Skills and Post-16 Education Bill [HL]

Baroness Wilcox of Newport Excerpts

Committee stage
Thursday 15th July 2021 Lords Chamber

Moved by

[Baroness Wilcox of Newport]

8: Clause 1, page 2, line 20, at end insert—
“(5A) All other post-16 education and training providers, including universities, school sixth forms, sixth form colleges, and adult and community learning providers, must also have due regard to the local skills improvement plan, as it relates to their provision.”Member’s explanatory statement
This amendment sets out the complementary roles of schools, colleges and universities.

[Baroness Wilcox of Newport (Lab)]

My Lords, I move this amendment in the name of my noble friend Lord Watson of Invergowrie. This amendment sets out the complementary roles of schools, colleges and universities by joining up the wider education and skills system so that it better meets society’s needs and gives people the skills they need. Delivering this means ensuring that we develop the right balance of autonomy, authority and accountabilities that will enable schools, colleges and universities to focus on the complementary roles they can play together and with other partners over the long term. This must involve a genuine partnership, with providers empowered to stimulate and challenge articulated demand, rather than act as passive policy recipients. It means ensuring that this is meaningfully accessible to all and involves an effectively joined-up wider education and skills system. Colleges do not work in isolation to meet the education and training needs of their communities. Schools and universities are important parts of the system, so they should be part of the planning process. Amendment 8—in the names of my noble friends Lord Rooker and Lord Bradley, as well—therefore sets out the complementary roles of schools, colleges and universities in delivering on LSIPs.

Currently, there is a lack of a comprehensive, long-term education and skills plan that brings together all parts of the system towards the same vision. Different parts of the system have different policy priorities and initiatives. The current reform agenda is not sufficiently addressing this. It deals with only one part of the system—colleges—without exploring the need for complementary alignment with universities, schools and other providers. At the same time, this means that the role of education and skills in addressing wider policy priorities and strategies is not always recognised—for example, the role of colleges in welfare, health and net-zero policies.

There is a lack of any system to co-ordinate the 16 to 18 offer at the local and subregional level between schools and colleges. This leads to insufficient provision and limits student choice of programme—for example, when multiple competing providers concentrate on a narrow offer at the expense of less popular or minority provision.

At the university level, there is contested ground over the higher technical level 4 to level 5 provision and who is best placed to offer this, leading to unproductive competition between colleges and universities. If a whole education system approach is not taken to local skills planning, there will be a disjointed system that is not efficient or effective in its use of public money and does not best meet the needs of students and employers.

There should also be an exploration of a national 10-year education and skills strategy sitting across government, to deliver on wider policy agendas and to give stability to all parts of the system, creating a duty on schools and universities to collaborate with colleges and employers in the development of skills plans, so that the training on offer efficiently meets the need of local areas. I therefore beg to move.

[Baroness Morris of Yardley (Lab)]

I rise to support this amendment. This is such an important issue, but I can see that is difficult as well.

When I started teaching, which was many years ago, in Coventry, it was very clear which provider offered which course. The advantage was that it was very straightforward for children and schools to know where to go for catering, engineering, electronics or whatever. The disadvantage was that it squeezed out competition, which can raise standards and creativity. It is somehow getting that balance that we are looking for. I would welcome the Minister explaining how far the Government are prepared to go to make sure that there is some sort of co-ordinated provision within each skills partnership. It makes sense to allow providers to play to their strengths and it is also essential that courses that might not be economically viable but are important for the local or indeed the national economy are supported to stay open and be made available. So it is a tricky issue and I cannot recall so far in the debate on this amendment hearing the Minister outline the Government’s views on this.

To bring universities in, my noble friend Lady Wilcox made a very strong point. In the old days, it was just further education courses that were co-ordinated, but now we have a growth in private providers and universities in these contested levels as well. So in the name of clarity for students and users, and for the needs of the economy, we need some guidance from the Government about a co-ordinated approach, making sure all areas are covered. Basically, what happens is that all providers want to provide the cheap courses, and the machinery-heavy courses do not get offered. Schools are happy to go into vocational work, as long as it is classroom-based and they do not need specialist teachers. That very often leaves the college with the courses that need highly specialised tutors and heavy equipment. I would welcome the Minister somehow making sense of all that in her comments.

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[The Parliamentary Under-Secretary of State, Department for Education and Department for International Trade (Baroness Berridge) (Con)]

My Lords, I am grateful to noble Lords for the engagement that we have had since the first day of Committee. I assure the noble Baroness, Lady Garden, that this legislation is part of the FE sector having its moment and being rescued from often being described as the Cinderella of the sector.

I re-emphasise that the local skills improvement plans will not be master plans that specify in minute detail all the provision that is to be provided by every provider to every learner in the area. They are a vehicle to give employers a more central role in local skills systems by articulating a clear, evidence-based assessment of priority skills needs and working with providers to shape technical education to better meet those skills needs, which many noble Lords have outlined. They are about employers working hand in hand with providers and key local stakeholders, such as local and combined authorities and Jobcentre Plus, and they are about agreeing a limited number of priority changes that, if enacted, will make post-16 technical education and training more responsive to employers’ skills needs.

I would also like to take this moment to update the House that we have announced the local skills improvement plan trailblazers, literally within the last hour, and I will now outline them to noble Lords. In the north of England, we have Cumbria Chamber of Commerce covering Cumbria, Doncaster Chamber will cover Sheffield City Region, the North East England Chamber of Commerce will cover Tees Valley, and North & Western Lancashire Chamber of Commerce will cover Lancashire. In the Midlands, East Midlands Chamber will cover Leicester and Leicestershire. In the south of England, GWE Business West will cover the west of England, Kent Invicta Chamber of Commerce will cover Kent and Medway, and Sussex Chamber of Commerce will cover Sussex. In relation to the question from the noble Baroness, Lady Morgan, and others, if you look also at the strategic development pilots alongside those areas, you will see a multiplicity of providers, including FE colleges, institutes of technology and universities. By the very nature of those bids, we can see that there has been a great deal of co-ordination in these areas, with the support, where relevant, of the mayoral combined authority.

The next update to noble Lords deals with the point that the noble Baroness, Lady Morris, made about how we prevent providers from just going for the easiest, lowest-cost qualifications. We have today announced the consultation on new funding and accountability arrangements to simplify the system and focus on outcomes rather than processes and to avoid this descent to the bottom. It will include proposals for how local skills improvement plans fit into the wider funding and accountability landscape. That is also part of the development. The trailblazers will, of course, start work very soon and I look forward to being able to share with noble Lords details of their early progress ahead of Report.

Amendment 8, which was moved by the noble Baroness, Lady Wilcox, relates to broadening the duty on who should have regard to these plans; the noble Baroness, Lady Garden, also mentioned this. Clause 1 already provides for the duty to apply to the universities and sixth-form colleges mentioned in the amendment, and the large majority of post-16 technical education and training providers will be captured.

The noble Baroness, Lady Greengross, raised a specific point about independent training providers; they are specifically outlined as a relevant provider within Clause 4, so they are covered. The Secretary of State will be able to lay regulations before Parliament to add local authority providers, 16-to-19 academies and schools to those already identified and subject to the duty.

Amendment 40A would require local authorities to distribute these local skills improvement plans to all schools that provide sixth-form education. The plans will be published by the Secretary of State and publicised to relevant bodies through appropriate communication channels. Obviously, designated employer representative bodies will have worked closely on the ground with the relevant providers, who should be aware of that. I have to say that, of the many criticisms the department has faced over the last 18 months, publicising guidance to the relevant people has not been one of them.

I hope that my remarks provide assurance to noble Lords on the approach we are taking to local skills improvement plans and access to them. I therefore hope that the noble Baroness, Lady Wilcox, will feel comfortable in withdrawing this amendment, and that the noble Lord, Lord Baker, will not feel the need to move his when it is reached.

[Baroness Wilcox of Newport (Lab)]

I agree with my noble friend Lord Liddle that local authorities and devolved Administrations are best placed to deal with local skills planning. I reiterate to the Minister that, if a whole education system approach is not taken to local skills planning, the system will be disjointed and will not be efficient or the best use of public money. I welcome the Minister’s announcement of the trailblazers pilot; I look forward to reading the reports of the projects and, indeed, the early progress reports. Therefore, although the Minister has outlined an amount of detail, I remain somewhat unconvinced. I will wait to see whether that joined-up progress takes place. However, with the approval of the House, I beg leave to withdraw the amendment.

Amendment 8 withdrawn.

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[Baroness Garden of Frognal (LD)]

My Lords, I support Amendment 27 in the names of the noble Lords, Lord Patel and Lord Aberdare, and Amendment 30 in the name of the noble Lord, Lord Watson of Invergowrie. These amendments stress the need for local and national co-ordination and place a duty on the Secretary of State to ensure that local and national skills needs are both involved in national policy planning, which is surely only common sense if the country is to address skills shortages, of which we know there are many, and provide a functioning feedback loop, as the noble Lord said. It is also important that this information should be readily available to all the educational bodies involved in skills training. Like the noble Lord, Lord Aberdare, I find it surprising that this is not already in place.

I wholly support the information being available to schools from the age of 11. The noble Baroness, Lady Morgan, touched on this in an earlier amendment. But, as we know, 11 is really too late to start careers advice, which needs to begin at primary level, where young people, particularly those whose skills are more practical than academic, can begin to see pathways for progression and to have some confidence in their future. I can understand why the provision in this amendment may not extend to primary schools, but we must never overlook the very young in these discussions.

The local skills improvement plans should be given to all those who work with the education and training of the future workforce. They should certainly be on websites, but steps should also be taken to ensure that these providers actually access them and that everyone within their organisation is aware of them. There is little point in assembling all the information if learners are blissfully aware that it exists. So, for the moment, the amendment proposed by the noble Lord, Lord Watson, is definitely a step forward.

[Baroness Wilcox of Newport (Lab)]

Amendment 30 requires that the Secretary of State must publish LSIPs and distribute them to schools and all post-16 education providers. However, there is little point in having a plan if no one is aware of its contents. Yet, despite the requirements for providers to have regard to LSIPs, the Bill is silent on how LSIPs will be published or disseminated. I know that the Minister responded that a model LSIP can be provided, but this amendment seeks a much wider and co-ordinated task. Does the Minister intend, as the amendment suggests, for the DfE to take responsibility for this? Does she agree that publishing all local skills improvement plans will allow for areas to draw on each other’s strategies? That would be particularly helpful for a complementary regional approach and would promote best practice. Or does she envisage that such responsibility will fall to ERBs? If so, can she advise whether they will have the resources and a dedicated budget for such a responsibility?

Perhaps the Government believe that the onus should be on providers themselves to track down where LSIPs have been published. If so, where should they look—to the chamber of commerce, or local authority websites? How does that fit with the lack of role of local authorities and mayoral combined authorities in the process? I hope that she can assure the House that there is indeed a plan for publication and distribution, and I further reiterate my noble friend Lord Liddle’s probing question around the role of the Secretary of State in relation to local plans.

I also speak in support of Amendment 27 in the name of the noble Lord, Lord Patel, which requires the Secretary of State to publish a response to each LSIP, including an action plan for how they will support areas to address their skills need. I agree with the question asked by the noble Lord, Lord Aberdare, about where the strategies approach will be developed, using LSIPs to feed into national strategies and creating the feedback loop that is so essential. It is very important, given that LSIPs will need to be responsive to national level strategies, and given the Secretary of State’s powers to intervene if they believe that providers are failing to adhere to LSIPs or not meeting local needs, as seen through the lens of local employers.

I further understand that the notion and definition of “local” has been much discussed during the passage of this Bill already—but I respectfully point out that it continues to be raised by noble Lords because of the still undefined nature of the link between local and national priorities. When I entered local government almost 20 years ago, I was reminded that all politics is local, and I came to recognise that most assuredly throughout my tenure. I would further add that local knowledge and experience is invaluable in feeding into the national strategic overview.

[Baroness Berridge (Con)]

My Lords, I am grateful to be able to speak to this group of amendments relating to publication and response to local skills improvement plans. We expect them to be an important resource to inform decision-making by local providers, stakeholders and national policymakers.

On publication, in Clause 1(7) it is clear that a local skills improvement plan means one that has been

“approved and published by the Secretary of State”.

I presume that that will be on GOV.UK. I cannot prescribe that, but I do not think that we need to go into any further detail in relation to that, or to put such matters in the Bill. I am grateful for the comments of the noble Lord, Lord Young, about what we do and do not put in a Bill and what goes into statutory instruments—and then, of course, what is published in guidance.

Amendment 27 talks about how local skills improvement plans can inform national policy on skills. As outlined previously, we expect the plans to be informed by, and in turn inform, national skills priorities highlighted by the Skills and Productivity Board. This is envisaged to be a two-way relationship. In relation to the collaboration between employer representative bodies and the co-ordination point, which has been quite a theme throughout a number of amendments, the Secretary of State can set terms and conditions for the employer representative body and, should it be necessary, they can be used to mandate in the approval that they collaborate—but, obviously, one would hope that that will not be necessary.

On the point from the noble Lord, Lord Liddle, I hope that the trailblazers will reveal whether his doubts will materialise about whether the appropriate national skills priorities are taken into account.

On the approval process by the Secretary of State, it is not about the Secretary of State second-guessing the priorities and actions agreed by local areas but about ensuring that a robust process has been followed. In Clause 3, there are provisions that enable the Secretary of State to remove the designation if he sees fit: if terms and conditions have been broken, if the body is no longer impartial or reasonably representative or if it does not have regard to the guidance. Of course, when one talks about process, one normally thinks about judicial review—but, if a plan says that we are going to invest in coal mining in an area, for example, there might be a case for such a priority that is way outside. But it is a process that he will be looking at; he will not be second-guessing the choices and priorities decided by the employer representative body.

As I have said, we expect the LSIPs to complement the funding system reforms outlined in the Skills for Jobs White Paper. The consultation that I mentioned was launched today, aiming to give providers more autonomy to use government funding to meet the skills needs of local employers, including those articulated in LSIPs. We expect these plans to be a relevant factor for the Secretary of State to consider when making decisions about funding and support for local areas. Again, implicit in that is a co-ordination point as well.

Turning to Amendment 30, in the name of the noble Lord, Lord Watson, concerning the publication and distribution of LSIPs, I have mentioned Clause 1(7). The ERBs will lead the development of the plans, and the Secretary of State will approve and publish them. Obviously, if they are defective, there is the remedy I outlined for the noble Lord, Lord Aberdare. They will be published on a website to ensure that relevant bodies across England can easily find and access them, and this will be publicised through appropriate communication channels. The department has good relationships with stakeholders, as I say.

I hope that my remarks in relation to these amendments have provided some reassurance to noble Lords. One noble Lord who requested a meeting—it may have been the noble Lord, Lord Lucas—in relation to these matters. Of course, I am happy to engage with any noble Lord to give further detail outside of Committee. I hope to be able to report to the House on the progress of the trailblazers, but they are not due to conclude until March 2022. I therefore hope that the noble Lord, Lord Aberdare, will feel comfortable in withdrawing his amendment and that the noble Lord, Lord Watson, will not feel the need to move his when it is reached.

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Moved by

[Baroness Wilcox of Newport]

59: After Clause 13, insert the following new Clause—
“External Quality Assurance
(1) Within six months of the passing of this Act, the Secretary of State must by regulations make provision for Ofqual to provide external quality assurance of all apprenticeship end-point assessments.(2) Regulations under this section must prohibit the Institute for Apprenticeships and Technical Education from providing such external quality assurances.(3) Regulations under this section may not be made unless a draft of the instrument containing them has been laid before, and approved by resolution of, each House of Parliament.”Member’s explanatory statement
This amendment places the external quality assurance (EQA) role that Ofqual exercises on a statutory footing.

[Baroness Wilcox of Newport (Lab)]

My Lords, I am moving this amendment in the name of my noble friend Lord Watson and, with the scratchers from this group, it looks as if it is just Front-Bench contributions.

If it is worth saying something twice, that is what I am going to do. The Bill currently gives the Institute for Apprenticeships and Technical Education, a non-departmental public body directly accountable to Ministers, the ultimate sign-off power for the approval and regulation of technical qualifications in future. So, despite the Minister’s extremely detailed and comprehensive reply to the previous group of amendments, I am going to press her further, because this amendment would ensure that, within six months of the passing of the Act, the Secretary of State must, by regulation, make provision for Ofqual to provide external quality assurance of all apprenticeship end-point assessments. Regulations under this section must prohibit the Institute for Apprenticeships and Technical Education from providing such external quality assurances. Regulations under this section may not be made unless a draft of the instrument containing them has been laid before, and approved by resolution of, each House of Parliament. This amendment places on a statutory footing the external quality assurance role that Ofqual exercises.

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[Baroness Berridge (Con)]

My Lords, the external quality assurance of apprenticeships’ end-point assessment is a vital tool in ensuring that all apprentices receive a robust, high-quality assessment. In this amendment, we are now dealing with what is an Ofqual function. Ofqual does not set any curriculum for A-levels or GCSEs and neither would it, in our view, be the appropriate body to set any content for any level 3 or level 2 technical qualifications. It oversees the assessment process, seeing whether grading is fair and examinations are being run properly.

The Institute for Apprenticeships and Technical Education introduced an external quality assurance framework in 2019 in order to bring consistency to the sector. Following this, the institute put the matter of external quality assurance out to public consultation between February and May last year. This resulted in the institute taking the decision that the EQA for most apprenticeship end-point assessments would transfer to Ofqual to bring further consistency and quality to the assessment of apprenticeships. This is Ofqual’s bread and butter: overseeing examinations.

There are a small number of exceptional standards—chartered surveyors, for instance—where an existing statutory regulator oversees entry to a profession. The best way to quality assure these standards is currently being worked through with those regulators. I would like to make it clear that the Office for Students must continue to provide EQA for integrated degree apprenticeships—because Ofqual does not have statutory jurisdiction over degrees and therefore cannot provide EQA for apprenticeships at that level.

I will specifically address the noble Lord’s suggestion that regulations under this proposed amendment must prohibit the Institute for Apprenticeships and Technical Education from providing EQA. While the institute is stepping back from direct delivery of EQA, it is an employer-led organisation, working to develop apprenticeships that meet the needs of employers. It is right that it should continue to have responsibility for securing the quality assurance of apprenticeship assessment in order to retain an independent, impartial voice in the sector and to maintain clear focus on supporting employers to develop the right apprenticeship skills for the labour market.

Regarding the suggested six-month timing for the transfer proposed in the amendment, the pace of the EQA transition currently taking place from the institute and other EQA providers to Ofqual has been carefully planned to ensure the development of a balanced end-point assessment offer to continue to develop a high-quality apprenticeships system. The first phase of the transition is well under way and is focused on transferring the majority of standards that currently have the institute as the named EQA provider. This phase will conclude at the end of the year. The second phase is to transition to Ofqual the remaining standards that are externally quality assured by other EQA providers, excluding the standards that will be regulated by OfS and statutory regulators, as aforementioned. This will conclude at the end of September 2022.

The sector is made up of a great number of end-point assessment organisations of different sizes and natures, some covering single standards, some covering around 50 standards. To attempt to transition all these organisations and standards over to Ofqual in a six-month period would cause severe disruption in the sector and would negatively affect the apprentices’ experience. The proposed amendment would also place a great burden on universities, as under this amendment they would be required to be regulated by the OfS and Ofqual, rather than just by the OfS, as is currently the case. I hope I have set out that, as the successful transition of EQA is already under way, it would have a detrimental effect if we were to remove the institute from the process entirely.

In relation to the question from the noble Baroness, Lady Garden, on fees, any future approach that is developed will be proportionate and take account of the operational costs of institute approval in the reformed landscape. This may differ across qualification categories and levels.

On this basis, and with the explanations and reassurances I have given, I hope that the noble Baroness will feel comfortable to withdraw her amendment.

[Baroness Wilcox of Newport (Lab)]

I thank the Minister for the further explanation. I will analyse it in greater detail when I read it in Hansard tomorrow. The point from the noble Baroness, Lady Garden, about regulation being a matter of concern is absolutely correct. Indeed, employers have always been involved in qualifications. I am afraid that I am unsure of the background of many of my fellow Peers, but I can assure noble Lords of the quality standards of BTEC qualifications because I taught them for many years, alongside A-level qualifications, which are another quality qualification—I actually wrote A-level examination papers, as I was a principal examiner for the AQA examination board.

Nevertheless, the principle remains that we need responsibility and accountability. That is what Ofqual would give. I am sure we will return to this issue on Report, so I beg leave to withdraw the amendment.

Amendment 59 withdrawn.

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[Lord Addington (LD)]

My Lords, this is an interesting group of amendments, because I think everybody would agree that universities as institutions have a duty of care to their students. They are adults, but most of them are only just adults. I must declare an interest here; I have an 18 year-old daughter who is expecting to go to university—and not only go to university, but a university in another country: Wales in this case, but there we are.

[Baroness Wilcox of Newport (Lab)]

It is another country.

[Lord Addington (LD)]

At least I have got that confirmed; I thank the noble Baroness for that aside.

The point here is about “Students like us, how do they do and what do they go through?” I have heard it from many people, and indeed from members of my own family. Two of my nephews are of mixed race and are wondering “Where do we go where people like us are?” We have to get this information out, because it is a perfectly normal thing. You are leaving the support structure of home and your parents, but there is some way of intervening.

The noble Lord, Lord Willetts, referred to special educational needs. We have a universal package there called the disabled students’ allowance. We have a structure within universities that means you actually have to give things. Members of the Front Bench have sparred with me on this—I think “sparred” is quite accurate—in the past. There is a structure of support and a standard, and you can take action if that standard is not fulfilled. That is difficult, but it is there. You have a support structure going through.

So having more information about what happens here and what goes on will not hurt. It is not that big an ask. People are posting about entrance requirements and groups are coming across—it is happening at the moment. I suggest that having more information gives a better guide to what can come out of the experience and what other people are experiencing on their way through. I think this information is being gathered in many places anyway, usually for internal commercial reasons by the institutions. It would not hurt to have it in there.

I do not know whether the Government are in the mood for accepting amendments at the moment. I always remember when it happened to me many years ago; it stunned me into silence for the rest of the evening. It may be a bit late in this day for doing that, but I just throw that out. It would be something that would be quite good to have. I would hope that the Government at least give us some idea that they are encouraging, if not requiring, people to do it.

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I hope the Minister in her response to this group will be able to give some reassurance to ITPs that they will not face disproportionate restrictions or entry barriers under this Bill, and that their views will be duly sought and properly taken into account, via the planned consultation, before the proposed list of relevant providers is implemented. I beg to move.

[Baroness Wilcox of Newport (Lab)]

My Lords, Amendment 74 probes the charging of fees in connection with entries on the list of relevant providers. The Bill would enable the Secretary of State to make regulations to provide for a list of post-16 education or training providers, including independent training providers.

We have no argument with the principle of introducing legislative measures to protect the interests of learners, and agree wholeheartedly that those who run providers on the proposed list of relevant providers should be “fit and proper persons”. But we are concerned that many of the provisions appear to be just piling costs upon ITP delivery without any consultation or rationale as to why they are necessary. Can the Minister explain why no such exercise has taken place and assure the Committee that meaningful consultations will take place before any new requirements for providers are introduced via regulations?

Under the proposals, any provider not on the approved list will not be granted funding agreements or be allowed to subcontract with another provider that is on the list, so this will not be an option going forward. Yet being on this list does not guarantee future financial sustainability, given that the Government admit that listing will have a “significant impact” on the costs of smaller providers because of the need to pay to join and the imposition of mandatory professional indemnity insurance, as highlighted by the noble Lord, Lord Aberdare, in his Amendment 72.

If this is in response to concerns about provider failure, I too fail to see how enhanced liability insurance and more stringent entry registrations will have any impact or give protection to learners. Meanwhile, it risks destabilising the entire ITP sector at a time when the economy desperately needs more skilled staff as we emerge from the pandemic and as the effects of Brexit on the labour market are felt.

The Association of Employment and Learning Providers has also raised concerns about the practicality of this indemnity requirement, given that it is not aware that the insurance product that the Government may have in mind actually exists, despite such a requirement being written into primary legislation. I hope the Minister is able to address this in her response.

There is also understandable concern in the sector that increasing costs may be a backdoor way to reduce the number of ITPs in the market. Can the Minister confirm whether this is indeed the Government’s intention? If it is, I am concerned that such a policy could backfire spectacularly and have significant adverse consequences for learners and communities.

ITPs deliver three-quarters of all apprenticeship, traineeship and adult education budget programmes. While many are small, they provide crucial and valuable opportunities and bring much-needed responsiveness, innovation and competition to the skills training marketplace. Many ITPs are either specialist providers or serve areas out of easy reach of a local college—indeed, there are 1,186 towns but only 170 FE colleges in England. Does the Minister recognise that ITPs are very good at reaching out to small businesses in small towns and rural areas which do not have a local college, including the Chancellor’s Yorkshire constituency and some red wall areas? Does she agree that they have a major contribution to make to the Government’s levelling-up agenda?

I hope the Minister can provide some clarity on these issues and assure the House that independent training providers will be able to continue to provide value opportunities, which will be crucial to the country’s post-pandemic recovery.

[Baroness Berridge (Con)]

My Lords, I am grateful to noble Lords for the agreement in principle that a list of independent training providers is a requirement, as I believe it was suggested in this House in previous legislation. The noble Lord, Lord Aberdare, is correct: the core focus of the list is to protect learners and reduce the significant disruption to learners that provider failure can cause. We value highly the role of relevant providers, including independent training providers and in particular those small providers noble Lords have mentioned. We are not unduly negative at all about their role in providing a diverse and innovative learning offer. They provide a great deal of variety to many learners.

The provisions in Clause 18(7) include a requirement for a provider to have insurance for examples of conditions that may be specified in regulations that providers must meet in order to be on the list. In a similar way, subsection (10) gives examples of provisions that may be specified in regulations in connection with the keeping of the list, which would ultimately help deliver a well-functioning, transparent and fair scheme to all those involved.

We propose that the student support plans we envisage providers having will, subject to consultation—which I will mention further—follow the approach in the HE sector, where the Office for Students requires a statement of the level of risks to the continuation of study. We must remember this is study paid for by the taxpayer, and obviously it is in everybody’s interests that that course of study is completed.

I would like to allay the fears of the noble Baroness, Lady Wilcox: as the clauses require, we will consult on the conditions and provisions for being on the list, prior to making the first set of regulations, to help ensure that those conditions manage and mitigate the risk of disorderly exit. That consultation will allow us to fully take into account the views of those affected by the scheme, particularly the small providers noble Lords have outlined.

I turn to the specifics of the amendments. Amendment 72 is intended to ensure relevant providers will not be subject to further costs relating to obtaining insurance cover. The introduction of insurance, or an equivalent, may be useful in preventing or mitigating the risk of provider failure and assist with learner transfers at that point. If we were to introduce a condition in relation to insurance, the aim would be for learners to benefit from greater continuity of provision. Clause 18(9) allows different conditions to be applied for different descriptions of providers. It is not one size fits all. This would ensure that, where appropriate, we could make the scheme as flexible as possible.

Amendment 74 is intended to probe how the charging of fees in connection with entries on the list will be regulated. It is reasonable to expect that some fees may be necessary to recover the costs—I emphasise “costs”—of administering the list. It is important that we retain the ability to introduce fees if they are deemed necessary to run an effective and fiscally responsible scheme. I can, however, offer an assurance that this would be the sole purpose of any fees. They would be set to a reasonable level, with reasonable notice and with consideration of the impact on providers of all sizes. There would be no intention to make a profit at the expense of providers.

Regulations to create the list are subject to the affirmative procedure, so there will be further opportunity for parliamentary scrutiny of any conditions or provisions specified. This includes regulations relating to any requirements for providers to have insurance or an equivalent, if proposed in the regulations following consultation, as well as any requirement to charge fees. If regulations setting out the basis for charging fees were to change again in the future, those amending regulations would also be subject to the affirmative procedure.

I therefore hope the noble Lord, Lord Aberdare, will feel comfortable in withdrawing his amendment and that the noble Baroness, Lady Wilcox, will not feel the need to move her amendment when it is reached.