Tertiary Education and Research (Wales) Act 2022 (Consequential Amendments) Order 2024

Baroness Wilcox of Newport Excerpts

Tuesday 19th March 2024 Grand Committee

The Liberal Democrats support the Welsh Government’s changes to the tertiary education and research sector in Wales, and welcome this statutory instrument which inserts the consequential changes into UK law.

[Baroness Wilcox of Newport (Lab)]

My Lords, this statutory instrument is laid because of the passage of the Tertiary Education and Research (Wales) Act 2022 in the Senedd. It will replace references in reserved UK legislation to the Higher Education Funding Council for Wales with the new Commission for Tertiary Education and Research and make technical amendments in relation to provisions that are being repealed as a consequence of the Act. It forms part of the delivery of Welsh Labour’s manifesto commitment on tertiary education and renews the 30 year-old system, which predates devolution, under which tertiary education is currently organised and funded.

As noted by the Minister, the commission becomes operational on 1 August 2024 and will, for the first time, take a coherent and system-wide view of tertiary education, bringing together under one area of responsibility the funding, oversight, quality and regulation of higher and further education, local authority-maintained school sixth forms, apprenticeships, adult community learning and responsibility for research and innovation.

The Welsh Government are implementing the main recommendations of the independent Hazelkorn review, which noted the confusion and complexity of the sector in Wales, and the lack of a system-wide strategic view and collaboration, as well as incoherent learner pathways. I am pleased to confirm that the architect of much of the marketised reforms to tertiary education in England, the noble Lord, Lord Johnson of Marylebone, when Minister for Universities, similarly backed this idea. He called it a

“joined-up system of regulation and funding for all post-16 education”

for England, deriding what he called a

“bewildering array of regulatory and funding bodies”.—[Official Report, 15/6/21; col. 1813.]

Where Welsh Labour leads, one hopes that Government Ministers will follow.

The Welsh Government have introduced the young person’s guarantee of education, training or work for all 16 to 24 year-olds. This new system will create the conditions for a highly skilled society, with equality of opportunity and a civic mission at its heart. Its strategic duties will also include contributing to a sustainable and innovative economy, crucial for a UK Labour Government to deliver their plan to make Wales a green energy superpower, investing in the industries and jobs of the future.

As it makes only minor and technical legislative amendments, we are content to support this SI. I would, however, ask the Minister to check with his officials whether the department has notified Welsh Government officials that this order has been laid.

In conclusion, I take this opportunity to record my immense thanks to our outgoing First Minister of Wales, the right honourable Mark Drakeford MS, who will submit his resignation to His Majesty the King this evening. He led Wales with distinction though some of the most difficult times in its history, and brought a calm and intelligent response to the Covid crisis that consumed so much of public life, alongside dealing with many other major and significant matters. Diolch am bopeth, Mark.

I also congratulate the incoming First Minister, Vaughan Gething MS, on winning the leadership contest, and wish him the very best for his new responsibilities. I look forward to working closely with him as the shadow spokesperson for Wales in the House of Lords in the times ahead.

[Lord Harlech (Con)]

My Lords, I thank both noble Baronesses for their valuable contributions to this short and very interesting debate this afternoon. As has been explained, this order provides for a number of consequential changes to UK law necessary ahead of the Commission for Tertiary Education and Research becoming operational in August.

I will respond to some of the points raised. The noble Baroness, Lady Wilcox, asked whether the Welsh Government had been informed and consulted. Absolutely, yes—Wales Office officials notified their counterparts in the Welsh Government shortly after the order was laid. Wales Office and Welsh Government officials, as well as colleagues from other UK departments, have worked closely together throughout the preparation of this order.

The noble Baroness, Lady Humphreys, talked about the remit that the commission will have and how spending will be allocated. As she hinted, that would be a decision for the Welsh Government on how they spend their money—but it gives me an opportunity to say that a record block grant of £18 billion has been provided to the Welsh Government, and through the block grant the Welsh Government are receiving £120 of Barnett-based funding for every £100 per person of equivalent UK spending in England. The Welsh Government budget for 2024-25 for those areas in which the commission will be responsible is around £900 million, with the commission receiving the appropriate proportion of this funding in line with it becoming operational part-way through the funding year. This will ensure that the Welsh Government are well funded to improve tertiary education. However, as I said, it is for the Welsh Government to decide how to spend this funding in devolved areas, in line with their own priorities.

The noble Baroness, Lady Humphreys, talked about the timing of this SI. The Act was passed in the Senedd in 2022 but the provisions in it, under which the commission will become operational and HEFCW will be dissolved, do not come into force until August 2024. That is why this SI is being laid now; the key principle underlining it was to avoid as much disruption as possible in the transition from HEFCW to the commission, minimising disruption to the sector and, most importantly, to learners. August is the end of the academic year, with the new academic year starting in September, so I hope this will allay that concern.

I think I have answered the questions on funding, consultation with the Welsh Government and timing but, if I have omitted anything, I ask noble Lords to please let me know. On that basis, I commend this SI to the Committee.