Higher Education and Research Bill

Debate between Wes Streeting and Lord Johnson of Marylebone

Wednesday 26th April 2017 Commons Chamber

[Joseph Johnson]

I will take one more intervention—[Interruption.] I will take two more interventions on this subject.

[Wes Streeting (Ilford North) (Lab)]

I am grateful to the Minister for giving way, but he is being rather selective with the statistics, because the UK is losing market share across the world when it comes to international students. In fact, the Higher Education Statistics Agency shows that the UK has seen a reduction of more than 50% in students coming to the UK from India. More than half of international students in the UK say that they do not feel welcome. Does he recognise the scale of that problem?

[Joseph Johnson]

Perhaps the hon. Gentleman is being selective. I can easily point to the 8% increase in visas from Chinese nationals in 2016. Overall, if we look at the numbers since 2011, visa applications are up by 10%, but let us not get distracted further. I will take a further intervention and then I shall move on.

Higher Education and Research Bill

Debate between Wes Streeting and Lord Johnson of Marylebone

3rd reading: House of Commons & Legislative Grand Committee: House of Commons & Report stage: House of Commons
Monday 21st November 2016 Commons Chamber

[Joseph Johnson]

Higher education institutions are private and autonomous bodies that are self-organising. It is of course important that they provide a framework of governance that enables students to learn well in their institutions, and I am sure that that will include a healthy dialogue with their staff and employees. It is not for the Government to mandate particular forms of relations, given that these institutions are private and autonomous.

In performing its role, the OFS will have a clear picture of the number of international students and the income they bring—just as HEFCE currently does. I therefore do not agree that there is a need for an additional duty for the OFS to report on international students, as amendment 52 and new clause 9, tabled by the hon. Member for Southport (John Pugh), would require.

Similarly, I do not believe that the Bill is an appropriate vehicle for a requirement for the commissioning of research on post-work study, as proposed by the hon. Members for Glasgow North West (Carol Monaghan) and for Kirkcaldy and Cowdenbeath (Roger Mullin). The Bill focuses on the creation of the necessary structures that will oversee higher education and research funding for many years to come, and a short-term piece of research on an element of migration policy is not consistent with the scope and functions of UK Research and Innovation.

[Wes Streeting (Ilford North) (Lab)]

The Minister clearly does not believe that the Bill is the right vehicle for the issues under consideration, but does he understand why Members would pick this vehicle? His Department understands the importance of international students to UK higher education, and the Treasury understands their role, so why do the Home Office and the Prime Minister not understand it? Does the Minister not realise that, like him, we will be banging our heads against a brick wall at the Home Office?

[Joseph Johnson]

The Home Secretary has said that in the coming weeks we will consult on a non-European economic area migration route that will benefit international students who want to come and study at our world-class institutions, and I would encourage the hon. Gentleman to wait until we see the details of that consultation before jumping to any conclusions.

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[Joseph Johnson]

I touched on that at the start of my remarks. The Opposition proposed a commission for lifelong learning in new clause 15. The Government are obviously strongly committed to lifelong education, in which the Secretary of State and I have taken a close interest. Studying part-time and later in life brings enormous benefits for individuals, employers and the general economy. Alongside our higher education reforms, we are reforming further education, including implementing the skills plan that was published earlier this year and through the recent introduction of the Technical and Further Education Bill, which had its Second Reading last week.

As the hon. Member for Blackpool South is well aware, the Government committed in the last Budget to review the gaps and support for lifetime learning, including part-time flexible study. That review is ongoing. Higher education already offers flexible options for the thousands of mature students who want to study each year. In addition, much work is under way to expand access to lifelong learning through a variety of routes to suit learners. I am confident that those reforms, like others in the Bill, will continue to have a positive impact on learning—lifelong or otherwise.

Question put and agreed to.

New clause 1 accordingly read a Second time, and added to the Bill.

New Clause 2

Student support: restricted modification of repayment terms

“(1) Section 22 of the Teaching and Higher Education Act 1998 (power to give financial support to students) is amended in accordance with subsections (2) to (4).

(2) In subsection (2)(g) at the beginning insert ‘Subject to subsections (3)(A) and (3)(B),’.

(3) In subsection (2)(g) leave out from ‘section’ to the end of subsection (2)(g).

(4) After subsection (3) insert—

‘(3A) Other than in accordance with subsection (3B), no provision may be made under subsection (2)(g) relating to the repayment of a loan that has been made available under this section once the parties to that loan (including the borrower) have agreed the terms and conditions of repayment, including during—

(a) the period of enrolment on a course specified under subsection (1)(a) or (1)(b), and

(b) the period of repayment.

(3B) Any modification to any requirement or other provision relating to the repayment of a loan made available under this section and during the periods specified in subsection (3A) shall only be made if approved by an independent panel.

(3C) The independent panel shall approve modifications under subsection (3B) if such modifications meet conditions to be determined by the panel.

(3D) The approval conditions under subsection (3C) must include that—

(a) the modification is subject to consultation with representatives of the borrowers,

(b) the majority of the representative group consider the modification to be favourable to the majority of students and graduates who have entered loans, and

(c) there is evidence that those on low incomes will be protected.

(3E) The independent panel shall consist of three people appointed by the Secretary of State, who (between them) must have experience of—

(a) consumer protection,

(b) loan modification and mediation,

(c) the higher education sector, and

(d) student finance.’”—(Wes Streeting.)

Brought up, and read the First time.

[Wes Streeting]

I beg to move, That the clause be read a Second time.

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[Wes Streeting]

I entirely agree with my hon. Friend, which is why the student loans system should be brought within the scope of the Financial Conduct Authority. Had a high street bank or a payday lender behaved in such a way, there would be outrage everywhere, including in this House. The Financial Conduct Authority would mount an investigation. The Treasury Committee, of which I am a member, would ask questions. It seems that a Chancellor can just decide to save a few quid in the autumn statement and make retrospective changes that would penalise existing students and graduates.

This is an issue not just of fairness and equity for existing borrowers, but fundamentally of trust. What is to stop future Governments making changes further down the line about all manner of things, including interest rates, repayment periods, tapers and thresholds? On that basis, how can current or prospective students have confidence that promises being made today will be kept tomorrow? To be honest, this is a very personal issue for me. Some years ago, Martin Lewis, from Money Saving Expert, and I agreed to work with the coalition Government on an independent taskforce on student finance information. Martin was invited to take part because of his widespread reputation as one of the most trusted people in the country when it comes to financial advice and saving consumers money. It was felt, quite rightly by Lord Willetts— then the higher education Minister—that Martin would be an independent voice on those matters and someone whom people could trust. Martin then asked me to work with him as his deputy, with Lord Willetts’ agreement, on the basis that I had recently completed my term as president of the National Union of Students.

Although I opposed the decisions that had been taken by successive Governments around higher education funding and student finance, I believed that it was critical to take part. I thought it would be appalling if a single student was deterred from applying to university on the basis of misunderstanding the information. If students look at the information and the student finance system and decide to make a different choice, that is for them, but I thought that it would be a travesty if a single student was deterred on the basis of misunderstanding and misinformation.

We went round the country visiting schools, colleges and universities and we appeared in the media, promoting the Government system—not on its merit, but on the facts of the system. We served what I thought was an important public duty and purpose, but we were misled—inadvertently—which means that we therefore misled students and graduates up and down the country. We told them that the repayment threshold would go up in line with earnings from April 2017; that is what we were told by Ministers at the time. That is what students, teachers, parents, family members and advisers were also led to believe.

The Government need to reflect very carefully on what message it would send to each of those groups if future Governments can come along and retrospectively change the system to suit the Treasury. It is a terrible, terrible precedent that undermines trust not just in the student finance system, but in politics as a whole. We are not so far from a general election, or indeed from a referendum campaign, to know that trust in politics in this country is at rock bottom. People do not trust politics and they do not trust politicians. From my experience of this place in the past 18 months, I can say that, for all our disagreements, I have great pride in our political system and in the way in which it works. However, when it comes to decisions such as these, I completely understand why politicians are held in such low regard. On too many occasions, politicians have said one thing and done another. On higher education and student finance, politicians have said one thing and done another. Since the coalition Government put their reforms through, with cross-party agreement and with—to be fair to them —concessions to the Liberal Democrats in government, every single concession has been undone. Student grants have been scrapped. The emphasis on widening participation in a number of respects is now weaker. Now we find that many of the actual repayment conditions, which the right hon. Member for Sheffield, Hallam (Mr Clegg) would argue were some of the more progressive elements of the system, are also being undone. This is an issue about trust not just in the student finance system, but fundamentally in politics as a whole. Martin Lewis says:

“If you sign a contract, both sides should keep to it. If you advertise a loan, the lender should be held to the terms it was sold under.”

It is a total disgrace that, although the UK is well regarded around the world for its excellent laws and regulatory environment, there seems to be one exception, which is student loan contracts. That is why I hope that, this week before this change kicks in, the new Chancellor will take the opportunity to reverse the decision in his autumn statement. The Chancellor and the Prime Minister could go some way to rebuilding trust in politics. I also urge the Government to support new clauses 2, 3 and 6, which would ensure that no Government could be tempted to behave in this way again. It is scandalous and unjustifiable and it sets a very dangerous precedent. That is why I hope that we will see some progress on this today.

[Joseph Johnson]

When we reformed student finance in 2011, we put in place a system designed to make higher education accessible to all. It is working well: total funding for the sector has increased and it is forecast to reach £31 billion by 2017-18. It is vital to our future economic success that higher education remains sustainably funded.

Last year, the current Leader of the Opposition announced that he was keen to scrap tuition fees. Senior Labour party figures have criticised that, saying that it was not a credible promise to make, with Lord Mandelson, among others, noting that Labour had

“to be honest about the cost of providing higher education.”

Of course, it was not just Lord Mandelson. The former shadow Chancellor, Ed Balls, went further when he noted that his party’s failure to identify a sustainable funding mechanism was a “blot on Labour’s copybook”.

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[Joseph Johnson]

The estimation of the RAB charge is still broadly in that ballpark, with the current estimate being between 20% and 25%, so it is not substantially different.

On new clause 2, the hon. Member for Ilford North (Wes Streeting) suggested that an independent panel should approve any changes to terms and conditions for student loans. However, the key terms and conditions governing repayment of the loan are set out in regulations made under section 22 of the Teaching and Higher Education Act 1998. The repayment regulations are subject to scrutiny under the negative procedure, which allows Parliament to call a debate on any amendments. It is right that Parliament, rather than an unelected panel, should continue to have the final say on the loan terms and conditions.

[Wes Streeting]

I anticipated that the Minister would point out how permissive the terms and conditions were, which is why I suggested that student loans should be regulated by the Financial Conduct Authority. The sad truth is that I agree with him. As new clause 6 suggests, Members of both Houses should have a role in shaping the terms and conditions, but Ministers, whether in the Treasury or the Department for Education, have shown that they cannot be trusted to keep to their word. That is the indictment and that is why the amendment was tabled.

[Joseph Johnson]

The hon. Gentleman mentioned the Financial Conduct Authority. I remind him that it was under the Labour Government that Parliament was invited to confirm, as it did, that student loans were exempt from regulation under the Consumer Credit Act 1974 when the then Labour Government passed the Sale of Student Loans Act 2008. The hon. Gentleman should look back at his own party’s record on the issue.

New clause 3 proposes that student loans should be regulated by the Financial Conduct Authority. I share the hon. Gentleman’s desire to ensure that students are protected, but student loans are not like the commercial loans of the sort regulated by the FCA. They are not run for profit and are available to all, irrespective of their financial history. Repayments depend on income and the interest rate charged on them is limited by legislation. The loans are written off after 30 years with no detriment to the borrower. By contrast, lenders regulated by the FCA are obliged to assess the credit-worthiness of all their borrowers, and the affordability and suitability of the loan product for each borrower. Were the FCA to regulate student loans, that could affect the ability of some students to obtain them.

[Wes Streeting]

It would be perfectly possible for the FCA to regulate within the scope of the student finance system. The Minister talks about the suitability of borrowers; I am talking about the suitability of lenders to keep their word. I am not asking for the FCA to regulate students. I am asking for the FCA to regulate Ministers, who cannot be trusted.

[Joseph Johnson]

The key terms and conditions are set out in legislation—it is the law that binds us—and are subject to the scrutiny and oversight of Parliament. FCA regulation is therefore unnecessary, as students are already protected. Our system allows the Government, through these subsidised loans, to make a conscious investment in the skills base of our country. I should have thought that Labour Members would welcome that.

New clause 5 would revoke the 2015 student support regulations. These regulations replaced maintenance grants with loans, which increased support for students on the lowest incomes by over 10%. Revoking these regulations would reduce the support available for students from some of the most disadvantaged backgrounds, while costing the taxpayer over £2.5 billion per year. Opposition scaremongering about this policy risks deterring students from attending university. The sustainable system that we have put in place has enabled us to remove the cap on student numbers and offer more support for living costs than ever before.

New clauses 6 and 10 would require the repayment threshold for all income-contingent student loans to increase in line with either earnings or prices. Loan repayments continue to be based on the ability to pay, and graduates earning less than £21,000 were not affected by the threshold freeze. Those who benefit from a university education are likely to go on to earn more than taxpayers who do not go to university, so it is only fair that graduates should contribute to the cost of their education. Uprating the repayment threshold for all income-contingent student loans, as new clause 6 proposes, would cost about £5 billion in the first year due to a reduction in the value of the loan book. Thereafter, it would increase the resource account and budgeting charge by about 7%.

Higher Education and Research Bill (Twelfth sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 12th sitting: House of Commons
Thursday 13th October 2016 Public Bill Committees

[Joseph Johnson]

I will crack on, Sir Edward.

New clause 11 is intended to support learner flexibility, as helpfully discussed at length in Tuesday’s debate. The Government are committed to student choice and share the ambitions of Members of all parties to support flexibility to meet students’ circumstances. Supporting students who wish to switch higher education institution or degree is an important part of our reforms.

The hon. Gentleman is aware that the Government recently ran a call for evidence on credit transfer and accelerated degrees. We were pleased to receive more than 4,500 responses, which we are currently looking at carefully. We need to consider a number of issues before moving forward, and we recognise the central importance of student funding arrangements alongside wider issues such as student demand and awareness, and external regulatory requirements. We expect to come forward, as I said previously, by the end of the year with our response to the call for evidence.

Turning to new clauses 13, 14 and 15, I share hon. Members’ desire to ensure that students’ interests are protected when they take out a student loan, and I am pleased to have the opportunity to set out how we will ensure that. The key point is that student loans are not like commercial loans. Monthly repayments and interest are based on the borrower’s income, not on the amount borrowed. Borrowers repay nothing if they earn below the £21,000 threshold. Repayments are affordable and the loan is written off after 30 years with no detriment to the borrower.

Hon. Members have suggested that an independent panel should consider terms and conditions, and that changes to repayment terms and conditions should be subject to the approval of both Houses of Parliament. However, the key terms and conditions governing the repayment of the loan—the repayment threshold and rate, and the interest charged on the loan—are all set out in regulations. The current procedure already allows Parliament to debate or vote on any changes to the repayment regulations. That is the appropriate level of accountability for the decisions.

[Wes Streeting]

The Minister has outlined his views on terms and conditions. Does he agree that the Financial Conduct Authority should regulate student loans on the basis that it looks not only at terms and conditions, but at the premise on which a financial product is sold? That is where the Government have come a cropper.

[Joseph Johnson]

It has long been a feature of our system that we have a highly subsidised student loan, offered on a universal basis by the Student Loans Company, to all borrowers who can benefit from a higher education. It is massively different from a commercial product, which can cherry-pick who to lend to and charge market rates of interest.

Our student loan product is heavily subsidised, as hon. Members described earlier. It is income contingent, so borrowers only repay when they earn £21,000. It is written off altogether after 30 years. The interest rate charged would certainly be lower than that charged by commercial organisations when faced with a similar scenario.

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[Wes Streeting]

The Minister will be pleased to know I really welcome this important step to widen access. Does he have a sense of the timetable for when this will kick in, so I can inform Muslim students in my constituency or other students who would also have access to this mechanism when they might be able to take advantage of it?

[Joseph Johnson]

I am glad the hon. Gentleman welcomes the measure. There is a happy consensus on it in all parts of the House. We are pleased that as a Government we took the initiative to consult on this back in 2014, and we now have a legislative vehicle that will give the Secretary of State for the first time the ability to offer a non-interest-bearing product. We are currently constrained from putting that kind of alternative finance package in place. We are dependent on the passage of the Bill, but our intent is to get cracking on it as soon as parliamentary business allows.

This Government are committed to a sustainable and fair funding system. We are seeing more people going to university and record numbers of students from disadvantaged backgrounds. I hope the Opposition can see that their amendments can now be withdrawn safely and that the student funding regime is sustainable and already works in the best interests of students and this country.

Question put and agreed to.

Clause 78, as amended, accordingly ordered to stand part of the Bill.

Clause 79 ordered to stand part of the Bill.

Clause 80

Power to determine the maximum amount of loan etc

Amendments made: 243, in clause 80, page 49, line 29, at end insert—

“(1A) In subsection (2), after paragraph (a) insert—

“(aa) for the designation of a higher education course for the purposes of this section to be determined by reference to matters determined or published by the Office for Students or other persons;”.”

This amendment makes clear that regulations under section 22 of the Teaching and Higher Education Act 1998 may make provision for the designation of higher education courses for the purposes of that section to be determined by reference to matters determined or published by the Office for Students or other persons.

Amendment 244, in clause 80, page 49, line 29, at end insert—

“(1B) In subsection (2), after paragraph (f) insert—

“(fa) in the case of a grant under this section in connection with a higher education course, where a payment has been so suspended, for the cancellation of any entitlement to the payment in such circumstances as may be prescribed by, or determined by the person making the regulations under, the regulations;”.”

See the explanatory statement for amendment 242.

Amendment 109, in clause 80, page 49, line 31, leave out “in relation to England”.

This amendment provides for new subsection (2A) of section 22 of the Teaching and Higher Education Act 1998 (which clause 80(2) inserts into that section) to apply to Wales as well as England.

Amendment 245, in clause 80, page 49, line 34, at end insert—

“(3) In subsection (3), after paragraph (d) insert—

“(da) in the case of a loan under this section in connection with a higher education course, for the cancellation of the entitlement of a borrower to receive a sum under such a loan in such circumstances as may be prescribed by, or determined by the person making the regulations under, the regulations where the payment of the sum has been suspended;”.”—(Joseph Johnson.)

See the explanatory statement for amendment 242.

Clause 80, as amended, ordered to stand part of the Bill.

Clause 81

Qualifying institutions for purposes of student complaints scheme

Question proposed, That the clause stand part of the Bill.

Higher Education and Research Bill (Eleventh sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 11th sitting: House of Commons
Thursday 13th October 2016 Public Bill Committees

[Joseph Johnson]

No, I am going to answer the hon. Gentleman’s question, if I can.

It is in the students’ interest that institutions are properly regulated through an efficient and cost-effective system, which is what we are setting out to deliver through these reforms. This is in line, as I have said, with other regulated sectors where consumers indirectly fund the cost of regulation. For example, Ofgem recovers its costs from the licensed companies that it regulates, which pass on costs to consumers through their energy bills. The crucial thing is that we have made it very clear throughout that any fee should be fair and proportionate, not creating disproportionate barriers to entry and not disadvantaging any category of provider.

We will therefore explore options for the use of Government funding to supplement the registration fee income. For example, there may be an argument for the Government to help meet a new provider’s regulatory costs in its early years and to cover the transitional cost, as I have already said, of moving to the new regulatory structure. The Government have already committed to fund the teaching excellence framework—the TEF—that the OFS will operate. So it is in the students’ interests that providers are properly regulated through an efficient and cost-effective system, which is what we are setting out to deliver.

[Wes Streeting (Ilford North) (Lab)]

Given that student fees will be funding the new regulator, and given the Minister said it is in the students’ interests, students will be better assured that the regulator is serving their interests if they are represented on the board of the regulator.

[Joseph Johnson]

The hon. Gentleman returns to one of his favourite themes. We are ensuring that the student interest will be properly represented, and better represented than it ever has been in the system’s regulatory structures. Schedule 1, which we have discussed extensively already, makes provision for the Secretary of State to ensure that he has regard to the desirability of people on the OFS board having experience of representing student interest, and they will do that effectively.

Higher Education and Research Bill (Ninth sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 9th sitting: House of Commons
Tuesday 11th October 2016 Public Bill Committees

[Joseph Johnson]

The TEF, and its link to the inflationary uplift in fees on a conditional basis for those universities demonstrating high-quality teaching, will be important for the financial sustainability of the sector.

Let us start with the financial sustainability of the sector, which was the opening part of the hon. Gentleman’s question. The TEF puts in place conditions that allow us to enable institutions to raise their fees in line with inflation. If we do not do that, as I said earlier in answer to the hon. Member for Blackpool South, the value of fees in real terms will decline to £8,000 per year by the end of this Parliament. That is unsustainable. As we have heard from many people who gave evidence to the Committee, we cannot come back here in 10, 15 or 20 years’ time with fees still pegged at £9,000 when prices in the rest of the economy will have risen substantially. This is a responsible step to put the funding of our institutions on a sustainable footing.

I now turn to the other issue raised by the hon. Member for Sheffield Central about international students. We welcome international students and the contribution they make to our world-class university sector. That is why I was delighted this morning to announce that EU students applying to our universities for entry in the 2017-18 academic year will be eligible for the Student Finance England range of loans and grants, as they are now, for the full duration of their course of study, in the normal way. That demonstrates that this Government continue to welcome international students: they make a big contribution to our system.

[Wes Streeting (Ilford North) (Lab)]

I welcome the announcement the Minister has made this morning. The concern the Opposition has outlined is that the TEF is being used as a Trojan horse for the increase in fees. It may be pegged to inflation now, but what is to stop a different approach in the future, once the principle is established? On that point, given the Home Secretary’s speech at the Conservative Party conference, is the Minister not concerned that the bronze-silver-gold rating system could be linked to the international student visa system, with greater preference given to gold institutions, compared with silver or bronze?

[Joseph Johnson]

Before I respond, let me first touch on the issues raised by the hon. Members for the City of Durham and for Sheffield Central about the TEF and the reputation of the sector as it might be perceived by international students. We strongly believe that the TEF will enhance the overall reputation of the sector. We would be the first country to introduce such a system of assessing teaching excellence and students will have a better idea of what they can expect from their time of study here in England and in other parts of the country that choose to participate in it than they will anywhere else in the world. Providers with high levels of the TEF will have been through an extraordinary process of scrutiny that will help them market themselves more effectively around the world.

Let me turn to the other points on migration made by the hon. Member for Ilford North. As he will imagine, I am working closely—as are other members of the Government—with the Home Office on various options regarding student migration and, in particular, whether our student immigration rules should be tailored to the quality of course and educational institution. No decisions have been made on the best way to do that. The Home Office has indicated that it will be consulting in the autumn on a number of measures to remove opportunities for abuse, while still ensuring that the UK can attract genuine students from around the world. I reiterate, for the hon. Member’s benefit, that we will not be looking to cap the number of genuine students from outside the EU who can come to study in the UK. I hope that that provides him with reassurance.

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[Wes Streeting]

If that were the case, the QAA would need to come back and explain why it chooses to have students on its board. The hon. Gentleman is misrepresenting what the QAA said. What it has said, quite rightly, is that it is important to engage students at every level and to have meaningful engagement and dialogue with students beyond simply putting them on the board of an institution. I have not heard anyone from the QAA say—but I am happy to see the evidence printed in black and white in the record or written evidence—that institutions should not have students on the board of higher education institutions, and I have not heard anyone say that the office for students should not have student representatives on the board. If that were the case, they would be arguing against their own student representation on the board of the QAA, which I think they value because it has been there for some time and continues to be present.

I do not agree with the false dichotomy that the hon. Member for Bath has put forward. I do not think it is either/or. I agree with him: we do not just want students represented on the board and we need meaningful engagement throughout the system, but that is not a choice; both are necessary for the benefit of everyone involved in higher education.

Having made these arguments, I hope the Minister is inclined to follow existing practice at least, by making sure that whichever organisation is appointed as the designated quality provider follows the QAA’s practice of having at least two student representatives on the board. We are now nearing the end of this Committee stage. I hope that the Minister appreciates that the continued resistance to having guaranteed student representation is making the Government’s words on student engagement and the centrality of students to the Bill ring rather hollow.

[Joseph Johnson]

Again, we have had a good debate on the importance of student involvement in the HE sector and its systems and structures. I certainly agree that the quality body will need to represent the diverse interests across the HE sector, including those of students.

Hon. Members will be pleased to note that that there is already good practice established by the QAA of building student representation into the quality system. To summarise, the QAA includes two student representatives on its board of directors, has established a student advisory board to provide support, and includes students in its review and scrutiny processes for degree-awarding powers. Crucially, however, this is not set in legislation. It happens because it is considered to be an effective way of making an informed assessment of quality—an approach I hope will continue. The arrangements for the two student board members are set out in the QAA’s articles of association, and this is a more appropriate level for such stipulations to be made than in legislation itself.

The conditions set out in paragraph 4 of schedule 4 are there to ensure that we can establish an effective co-regulatory approach with the sector, as recommended by the Business, Innovation and Skills Committee. It is not designed to prescribe specific interests, but instead to make clear that the quality body should represent and have the confidence of a broad cross-section of the sector. I am keen that paragraph 4 remains flexible and not prescriptive, to guard against the risk that at some point in the future a suitable and well qualified body could be disbarred from designation on a technicality. This does not, however, prevent a designated quality body from involving student representation as an effective way to carry out its quality assessment functions.

Even without legislation, when future Secretaries of State come to a view on whether a body is capable of performing the assessment functions in an effective manner, I would imagine that they would look at a range of matters. These may include whether the student interest was represented within the organisation and whether that representation or lack thereof would have an impact on its capability. However, I recognise that hon. Members are making clear the importance of continuing this level of student engagement within the quality body. I also appreciate the strategic level on which amendment 232 in particular asks for this to be considered, rather than over-specifying the membership of the independent quality body itself. However, I remain confident that any designated quality body would include such representation without the law having to specify it. I therefore hope that the hon. Lady is reassured, and ask that she withdraws her amendment.

Higher Education and Research Bill (Tenth sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 10th sitting: House of Commons
Tuesday 11th October 2016 Public Bill Committees

[Joseph Johnson]

I am grateful to the hon. Member for giving us the opportunity to discuss this important matter.

Currently, the director of fair access agrees targets proposed by providers as part of their access agreements. The DFA’s powers do not enable him or her to impose targets at present. This approach was founded on the desire to protect an institution’s autonomy over admissions and its academic freedom. Those are fundamental principles, on which our higher education system is based and on which it has flourished. This group of amendments seeks to change that approach to agreeing access and participation plans and introduce greater prescription in this area.

We asked for views on this precise question in our Green Paper consultation, including whether the OFS should have a power to set targets, should an institution fail to make progress. Importantly, OFFA did not agree and said that the OFS should not have a power to set targets. Its response highlighted the importance of providers owning their targets. If targets are set externally, they can become both resource-intensive and a blunt instrument. This can make it difficult to hold institutions to account when progress is slow. Effort becomes focused on the process rather than broader improvements in access and participation. That is why we did not take these proposals forward.

The Bill includes arrangements to call providers to account where they are considered to be failing to meet their access and participation plans. Where it is considered appropriate, there would be access to a range of OFS sanctions. As I said in answer to an earlier amendment, these include the power to refuse an access and participation plan, to impose monetary penalties and, in extreme cases, to suspend or even de-register providers.

I hope I have therefore reassured the hon. Member that the Bill contains sufficient safeguards to tackle under- performance and I ask him to withdraw Amendment 16.

[Wes Streeting]

I am grateful to the Minister for his reply and for outlining the range of sanctions that apply within the scope of the legislation. I think that is in part reassuring. My point is more a message for institutions rather than for the Minister per se, and it is that institutional autonomy is often used as a convenient cover to avoid and escape accountability. Institutions have largely gone along with the direction of travel of higher education policy, both for funding arrangements and the regulatory environment. It seems to me they want all the benefits of having a more marketised consumer-led system without the downsides of accountability and responsibility to—in the most crude and reductive sense—consumers. That is not the language I tend to use, but none the less the brave new world of the marketisation of higher education speaks increasingly of consumers.

I think it is unacceptable and harder questions ought to be asked of institutions. It was my intention that these powers would be used only in extreme circumstances, or in cases of particular failure, because it is not desirable to have external targets set, for the reasons outlined by the Office for Fair Access in its submission. I thought the vice-chancellor of the University of Cambridge was rather coy in the evidence session before the Committee. The recent example of the University of Cambridge, where it tried to row back from the previous commitment it had made to access and participation targets, was a good example of the Office for Fair Access working, where robust dialogue behind the scenes and a respectful relationship with institutions can lead to the right outcome.

As we travel further down this system, I think we will encounter further difficulties. It is right and proper that there should be powers for the office for students to hold institutions to account. I am grateful to the Minister for outlining the powers in the Bill and I beg to ask leave to withdraw my amendment.

Amendment, by leave, withdrawn.

Higher Education and Research Bill (Seventh sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 7th Sitting: House of Commons
Thursday 15th September 2016 Public Bill Committees

[Joseph Johnson]

Thank you, Mr Hanson. I shall come directly to schedule 2. I could have invoked a large number of other senior Labour party figures who agree with Lord Mandelson, such as Ed Balls, who said exactly the same thing. The hon. Gentleman may not agree with one wing of the Labour party; but he does not agree with the other, either.

[Wes Streeting]

Will the Minister give way?

[Joseph Johnson]

I have been invited to carry on and speak about schedule 2, so I will press on for a minute. I will give way once I have made a bit more progress, if I can.

Tuition fees have been frozen since 2012 at £9,000 a year. That means that the fees have already fallen in real terms to £8,500 as things stand today. If we leave them unchanged they will be worth £8,000 in those terms by the end of the Parliament. It is not right or realistic to expect providers to continue to deliver high-quality teaching year in, year out with continually decreasing resources. The Committee heard that point made clearly by Chris Husbands, vice-chancellor of Sheffield Hallam University, which is close to the constituency of the hon. Member for Sheffield Central, when he gave evidence. He said clearly that it would be completely inappropriate for the university sector still to be stuck on £9,000 in 20 or 30 years’ time because no Government had the guts to allow fees to rise with inflation. That is precisely what we are doing.

--- Later in debate ---

[Joseph Johnson]

We can discuss the TEF in much greater detail at a later stage—I am looking forward to it—but we have consulted on it on several occasions now. The TEF is in shape. It is up and running, and it could not remotely be described in the way that the hon. Gentleman did.

[Wes Streeting]

Will the Minister give way?

[Joseph Johnson]

No, I want to make progress. The sector is familiar with the principle of linking funding to quality, which was introduced by the Conservative Government in the 1980s, when they introduced the research assessment exercise. Over successive iterations, the research excellence framework has undoubtedly driven up the quality of our research endeavour as a country, keeping us at the forefront of global science.

--- Later in debate ---

[Joseph Johnson]

The hon. Gentleman cannot have it both ways. He cannot criticise us for taking time to get it right and then wish it were in place sooner. We are developing the TEF in a phased, careful way. We are listening to the sector. That is why it is being piloted and trialled in its first two years.

[Wes Streeting]

Will the Minister give way?

[Joseph Johnson]

No—well, okay. The hon. Gentleman has been asking persistently.

[Wes Streeting]

The Government have a laudable target to double the percentage of students from low-participation areas by 2020. Can the Minister explain how linking the TEF to tuition fee rises will enable students from the most under-represented backgrounds to access the courses with the best quality teaching?

Higher Education and Research Bill (Eighth sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 8th Sitting: House of Commons
Thursday 15th September 2016 Public Bill Committees

[Wes Streeting]

The hon. Gentleman is right to refer to the gender pay gap in higher education. There is something like an £8,000 difference in the pay awarded to male and female academic staff. My amendments do not deal specifically with the gender pay gap, but instead address the inequality between pay at the top and at the bottom.

The amendments would address those issues in two ways. The first is to require universities to publish the pay ratio between the highest-paid staff and the lowest-paid staff and the median rate of pay. That would get remuneration committees to think hard, when telling front-line staff that they cannot afford pay rises, about whether they are applying the same principle to staff at the top. According to the Times higher education survey, one in 10 universities paid their leaders 10% more in 2014-15 than the previous year, while average staff pay rose by just 2%. It is incredibly demoralising for university staff, academic staff and support staff when they feel they are exercising pay restraint but see university leaders not leading by example.

Publishing the pay ratio would bring about greater equity and a greater focus on low pay. I do not see any good reason why any university in this country should not be an accredited living wage employer. I hope that one outcome of the amendments would be to reinforce many of the campaigns led by students unions and trade unions to persuade universities to become accredited living wage employers.

As well as proposing publishing information to push for transparency, the amendments would strengthen accountability by including staff and student representatives on remuneration committees. That is important for two reasons. One is that staff representatives, through the University and College Union and other trade unions, and student representatives, through their students unions, bring a degree of independence from the process. They have a legitimate interest in ensuring fair pay from a staff perspective and also from a student perspective, in terms of ensuring that their fees are well spent.

There is also a broader point, which ties into the interesting exchange earlier about the idea of a university being, as well as all the things that the Minister set out in his response to my hon. Friend the Member for City of Durham, a community. An important part of a university is the academic community in the university. It is not made up just of university leaders and staff; students are also part of it, and I think that it is important to include them in the decision-making process.

I therefore hope that the Minister looks favourably on the amendments. They would reinforce the signal that he has already sent through the HEFCE grant letter. They would help to concentrate more effectively the minds of remuneration committees, as well as bringing about a wider range of perspectives to ensure that they are reaching the right conclusion, to the benefit of students, staff and the taxpayer. I hope that the Minister supports the amendments.

[Joseph Johnson]

I thank the hon. Member for Ilford North for his amendments, to which we are giving some thought. However, I emphasise that the public interest governance condition that the clause contains is a vital component of the new regulatory framework and is designed to ensure that providers are governed appropriately, as he wants them to be. That is in recognition that some providers’ governing documents—in particular, those of providers accessing Government grant funding—are of public interest.

Let me first explain how we envisage the public interest governance condition working. Clause 14 explains what the condition allowed for by clause 13 is. It will be a condition requiring certain providers’ governing documents to be consistent with a set of principles relating to governance. The principles will be those that the OFS thinks will help ensure that the relevant higher education provider has suitable governance arrangements in place. That is not new. Legislation currently requires the governing documents of certain providers—broadly, those that have been in receipt of HEFCE funding—to be subject to Privy Council oversight. That is the backdrop.

Let me deal with the amendments. I do not believe that amendment 25 is necessary, and it could be confusing. The arrangements are already set out and designed for the primary purpose of ensuring that appropriate governance arrangements are in place and that best practice is observed. The introduction of the term “practices” through the amendment would risk changing the scope of the public interest governance condition to give it a much wider and more subjective application and imposing a significant and ambiguous regulatory burden on the OFS. That would stray outside our stated policy objective and beyond the OFS’s regulatory remit.

The suggestion in amendments 26 and 27 is to include principles relating to transparency of remuneration as being helpful for potential inclusion within the consultation process. We resist those also. We do not think that it would be helpful at this stage to make them mandatory components in clause 14. That is because, as I am sure the hon. Gentleman will appreciate, higher education institutions are autonomous institutions and the Government cannot lightly dictate what autonomous institutions pay their staff. As the hon. Gentleman said, we have already as a Government recently expressed concern about what appears to be an upward drift in senior salaries. The previous Secretary of State in the Department for Business, Innovation and Skills and I put this explicitly, as the hon. Gentleman said, in our most recent HEFCE grant letter. We clearly stated that we want to see sector leaders show greater restraint. The hon. Gentleman will also know, as a seasoned veteran of the HE sector, that higher education institutions are now obliged to publish the salaries of their vice-chancellors anyway, but as I said, we are watching this issue very closely and doing everything we can to urge the sector to exercise restraint, without crossing the line and interfering in the practices of autonomous institutions.

--- Later in debate ---

[Joseph Johnson]

Yes, I can certainly give my hon. Friend that assurance. Transparency is a big feature of the reforms in other respects and it is important we continue to ensure that the OFS is attentive to the issues around remuneration in the future, as we have asked HEFCE to be in our last grant letter.

To make sure we get this list of principles absolutely right, clause 14 requires the OFS to consult on its contents. This is because we wish to ensure a transparent and full re-evaluation of the current and any subsequent lists, and to provide all interested parties with a full opportunity to make their own representations and help shape the terms of the list in a positive way. For those reasons, I respectfully ask the hon. Member for Ilford North to consider withdrawing his amendment.

[Wes Streeting]

I am grateful to the Minister for his reply, particularly his initial remark that these amendments are on issues that the Government are carefully considering. I hope that the Minister will take the exchange we have had this afternoon on board and think about more precise amendments. I note that he made a technical objection to amendment 25, and hope that he will therefore reflect on whether a better form of wording would achieve the objectives.

There are a couple of issues I want to pick up, in terms of the Minister’s principal objections. He talked about university autonomy and of course that is an important principle, but he has also conceded that universities are already required to publish the pay of the highest paid members of staff in an institution. The amendments propose a very simple and relatively minor extension to make sure there is transparency about the lowest paid. There are issues within institutions where some staff, particularly support staff, are paid at frankly unacceptable levels—in particular if they are contractor staff. I do not think it would be a gross intrusion into university autonomy to proceed with the principles outlined in the amendments. There is certainly not the threat to university autonomy that universities have been audibly whingeing about in the last few days. I hope the Minister will go away and think carefully about that.

Having said that, the Minister has raised a particular technical concern and I am mindful of the crack hand of the Whip—even when he is not in his place he is very effective at marshalling the troops—so conscious of the numbers, and the practical issues the Minister has put forward, I am content and I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Higher Education and Research Bill (Sixth sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 6th sitting: House of Commons
Tuesday 13th September 2016 Public Bill Committees

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

First, let me say that I can see the principles that hon. Members are seeking to address here. I entirely agree that it is very important that the strong reputation of the English HE sector is maintained and that there is confidence in both the sector and the awards it collectively grants. The OFS has a key role to play in that. I also agree that the OFS will need to determine and promote the interests of students, that providers should continue to collaborate and innovate, and that studying part-time and later in life brings enormous benefits for individuals, the economy and employers. However, the OFS is already required under clause 2 to have regard to the need to promote quality and greater choice and opportunity for students.

Our higher education sector is indeed world class, and one of our greatest national assets. I entirely agree that it is crucial that this strong reputation is maintained and that there is confidence in both the sector and in the awards made by its providers. We have heard the same arguments about letting in poor providers at every period of great university expansion. The expansion of the sector over the decades has been the story of widening participation and access to the benefits of higher education. The concerns that we have heard at every wave of expansion have successively proved to have been manageable and, eventually, unfounded.

There is no specific current legislative provision that places a duty on the regulator to maintain confidence in the academic awards made by HE providers. However, the OFS is already required, under clause 2, to have regard to the need to promote quality, and good quality is the key ingredient that inspires confidence. As the Quality Assurance Agency recently noted, it is the Government’s intention that,

“no higher education provider will be given DAPs”

degree-awarding powers—

“without due diligence around quality assurance and this responsibility is expected to be carried out by the designated independent quality body.”

The QAA also said that,

“the transition to a more flexible, risk-based approach to awarding DAPs and university title…will help underpin the government’s policy objectives to open the sector to new high quality providers, encourage innovation and offer more choice to students”.

In particular, the power to award degrees will remain subject to specific criteria which all prospective providers must meet. The detail of those will be subject to consultation in due course, but I do not envisage the criteria themselves differing much from the existing criteria, and certainly not in a way where quality and therefore confidence is undermined.

The criteria for degree awarding powers are currently set out in detailed guidance. That will continue to be the case under the Bill. The current criteria and guidance for degree awarding powers run to 25 pages; all the criteria go towards ensuring quality and therefore confidence. Current guidance describes in some detail what is expected of providers with regard to key aspects concerning, for example, governance and academic management, academic standards and quality assurance, scholarship and pedagogical effectiveness, and the environment supporting delivery of taught HE programmes. We intend to consult on the detail of the future guidance, but will in all circumstances seek to assure quality. That level of detail cannot be captured in primary legislation.

Through our new regulatory framework, we are giving the OFS the powers to ensure that quality and standards are maintained. That will ensure that all parties, be they students, employers or the wider public, can have confidence that an English degree remains a high-quality degree and that it will continue to be something that has real value.

Let me deal with amendment 136. For the OFS to function effectively in the student interest, students should of course be represented, and that is our intention. Student interests are at the heart of our reforms, and we will continue to engage with our partners as the implementation plans are developed. As has been seen, from the Green Paper onwards we have sought the engagement and thoughts of all involved in the sector; we have engaged directly with students and their representatives, and I have had numerous meetings over the past year with student representative bodies including the NUS and the Union of Jewish Students, as well as many meetings with individual students. We will be embedding that culture of engagement within the OFS across all its duties, not just access and participation plans.

The Committee has heard from Universities UK, GuildHE and MillionPlus, all of which agreed that the general principle of student engagement was right, but that goes further than just representation. There needs to be a variety of mechanisms to enable student engagement, rather than just prescribing in legislation how that is to be achieved. The Office for Fair Access, for example, already requires providers to include a detailed statement on how they have consulted students in developing access agreements. The director of fair access has regard to that statement when deciding whether to approve an access plan.

[Wes Streeting (Ilford North) (Lab)]

The Minister is right to point to the guidance from the Office for Fair Access, but may I just point out that what he describes has not always been the case? Although the current director of fair access may take the attitude that students ought to be involved, his predecessor did not always do the same.

[Joseph Johnson]

Under the current director of fair access, we have seen spectacular progress, as we all acknowledged in Thursday’s sitting, and we would expect him and his successor to continue with the excellent model that he has put in place. That has seen these arrangements work well, and that is why we do not think it necessary to legislate.

--- Later in debate ---

[Wes Streeting]

I am grateful to the Minister for giving way a second time. He talks about the importance of engaging with students but, with respect, there is not a great deal of that engagement reflected in the Bill. Will the Minister reflect on that and perhaps some of our earlier debates on the issue?

[Joseph Johnson]

We obviously are thinking very carefully about the debates that we have at all stages of the Committee’s proceedings, and I am reflecting on how best we ensure that we achieve all our intentions to ensure that students are better represented in the sector’s systems and structures. We have put forward a proposal, which we discussed in great detail, in relation to the role of the OFS board in representing the student interest. We want to ensure that that is about more than representation and that the student interest genuinely is mainstreamed throughout everything that the OFS does.

That is why, for example, we absolutely recognise the need for access plans in particular to continue representing the student interest, and why in this Bill we are extending access plans to include participation and therefore looking at students and what happens for them right across their time in higher education. The hon. Member for Ilford North will appreciate that that goes far further than the plans introduced in 2004, which were limited to the point of access into higher education, rather than participation in and the benefits from higher education, to which we are seeking to extend them.

We will be embedding outreach activity to engage with students within the culture of the OFS, as part of its duty to promote quality and greater choice and opportunities for students. I would expect the OFS to use a range of ways to engage and consult with students, including social media, online consultation, and collaboration with partners, which has had wide reach in the past.

On amendment 140, the general duties of the OFS are absolutely consistent with the idea that providers should continue to collaborate and innovate in the new regulatory system, as we discussed extensively this morning. We are wholly supportive of collaboration where that is in the interests of students, and nothing in the Bill prevents it. Collaboration can take many forms, and we do not want to be prescriptive about what it should look like.

--- Later in debate ---

[Joseph Johnson]

We believe strongly that there is a need for competition to generate the driving forces that push up the quality of provision in the HE system and enable a more meaningful range of choices for students. We think that that would be in the student interest. Our overarching purpose is to make sure that the OFS operates in the student interest. We believe that that overriding goal captures many of the benefits that collaboration could achieve, and therefore putting collaboration on the face of the Bill would be redundant. When collaboration is in the interests of students it would already be covered by the OFS’s overarching duty in clause 2.

I have listened carefully to the hon. Gentleman, and I can assure him that we will of course make clear in our guidance to the OFS that having regard to collaboration is part of its general role in having an overview of the sector and of the role of providers. We will make clear in the guidance that collaboration is compatible with competition when it is in the interests of students. The OFS does not need a separate duty to promote collaboration; it has a general duty to have regard to the student interest and can therefore support collaboration when it is in that student interest.

We know that there is a continuing entrenchment of the same model of higher education in this country. The share of undergraduate students in English higher education institutions doing typical full-time first degrees has increased from 65% in 2010-11 to 78% in 2014-15. It is important that the OFS has a focus on supporting a competitive and more innovative market. This will have the effect of making it easier for new providers to enter the market and expand, helping to drive up teaching standards overall, enhance the life chances of students, drive economic growth, and be a catalyst for social mobility. Competition will incentivise providers to raise their game, fostering innovation, which has been stifled for too long under the current system.

I concur with the hon. Gentleman about a lack of innovation. In my view, promoting innovation, like collaboration, does not require a separate duty. When it is in the student interest, the OFS will be fully able to support it, because the student interest is at the very heart of the OFS.

[Wes Streeting]

Can the Minister provide a specific example of where competition in higher education has been proven to raise standards? If he cannot provide a specific example in higher education, perhaps he can find an example across public service provision more generally.

[Joseph Johnson]

I think that it is generally recognised that competition is one of the great forces—

[Wes Streeting]

It is not.

[Joseph Johnson]

Monopolies and the absence of competition in almost any sector that the hon. Gentleman cares to examine have led to a decline in the standards of public services, a lack of choice and a lack of quality provision. Competition is generally recognised as one of the great drivers of the consumer interest and we want it to continue to be so.

I turn now to amendment 141. I have always been absolutely clear that fair and equal access to higher education is vital. Everyone with the potential to benefit from education in every form should be able to do so. Studying part time and later in life brings enormous benefits to individuals, the economy and employers. That is why we are introducing maintenance loans for part-time study and have enabled more people to re-study through the extension of the exemption for equivalent or lower qualifications.

We want to promote retraining and prepare people for the labour market of the future, which is why we are reviewing the gaps in support for lifetime learning, including flexible and part-time study. New providers can play an important role here: 59% of students at alternative providers are aged over 25, compared with just 23% of students at publicly funded institutions.

--- Later in debate ---

[Wes Streeting]

I beg to move amendment 1, in clause 8, page 5, line 23, at end insert—

“() a condition that requires the governing body of a provider to develop, publish and adhere to a Code of Practice on Student Information that must include, but shall not be restricted to, information across different academic departments relating to—

(i) the number of hours of contact time that students should expect on a weekly basis,

(ii) the processes and practices regarding marking and assessments, and

(iii) the learning facilities that are available to all students.

() a condition that requires the governing body of a provider to monitor performance against the expectations set by the Code of Practice on Student Information and publish an annual report on its findings.”

This amendment would place a duty on governing bodies of all registered providers to develop, publish and adhere to a Code of Practice on Student Information and monitor and report on progress against expectations set by that Code of Practice.

With this and subsequent amendments to the clause I shall return to the theme of trying to make the Bill into a bill of rights for students, so I hope that the Committee will indulge me for a moment as I set out some of the general context. I will then deal with the specifics.

It has been my concern, as I said early in the Committee’s sittings, that for the past decade or more the burden placed on individual students and graduates to pay for a large proportion of their own higher education has substantially increased. However, there have not been rights and protections to go with that. My amendments are intended to address that key imbalance.

There are a number of reasons for our having reached the point at which students get a relatively raw deal, in spite of their making a significant investment. One is that for students, student unions and the National Union of Students, there has always been a tension between on the one hand a system increasingly driven by markets and competition, which has the potential to change the relationship between students and institutions from one of co-producers to one of consumers, and on the other hand the desire for students to be afforded better rights and protections.

It will come as no surprise to members of the Committee that student representatives—this was so during my time in the NUS but I think it is also fair to say it today—have concerns about a direction of travel towards students being seen as consumers rather than co-producers, and about putting market forces at the heart of the higher education system. That has led over the years to students not being nearly demanding enough about the degree of rights and protections that they should be afforded, and about to what degree they should be able to exercise greater muscle, whether as consumers or co-producers.

That is what is happening with the debate about the Government’s current higher education reforms. It is a terrible mistake that delegates at the NUS conference decided that the best response to the teaching excellence framework and, in particular, its relationship to the fees regime, would be not to engage with the process. The only outcome of that decision is that students’ voices are not heard. The Minister will not change his mind because the NUS does not have a seat at the table. He is more likely to engage and listen, as is Parliament, if students make their voice heard.

Similarly, the decision to try to sabotage the national student survey has no effect other than further to diminish the voice of students in the higher education system. Whether students see themselves as consumers or as co-producers, they should have the same goal—making sure that their voices are heard, that they are afforded basic rights and protections, and that they get the experience they sign up for.

Many members of the Committee will know that one of the key architects of the higher education funding system that we have today is Professor Nick Barr. I have had many arguments with Nick over the years about higher education funding. I have not changed my mind, he has not changed his, but I agree with him about the essential role that robust quality assurance, information and rights and protections have to play if competition is at the heart of the system. That is where we increasingly find ourselves. On the one hand, we could have more robust and intensive quality assurance, more inspections and more detailed inspections, but that hits two buffers, really. The first is the cost of the intensity of such an inspections regime, and the second is the threat to institutional autonomy. The alternative, which is what my amendments look for, is making sure that we have well informed students, consumers or co-producers—it really does not matter which term we choose.

Information is crucial in ensuring that we have informed applicants matching themselves to the right course for their interests and ambitions. It is also important to make sure that students know, from the point of application, what they will get in return for their fee and for their time at university. Amendment 1 to clause 8 would place a duty on governing bodies of all registered providers

“to develop, publish and adhere to a Code of Practice”

on student information and to monitor and report on progress against expectations set out by that code of practice.

My amendment suggests a number of areas that the code of practice on student information would contain. The list is by no means exhaustive, because I tend to agree with the Minister that legislation should not be overly prescriptive, but I do not think it is unreasonable to expect that when a student applies to a course they should have some degree of understanding of what their contact time will be, of what they should expect every week, of the marking and assessment regime and of the kind of feedback they might expect from their assessment, as well as who might be in front of them—because universities can tend to put the star names in the prospectus and the PhD and masters students in the front of the lecture theatre. That would ensure that the students would understand the learning facilities that were available to all students, and would ensure that those expectations were not only well understood by students but well understood and adhered to by the institution.

I think that this could be a very powerful tool to make sure that students are not only well informed but can hold their institutions to account. That is the primary intention of the amendment and it is a theme I will refer to later. I hope that if the Minister cannot agree to the specific wording of this amendment he will at least agree with the principle, as well as to my assessment that there is much further to travel to ensure that students are well informed when they apply and when they are on their courses, and that they are better able to hold their institution to account, which will surely help to drive up standards for everyone across the system.

[Joseph Johnson]

I thank the hon. Gentleman for giving me the opportunity to set out the Government’s vision for student information. I agree that the information set out in his amendment is important to students. The Government are committed to improving information and making it freely available to enable students to make informed choices on the best study option for them and their future employment opportunities. This will help students to fulfil their potential, regardless of their background. It is central to our aim to give students more informed choice and help ensure that their experience meets the expectations set out by their higher education institution. This was a strong theme in our White Paper and it runs throughout our reforms, which have received the support of important consumer bodies, such as Which?

I bring to the hon. Gentleman’s attention a comment on our reforms from Alex Neill, director of policy and campaigns at Which?, who 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 decision of their lives”.

The need for such reforms was also made clear by Emran Mian, director of the Social Market Foundation and another expert commentator on the sector, who observed:

“Higher education is too much like a club where the rules are made for the benefit of universities. These reforms will begin to change that. Students will have access to more information when they’re making application choices; and universities will be under more pressure to improve the quality of teaching.”

Information has been a consistent theme in the Government’s policy for several years. We introduced the key information set in September 2012 to ensure that students have information about the courses available, satisfaction ratings, and salary and employment outcomes, which students consistently tell us are the most important factors to them when choosing a course.

However, we are not complacent, and through the Bill and other measures we will put more comparable information in students’ hands than ever before—information not just on institutions and courses but on teaching quality—through the teaching excellence framework, which the hon. Gentleman mentioned. Information on application, offer and acceptance rates, broken down by gender, ethnicity and disadvantage as a result of the transparency duty, will play an important part in that, as will robust information on employment and earnings from Her Majesty’s Revenue and Customs as a result of the Government’s wider reforms. Through those measures, together with the national student survey information on student satisfaction and information on institutions and their courses as well as improvements to the detailed course delivery information held on institutions’ websites, we are putting more information in students’ hands than ever before.

However, we do not think that a multitude of codes of practice is the best way to achieve that aim. We expect the office for students to develop guidance setting out the information that students should receive. That will incorporate existing Competition and Markets Authority guidance, so will help institutions to comply with consumer law. The Bill gives the OFS overall responsibility for determining what information needs to be published, when—it will be published at least annually—and in what form. The Bill asks the OFS to consider what information would be most helpful for prospective and current students and higher education providers, and consult periodically with interested parties—students, higher education providers and graduate employers—to ensure that the approach to information still meets their needs.

The hon. Gentleman and the Government essentially want the same thing: better information for students. The Bill already contains a duty to publish and consult on the information that students need. The OFS may issue guidance on that to institutions to ensure consistency of data collection, and consistent and comparable publication, among institutions. That guidance will likely follow advice from the CMA on what information should be made available to students, including on course delivery and assessment and facilities. That will help institutions to comply with their obligations under consumer law.

The amendment would require each and every higher education institution to develop and deliver its own code of practice on student information. That would create disparate and unequal information for students—exactly what we are trying to avoid. It would mean that students would find that levels of information differed from one institution to another, making it harder to compare courses and institutions, and areas of information could be closed down if an institution’s code deemed that to be appropriate. The amendment would also increase the burden on institutions to monitor and report on such codes.

We therefore do not think that it is necessary for each higher education institution to develop and run its own code of practice. The OFS will be better placed to consider and consult on the information that HE providers must provide for the benefit of students. That will ensure consistency and reduce the burden on HEIs. I therefore respectfully ask the hon. Gentleman to withdraw his amendment.

[Wes Streeting]

I am grateful to the Minister for his considered reply to the issues teased out by amendment 1. I will say a couple of things in response. First, he is right that the availability and transparency of information for applicants has been improving, and the Government are clearly determined to ensure that that information continues to improve and remains relevant to the key factors that will determine applicants’ choices. I welcome that policy direction.

Secondly, I welcome what the Minister said about guidance from the Competition and Markets Authority, but I think there is further to go in ensuring that once students are signed up to a course, they have the power and muscle through different means effectively to hold institutions to account to ensure that they deliver against the expectations set out on application.

There are various means and routes for students to follow when things go wrong, such as course representation systems, students’ unions and the office of the independent adjudicator for higher education, whose remit is relatively narrowly defined. However, I do not think that the representative structures are necessarily as good as they could be to give students a powerful voice. In that context, I hope that the Minister will reflect on our earlier discussions about representation and the OFS, where I think the composition will be crucial. With great respect to board members of HEFCE, which has played a great role over many years, if the new office for students is just the great and the good of the higher education sector and a range of vice-chancellors sat around the table, I do not think it will achieve the objectives he has set out. The composition, the consumer voice, consumer rights champions and the student voice will be really important to achieving that.

The Minister also needs to think about representation in the sector and in institutions, which we will address shortly in other amendments. Finally, he is right to point out the shortcomings of the amendment’s wording and challenges that that might throw up. It was a probing amendment. I am glad to see the Minister is considering the issues and hope we will be able to make further progress, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Wes Streeting]

Picking up the theme of student representation that I just alluded to, the amendment would require the governing body of any registered provider to include at least two student representatives on the board of its governing body. That is important. The Minister has talked about protecting the student interest, which he seeks to do primarily through the office for students. However, I am sure he would hope that all institutions are engaged in that through their governing bodies’ decisions. I would like to challenge him on the difference between protecting the student interest and ensuring that students have a voice.

The problem with the Bill as it stands is that it sets up many people around different tables to act as ventriloquists for students, to consider what they believe to be in students’ best interests. There is no substitute for complementing those members of a university governing body, who I hope will always have a concern for students’ interests, with students and their representatives.

There are countless examples from across the higher education sector where students on governing bodies have made a really important contribution not just to the development of institutional policy in relation to students, but often to higher education policy more generally. Indeed, many of the policy teams of higher education institutions and sector bodies are populated with people who were, once upon a time, student representatives. I think I speak for many of that pedigree of former student representatives when I say that higher education is an incredibly interesting area of policy, where expertise is developed. There is therefore a mutual benefit. In the evidence session it was striking that many of the university representatives and leaders welcomed and embraced student representation. That should be in the Bill.

I am keen that the amendment should find its way into the Bill for two reasons. First, student representation on the boards of governing bodies has previously been part of the code of practice issued by the Committee of University Chairs, but I think that code has been retired. It would be helpful to see that principle maintained through legislation. Secondly, with the prevalence of new providers, any provider, whether the most established ancient university or the newest private provider, should place the student voice at the heart of their governing bodies.

Finally, the Minister may wonder why I have been so prescriptive in the amendment as to include “at least two” student representatives. There are sometimes challenges in placing students—rather than students union officers on sabbatical—on a governing body where they are surrounded by people who often have a great deal more expertise in different areas and experience of sitting on governing bodies. Having more than one representative might mean that there is a better sense of support, and that people feel more confident to contribute and play an active role. I should flag up to the Minister the fact that although the amendment has been phrased very specifically, if he is not happy with the wording, there is nothing to prevent the Government from tabling their own amendment to ensure the same principle: that every institution should have students on its governing body.

Finally, new clause 1 sets out the principle of a duty to consult. The idea is not new in deliberations in this place. When he was the Higher Education Minister, Bill Rammell introduced a similar clause, which placed a duty on governing bodies in the further education sector to actively listen to and consult students. That is a good principle. I was sorry to see that legislation disappear under the previous Government, but there is no reason why we should not bring it back for the higher education sector. It would set the right direction and be a positive duty that institutions would surely want to embrace.

[Joseph Johnson]

The amendment and new clause both seek to establish a world in which the governing bodies of registered suppliers are required to involve and engage students. As I have said, students are at the heart of our reforms, and for the first time student interests are being represented through statute, but student representation in decision making and on boards is not the only way to ensure that students’ voices are heard. Many providers have excellent student engagement practices that involve engaging with more than one or two specified individuals. Were we to legislate for precisely how providers operate their student engagement strategies, that would risk reducing their flexibility to engage students in a range of ways.

On amendment 5, the governing bodies of HE providers will also have criteria for recruiting members with the most appropriate range of relevant skills and breadth of experience to help them deliver and make decisions. We should not prescribe how they achieve that; otherwise, we risk limiting the opportunity to bring in a wide scope of relevant experience that will benefit students, employers and providers.

On new clause 1, I see the OFS taking a leading role in highlighting and promoting innovative ways in which students and institutions work together. I trust that providers will want to continue and improve their student engagement. That is a more effective way of embedding the student voice in the sector’s structures and practices.

The hon. Gentleman and the Government are not at odds. Engaging students and listening to what matters to them is absolutely important to us. Holding providers’ governing bodies to account, which is clause 2’s intention, can be achieved administratively without such prescription. I therefore respectfully ask the hon. Gentleman to consider withdrawing the amendment.

[Wes Streeting]

I am grateful to the Minister for his reply, but I am still struggling to understand his reluctance to enshrine student representation in legislation and to guarantee students or their representatives a voice at the table. As he goes around speaking to institutions throughout the sector, as I know he does, he really should spend more time popping in to see the students union and talking to the elected officers and the professional staff. He should also talk to higher education sector leaders about their experience of student representation and the difference it can make.

I was a member of the governing body of the University of Cambridge. I was elected to that governing council separately from my role as president of the students union. During the year when I was a member, I would say that there were three key areas in which, as a student representative, I made a demonstrable impact, to the benefit both of students and of the institution more broadly. First, I helped with the design of the university’s bursary scheme following the passage of the Higher Education Act 2004. We were able to target student support in the most effective way and, as part of that, think about some of the students who were being left behind by the national Government-funded student support system. That was an obvious area of student interest.

Secondly, there was an area of tension with the institution. Primarily for financial reasons and because of a fall in the research assessment exercise, the university proposed to close the architecture department which, although it had taken a knock in the RAE, happened to be, and remains today, one of the world’s leading departments for the teaching of architecture. Thanks to the student voice on the governing council and the academic board and a very active student campaign—world renowned architects writing to The Guardian also helped—the university had second thoughts. Years later when I sat in my office in NUS, I received a bumper book from the university marketing and alumni department promoting its fantastic architecture department, outlining how wonderfully it was doing in its research and teaching. The department is still there today and that would not be the case without the active engagement of students.

In another example, the university had a very thorny debate about intellectual property in which one of the world’s leading security experts argued that the university’s intellectual property policy would be to the detriment of academics such as him. On that occasion student representatives were able to act as honest brokers, again making a demonstrable impact on the policy. Ultimately, they sided with the university’s leadership over academics who perhaps had legitimate, or ill-founded, depending on your perspective, concerns. Student representatives can make a positive impact and I do not understand the Minister’s reluctance to accept the principle.

I will not press these amendments to a vote. They may well appear at a later stage of the Bill’s passage, but I implore the Minister to consider the tangible difference that student representation is making in institutions today and ask himself why that experience at the majority of institutions should not be enjoyed by students at all institutions. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Wes Streeting]

I will therefore come back on the quality code. At the moment there is a national quality code that the Quality Assurance Agency for Higher Education holds. That code serves a very important function well, but I have a concern, and this is really a probing amendment to get the Minister’s thoughts and ascertain whether he sees the potential problem that I foresee. As it stands, the Quality Assurance Agency continues to be the designated quality provider and serves that function, but that will not necessarily always be the case. Were the Quality Assurance Agency to lose its contract as the designated quality provider, who would own the quality code? Would it be the Quality Assurance Agency, which would have every reason to pick up its bat and ball and its quality code and go somewhere else saying, to put it crudely, “Okay, fine. You do not want our business, so good luck developing a new quality code.” Or is there a broader ownership of the sector? The amendments would provide ownership outwith the Quality Assurance Agency so that there is a principle that, whoever the designated quality provider is, there is a nationally agreed quality code that applies across the United Kingdom.

It is a shame that our colleagues from the Scottish National party are not here this afternoon because there are cross-border issues in relation to higher education, not just in England and Wales but in Scotland. It is disappointing that the voice of Scotland is not heard here this afternoon. I hope that the Minister can address that concern and provide some reassurance. If not, I hope he might think about how we can, in the Bill, mitigate the risks that I have described.

[Joseph Johnson]

Again, I thank the hon. Gentleman for tabling the amendments. I completely understand why he wants to recognise and ensure the importance of quality in higher education. Our HE system is internationally renowned, as Members have commented today. Underpinning this reputation is our internationally recognised system of quality assurance and assessment, which we are updating to meet future needs in an increasingly diverse HE system.

--- Later in debate ---

[Joseph Johnson]

We can certainly consider that, but as things stand we could not rely on UCAS publishing the information, which is why we are requiring universities to do so.

[Wes Streeting]

I am grateful for the Minister’s response and the assurance that he will consider the issues raised more fully, both in the context of the Bill and of broader Government policy. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 8 ordered to stand part of the Bill.



Clause 9

Mandatory transparency condition for certain providers

--- Later in debate ---

[Wes Streeting]

That is an interesting thought. Perhaps the Government might consider arrangements that would make it easy to set up a students union. My understanding is that the definition of a students union in the 1994 Act is so broad that it favours students. Simply coming together and having some degree of representative function or, indeed, an institution setting up a representative function might constitute a students union as defined by the Act. It is not clear, however, whether that provision would extend to private providers.

For example, if a new university of Ilford North were set up—it would have to pick the right bit of Ilford North, so that it did not find itself in a different constituency—and I enrolled as a student, I might want to join a students union and find that there was not one. I then approach the institution to set one up, but the answer is fairly negative. Perhaps the new provider does not want to provide a block grant for a students union or the time and space in the governing body agenda to constitute a students union. There could be myriad reasons why providers might object.

I think that students unions are part and parcel of the higher education student experience. That is not just the stereotypical student experience of full-time undergraduate students of a certain age; there are many examples of student representative bodies that have constituted themselves and played an effective role through a range of modes of delivery. The Open University Students Association, for example, is not a traditional students union in the sense of a campus, because the Open University is not a traditional university in that sense, but it has an active and effective students union that is able to represent and advocate for its members. Other part-time institutions, such as Birkbeck, are in the same position.

I would like to ensure that students unions, which are a central part of the student experience, are a central part of every student experience at every institution. They benefit not only individual students, but institutions. We should celebrate the role of students unions and enshrine them in the private part of the higher education sector through the mechanism of this amendment.

[Joseph Johnson]

Amendment 6 would mean that private higher education providers must have a students union to remain on the OFS register. There is nothing in the Bill or current legislation to prevent an HE provider, private or otherwise, from having a students union, and no higher education provider is currently required to have a students union.

As the hon. Gentleman made clear, students unions provide valuable welfare services to their members, but a students union, as defined in the Education Act 1994, is not the only way in which students can be supported by their higher education institution or be engaged in decision making. Alex Proudfoot of Independent Higher Education, formerly Study UK, told the Committee during the evidence sessions:

“Students at alternative providers tend not to engage in formal students unions; they tend often to be professionals or mature students or to have responsibilities outside their studies. For that reason, it is difficult to require representation, but it should be encouraged.”––[Official Report, Higher Education and Research Public Bill Committee, 6 September 2016; c. 7, Q2.]

--- Later in debate ---

[Joseph Johnson]

For that reason, where there are issues, students will welcome the provisions in the Bill which put their interests at the heart of the system and make sure that their voices are better represented in all the system’s structures.

Although these representative structures often do not mean or necessarily entail a formally constituted union, they reflect the different culture and constituents in different student bodies. For example, it may be a group of representatives from across different classes and courses led or chaired by a student president.

The “Higher Education Review (Alternative Providers)” is the QAA’s principal review method for alternative providers. As part of the higher education review, an independent provider must provide evidence of how it is meeting the QAA’s expectations on student engagement. The UK quality code focuses specifically on student engagement, so the provider must evidence how it is meeting the QAA’s expectations in that respect. The code states that through the “Higher Education Review (Alternative Providers)” process, higher education providers must demonstrate how they

“take deliberate steps to engage all students, individually and collectively, as partners in the assurance and enhancement of their educational experience.”

Providers must also work with students to produce an action plan on how to respond to HER recommendations. QAA-reviewed independent providers will have student representatives on their various committees, including some, but not all, at board level.

The amendment would impose a mandatory condition on private providers. The Bill does not impose a similar mandatory registration condition on institutions receiving public funding. The amendment would not only impose a new regulatory burden on alternative providers but would run contrary to our aim of levelling the playing field between traditional institutions and alternative providers.

[Wes Streeting]

If the Minister’s objection is that the amendment is too prescriptive, would he be inclined to support a more permissive amendment that simply extends the definitions and provisions of the Education Act 1994 to private providers, namely that students organise themselves as defined under the 1994 Act and that a students union would need to be constituted?

[Joseph Johnson]

As I said earlier, there is nothing in this Bill or current legislation to prevent a higher education provider, private or otherwise, from having a students union. We want this to be voluntary, not mandated by diktat, as my hon. Friend the Member for Cheltenham said.

I welcome the eagerness of the hon. Member for Ilford North to ensure that all students unions are covered by the governance and transparency arrangements set out in the Education Act 1994. I welcome the positive, important role that students unions can play, but I reassure him that the power already exists in the 1994 Act to extend the provisions to students unions in private providers and I therefore urge him to consider withdrawing his amendment.

[Wes Streeting]

I have listened to what the Minister has said but I am not minded to withdraw the amendment. I think that this is an important principle and while I have some sympathy with his point about prescription, the Education Act 1994 gives any student the ability to opt out of a students union, so it would not be compulsory for individual students to be members of a students union. I think he underestimates the difficulty facing any group of students in establishing a students union from scratch in circumstances where the institution is not minded to host a students union. I think the prejudices of private providers were demonstrated by Mr Proudfoot’s evidence to the Committee and the assumption that because people have jobs, because they are mature students or because they have caring responsibilities, they would therefore not be interested in being involved in a students union, but if we look at institutions such as Birkbeck and the Open University that has not been the case.

Students with a full-time job who are studying around their work or who have caring responsibilities are often among the most demanding, or most in need of higher education institutions delivering what they say they do, and would benefit from effective student representation. I am not minded to withdraw the amendment and I think that the Government should think about introducing a more permissive amendment to make it easy to extend to private providers the principles and the practice of students unions, and the responsibilities on students unions that come with the Education Act 1994.

Question put, That the amendment be made.

Higher Education and Research Bill (Fifth sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 5th sitting: House of Commons
Tuesday 13th September 2016 Public Bill Committees

[Joseph Johnson]

To carry on, we are supporting growth in degree apprenticeships, including by making available an £8 million development fund. That will build on the rapid progress that we have been making over the past year. It will help universities and partners build capability and capacity among HE providers to meet employer demand.

I support the good intentions behind the amendment, and it will, of course, be essential for the OFS to work collaboratively with the Institute for Apprenticeships to increase the number, range and choice of degree-level apprenticeships on offer to students. However, the amendment is unnecessary to accomplish the hon. Gentleman’s entirely laudable aim. There are already powers in the Bill that enable collaboration between the OFS and other bodies. Clause 58 empowers the OFS to collaborate, where appropriate, for the efficient performance of its functions, and requires it to do so if directed by the Secretary of State. The OFS can use that power to collaborate and share information with other organisations, such as the IFA.

The Secretary of State will also be able to ask the OFS to work with the IFA through guidance and, in doing so, will be able to set out which areas of activity should be prioritised at any given time. That is a more useful and flexible tool for delivering the kind of increase in degree apprenticeships that we all want. That will enable the OFS to respond to the changing needs of prospective students and the labour market. The amendment would lead to an overly prescriptive approach, and would limit the flexibility that we need to ensure that our education system remains responsive to changes in the labour market and the needs of our economy.

Finally, I turn to amendment 28. I again welcome the opportunity to discuss the important issue of the geographical distribution of higher education provision. HE providers play a significant role in their local economies by supporting and enabling local growth. Access to HE acts as a social mobility catalyst that can improve the life chances of young people in disadvantaged areas or help retrain people later in life. It is important that all areas of the country should be able to benefit from that. HE provision tends to be clustered in cities, with less provision in rural or coastal areas. HEFCE has undertaken valuable work in recent years on the issue of cold spots. I assure the Committee that it is our intention that the OFS should continue doing that important work. However, the amendment is not needed to enable that; it would risk forcing the OFS to take an over-prescriptive and interventionist approach.

The Bill already gives the OFS a duty to have regard to the need to promote greater choice and opportunities for students. That is a broad duty that includes matters such as students having a choice about where to study. That means that the OFS will have a remit to be aware of cold spots, and to take action if necessary.

The amendment would also risk creating the expectation that the OFS would continually monitor the distribution of supply and demand for HE, perhaps in a bureaucratic and costly way. The OFS should be free to determine the extent of the monitoring needed, based on its market intelligence. The amendment would impose a legal requirement on the OFS to take action whenever there was unmet demand. I would be concerned about that, as it would be an over-interventionist approach for the regulator to take in every instance. In many cases, incidences of unmet demand could be addressed by the local area without any direct OFS action. The duty could therefore be inconsistent with the principle of taking regulatory action only when it is needed.

We have an active HE market that is well equipped to identify and respond to student demand with innovative and targeted provision. Our view is that local institutions and authorities are best placed to decide what is needed in their areas; that is in line with the spirit of institutional autonomy. For example, nearby providers and the local community can put plans in place for additional HE provision, perhaps through FE colleges or satellite campuses. The OFS can encourage and support that if necessary, but the decision should be for local areas, reflecting the principles of local devolution.

Our reforms will also support new institutions opening in cold spots where there is unmet demand. It will be quicker and easier for new high-quality HE providers to establish themselves. New universities can be agile and nimble, can respond to what students and the economy demand, and can equip students with the skills needed for the jobs of the future. I therefore ask the hon. Gentleman to withdraw the amendment.

[Wes Streeting]

I thank the Minister and the shadow Minister for their contributions. The Minister made a reasonable point about amendment 15 in relation to the prescription that the OFS should publish and review its strategy at least every three years. I agree with his general point that, where possible, legislation should not be unnecessarily prescriptive, and I am content to withdraw the amendment.

On amendments 20 and 28, I am not sure that I entirely follow the Minister’s argument. In the Bill, there is a whole range of instances of the OFS being given specific duties that might otherwise have been captured under the much broader, sweeping clauses. This is a matter of consistency. We are talking about two key areas that the Minister has acknowledged are important. The provision of higher-level and degree-level apprenticeships is important, and there really ought to be a statutory duty on the office for students to co-operate with the Institute for Apprenticeships, and vice versa. The shadow Minister made a compelling case for making sure that the higher education and skills strategies are joined up, and amendment 20 would facilitate that.

On the issue of HE cold spots and amendment 28, I am not sure that my reading of the amendment is the same as the Minister’s. He paints a picture of a bureaucratic nightmare in which the office for students is constantly monitoring supply and demand and frequently having to tinker with institutions and courses. The amendment is clear:

“The OfS must monitor the geographical distribution of higher education provision”.

We hope that it would do that, but there is no harm in making sure that it does. The amendment states that the OFS should

“introduce measures to encourage provision where the OfS considers there to be a shortfall in relation to local demand.”

There are two variables. One is the issue of measures, and it would be for the office for students to determine what, if any, measures are appropriate. Secondly, the OFS has discretion to determine where it

“considers there to be a shortfall in relation to local demand.”

That is important in ensuring fair access to higher education, particularly given that, as I described earlier, many people, particularly from backgrounds where there is less of a tradition of participation in higher education, choose to study locally. It is an area that the OFS needs to keep its eye on, so there is no harm in putting this measure in the Bill and making sure that OFS minds are concentrated on this challenge. I am therefore not minded to withdraw amendments 20 and 28; I wish to press them to a vote. However, I beg to ask leave to withdraw amendment 15.

Amendment, by leave, withdrawn.

Higher Education and Research Bill (Fourth sitting)

Debate between Wes Streeting and Lord Johnson of Marylebone

Committee Debate: 4th sitting: House of Commons
Thursday 8th September 2016 Public Bill Committees

[Joseph Johnson]

I deal with the amendments that have been tabled. I do not choose which amendments Opposition Members table; I can deal only with those that are presented to me. The amendment as drafted would restrict student representation at board level to a current student. We think that is over-prescriptive. It is of course right that we engage directly students who are currently in higher education, but restricting the requirement in such a way would risk our not being able to appoint the right person to the role. It could, for example, prevent us from appointing a future full-time officer of a student representative body. For that reason, I urge the hon. Member for Ilford North to withdraw the amendment.

[Wes Streeting]

Having listened to the arguments, I am genuinely baffled by the Government’s reluctance to give way on the notion of student representation on the board of the office for students. I cannot understand how it could be reasonably argued that students’ interests lie at the heart of the office for students when there might be no voice around the table with current or recent experience of being a student.

--- Later in debate ---

[Joseph Johnson]

Again, I thank hon. Members for their interesting amendments. Widening access and promoting the success of disadvantaged students will be a key part of the remit of the office for students. It will build on the important progress that has been made in widening participation in recent years. Hon. Members will have noted that the latest data for 2016 entry shows that the application rate for 18-year-olds from disadvantaged backgrounds is again at a record level.

We want to ensure in bringing forward our reforms that higher education providers do not lose sight of their vital role in promoting social mobility and in helping some of the most disadvantaged young people in our society to benefit from our world-class higher education system. The integration of the remit of the director of fair access into the OFS signals our commitment to making fair access and participation a priority. The OFS will have a new duty requiring it to consider equality of opportunity in connection with access and participation across all its functions, so widening access and participation for students from disadvantaged backgrounds truly will be at its very core.

There is a further protection in the arrangements because, as I have said, the DFAP will be directly appointed by the Secretary of State, but ultimate responsibility for access and participation sits with the OFS and it will be the responsibility of the OFS to ensure that all its functions are being fulfilled. As I said in my comments on the last group of amendments, the intention is that the OFS will give responsibility to the director for fair access and participation for activities in this area. We envisage that, in practice, that will mean that the other OFS members will agree a broad remit with the DFAP and that the DFAP will report back to them on those activities.

The OFS board will have responsibility for access and participation but, on a day-to-day basis, I envisage that that will be given to the DFAP. In particular, he or she will have the responsibility for agreeing access and participation plans, as is currently the case. I reiterate that because it is such an important point and I know hon. Members are focused on that issue.

The amendments would have the effect of requiring reports by the director for fair access and participation to be presented to the Secretary of State and to Parliament separately from other OFS reporting. As I said, that is an interesting idea, to which we will give some thought. We agree that it is important for the DFAP to report on their activities and areas of responsibility, so the Bill does require the DFAP to report to OFS members. As I have said previously, we are mainstreaming access and participation as a key duty for the regulator as a whole. As such, it will then be for the OFS members to report on that function.

The OFS members will operate in effect as a board, although they are not referred to by that term in the Bill. It will be required to produce an annual report covering its functions, and access and participation activities have been identified as a key function by virtue of their prominence in the Bill. That report will be sent to the Secretary of State and laid in Parliament. The work of the DFAP does not need to be separate from the rest of the OFS and its work should be reported to Parliament as part of the OFS’s overall accountability requirements. In addition, the Bill allows the Secretary of State to ask the OFS to provide additional reports on access and participation issues, either through its annual report or through a special report. Any such report will also be laid before Parliament and therefore made available in the Library. The OFS can produce separate independent reports on widening participation. It would not be consistent with integrating the role into the OFS to require separate external reporting from a single OFS member when the organisation will be governed collectively by all its members.

These arrangements ensure that effective reporting will be in place, so that the Secretary of State and Parliament can effectively monitor activity in this area. As I said, we are looking carefully at it, but in the meantime I ask the hon. Member for Ilford North to withdraw his amendment.

[Wes Streeting]

I listened carefully to the Minister, and I am grateful that he will go away and reflect. What he said about clarifying the reporting mechanisms reinforces my belief that the present arrangements do not go far enough. It is right and proper that the Secretary of State should be able to demand additional or more extensive reporting, either as part of the annual report or separately. That is to be welcomed, but it somewhat dilutes parliamentary accountability, which is separate from Government accountability. Many Members would welcome the opportunity to consider issues of access and participation through parliamentary scrutiny; it need not be burdensome, but it would be welcomed. I was particularly struck by the evidence given by my hon. Friend the Member for Sheffield Central.

Student Loans Agreement

Debate between Wes Streeting and Lord Johnson of Marylebone

Monday 18th July 2016 Westminster Hall

[Joseph Johnson]

Graduates from our universities do spectacularly well on the whole in moving into graduate employment. Obviously, we want variability across the system to even out and we want to ensure less patchiness in the system, but graduates do go into graduate employment on the whole.

The funding system put into place is also progressive. Interest rates after graduation increase with income, so that high earners repay more. For those earning £21,000 or less, the interest rate is set at RPI flat: the loan balance does not increase in real terms. For borrowers who earn more than that, the interest rate increases to a maximum of RPI plus 3%. It is only fair that borrowers who have benefited most from their education should repay the most back into the system.

Student loans are very different from a mortgage or credit card debt. Repayments are determined by income, not the amount borrowed. Borrowers are protected. If at any point their income drops, so do their repayments. Borrowers will repay only if they earn above the threshold and the loans are cancelled after 30 years, so many borrowers, as I said, will not repay the full amount. That is part of the taxpayers’ investment in our country’s skills base.

I recognise hon. Members’ concerns that students may not be fully aware of the terms and conditions of their loans at the time of application. The Student Loans Company does, however, provide students with a clear statement of the terms before the student completes their application for a loan. On page 3 of “Student loans—a guide to terms and conditions”, it states clearly—this is not hidden in some small footprint—that

“The regulations may change from time to time and this means the terms of your loan may also change. This guide will be updated to reflect any changes and it’s your responsibility to ensure you have the most up-to-date version.”

Furthermore, it is worth noting that the threshold freeze did not actually change the terms and conditions; it merely left them unchanged.

That information includes the way that interest will be applied and the repayment terms that will apply. Students are asked explicitly to confirm that they understand the information before they are granted the loan. All the information that the SLC provides to students is reviewed regularly to ensure that it is both accurate and accessible.

[Wes Streeting]

I have lost count of the number of times that iTunes has changed its terms and conditions, and I check the box and agree every time—more fool me, some might say. However, when the substance of the repayment conditions is written up in large print to entice students in but is open to change through the small print, surely that is not right. Even if the Government and the Student Loans Company took even greater steps to tell potential students that the terms and conditions could change, that is hardly a reassuring message to send to them, is it?

[Joseph Johnson]

There are always ways in which the Government can try to make things more explicit, but we cannot deny that on page 3 of the guide to terms and conditions students were clearly informed of the possibility that terms might change. In the event, they did not change—they were left unchanged, as I said.

Let me turn to the benefits of the freeze to the system and all the other reasons we felt it important to do what we did. A sustainable student finance system enabled us to abolish student number controls, lifting the cap on aspiration and enabling more people to receive the benefits of a university education. That is essential if we are to maintain our place as a country with a modern, highly skilled economy. Freezing the threshold means that we expect to recover £3.2 billion more of the loan outlay from existing borrowers. From future borrowers, we expect an additional £1 billion of repayments per £15 billion of loan outlay.

We send proportionately fewer people to university to study at undergraduate level than our main competitors. Between now and 2022, more than half of job vacancies will be in occupations most likely to employ graduates. If we are to continue to grow our economy, we must equip our young people with the skills and qualifications they need to fill those roles. England is not unique in grappling with those problems, but we are one of the few countries to have found a sustainable solution. That has been recognised internationally; the OECD has praised the student loan system in England as that of

“one of the few countries to have figured out a sustainable approach to higher education finance”.

I recognise the strength of feeling there is on the issue, but the Government must balance the interests of students, who benefit from higher education, with those of general taxpayers. We have taken difficult decisions, but in the process we have underpinned the financial sustainability of our student funding system in a manner that means we can lift student number controls and enable proportionately more young people than ever before to benefit from university.

Education, Skills and Training

Debate between Wes Streeting and Lord Johnson of Marylebone

Wednesday 25th May 2016 Commons Chamber

[Joseph Johnson]

I point the hon. Gentleman to the White Paper, which has one chapter on structures, while all the others are on other relevant aspects of what makes for a great school, including teaching, management and governance.

Turning to our universities, in the last Parliament we put in place the essential funding reforms that have set university finances on a stable footing and enabled us to lift student number controls.

[Wes Streeting (Ilford North) (Lab)]

As well as increasing tuition fees, the Government propose to extend them to students of nursing, midwifery and allied health subjects. Given that this is the biggest shake-up in funding for those subjects since 1968, will the Minister give a commitment that those changes will be made in the higher education Bill, so that this House can have a full debate and vote on that specific measure?

[Joseph Johnson]

We are delighted that we are able to put nurse NHS bursaries on the same footing as measures that have enabled a widening of participation in higher education in recent years. It will enable us to address the shortages that have arisen in the nursing profession as a result of the current system. Our funding reforms have enabled us to lift the number controls that have been affecting the nursing profession. We committed in our manifesto to ensuring the continued success and stability of those reforms. We also committed to ensuring that universities deliver the best possible value for money to students, and we said that we would introduce a new framework of incentives to recognise universities offering the highest quality of teaching. The Higher Education and Research Bill, which was introduced in the Commons last week, will deliver on those and other manifesto commitments.

Education (Student Support) (Amendment) Regulations 2015

Debate between Wes Streeting and Lord Johnson of Marylebone

Thursday 14th January 2016 General Committees

[Joseph Johnson]

I am going to press on, if the hon. Lady does not mind. As we enable more people to benefit from higher education, we must also ensure that the system remains financially sustainable. The higher education landscape has changed drastically since Robbins set out his principle. The overall higher education participation rate 50 years ago was around 5%, while it is now close to 50%. Despite the expansion in numbers, the evidence shows that graduates have continued to benefit as the demand for higher education and skills has grown in a more developed economy.

While respecting Robbins’ principle, the Government cannot fund higher education as if the changes of the past 50 years had not happened. Given the advantages accrued by those who go to university, it is not right to ask those who do not benefit directly to meet all the costs of those who do benefit from higher education.

[Wes Streeting]

I am on page 35 of the Conservative party’s 2015 manifesto. Amid all the information about repayment thresholds and the cap on numbers, there is no reference whatever to student grants.

Oral Answers to Questions

Debate between Wes Streeting and Lord Johnson of Marylebone

Tuesday 30th June 2015 Commons Chamber

[Wes Streeting (Ilford North) (Lab)]

Having failed to rule out a hike in university tuition fees during this Parliament, can the Minister rule out at least that there will be no changes either to tuition fee levels or the terms of repayment on student loans for existing students and graduates? Yes or no?

[The Minister for Universities and Science (Joseph Johnson)]

The hon. Gentleman has previous experience as president of the National Union of Students, so it is valuable to us to have him here. He will know that the OECD has praised the UK as being one of the only countries in the world to have come up with a sustainable way of funding higher education, and this Government have every intention of continuing to ensure that our higher education system is funded successfully and sustainably over the years ahead.