Lifelong Learning (Higher Education Fee Limits) Bill

Baroness Garden of Frognal Excerpts

Monday 10th July 2023 Grand Committee

[Baroness Twycross (Lab)]

My Lords, I shall speak to Amendment 1 in my name and the names of my noble friends Lady Thornton and Lady Wilcox and the noble Baroness, Lady Garden of Frognal, and to Amendment 4 in my name and those of my noble friends Lady Thornton and Lady Wilcox.

As Labour made clear at Second Reading, we support the intention of the Bill. It is no longer the case that someone’s career can be predictable from the time they leave school, college or university. It is unlikely that someone starting their career will not have further educational needs during their lifetime and it is right that that is reflected in the funding available. However, it is Labour’s view that this is a good Bill that could be even better. As I said at Second Reading, it is a short Bill, and arguably too short. On the surface it does what it says on the tin, but with a bit more detail it would be more likely to succeed in the lifetime guarantee offers and a lifetime entitlement that it would bring about.

The further and higher education sectors also support the Bill. However, having such a limited Bill with little concrete information in it is of concern to those in higher education. We think that further consultation should therefore be built in to safeguard the success of the legislation. As the Open University said in its commentary, the Bill could be transformative, but the OU makes clear that its detailed design will be key to determining how it works in practice and whether it will be able to achieve the Government’s ambitions to deliver a fundamental and seismic shift towards flexible lifelong learning.

Amendment 1 would insert sectoral consultation into the decision about whether the fee limit for a course should be fixed or module based. Currently the Secretary of State has huge scope to decide that. It is likely that not all courses would lend themselves to being module based. We think that the extent to which a course is suited to being module based is likely to be something that the sector would be well-placed to have a view on.

Amendment 4 would include a similar requirement with credit-differentiated activity—for example, in relation to placements. The current wording gives the Secretary of State huge scope to decide the worth of placements in terms of credits. The amendment would insert a requirement for the Secretary of State to consult higher education and placement providers.

Without wanting to put words in the Minister’s mouth, I am confident that she may say that it is self-evident that the Secretary of State would consult on these matters. However, if that is the case, why not simply put the requirement to consult into legislation? I hope that the Minister will see the common sense in doing so and I look forward to her response on this matter.

[Baroness Garden of Frognal (LD)]

My Lords, I thank the Minister for her willingness to discuss issues in the Bill with all interested noble Lords. I have added my name to Amendment 1, for all the reasons set out by the noble Baroness, Lady Twycross. For these provisions to succeed, close co-operation and consultation with higher education and indeed other awarding organisations are crucial.

This is a small Bill with considerable limits. We had hoped to table amendments to ensure that careers information, advice and guidance were available to any of those wishing to take advantage of the provisions of the Bill, but we were told that that was out of scope. I fear that other of our concerns may also turn out to be categorised in that way.

There are a great many unknowns in the Bill. It is a matter of great concern that the number of adults over 21 accessing higher-level skills has fallen dramatically over a number of years. One reason is the lack of maintenance support—also, I fear, out of scope. The majority of part-time students do not have access to maintenance support and that can be a serious disincentive for them, so can the Minister say whether any thought has been given to maintenance loans—or, better still, grants—to enable the provisions of the Bill to succeed? I guess that this, again, will be out of scope.

As the Minister is aware, the Liberal Democrats are not convinced that large cohorts of adult learners will be keen to take on debt, and the lifelong learning entitlement is indeed a debt. We propose a skills wallet, putting money into learners’ pockets to enhance their skills learning and competence at three stages of their careers. We argue that that money would be rapidly recouped by the enhanced earning capacity of those who took advantage of it. We know that many adults are loath to take on additional debt, particularly in these times of economic difficulties. We will support any amendments calling for reviews to see how successful the offer of loans and debt is to adults.

I am not sure whether the Minister answered those concerns at Second Reading but obviously now we have to concentrate on the amendments tabled, which largely centre on clarification of what is or is not included in the Bill. We can only hope that the Bill has the desired effect. The country is woefully short of people with the skills that the economy needs and, if more adults can be encouraged to acquire those skills, we shall all benefit. However, it is a very little Bill.

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, I shall speak to Amendment 1, tabled by the noble Baroness, Lady Twycross, also in the names of the noble Baronesses, Lady Garden of Frognal, Lady Wilcox of Newport and Lady Thornton, and Amendment 4, tabled by the noble Baroness, Lady Twycross, and in the names of the noble Baronesses, Lady Wilcox of Newport and Lady Thornton, which would require the Government to consult relevant stakeholders and others before, first, setting out which method should be used to calculate fee limits and, secondly, determining the nature and extent of credit-differentiated activity and the number of credits associated with it.

The Government intend for all courses offered under the lifelong loan entitlement, the LLE, to use the new credit-based method for calculating fee limits in order to create a consistent and unified fee limit system. That policy has been designed in consultation with relevant higher education sector stakeholders. I agree with the noble Baroness opposite that it is extremely important to take account of their views. That is exactly what the Government have done in designing this policy.

The Government intend to retain the ability to set fee limits using the current yearly system, as well as the new credit-based system, but would use this ability only by exception. The Government do not currently anticipate any courses to use the fixed method from 2025 and are confident that all courses can use the credit-based method. The Government concluded their consultation on the LLE on 6 May last year. The consultation included a question on whether any courses should continue to be funded per academic year under the LLE rather than according to the number of credits.

Through the consultation, the Government understand that some courses, such as postgraduate certificates in education or nursing degrees, may not be suited to having fee limits set using provider-assigned credit values. This is due to variations in how different providers assign credits to these courses, which could lead to variable fee limit outcomes. For those courses, the intention is to set fee limits using a consistent rate of 120 credits per year for full-time courses, with other values for other intensities. That will enable those courses to use the new credit-based method while retaining parity with the current per-year system.

In relation to credit-differentiated activity, the Government want to ensure that periods of sandwich placement and study abroad continue to be subject to lower fee limits. In the current system, these lower limits are applied to full academic years, which makes them incompatible with the per-credit system. To enable those lower limits within the credit-based method, the Bill introduces the term “credit-differentiated activity”. This will mean that substantial periods of sandwich placement and study abroad can have their lower fee limits applied accurately even when they do not conform to full academic years. Regulations will set out details on how this system will work, including a mechanism to enable credit-differentiated activities to work for non-credit-bearing placements.

I can also announce that, in the autumn of this year, the Government will publish further detail of the fee limits regulations. This will give the sector and the public an opportunity to scrutinise the detail and plan accordingly for the introduction of the LLE in 2025, as well as ensuring that the Government can receive feedback on their proposals prior to the laying of regulations. This will include detail on the maximum and default credit values for different course types.

In conclusion, given that consultation has already taken place and that further engagements with the sector will take place as part of the pathway to the LLE’s delivery, the Government cannot support these amendments.

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Moved by

[Baroness Garden of Frognal]

2: Clause 1, page 2, line 10, at end insert—
“(1A) For the purposes of this Schedule, one credit corresponds to 10 notional learning hours.”Member's explanatory statement
This amendment puts the number of hours that constitute a credit on the face of the Bill.

[Baroness Garden of Frognal (LD)]

My Lords, I have also added my name to Amendment 5 in this group.

Currently, the definition of a credit is outlined in Ofqual’s conditions of registration, the Office for Students’ sector-recognised standards and the QAA’s higher education credit framework. It is outlined in the Bill’s Explanatory Notes but not on the face of the Bill. It is important to put it in the Bill to ensure that the Government do not amend the value of a credit without any proper scrutiny. Even though the current Minister committed to the affirmative resolution procedure, there is no ongoing commitment for future Governments. Evidence given to the Bill Committee also set out reasons why a definition should be in the Bill.

It is really important to communicate to a student what a credit means. In essence, a student wants to know a number of things: how much this is going to cost them; what they will have to expend in effort and energy to complete the module; and what they will get for that module and those credits from the institution that they choose to go to. Transparency around the relationship between credits and fees and between credits and module content, including what is expected within that, is very important. Would it not also help anyone whom we want to use the lifelong learning entitlement to understand what their fees translate to in practice?

For a similar reason, I have added my name to Amendment 5, which the noble Baroness, Lady Twycross, will address more fully. It is a probing amendment on credit structure. Other institutions have told us that they are on a 20-credit system and so increasing the structure to 30 credits would cause significant disruption, inhibit a quick rollout and be a great disincentive to many learners. There is the argument that short courses are valuable to employers and that putting in a higher credit minimum limits the potential for students’ choice in short courses.

This group has also acquired Amendment 6A in the name of the noble Lord, Lord Johnson. We certainly support it. Higher education institutions should be allowed to uprate in line with inflation and this measure should be in the Bill; there would be little incentive for them otherwise.

These are three useful amendments. I beg to move Amendment 2.

[Baroness Thornton (Lab)]

My Lords, I will speak to Amendment 5 in the name of my noble friend Lady Twycross, to which my noble friend Lady Wilcox and I, and the noble Baroness, Lady Garden, have added our names. It is a probing amendment intended to ensure that modules worth 20 credits or more are included within the lifelong learning entitlement.

We are concerned that there is a series of questions on this that need clarification. The briefing that we have all received from the Association of Colleges also expresses concern about how the credits system will work. It says in its briefing that this is a significant reform and that we need to ensure that credit requirements do not limit access to modular learning, as many providers teach 20-credit modules and a minimum requirement of 30 credits would require learners to bundle together at least two modules to meet the funding requirement.

This issue was discussed in Committee in the Commons, where a similar amendment was tabled to the one that I have put down here to probe this issue further. Since we put our amendment down the noble Lord, Lord Johnson of Marylebone, has tabled his Amendment 6A, which is of great interest. I want to see what the noble Lord has to say about it but, on the face of it, it is the kind of amendment that we would be interested in discussing as we move forward with the Bill.

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I thank my noble friend for raising a valuable discussion on this topic. The Government absolutely agree with him that a sustainably funded higher education sector is vital to our national economy and to the prospects of the many thousands of people it educates every year. However, the Government do not believe that it is fair to students to increase tuition fees at this time. Therefore, I ask him not to press his amendment. For the reasons set out earlier, the Government cannot support the other amendments in this group.

[Baroness Garden of Frognal (LD)]

My Lords, I thank the Minister for her response. I am sorry that my arguments for putting the 10 notional hours in the Bill did not meet with her approval. Of course, secondary legislation can be amended much more readily than things that are in the Bill. I will have to read her answer on the credit structure as I was getting slightly confused about that—if Oxford would get only 20 credits, oh dear, what has happened to my old university? I will have to read that carefully and see where the argument was going.

On Amendment 6A in the name of the noble Lord, Lord Johnson, again, I am not quite sure why fees should not increase with inflation. I realise that, at the moment, nobody wants anything to increase at all because we are in a difficult time when money is scarce for a lot of people, but the noble Lord gave figures about how the disparity has grown. I speak from a party that did not want university fees at all—by golly, were we punished for that—but we costed it and worked out that an awful lot of students would not pay fees anyway. The cost of setting up the Student Loans Company and chasing down students all had to be put in the negative. It was a fully costed programme, but obviously it did not serve us well at all.

I hope the Minister will look again at the noble Lord’s amendment. One reads about the UEA getting into all these troubles and probably having to forego its creative writing course, which would be a lamentable outcome, given the incredible people who have come out of that course over the years. Anyway, I thank her for the reply. We shall consider everything she said, but I beg leave to withdraw my amendment.

Amendment 2 withdrawn.