starting courses in 2018-19 or before will remain eligible for student support.
My Lords, it is very difficult to know why the Government have referred this to the advisory committee given that the Minister’s colleague, the Home Office Minister, yesterday admitted that overseas students have negligible impact on the net migration statistics. The Government should just remove them entirely from that statistical return. He has guaranteed EU students up to 2018-19, but what then? It is now that students from other EU countries are considering coming to the UK in a couple of years’ time. We risk losing them to other countries. Will the Minister guarantee home-fee status and access to grants and fee loans for students from the EU from 2019-20 and access to the Erasmus+ programme?
The Government want to provide certainty to EU citizens living in the UK. We know that the sector cares about its current and prospective EU staff and students living in the UK and we want to reach a reciprocal agreement for EU citizens in Britain and UK nationals in Europe as quickly as possible. That is why we published our policy paper on 26 June to outline our offer for EU citizens and to provide them with the certainty that they need for their future.
(7 years, 3 months ago)
Lords ChamberThere is a mood in the country, and there has been a lot of interest in the press, about vice-chancellors’ pay. That is an obvious point to make. However, as a result of the work that we did on the Higher Education and Research Bill, particularly in this House, we are empowering the new Office for Students to act to ensure value for money in focusing on senior staff pay. This is happening in a number of ways. We are introducing a new condition of registration, requiring the governing bodies of approved fee cap providers to publish key figures so that in future the number of staff paid more than £100,000 per year will be published, broken down into pay bands of £5,000. Also, the names of staff paid more than £150,000 per year, along with the justification for those salaries, will be produced by the OfS, and I think that that is a good step.
My Lords, is the noble Viscount confident that that will be effective? My understanding is that just a handful of current vice-chancellors earn less than the £150,000 threshold that he has referred to. Can he confirm that the Government have had a similar scheme in operation for civil servants, whereby Her Majesty’s Treasury has to give approval to any salary above a £150,000 threshold? The figures published by the Government in December 2016 show hundreds of civil servants earning above the threshold. Can the Minister really be certain that the measures announced will be effective?
We believe that it is absolutely the right course to take. I say again that universities need to be good stewards of their resources: they need to manage in a responsible manner, there needs to be strong leadership, and it is important that vice-chancellors’ pay is restrained. I understand that the average salary for 2015-16 was £234,000. Of course, the salary depends on the size of the institution and the responsibilities. At the end of the day, what counts is whether the pay is right for the responsibilities of the role and the size of the institution. That is one thing that has to be focused on by providers and universities.
(7 years, 3 months ago)
Lords ChamberTo ask Her Majesty’s Government whether they plan to reduce the 6.1% rate of interest to be charged on student loan debt from September 2017; and if so, how.
My Lords, student loan interest rates vary with income: 6.1% is the maximum rate, and many students will be charged less than this. Borrowers in repayment who earn under £21,000 pay 3.1%. Borrowers are protected, and repayments are linked to income, not interest rates or the amount borrowed. Our student finance system ensures the costs are split fairly between graduates and the taxpayer, and does this while helping more young people to go into higher education than ever before.
My Lords, the noble Viscount failed to mention that the moment a student gets to university, the 6.1% rate applies to them. At the end of three years, it has been estimated that the average interest added, at 6.1%, will be £5,800. Why are the Government determined to put students into even more debt than they are now? Why is RPI being used as the rate of inflation when the Government themselves have rejected RPI when it comes to benefits and pensions? Indeed, it is only students and railway passengers who are penalised by the use of RPI. When will the Government get real and review the rate of interest, as a first stage towards reform of our university fee system?
My Lords, the details of the scheme continue to be kept under review, but the student loan system is working well. The Government’s reforms to the undergraduate student finance system have ensured that it is financially sustainable for the taxpayer in the long term, while enabling those with the talent to benefit from a higher education to do so. Young people from the poorest areas are 43% more likely to go to university than they were in 2009-10. This is a very good step in the right direction.