Higher Education Reform

Baroness Smith of Newnham Excerpts

Thursday 20th July 2023 Lords Chamber

[Baroness Twycross (Lab)]

My Lords, what is higher education for? If you looked at the approach summarised by the Government’s response to the Augar review, you would assume it was solely aimed to monetise learning so that the higher the income of the graduate, the higher the value of the course. The letter from the Minister to Peers says that the Government believe that higher education should give students the right skills and knowledge to get well-paid jobs and that the parts of the sector that do not deliver this need to be shrunk.

Labour also believes that people should have the opportunity to get well-paid jobs, whatever their background or whatever part of the country they come from. We think that they should have the same access to opportunities that present value beyond the Conservative Government’s limiting definition. Narrowing the definition of a successful university course solely to earnings means putting a cap on the aspirations of our young people. It ignores the social value and economic importance of areas such as the arts and humanities—I stand here in the House as a language graduate—and targets newer institutions in parts of the country to which we should be spreading opportunity. These universities and higher education establishments tend to draw local students, students whose families may not have attended university, who may not otherwise have the opportunity to participate in higher education. Do the Government really think that this does not represent value of at least some sort?

I am concerned that this approach is the thin end of the wedge and that other courses and routes through education will be targeted next as not having a value. This is not to say that we should not have mechanisms to ensure that the education that students of all ages take up, which the lifelong learning entitlement should allow people to take up throughout their life, is good quality. There already exist mechanisms to assess the quality of courses and limit recruitment for low-progression courses through the Office for Students. Should the Government not simply make sure that they are being used? Is it the Government’s view that the Office for Students is failing in this regard? Does the Minister believe that good quality and social value always equate to the highest-paid roles?

In 2022, 86% of surveyed graduates agreed that their current activity fitted with future plans, with 93% saying that their employment or study was meaningful. Why then do the Government think that they are better placed than students or graduates to make judgments about what is valuable for their future? Labour is concerned that the measures proposed would limit their opportunities, with those from more affluent backgrounds not limited. The announcement on foundation years seems to unfairly punish institutions that recruit a high proportion of students from working-class or ethnic-minority backgrounds. Can the Minister tell us what assessment the DfE has made of the impact that this will have on access to university for students on low incomes, those from minority-ethnic backgrounds and those with disabilities, and how the Government intend to address other issues? The Minister referred to other barriers to high-paid work, such as limited access to paid internships, particularly for those who do not have parental networks to access them through.

In our view, investment in careers advice in schools would ensure that children and young people have the advice to make the right decisions. Good careers advice has to be in place to ensure that the LLE works effectively throughout someone’s career. Can the Minister say whether the Government will increase and improve careers advice both at school and for adults?

Labour also has concerns that the announcement in relation to foundation years will limit opportunity and choice for many young people. Are the Government clear that their intention to phase out some foundation courses will do this?

Labour supports improvements to apprenticeships. We think the Government’s record on apprenticeships demonstrates that they have not made them the attractive alternative that young people—indeed, people of all ages—need in terms of more technical education. Clearly, with major skills shortages in the country, the UK needs more people with the skills to fill the skills shortages in order for us to grow the economy, but the Government have failed to see that the improvements need to be made before other routes are cut off. You cannot improve the take-up of apprenticeships by blocking other currently more attractive options. You have to improve apprenticeships in the first place.

Following the Statement in the Commons earlier this week, the Financial Times and the Times ran articles making it clear that the current apprenticeship offer is inadequate. Will the Minister say how the Government plan to move from a situation in which, as a Times article stated:

“Too many apprenticeships are slave labour”


that do not lead to good and—dare I say it—well-paid jobs?

In conclusion, I want to be clear that this Statement and these measures miss the point. The Government are missing the point about education and are putting a cap on aspiration, particularly for those who do not have a family history of accessing higher education. It is never their own children who the Government feel should not be at university, and never their children who should not get the opportunities that they might put off for others.

[Baroness Smith of Newnham (LD)]

My Lords, from these Benches I find very little to disagree with in the questions and comments from the noble Baroness, Lady Twycross. She looked across at me as I was voicing approval, as if slightly confused that there should be agreement across the Opposition Benches. On the defence side of things, the noble Lord, Lord Coaker, and I tend to agree, but on this higher education Statement, a lot of questions need to be raised to understand His Majesty’s Government’s understanding of the purpose of higher education.

Before I go any further, I declare my interests as a professor at Cambridge University, one of the UK’s four of the top 10 universities mentioned in the Statement. I am also a non-executive director of the Oxford International Education Group, which runs pathway colleges that in turn run foundation courses. That is something I want to come back to, because there are a couple of questions about the domestic versus the international dimension of higher education that could be explored a little more.

Finally, I feel that I have to admit that I am a professor of European politics, which puts me in the school of humanities and social sciences, the sort of area that the Government seem to be a little sceptical about. I know that the noble Lord, Lord Moylan, has in the past suggested that if we rejoin Horizon Europe we should not be part of the social sciences aspect. Yet social sciences and arts and humanities play a vital part in educating our young people, whether at 18 or through lifelong learning. The noble Baroness, Lady Twycross, mentioned being a graduate of languages. Surely that is an area where we should be encouraging young people to go into higher education, to learn languages as a tool for working internationally. As a country that wants to look globally and have global trade markets, we need to be able to communicate internationally. Yet if you were a graduate of modern languages, you might not earn a high salary.

This is where the Statement leaves open a lot of questions. What do His Majesty’s Government really understand by value for money in higher education? We cannot always evaluate value for higher education purely in monetary terms. For some people, a higher education matters because they have an intrinsic love of the subject they are studying. You cannot put a financial metric on that. Also, there are people who go through higher education because they want a particular career track. They get the job they want in the industry to which they are attracted—perhaps the creative industries. They will not necessarily earn a high salary but they will be doing the vocation that they have trained for. Do His Majesty’s Government think that they should not be doing that? What do His Majesty’s Government mean by “a good job”, a phrase used in the Statement? Is it good in terms of salary or interest? Clearly, it is right that people should not be paying into the future for a degree that has had no benefit, but how do we evaluate that? Does it mean that the training needs are not met or simply that some arbitrary metric on income is not met?

His Majesty’s Government say that there are 66 providers where fewer than 60% of graduates progress to highly skilled employment or further study within 15 months of graduating. Can the Minister tell the House what is meant by highly skilled employment? That really matters for how we understand what His Majesty’s Government are seeking to do.

Finally, in terms of foundation courses, pathway colleges train international students who perhaps want to learn English and transition to being able to undertake degrees in British universities. Do His Majesty’s Government feel that they should be evaluated against the same metrics being outlined here, or is there perhaps a need to understand a little more about foundation year study? It could be about international students transitioning to the UK, but it may also be, as the noble Baroness, Lady Twycross, mentioned, about widening participation. We need to think very carefully about foundation courses, because there should not be some arbitrary mechanism whereby decisions by the Government or the OfS lead to foundation year courses being closed down, thereby diminishing the chances of participation rather than widening participation.

[Baroness Barran (Con)]

My Lords, I thank both noble Baronesses for their remarks and for the opportunity to clarify what feels like a bit of a misunderstanding about where these reforms are focused. Where the Government have sought to specify quality as the issue, both noble Baronesses took that to mean potential earnings, and that is not what the Government intend—and I will seek to clarify that.

The noble Baroness, Lady Twycross, started by philosophically asking what higher education was for. I am sure I cannot do justice to this, but I think it is reasonable to say that one of the key things that this Government and, I think, her party believe is that higher education is an incredible route to opportunity and social mobility and a great mechanism for fairness in our society. But we also believe that it is not the only engine—hence our emphasis on apprenticeships, degree apprenticeships, level 4 and 5 qualifications as opposed to exclusively level 6 and, of course, the flexibility, which I know both noble Baronesses support, that will come from the lifelong loan entitlement. The definition of “quality” is not earnings: the definition we are using comes from that used by the Office for Students—looking at continuation from one year to the next, completion and entry into graduate jobs or continuing education 15 months after completing a degree.

The point we are trying to get across is that degrees vary significantly in quality. One element of that is earnings potential. Because of the way I work, I went on the Discover Uni website, which I commend to noble Lords who have not looked at it already. You can say, “I want to study maths”—which in my case would have been quite a push. But anyway, I pretended I wanted to study maths and put in four different institutions and it gave me a great deal of information about earnings potential. Most of us think of maths as the highest earnings potential degree that one can do, but there are institutions where, if you read maths, three years later you are earning £20,000. I do not think that is the expectation of a young person going to university to read maths. So just understanding the difference is important for empowering the student. The same is true for law degrees and business study degrees and, I am sure, many others. In addition, on Discover Uni you get a huge amount of feedback from students about quality of teaching, student experience, et cetera. I know it is not the only source, but it is a helpful one.

Earnings do matter because we know that feeling financially secure is incredibly important for any individual’s sense of well-being. It gives them choices in life about how many children they have, where they live, where they work, and so on. I absolutely understand both noble Baronesses’ points that it is not the only metric but to ignore it is not realistic either.

The noble Baroness, Lady Smith, talked in particular about creative arts. She is right to raise that because if one looks at creative arts degrees and future earning potential, that group stands out as being lower. But the focus here is where institutions have failed to meet the B3—which she will understand very well—OfS quality metrics. To repeat, that is about continuation, completion and graduate employment. B3 does not include earnings and there are very few foundation years in creative arts, so I really do not think that is going to be an issue there.

The other point that your Lordships will have heard me make more than once is the fairness between student and taxpayer and fairness to students who do not complete their degrees and then are left with part of their student loan to pay off.

In relation to accessibility, the noble Baroness, Lady Twycross, questioned whether this is going to be discriminating against other people’s children rather than our children. I remind her that record numbers of 18 year-olds went to university this year, with the highest percentage ever from the lowest quintile in terms of deprivation, so 25.1% of those children. A child from a disadvantaged background is 86% more likely to go to university today than in 2010.

Both noble Baronesses questioned whether our focus on foundation years might be discriminatory. The data on foundation years suggests that there are a few subjects that have grown exponentially at a relatively limited number of providers. The noble Baroness, Lady Smith, talked about modern foreign languages. In 2015-16, 360 students completed MFL foundation years; in 2021-22 it was 465, so there was very little growth. Bring on those students who want to do more MFL. If we look at medicine and dentistry, the growth was very high, but from 125 students to 555. Business and administrative studies over the same period has gone from 4,250 to 35,580. There really are some examples that warrant greater focus.

I hope that I have addressed most of the points. Forgive me, the noble Baroness, Lady Twycross, talked about quality of apprenticeships. I have to say that I thought she was being slightly harsh. When this Government were elected, one of the things we really focused on was improving the quality of apprenticeships. A huge amount of work has gone into that. Actually, if we have a worry about the apprenticeship levy now, it is that it is going to be overspent rather than underspent. She will know that last year it was fully spent. I genuinely worry, with her party’s proposal to give employers a choice, that we will end up with half the number of apprenticeships that we have today.