Lifelong Learning (Higher Education Fee Limits) Bill

Baroness Twycross Excerpts

Monday 10th July 2023 Grand Committee

Moved by

[Baroness Twycross]

1: Clause 1, page 2, line 5, at end insert “in consultation with relevant higher education sector stakeholders.”
Member’s explanatory statement
This amendment ensures that, before determining which method is used, the Secretary of State will consult relevant higher education sector stakeholders.

[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.

[Baroness Twycross (Lab)]

My Lords, I thank the Minister for her response. I also thank the noble Baroness, Lady Garden of Frognal, for adding her name to Amendment 1 and for her contribution to this discussion; as she said, we desperately need more skills, so we need this Bill to succeed.

We welcome the Minister’s announcement that further detail and consultation will come in the autumn. The Labour Party is keen to work with the Government to make sure that this Bill is the game-changer that it could be. I hope that, once we get the detail of the consultation, we will look at whether additional consultation will need to be built into the Bill. At the moment, we think that there is merit in building something into the legislation. I beg leave to withdraw the amendment.

Amendment 1 withdrawn.

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Moved by

[Baroness Twycross]

7: After Clause 2, insert the following Clause—
“Review(1) The Secretary of State must conduct an annual review of the operation of the provisions of this Act.(2) These reviews must consider the impact of the provisions of this Act on—(a) learner uptake of modular study,(b) learner uptake of non-modular part-time study,(c) uptake of modular study amongst learners aged 30-60 years old,(d) employer spending on lifelong learning, re-training and upskilling opportunities for their employees,(e) the provision of courses offered by higher education and further education providers,(f) the financial sustainability of the tertiary education sector,(g) the Student Loans Company, and(h) the Office for Students.(3) The Secretary of State must lay the report on the findings of the first review before Parliament before the end of 2026.”Member's explanatory statement
This new Clause would require the Secretary of State to annually review the impact of the Act on various aspects of higher education, starting in 2026.

[Baroness Twycross (Lab)]

My Lords, in moving Amendment 7, in my name and those of my noble friends Lady Thornton and Lady Wilcox, I also lend my support to the other amendments in this group: Amendment 8 in the name of the noble Lord, Lord Addington, and Amendment 11 in the name of my noble friend Lord Watson. I declare an interest as a former student of Birkbeck College, to which I will refer during my remarks.

I will speak primarily to Amendment 7, under which the Government would have to publish regular updates on the important potential impacts of the Bill. The Second Reading debate raised a lot of questions, not least the almost total lack of detail in what is—as has already been highlighted—a very short Bill. This amendment would ensure that those questions do not remain unanswered or unconsidered in future. The timing of the proposed first review, by the end of 2026, would also identify any issues with how the rollout is affecting particular groups for whom the lifelong loan entitlement must work in order for it to fulfil its promised transformation.

Labour will be particularly interested in the extent to which the Bill helps to get people back into education. The amendment would allow us to establish whether this is working in practice for those who have already undertaken an undergraduate degree, for example. We are not at day zero, and this is intended to cover a wide range of people, many of whom may view their involvement in formal education as a distant memory.

How would a residual entitlement be worked out? I declare an interest as a former languages student. Would someone who, 10 or 20 years ago, had chosen a four-year course, including a year abroad or work placement, be entirely excluded from future educational opportunities with funding? Will these definitely be subject to a lower fee limit, as suggested by the Minister in her earlier remarks? I am concerned that an unintended consequence would be lower take-up of longer undergraduate courses. The Minister will be aware that there is also concern from stakeholders that, if the structure around fee limits is not right or it has unintended consequences, this could limit the amount and type of courses offered, which would also limit student choice. Although we support the Bill, we want to ensure that any issues are dealt with swiftly, which a review would allow.

During the Second Reading debate, a number of noble Lords raised concerns about the potential impact of this legislation on the take-up and provision of part-time study. Indeed, this was discussed previously today. Birkbeck College has raised concerns about whether the Government appreciate the risk to part-time study inherent in the Bill. I ask the Minister whether the Government intend to see the end of part-time study in favour of modular study and, if not, will she commit to the Government accepting the need to review the implementation of the Bill to provide a safeguard against this happening?

During the Second Reading debate, it was highlighted that, despite the fact that the UK needs the most adaptable and flexible approach to learning and skills, employers are failing to invest in the skills system. There has been a 28% drop in spending by employers in real terms since 2005. We know that employer investment in skills is less than half the average in EU countries. We on the Labour Benches think that the Government need to ensure that this does not fall further.

We already know that the apprenticeship levy is used poorly by employers. We do not want—and I do not believe that the Minister wants—the lifelong loan entitlement to put the onus for paying for learning to develop skills within roles on to employees without employers having to pay their fair share. This amendment would allow the Government to review whether this pretty dire situation is getting worse. The Labour Party thinks that it would help to guard against a situation in which employers use the system to push their employees and potential hires into further debt to fulfil internal skills gaps. We need both this lifelong loan entitlement and more investment from employers.

Finally, the biggest unintended consequence that this Bill might have would be in effect to undermine the financial viability of institutions that are in some cases already struggling financially. I spent Saturday afternoon playing Jenga with two of my nieces. It strikes me that an unintended consequence of not building in a review of the operation of the legislation while changing the fundamental approach to funding through fees is a bit like playing Jenga blindfolded. Including the financial sustainability of the sector, the Student Loans Company and the Office for Students would allow the Secretary of State to consider this issue formally as part of the overall assessment of how the approach is working. I think that it makes total common sense to build in a review.

I look forward to hearing from the Minister both responses to my questions and whether the Government will incorporate a review into the Bill going forward. I beg to move.

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[Baroness Barran (Con)]

That is the basic principle we are following but I will set it out absolutely accurately in a letter to the noble Lord.

[Baroness Twycross (Lab)]

I thank the Minister for her detailed reply to this debate. I particularly welcome her strong words on the need for employer investment, which is a shared concern. I also welcome others noble Lords’ contributions to this debate. In particular, I note the strength of feeling from the noble Lords, Lord Addington and Lord Storey, and my noble friend Lord Watson in relation to ensuring that sharia law-compliant funding is available. I welcome the commitment from the Government and the Minister to ensure that alternative finance is available. As the noble Lord, Lord Addington, said, this can and should happen; everybody on all these Benches agree that it is a priority.

The noble Lord, Lord Aberdare, mentioned the need for independent training providers to be included within the scope of any review and in the Bill, including, in his words, making the process straightforward. We agree with the Government on the need for rigour in this process in order to ensure quality without making it impossible for independent training providers to apply to be within the scope of this provision. I feel passionately about creative subjects, so I am pleased that the noble Lord raised them.

I do not think we heard the point made by the noble Lord, Lord Willetts, on scepticism from learners. It is a valid point and one that was worth raising in terms of the concern that some learners may have that this may be a scheme that is here today, gone tomorrow. One thing that we need to make sure we get clarity on is how learners will get some sort of model; I do not know how we can guarantee it but this debate has, I hope, demonstrated that there is cross-party agreement that this model would work.

I feel—I think that I speak for Labour colleagues, but I do not want to speak for other parties—that there is a view that periodic reviews of the legislation’s impact may help to ensure that students do not feel sceptical about this and that learners do not feel that they need to use all the money now or else risk not being able to access it in future. I appreciate that the Minister feels that some of the assurances that we would want from a review are already covered by other mechanisms and other forms of scrutiny, but Labour is not yet convinced that that is sufficient. We would welcome an opportunity to discuss further with the Minister how we can build additional reviews into the Bill and into future scrutiny of the legislation. We feel that periodic reviews of the impact of the legislation will ensure that it is delivering what it promised, including people feeling able to wait 10 or 20 years to take up some of the funding.

I appreciate that the Minister is unable to say today that the Government would support including this measure in the Bill. We would like to discuss it further, but I beg leave to withdraw Amendment 7.

Amendment 7 withdrawn.

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Moved by

[Baroness Twycross]

10: After Clause 2, insert the following new Clause—
“Review of impact on Lifelong Loan Entitlement rolloutWithin six months of the day on which this Act is passed, the Secretary of State must make a written ministerial statement updating both Houses of Parliament on the impact of this Act on the rollout of the Lifelong Loan Entitlement.”Member's explanatory statement
This amendment would require the Secretary of State to publish a written ministerial statement updating Parliament on how this Act affects the progress of the Lifelong Loan Entitlement policy.

[Baroness Twycross (Lab)]

My Lords, I rise to move Amendment 10 in my name and those of my noble friends Lady Thornton and Lady Wilcox. The purpose of this amendment is somewhat different to the amendments in group 4. This amendment would introduce an early review of the rollout of the lifelong loan entitlement. We think this is necessary, given the extremely low—indeed, poor—take-up during the pilot stage. We have heard concerns from stakeholders that the pilots were primarily intended to test the IT system at the Office for Students. Although that is an important thing to test, it means that the impact on the wider sector and the level of interest among the general public remain untested.

Given that the intent behind this legislation has sector and cross-party support, I find it surprising that the Government are rolling it out without testing it fully. We do not understand why the Government have not had a wider, more thorough pilot stage of this approach. We are also concerned that, given that guidance on adult education has been severely fractured since the end of Connexions, the lifelong loan entitlement means that the Government may need to rethink the framework of adult careers advice completely.

How do the Government intend to ensure that learners and, more importantly, those who are not learners, will be aware of the changes to their entitlement? In my view, this is particularly important for those who do not have a history of further or higher education. What will the Government do to ensure that they know what options are available throughout their careers? How are the Government intending to ensure that individuals are supported in their current career or support them to make a career change?

As I said, the pilot appears to have been entirely about IT systems, not the interaction of people with the education system. This runs counter to what appears to be the intention of the Bill, and the rollout of the lifelong learning entitlement should move us to a situation in which we can treat further and higher education as something that can and should enrich the lives and careers of people throughout their lives. It is right to ensure that the IT system works; it is, however, wrong not to look at how this new funding system works in practice for those it is intended to help. It seems almost reckless not to build a review of the rollout into the legislation, and I hope, although I am not convinced she will, that the Minister agrees. I beg to move.

[Baroness Barran (Con)]

We are so speedy, my Lords. I will speak to Amendment 10, tabled by the noble Baroness, Lady Twycross, and also in the names of the noble Baronesses, Lady Wilcox of Newport and Lady Thornton. This amendment would require a review whereby the Secretary of State would publish a Written Ministerial Statement as to the impact of this Act six months after Royal Assent. As we mentioned in our debates on earlier groupings, the Government are fully committed to monitoring the impacts of this transformation of student finance.

In accordance with the better regulation framework, I can assure your Lordships that full and detailed impact assessments will be published when the Government lay the secondary legislation to implement the LLE fully. In addition, as is standard practice, Explanatory Memoranda will be laid alongside all regulations to detail the scope and purpose of them. The Government will publish them on the dedicated government legislation website to outline fully what the regulations do and why. I can also confirm that the Government will endeavour to publish a Written Ministerial Statement ahead of laying regulations under this Act.

Delivering the Government’s vision for the LLE will require extensive changes to the student finance system and the types of courses available. Introducing into primary legislation a requirement to publish a Written Ministerial Statement before policies have been fully implemented or had sufficient time to bed in would not, in our opinion, be appropriate. I also take this opportunity to refer once again to the parliamentary accountability mechanisms that already in place to review Acts of Parliament, including post-legislative scrutiny reviews.

Furthermore, the LLE as a policy is much wider in scope than this Bill. As such, the Written Ministerial Statement sought through this amendment would focus narrowly on fee limits and not on the impact of the LLE as a whole, which is, I think, behind the spirit of the noble Baroness’s amendment. The necessary suite of regulations needed to implement the LLE is expected to be laid more than six months after Royal Assent, given that the LLE will be implemented from the 2025-26academic year. Therefore, such a Written Ministerial Statement would neither cover as much detail as the existing plans for further scrutiny nor be able to consider the implementation of the LLE in its entirety.

The noble Baroness referred to the short course pilot. She is absolutely right that part of the point of it was to test the Student Loans Company’s systems. We are pleased to have been able to do this. During the trial’s launch, 22 providers developed more than 100 courses, which will be delivered at various points during the three-year trial period. We are a bit over a year into the trial; there are still two more years to go. The noble Baroness is right that this is a really important opportunity to test the shape and size of demand for these courses.

With those reservations, I have, I hope, explained why the Government do not support this amendment.

[Baroness Twycross (Lab)]

I thank the Minister for her reply. I am pleased that the Government intend to monitor the impact of the legislation and welcome the Minister’s commitment to the Government endeavouring to publish a Ministerial Statement before secondary legislation is laid. “Endeavour” is a slightly unfortunate word; we would welcome a stronger commitment than that.

We could probably do with a bit more detail about what the pilot involves. There is a slight difference in terms of whether it is intended to test computer systems and whether it will be ongoing as we develop the legislation. It feels a little ad hoc in that we are agreeing legislation while the pilot is ongoing; this strengthens the argument for building in a review at an early stage of the rollout of the policy. It does not speak to me against the need for a review that would bring up any adverse impacts of the approach so that they can be dealt with at an early stage. This is another thing on which we would welcome further discission with the Government.

I will not say any more as I do not want to risk us derailing what has been a really positive debate today. I beg leave to withdraw Amendment 10.

Amendment 10 withdrawn.