Student Finance: EEA and Swiss Nationals

Chris Skidmore Excerpts

Tuesday 4th June 2019 Written Statements

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

I am confirming that eligibility rules for students from the EEA and Switzerland, and their family members, who commence courses in England in the academic year starting in August 2020 will remain unchanged. EEA/Swiss nationals will remain eligible for home fee status, undergraduate, postgraduate and advanced learner financial support from Student Finance England for the duration of their course under the current eligibility rules. This will provide certainty to providers and their prospective students from the EEA and Switzerland.

This announcement also applies to funding for apprenticeships, advanced learner loans and further education 19-plus.

EEA and Swiss students and staff make an important contribution to our universities and it is testament to our system that so many students from abroad choose to come and study here.

[HCWS1593]

Education

Chris Skidmore Excerpts

Tuesday 4th June 2019 Ministerial Corrections

The following are extracts from the debate on 15 May 2019 on the draft Higher Education and Research Act 2017 (Further Implementation etc.) Regulations 2019.

[Chris Skidmore]

The amendments have been made with the intention to reduce the administrative and regulatory burden on charities and ensure that the OfS has a sufficient regulatory relationship with the relevant exempt charities to be an effective principal regulator. The amendment to the Charities Act made the removal of exempt status automatic upon deregistration, so no action is actually required by the OfS. The OfS can deregister a provider only if certain conditions are met. That covers both conditions on registration, and consideration of the denial of an access and participation plan.

[Official Report, 15 May 2019, Vol. 660, c. 266.]

[Chris Skidmore]

Separately, regulations 28 and 32 amend the Education (Information About Children in Alternative Provision) (England) Regulations 2007 and the Education (Individual Pupil Information) (Prescribed Persons) (England) Regulations 2009. The provision requires institutions that are not schools in receipt of funding from the Department for Education to provide certain pupil information to the Secretary of State and other bodies, including HEFCE. The amendment will substitute OfS for HEFCE, as HEFCE no longer exists. That is the same for regulation 32.

[Official Report, 15 May 2019, Vol. 660, c. 267.]

Letter of correction from the Minister for Universities, Science, Research and Innovation:

Errors have been identified in my speech during the debate.

The correct information should have been:

[Chris Skidmore]

The amendments have been made with the intention to reduce the administrative and regulatory burden on charities and ensure that the OfS has a sufficient regulatory relationship with the relevant exempt charities to be an effective principal regulator. The amendment to the Charities Act made the removal of exempt status automatic upon deregistration, so no action is actually required by the OfS. The OfS can deregister a provider only if certain conditions are met, one of which is serious breach of conditions of registration.

[Chris Skidmore]

Separately, regulations 28 and 32 amend the Education (Information About Children in Alternative Provision) (England) Regulations 2007 and the Education (Individual Pupil Information) (Prescribed Persons) (England) Regulations 2009. The provision requires both schools and institutions that are not schools in receipt of funding from local authorities to provide certain pupil information to the Secretary of State and other bodies, including HEFCE. The amendment will substitute OfS for HEFCE, as HEFCE no longer exists. The substitution is the same for regulation 32.

Competitiveness Council

Chris Skidmore Excerpts

Wednesday 22nd May 2019 Written Statements

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The Internal Market and Industry Day of the Competitiveness Council will take place on 27 May 2019. Katrina Williams, Deputy Permanent Representative of the United Kingdom to the European Union, will represent the UK.

The Research and Space Day of the Competitiveness Council will take place on 28 May 2019. Chris Skidmore MP, Minister of State for Universities, Science, Research and Innovation, will represent the UK.

Day one—Internal Market and Industry

The Internal Market and Industry Day will consider a number of non-legislative items, including a competitiveness “check-up”. Attendees will be asked to debate and agree the adoption of conclusions on “a new level of ambition for a competitive single market” and “an EU industrial policy strategy: a vision for 2030”. This will be followed by the adoption of “conclusions on the competitiveness of the tourism sector as a driver for sustainable growth, jobs and social cohesion in the EU for the next decade”.

Under any other business, there will be updates on the following current legislative proposals: (a) the directive on cross-border conversions, mergers and divisions; (b) the directive on the modernisation of the EU consumer protection rules; (c) the directive on representative actions for the protection of the collective interests of consumers; and (d) the regulation on the general safety of vehicles.

The presidency with also provide information on better regulation and the forum dedicated to the auto industry. Finally, the Finnish delegation will provide information on the work programme of the incoming Finnish presidency.

Day two—Research and Space

The Research and Space Day of the Competitiveness Council will begin with a session on space, during which the Council will hold a policy debate on “strengthening Europe’s role as a global actor and promoting international co-operation, space diplomacy and contributing to building the global space governance”.

The Competitiveness Council will then break for the 280th European Space Agency (ESA) Council where the UK, as an ESA member state, will vote on the ESA resolution “space as an enabler”. The Council will then reconvene for the 9th EU-ESA Space Council where there will be an exchange of views and adoption of conclusions on “space as an enabler”.

The research session will start with a policy debate concerning “research and innovation as a driving force for a more competitive European Union”. Finally, the Finnish delegation will provide information on the work programme of the incoming Finnish presidency.

[HCWS1579]

Education

Chris Skidmore Excerpts

Wednesday 15th May 2019 Commons Chamber

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

I beg to move,

That the draft Higher Education and Research Act 2017 (Further Implementation etc.) Regulations 2019, which were laid before this House on 29 April, be approved.

It is a pleasure to have the chance to address the House today. I welcome the opportunity to debate these regulations, which are the final planned set related to the implementation of the higher education elements of the Higher Education and Research Act 2017. To implement the research elements of the Act, there will be further regulations related to the closure of the research councils and the establishment of UKRI—United Kingdom Research and Innovation.

As I mentioned during last week’s debate in Committee on the Higher Education (Monetary Penalties and Refusal to Renew an Access and Participation Plan) (England) Regulations 2019, we have made great progress since the Higher Education and Research Act, otherwise known as HERA, came into law in 2017.

You may recall, Mr Speaker, that HERA abolished the Higher Education Funding Council for England, otherwise known as HEFCE, and the director of fair access to higher education, more commonly known as the Office for Fair Access, or OFFA. A new regulator was created—the Office for Students, or the OfS—to oversee and monitor the activities, including in relation to fair access and participation, of English higher education providers that register with it. The OfS currently regulates registered HE providers under transitional arrangements, and we hope the new regulatory regime will be fully operational from August this year.

In addition to retaining existing HEFCE and OFFA functions for the transitional period, the OfS has gradually begun to exercise its functions under HERA. HERA gave the Office for Students the power to create a new single register of higher education providers. Registration with the OfS is the only route for providers to access student support funding through charging fees for courses that attract student loans. It is now a requirement for an institution to obtain degree-awarding powers or to obtain the right to call themselves a university. Since the formation of the Office for Students on 1 January 2018, it has registered more than 350 higher education providers—352 as of 13 May, to be precise—to exacting standards, including all English universities.

The HERA reforms to the system of regulating higher education were wide ranging, which means that a number of changes to the statute book are needed to reflect the reforms introduced and ensure the smooth running of existing legislation.

That brings us to why we are here today. The main purpose of the regulations before the House is to make consequential amendments to existing legislation—a standard procedure after any primary legislation has passed.

The majority of those amendments replace references to now defunct bodies or repealed legislation. They also reflect the diversification of HE providers and the wide range of providers that are registered with and regulated by the OfS. Further, they reflect the movement to a formal regulatory system based on registration. Some of the cross-references in other enactments relate to the quasi-regulation of higher education institutions by HEFCE, and others to receipt of or eligibility for funding. The amendments reflect that nuance to preserve the original intention of such provisions.

The OfS assumed responsibility for determining applications for university title on 1 April this year. Before that date, applications were determined by the Privy Council. Transitional regulations were made to allow applications made before 31 March to be dealt with under the old system. Further provision is made in the regulations in relation to university title, to ensure that the consequential amendments they contain do not disturb applications already in process under the old regime.

The regulations also enable registered HE providers that are charities to become exempt from registration with, and direct regulation by, the Charity Commission. If a provider chooses to take advantage of that opportunity, the OfS will act as principal regulator for the provider, enabling it to avoid duplicative regulatory returns to both the Charity Commission and the OfS. HEFCE was formerly principal regulator for HEIs that it funded. A registered charity that does not wish to become exempt will not become exempt against its will; a provider must take action to obtain the exemption. This amendment is intended to create greater flexibility and choice for charitable bodies that are registered HE providers.

I am pleased to say that the regulations make the regulators code applicable to all the OfS’s regulatory functions, under section 24 of the Legislative and Regulatory Reform Act 2006, fulfilling a commitment made by my hon. Friend the Member for Orpington (Joseph Johnson) in 2017 during the passage of HERA. I know that he and the House will be pleased to see the progress made in that regard.

I thank my trusted ministerial colleagues for the assistance and collaboration of their Departments in establishing the consequential amendments required. In short, the regulations create the opportunity for more charitable bodies to become exempt from direct regulation by the Charity Commission; ensure that key enactments continue to work in the real world, minimising the risk of disruption and chaos; and put OfS compliance with the regulators code on a statutory footing.

I have highlighted the wide-ranging nature of the legislation affected by these amendments. If the amendments are not approved, it could have serious negative consequences for the HE sector. Among other things, it could result in: confusion around whether certain providers have to charge VAT on student fees; the Office for Students not being subject to the public sector equality duty; certain charities being unexpectedly faced with a change to their accounting rules, resulting in confusion and more paperwork and potentially affecting students and their overall experience; and students being denied their full entitlement to state benefits because of outdated references to defunct legislation.

This Government firmly believe that the higher education regulatory system must effectively protect the interests of students in the short, medium and long term. I hope Members will agree that the regulations are of the utmost importance to students and the sector alike and will approve them.

--- Later in debate ---

[Chris Skidmore]

I thank hon. Members for participating in this debate. I shall try to respond briefly to the points that have been raised.

I thank the hon. Member for Motherwell and Wishaw (Marion Fellows) for her remarks on the Scottish system. I will be heading to Scotland in early June and will endeavour to focus also on some of the issues of widening participation. I have regular meetings with the Scottish Minister for Further Education, Higher Education and Science, Richard Lochhead. On the points that the hon. Lady raised about research, I know that we are going a bit off piste in relation to the statutory instrument before us, but I reiterate my commitment to ensuring that we maintain our common research links with our European partners. When I was in Berlin, speaking at the “Going Global” conference hosted by the British Council, I met Minister Karliczek, Federal Minister of Educational Research, and had meetings with the Fraunhofer and Max Planck research organisations to make that commitment.

Regarding our association with such future programmes as Horizon Europe, yesterday the Government published our international research and innovation strategy, making clear our commitment to being outward-facing and ensuring that we continue to endeavour to have strong global research links.

On tier 4 visas—the hon. Lady will be aware that the Home Secretary is sitting beside me—we must remember that researchers from international countries are still able to come to the United Kingdom. We recently launched the first Future Leaders Fellowships programme, £900 million of investment in 550 international fellowships, which has seen people from Japan to Canada coming to the UK. We recognise there are issues relating to visas that need to be looked at as part of the consultation for the immigration White Paper, but issues around tier 4 visas have not prevented existing international researchers from being able to participate in UK research life.

Turning to the points made by the hon. Member for Blackpool South (Gordon Marsden), on the amendment to schedule 3 of the Charities Act 2011, which sets out that charities are exempt from registration with and direct regulation by the Charity Commission for England and Wales, HEFCE was the principal regulator for HE providers that were exempt charities under the existing schedule 3 of the 2011 Act, and the OfS was made principal regulator for higher education under the earlier consequential and transitional regulation which came into force on 1 April 2018. The amendments to schedule 3 require that currently exempt HE charities remain registered with the OfS to continue to hold exempt status and provide the opportunity for any provider registered with the OfS to be exempt by applying to the Privy Council. That will mean that exempt charities registered with HE providers will not have to register with or make returns with the Charity Commission, but will instead report to the OfS as principal regulator.

The amendments have been made with the intention to reduce the administrative and regulatory burden on charities and ensure that the OfS has a sufficient regulatory relationship with the relevant exempt charities to be an effective principal regulator. The amendment to the Charities Act made the removal of exempt status automatic upon deregistration, so no action is actually required by the OfS. The OfS can deregister a provider only if certain conditions are met. That covers both conditions on registration, and consideration of the denial of an access and participation plan.[Official Report, 4 June 2019, Vol. 661, c. 1MC.]

On the impact assessment, the regulations contain two sets of saving provisions. The first deal with the applications made for university title that were made before 1 April 2019. The second type of saving provisions relate to the repeal of a particular statutory provision under which so-called designation orders were made. Those orders designated certain providers as higher education institutions. There are a number of references and regulations governing teachers’ pension schemes and local government schemes to designated institutions. If we do not preserve the orders for those very narrow purposes, future staff’s eligibility for the schemes will be lost, so there are benefits in ensuring that staff have access to those pension schemes.

The entire purpose of the consequential saving provisions is to preserve the intention and scope of the underlying legislation in the context of the changes brought about by HERA. We therefore do not anticipate any additional regulatory burden as a result of the regulations. As I said in my opening speech, the main purpose of the consequential amendments is to minimise the risk of chaos and disruption to students, staff and providers. The hon. Gentleman mentioned the SLSC asking for clarity on a few of the provisions in the regulations. I understand that it often does so as part of the scrutiny process and we will respond in due course.

The hon. Gentleman focused on the risks around data sharing in relation to regulation 14 and schedule 8 to the Digital Economy Act 2017. Schedule 8 allows bodies named in it to disclose information to each other for the purposes of taking action in connection with fraud perpetrated against a public authority. The amendments replace Innovate UK and existing research councils with references to UKRI, HEFCE and the OfS, because HEFCE has been abolished, and Innovate UK and the research councils have been incorporated into UKRI. If we do not make the amendment, the OfS will not be able to make or receive fraud-related disclosures envisaged under the Act. There would also be ambiguity as to whether disclosures could be made or received by relevant constituent parts of UKRI.

Separately, regulations 28 and 32 amend the Education (Information About Children in Alternative Provision) (England) Regulations 2007 and the Education (Individual Pupil Information) (Prescribed Persons) (England) Regulations 2009. The provision requires institutions that are not schools in receipt of funding from the Department for Education to provide certain pupil information to the Secretary of State and other bodies, including HEFCE. The amendment will substitute OfS for HEFCE, as HEFCE no longer exists. That is the same for regulation 32.[Official Report, 4 June 2019, Vol. 661, c. 2MC.]

It is important to state on record that we need data sharing to track pupils to ensure, when it comes to improving the position of disadvantaged students and students in widening participation categories, the data is available.

[Gordon Marsden]

I appreciate the detailed explanation of the technical reasons for the changes and I have no wish to prolong the debate unduly, but the thrust of my remarks was to express our continued concerns about the inadequacy of the protections in this area. Will the Minister give the House an assurance today that he is confident the status quo in terms of the safeguards will in fact do the business, given that we and other bodies have raised substantial concerns about the current procedures?

[Chris Skidmore]

The section 3 regulations the hon. Gentleman mentioned in his earlier contribution were debated at the time of the regulations. The consequential provisions substitute the OfS for HEFCE. I will put on record that the Department takes its obligations under data protection laws very seriously. There is a panel that assesses each sharing request for public benefit, proportionality, the legal underpinning, and strict information security standards. I reiterate that no data sharing will take place without the Department ensuring that those measures are taken into account.

That takes us to the wider issue of the OfS being part of the regulators code and the application of that code meeting the commitment the Government made during the passage of the Act. In addition to the matters the OfS must have to regard to under HERA are the five principles of good regulation under the regulators code. It is worth putting them on record: the regulator should carry out activities in a way that supports those it regulates to comply and grow; regulators should provide simple and straightforward ways to engage with those they regulate and hear their views; regulators should base their regulatory activities on risk; regulators should share information about compliance and risk; and regulators should ensure clear information, guidance and advice is available to help those they regulate to meet their responsibilities to comply. The opportunity for the OfS to be a part of the regulators code is an additional indication of the responsibilities that the OfS takes its new role very seriously.

If I had longer I would go through the importance of why we are debating the regulations. As Universities Minister, I am delighted they have reached the Floor of the House rather than Committee Corridor. I believe this marks a significant moment in the reforms that began way back with the first Green Paper in 2015, all the way through to the final provisions of the Act being put in place. We have seen a shift from a provider-focused system to a student-focused system. We have seen a system that will now move to focusing on how we can best ensure we have value for money for students and deliver the best student experience. We can ensure that new providers, including FE providers, are able to enter the market.

When addressing the Education Committee this morning, we spoke at length about how we can ensure that FE and HE providers have greater opportunities to work together. One important part of the regulations is ensuring that FE providers will be able to have degree-awarding powers and apply to a much more streamlined system through the OfS. My ambition and long-term hope is that it will allow FE providers to have degree-awarding powers, rather than going through the rather complex and nuanced current franchising route. That will ensure we create a single system for a post-18 education world that benefits students, so they understand their role in the education system.

Question put and agreed to.

Resolved,

That the draft Higher Education and Research Act 2017 (Further Implementation etc.) Regulations 2019, which were laid before this House on 29 April, be approved.

House of Commons Commission

Resolved,

That Pete Wishart be appointed to the House of Commons Commission in place of Stewart Hosie in pursuance of the House of Commons Administration Act 1978, as amended.—(Jo Churchill.)

Education

Chris Skidmore Excerpts

Thursday 9th May 2019 Ministerial Corrections

[Sir Nicholas Soames]

Does my hon. Friend agree that, generally speaking, the rule the Government should adopt, given the unfortunate decision that this country has taken to leave the European Union and in order to make our way in the world to the greatest advantage, is that we must retain a very open system to allow the brightest and the best to come and study here from all over the world at equal rates of charging, but also with a regime that allows them to stay here and work in an orderly, sensible manner that is easily enforced?

[Chris Skidmore]

From the international perspective of the United Kingdom’s universities, I entirely agree that we now have the highest ever number of applications from foreign countries—about 158,000.

[Official Report, 29 April 2019, Vol. 659, c. 30.]

Letter of correction from the Minister for Universities, Science, Research and Innovation:

An error has been identified in my response to my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames).

The correct response should have been:

[Chris Skidmore]

From the international perspective of the United Kingdom’s universities, I entirely agree that we now have the highest ever number of applicants from foreign countries—about 134,000.

Draft Higher Education (Monetary Penalties and Refusal to Renew an Access and Participation Plan) (England) Regulations 2019

Chris Skidmore Excerpts

Wednesday 8th May 2019 General Committees

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

I beg to move,

That the Committee has considered the draft Higher Education (Monetary Penalties and Refusal to Renew an Access and Participation Plan) (England) Regulations 2019.

It is a pleasure to serve under your chairmanship, Mr Hosie. I welcome the opportunity to debate the draft regulations. Last week, during our debate on the higher education registration fees regulations, I mentioned that we had come a long way since the passage of the Higher Education and Research Act 2017. It is good to see one of the architects of that Act, my predecessor as the Minister, my hon. Friend the Member for Orpington, as a member of the Committee. In the time since HERA gained Royal Assent, the Office for Students has taken shape as the new HE regulator.

Since the formation of the Office for Students, it has registered more than 350 education providers—352 at 26 April, to be precise—to exacting standards. It has also ensured that all registered providers with fee caps at the higher level have comprehensive access and participation plans to improve access and support for students from disadvantaged backgrounds and under-represented groups. All students should have equal opportunities to complete their courses, get a good degree grade and go on to a graduate-level job or postgraduate study. The OfS helps with that.

The OfS includes academic freedom as a core principle of governance for registered providers, and it works in partnership with the Department for Education on the best way to enhance and improve the information given to students about the quality and standard of teaching to justifiably expect. HERA gives the Office for Students the power to create a new single register of higher education providers to be maintained by the OfS. The register is the route for providers to charge fees that attract student loans, to become eligible for grant funding, to offer degrees or, indeed, to call themselves a university.

In return for those considerable benefits, providers must comply with registration conditions relating to, for example, their financial sustainability, quality of provision and student protection. Additional conditions—for example, on access and participation for students from disadvantaged backgrounds—also have to be met by providers on the OfS register.

HERA also gives the OfS the power to apply specific conditions to a particular provider if there is cause for regulatory concern. Those are not specified in the Act, but they can include such measures as imposing improvement plans on providers in certain circumstances, which might involve the imposition of student number controls on an institution or particular course to protect the interests of students.

In the event of any of those measures failing to stop a provider falling short of its registration conditions, to protect the interests of students and the taxpayer, HERA specifically gives the OfS power to suspend a provider and to restrict its activity, or to remove it from the register with a loss of access to any of the benefits of being in the regulated system, such as student support. Section 15 of HERA also gives the OfS the power to impose monetary penalties on providers that fail to comply with their ongoing conditions of registration. Regulations are required to make provision for the amount of the penalty that can be imposed, and may set out the matters to which the OfS must or must not have regard when exercising the power to impose a monetary penalty. These are the regulations that we are debating today.

During the passage of the Act, Members in all parts of the House debated long and hard about the future of higher education. Indeed, HERA was the most amended piece of legislation in this Parliament’s history. Irrespective of the different views of how we finance or regulate higher education, there will always be an imperative to ensure that students get a high-quality experience and positive outcomes from the time and effort that they put into their education.

Adherence to registration conditions is a vital component of our reforms to the regulatory landscape. It is critical to safeguard the interests of students and the quality and reputation of our higher education sector. The power of the OfS to impose this monetary penalty on providers is an important tool that it has at its disposal to enforce registration conditions and encourage compliance. Failure to put the draft regulations in place will mean that the OfS will not have that essential regulatory tool at its disposal at the very point at which it most needs it.

Monetary penalties provide an effective incentive to comply with regulation and act as an enforcement tool. However, they must also be proportionate and fair. There was no statutory obligation to consult on the draft regulations, but during the passage of HERA through Parliament, a commitment was made to consult on the matters that the OfS must have regard to when imposing a monetary penalty. The Department conducted its consultation between December 2017 and March 2018. To reassure the Committee, as these are new regulatory powers, we also took the opportunity to seek views on the maximum monetary penalty. Through that extensive consultation, we have established the fair and balanced approach set out in the regulations.

The consultation process identified some concerns that monetary penalties could take away provider income that might otherwise be used for the benefit of students. The majority of respondents did not support the Department’s initial proposal for the maximum penalty as it was initially set out, but respondents were broadly supportive of the proposed factors, especially the factor relating to impact on students. We have listened. In response, the Government adopted the lower of their options for a maximum penalty amount—2% of qualifying income rather than 5%.

We remain of the view that monetary penalties need to be set at a level that ensures visible and meaningful consequences for providers in breach of ongoing registration conditions without being unduly punitive. The legal restraints that the draft regulations place on the OfS, including the mandatory factors to which it must have regard when setting the penalty, are designed to ensure that it is required to—but can do no more than—take appropriate, reasonable and proportionate action. In doing that, the draft regulations ensure that the interests of students—both those at the provider in question and students more generally—are taken into account.

Let me turn to the other element of the draft regulations, which permit the Office for Students to refuse to renew an access and participation plan. Ensuring that students from disadvantaged backgrounds and underrepresented groups can access and successfully participate in higher education is a priority for this Government. We have asked the OfS to secure greater and faster progress in this area. Access and participation plans are key to secure greater progress. The plans are not just about access to higher education but, importantly, are about support, so that students can successfully participate in their courses, helping to tackle drop-out rates, attain qualifications and progress from higher education.

[Sir John Hayes (South Holland and The Deepings) (Con)]

This instrument speaks of disadvantage and under-representation. Among the challenges faced are those confronted by disabled students and people with disabilities who are seeking to become students. On the Minister’s last point, on continuing support for those students, what results did the consultation provide? What further work might we do to ensure that people with disabilities can play their part and have their place in the sun?

[Chris Skidmore]

A total 54 organisations representing higher education organisations responded to the consultation. On the specifics relating to disabled students, I will be happy to write to my right hon. Friend with a range of views from those organisations during the consultation.

When it comes to support for disabled students, having been a secretary of the all-party parliamentary group for disability, I am keen to ensure that, as a Government and a higher education provider system, we do more to support disabled students. I have a roundtable organised for the Thomas Pocklington Trust on 17 May in Birmingham to talk to visually impaired students. I am keen to ensure that their needs are looked at. We are keen to ensure the disabled student allowance, which we raised for post-graduate study from £10,500 to £20,000 this year. A recent report demonstrated that just over 60% of disabled students found that the increase in support through DSA had allowed them to take up their course. Around 50% of those students felt that they may have dropped out if they had not had financial support.

It is not just about the money but about accommodation, and looking at what we can do—me as a Minister and the OfS—to reflect that in access and participation plans. If my right hon. Friend wishes, I can send him a copy of the Secretary of State’s guidance letter to the OfS, which was published in February or the beginning of March. As Universities Minister, I specifically ensured that the needs of disabled students were, for the first time, mentioned in the Secretary of State’s guidance letter. I will write to my right hon. Friend on the consultation and I am happy to send him that guidance letter, and I reassure him of my commitment to disabled students, to ensure that we do all we can so that more disabled students feel that they have the opportunity to succeed and have access to higher education.

[Sir John Hayes]

I have rarely received such a comprehensive and persuasive response to an intervention. I reassure the Committee that the Minister did not know I was going to make it, which makes it even more impressive.

[Chris Skidmore]

I am humbled by my right hon. Friend’s intervention. I am sorry to detain the Committee by giving a rather lengthy answer, but I thought it was important to do so. Ultimately, the draft regulations and the access and participation plans are about support, so that students can successfully participate in courses, and helping to tackle drop-out rates. Any provider that wants to charge up to the maximum permitted tuition fees to its students must be legally required by HERA to agree a plan with the OfS and then stick to it.

The OfS recently published guidance on the access and participation plans, which can be reviewed annually. There will therefore be an opportunity to update the plans with respect to new groups of students on which we may wish to focus in the future. I am fully aware that under-represented groups of students often present themselves, and we need to ensure that we have the flexibility in the system of access and participation plans to update them going forwards.

If we want to achieve real progress, it is vital that the OfS has strong powers where there are concerns that a provider has breached an access and participation plan—having failed, for example, to deliver on specific commitments laid out in it—or has exceeded the specified limits for course fees. In those circumstances, the OfS could, among other things, refuse to renew a provider’s next access and participation plan for a specified period.

Such refusals are a powerful tool. Without an agreed access and participation plan, a provider cannot charge higher-level fees. That would have a significant financial implication for many providers. More importantly, it would encourage them to stick to the letter of their plans, and ensure that they implement them effectively for the benefit of all students. Given the potential impact of refusing to renew a plan, the regulations ensure that providers can ask for any such decisions made by the OfS to be considered by an independent reviewer. That should give providers additional reassurance about the fairness and transparency of the process.

The regulations ensure that the OfS is consistent in the use of its powers. As such, it will have to take into account broadly the same factors before it decides to refuse to renew a plan as it would if it wanted to impose a monetary penalty—again, going back to the point about transparency in the process, and giving providers the opportunity to engage in dialogue with the OfS before we reach an end point at which action may need to be taken. Importantly, refusing to renew a plan is not the only tool available to the OfS if it is concerned about a provider’s performance on access and participation. Also available to the OfS are the sanctions and interventions that I have discussed, including monetary penalties, suspension of registration and deregistration, to address underperformance and encourage progress.

It is planned that the regulations, if passed today, will come into force on 1 August 2019, when the new Office for Students regulatory framework successfully becomes fully operational. That will permit the OfS from 1 August 2019 to start imposing penalties where it appears to the OfS that there has been a breach of a registration condition. The OfS will publish detailed guidance on its monetary penalties policy and processes before that date. The Government firmly believe that the higher education regulatory system must effectively protect the interests of students in the short, medium and long term—especially the most disadvantaged. The regulations support that.

HERA established the Office for Students, and it is already operational. The regulations enable the use of an important tool that will give the OfS the opportunity to carry out its core task of the effective stewardship of the higher education landscape, so that all providers deliver positive outcomes in the students’ interests. I therefore hope that the Committee agrees that the regulations are ultimately of benefit to students and the sector alike.

--- Later in debate ---

[Chris Skidmore]

I thank hon. Members for their participation in the debate. The hon. Member for Blackpool South said he wanted to probe me properly, and indeed he did. I was also suitably amended by my hon. Friend the Member for Orpington. I will touch on some of the points raised and valuable contributions made.

It is important to repeat that the OfS can use the statutory power to sanction a provider only when it appears that there is or has been a breach of that provider’s ongoing registration conditions. Before that, as well as imposing monetary penalties as a last resort, the OfS may suspend a provider’s registration entirely or, for specified purposes, deregister a provider. In the case of a provider breaching an access and participation plan, it may refuse to renew that plan.

In addition to those formal sanctions, the OfS has other regulatory interventions available to it, which it is already using, such as enhanced monitoring of providers and the ability to impose specific ongoing registration conditions. Those less formal interventions may be used instead of or in addition to sanctions to address the specific risk presented by a provider. They may also be used when a registered provider is at risk of but has not yet breached an ongoing registration condition.

My right hon. and learned Friend the Member for North East Hertfordshire asked about monetary penalties and the amounts expected to be raised; this also touches on the overall impact assessment. We hope that such penalties will be used very much as a last resort when all other measures have failed. We do not expect this to be a revenue-generating exercise. Money from monetary penalties as well as income derived from its interest is required by HERA to go back to Her Majesty’s Treasury’s Consolidated Fund. That prevents the OfS from imposing penalties or charging interest to raise income, or of being accused of doing so. The OfS will account for all penalty income separately from its existing funds. It is important to put that on the record.

The hon. Member for Blackpool South touched on the processes of engagement. It will be for the OfS to work with providers on the implications for students and prospective students of refusing to renew an access and participation plan, as referenced in regulation 5. It is also legally required to have regard to those mandatory factors when deciding to impose a monetary penalty. At the risk of repeating myself, when making a decision it will need to have regard to its regulatory framework, its duties under HERA, and section 2(1) in particular, the regulators’ code and any Secretary of State guidance.

On Secretary of State guidance—this touches on the point made by the hon. Gentleman about the relationship between the Department and the OfS—it is important to note that the Secretary of State issues annual guidance but has the ability to update that guidance at any point. As Universities Minister, I have a regular monthly meeting with the chief executive of the OfS to talk about specific issues that might be coming up on the agenda that require a discussion between the Department and the OfS.

The OfS must also comply with the principles of administrative law, such as reasonableness and taking into account relevant considerations while discarding irrelevant ones. I will come on to legal processes in a moment. The OfS must also follow the procedures in schedule 3 to HERA when informing the provider of its intention to propose a penalty and the reasons for that decision. Importantly, that allows the provider to make representations before the penalty is imposed. The OfS will therefore need to be transparent about how it has balanced those mandatory factors and other considerations, such as the individual circumstances, to determine the final monetary penalty amount, if indeed it has gone down that route.

The provider can also appeal a decision to impose a penalty, or the amount, to the first-tier tribunal of the Health, Education and Social Care Chamber, which is part of the court system of the United Kingdom. The provider’s appeal can be on either the decision to impose the penalty or the amount, on the basis that the decision was based on a factual error, was wrong in law or was unreasonable.

The regulations include provisions to review decisions by the OfS to refuse to renew an access and participation plan. Since 2004, providers have been able to seek a review of such a decision. No such review has ever taken place. A new statutory reviewer was appointed as part of HERA 2017. Given the significant impact on a provider of a plan being refused—the provider cannot charge higher-level fees—it is right that providers have the opportunity to have such a refusal tested through an independent review.

The hon. Member for Blackpool South mentioned Universities UK. I, too, am keen to reflect on any of its concerns, ongoing or otherwise. I am assured that the OfS has considered the risk in developing arrangements for future access and participation plans. That has been subject to consultation with providers, and is being implemented for 2020-21.

A veritable feast of specific points came up that I could be tempted down the route of addressing. My hon. Friend the Member for Orpington raised Philip Augar’s report. Hand on heart, I have not read it, as I said on Sky News yesterday. I wish to make it clear to the Committee that I have not seen the report, which will be published in due course. I understand my hon. Friend’s frustration, and that he wishes to engage with whatever recommendations come out of it. However, he will be well aware that it is just one part of the overall post-18 review.

There has been additional work on the level 4 and 5 consultation that is taking place. I think there has also been some work by PricewaterhouseCoopers, looking at how much a degree actually costs a university. Whenever the report is finally published, I am keen to ensure that we engage and work with the sector.

[Gordon Marsden]

The Minister is being extremely helpful, and I do not wish to detain him from being so, but he referred to the report being published. Does that mean that it will be published for public or stakeholder perusal before the Government give their response?

[Chris Skidmore]

I am unable to comment on decisions that may yet have to be taken. I expect a report of this magnitude to be published and, when it is, I am keen to ensure that the sector—as I have said to it—has the opportunity to engage with the report and its consequences. I am on record on specific issues and rumours. I will not prejudge the contents of the report.

[Joseph Johnson]

Has the committee that was producing the Augar report delivered its final report to the Department, and does the Department intend to publish it?

[Chris Skidmore]

I have not seen the report or been made aware of its being fully delivered. All I know is that any decisions that will need to be taken on this interim report into the overall post-18 review will need to be taken by the Department, the Prime Minister, who is fully aware—she commissioned the review in the first place—and Her Majesty’s Treasury. That will be subject to future discussions. It is probably unwise for me, as Universities Minister, to speculate any further on the process, but I know that the sector is keen to engage.

On data use, which speaks to the wider arguments about how we can improve access and participation, that is not a political issue. We share a common desire on both sides of the Committee to ensure that we do more to raise access and participation for under-represented groups and disadvantaged groups.

The hon. Member for Blackpool South mentioned care leavers, and I am equally passionate about looking at that particular group. With the Under-Secretary of State for Education, my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), I published the care leaver principles. They look at what universities can do and try to spread best practice, such as that which can be seen at Kingston University and the University of Winchester, as well as the academic research looking at how to raise the attainment of care leavers.

I am also keen to ensure that young carers are not ignored and that estranged students are taken into account. I am now in my fifth month as Universities Minister and there is always another group that comes up on the horizon that I feel that I have not considered. I am determined to make sure that nobody is forgotten about in this mix, and that brings me to a wider point on admissions.

I made a speech where I said that I think, when we move forward, we will look beyond access and participation to what I call a student transition experience and progress framework. That sets out that providers must be held to account not just for bringing students through their doors but also for outcomes—for students who are leaving being able to progress successfully through higher education. We probably share that common endeavour. The evidence and impact exchange that has been set up at Nottingham Trent and King’s College London will examine how we can spread best practice and ensure that while the sector is improving at a rapid rate, we continue to ensure that we do not take our foot off the accelerator.

I know that the hon. Member for Blackpool South is fully aware of my comments on the record on minimum entry requirements. I do not believe that there are too many students going to university. If we look at the international context, we need more students going to university and we certainly need more students going into postgraduate education. In my first speech, I set out a road map towards 2.4% being spent on research and development by 2027. I am a passionate believer in the opportunities that higher education brings, and to introduce a minimum entry requirement would cap off the knees of students who should be able to access higher education. Someone might be a victim of domestic violence, or an Army returner, or a student with mental health problems. Just because someone does not achieve the A-level grades that they are expected to achieve does not mean that they should be denied opportunities for the future—I know I probably share that view with other hon. Members on the Committee.

Birkbeck was mentioned. I am very keen to ensure that the post-18 review does not lose sight of the fact that it needs to ensure that we bridge the opportunities between FE and HE. It also needs to ensure that those students who do not go to university at 18, who perhaps enter the world of work and then go back to university when they need to achieve a qualification in order to progress—for example, someone who has been a nursing assistant who needs to go to university to be a qualified nurse—are able to achieve their dreams.

I congratulate Tim Blackman, who has just been announced as the new vice-chancellor of the Open University, moving from Middlesex. I know that he will do an excellent job. It is the 50th anniversary of the Open University. It presents a paradigm—an opportunity —for looking at how lifelong learning can be done as well as possible.

I do not see new providers as a threat or as organisations that should not be given the opportunities of other universities—the Open University was a new provider at one point—and it is right that we allow those new providers to breathe. The regulations provide accountability for new providers, which makes sure that the OfS can work with them and ensure that, if anything untoward takes place, it will be able to hold them to account. That is where responsibility should lie.

I agree with the point the hon. Member for Blackpool South made on the director for fair access and participation. Chris Millward is obviously an excellent individual who has strong ideas about how to expand access and participation. Institutionally, we want to ensure that the director for fair access and participation will be responsible for overseeing the performance of OfS access and participation functions, and for reporting to other members of the OfS on the performance of such functions.

It is right to say this is a delicate balance. When setting out access and participation aspirations, we must not infringe on institutional autonomy, which is one of the hallmarks of our world-class higher education system. We have a duty to protect academic freedom, including in relation to admissions, when carrying out those access and participation plan functions. In continuing with the previous approach, the intention is that the OfS will agree the targets and benchmarks that HE providers set for themselves. This year, the OfS has for the first time put together a common access and participation dataset, which it expects providers to use and set targets with their plans.

The hon. Member for Blackpool South is a fellow historian and obviously equally as interested as I am in the uses of data. I recently set up an HE data advisory committee in the Department for Education to look at some of the wider issues. On the participation of local areas classification, or POLAR, as an effective measure, we agree that more work must be done on the geographical location of disadvantaged pupils, on looking at household income and on what more we can do to ensure that we have a more granular and fine-tuned dataset in order to ensure that we are effectively targeting the students who we want to have opportunities to enter higher education. Should a provider fail to meet the requirements of the access and participation plan, the OfS will be able to hold the provider to account. Where appropriate, the OfS may consider the use of its sanction regime for breaches of registration conditions.

In discussing the regulations today, I hope I have set out the opportunities for the OfS to be held to account when administering the process of whether it should use its fining powers. There are a range of opportunities for the OfS to engage with providers to have that dialogue before implementing any particular penalties. Having had this discussion, I urge Committee members to support the regulations.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Higher Education (Monetary Penalties and Refusal to Renew an Access and Participation Plan) (England) Regulations 2019.

Higher Education (Registration Fees) (England) Regulations 2019

Chris Skidmore Excerpts

Wednesday 1st May 2019 General Committees

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

It is a pleasure to serve under your chairmanship, Mr Davies. I welcome the opportunity to debate the regulations.

We have come a long way since the passage of the Higher Education and Research Act 2017. The Office for Students is taking shape as the new higher education regulator. As of 26 April, it has registered 352 higher education providers, including all English universities, since its formation, and to exacting standards. It has ensured that all registered providers with fee caps at the higher level have comprehensive access and participation plans to improve access and support for students from under-represented groups. All students should have equal opportunities to complete their courses, get a good degree grade and go on to graduate-level jobs and postgraduate studies.

Those are some of the other priorities of the OfS, which the hon. Member for Blackpool South has not touched on, but which are equally a part of its operation and benefit all universities and their students. The OfS has also included academic freedom as a core principle of the governance of all registered providers, and is working in partnership with the Department for Education on the best way to enhance and improve the information given to students on the quality and standard of teaching that they can justifiably expect.

The 2017 Act gives the OfS the power to charge higher education providers a fee for their registration, in line with the detail set out in the fees regulations that we are debating. These regulations, alongside a direction from the Secretary of State, will enable the OfS to fund the majority of its operating costs using income from registration. This will result in the administrative costs of regulation being covered by the sector rather than the Government or, I should say, the taxpayer.

During the passage of the 2017 Act, hon. Members on both sides of the House debated long and hard about the future of higher education, and I think it was the most amended piece of legislation in the history of the British Parliament. Irrespective of different views about how we finance higher education or how it should be regulated, there will always be that imperative to ensure that students get a high-quality experience and positive outcomes from the time and effort they put into their education.

Diversity of provision is important to help to achieve those aims. Therefore, registration fees for providers are designed to support the broader intentions of the 2017 Act, encourage that diversity and provide meaningful choice for students. The Treasury’s guidance for managing public money suggests that financing certain public services through charges rather than general taxation is a good way to allocate resources, because it signals to consumers that those services have real economic costs. Charging registration fees is consistent with that cross-Government guidance.

It is normal for regulators and sector-owned bodies to be funded by those whom they regulate. These regulations bring the approach to funding the OfS in line with other established regulators, such as Ofgem or Ofcom. The fees are an integral part of the new regulatory framework. Successful registration with the OfS brings providers under the new regulatory framework and secures students’ interests, value for money and quality.

Providers need to register for their courses to be eligible for student loans, and they must register to the approved fee-cap part of the register in order to be eligible for grant funding. The benefit for the student is that the registered providers are regulated. The OfS has duties to have regard to things such as value for money, and it can take action to ensure that providers provide quality HE.

To reassure hon. Members, we have consulted carefully and considered the impact of these fees on providers of all sizes. We believe that the overall impact will be relatively small. The total amount of funding raised by the fees would represent less than 0.1% of the annual income that the sector generates. Fees will be proportionate to provider size, which we think is the fairest basis. That approach was supported by the majority of respondents to the DFE’s consultations.

We acknowledge that this new system will need careful monitoring for the future and perhaps some adjustment over time. For that reason, a full review of the system will take place after two years. We have estimated that the operating costs of the OfS in its first year of operation, 2019-20, will be £27.2 million, which represents a 4% efficiency saving. As has already been stated, the Government will provide £0.8 million of funding in subsidies for new providers and micro-providers, which I will touch on in a moment. Therefore, the required amount raised by registration fees is £26.3 million.

Providers have influenced how the fee model has been designed through a two-stage consultation process. I have had the opportunity to talk to all university groups, including MillionPlus. Speaking with Greg Walker, I will continue to listen to their concerns and ensure that those are raised in the Department. However, there will be that other chance for providers to influence the fees via the plan review after the first two years of full operation of the OfS.

All fees published before the final fees in the statutory instrument have been indicative. The fees published in a second consultation document in October 2017 were suggested to initiate the discussion with stakeholders as part of that consultation. As was made clear, the indicative fees published in the response to the second consultation in February 2018 were updated to take into account concern expressed about the impact of the fees on smaller providers, and this meant that fees for medium and larger providers necessarily increased. At this point, an early estimation of 25% Government funding for the OfS was replaced with specific subsidies that targeted Government funding where it would be most effective—at new and very small providers.

In addition, the Government funds other aspects of the OfS’s operations outside this regulatory regime, such as the teaching excellence and student outcomes framework, Prevent administration and student information. The final fees have increased since February 2018 because the actual number of providers who applied to join the register has been lower than anticipated at that date. It is in students’ interests that HE is well regulated, and the OfS has been set up in their interests.

When it comes to varying registration fees by providers, we believe that size is the fairest basis on which to introduce the regime. That was supported by 62% of responses to the consultation on this topic. Provider size offers an objective, transparent and simple measure that can be applied effectively across all providers. There are 13 bands, which allows the fees to be proportionate while being efficient for the OfS to administer.

As I said, the bands were adjusted following responses to the second consultation on registration fees—a clear demonstration that we are listening to the sector and taking action on the consultation responses. That adjustment was made to reduce the impact on smaller providers. The smallest 20% of registered providers—those with up to 75 full-time equivalent HE students—benefited from the restructuring of the fee table with lower fees. The final fee model has narrower bands at the lower end to reduce the impact of fees on smaller providers. Making the fee increase between bands regular, at 25%, allowed the fee levels to start lower.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

Can the Minister tell us how many of the respondents who were in favour of the new fee regime were smaller providers seeking to enter the market? Of course, based on what he just read out, they could become quite a high percentage, but they are not the mainstay of our higher education sector.

[Chris Skidmore]

I can certainly write to the hon. Lady with details of the number of providers that took part in the consultation and their size, but it is important to look at the cost per student of the registration fees. For some of the larger institutions, which, as she correctly says, are mainstays of our higher education sector, those range from £9 to £15 per student, whereas they are significantly higher for some smaller institutions. It is right that we take that into account. Analysis of the 132 publicly funded providers that the Department holds finance data on—finance data taken from the Higher Education Statistics Agency plus 2015-16 data—shows that none of those providers will pay more than 0.7% of their total income in registration fees.

Turning to the definition of micro-providers, which the hon. Member for Blackpool South mentioned, and to why the subsidy is in place, micro-providers are the very smallest providers—those that fit the Companies Act 2006 definition of a micro-entity and have 300 or fewer full-time equivalent HE students. There are approximately 14 on the register at present. They will be exempt from registration fees for as long as they remain within that definition. That is in line with the better regulation framework guidance.

I turn to the issue of ensuring that the OfS remains accountable and efficient, that it provides value for money for students and the general taxpayer, and that providers get value for money for the registration fees they pay. The OfS is statutorily obliged under section 2(1)(f) of the Higher Education and Research Act 2017 to have regard to the need to use its resources

“in an efficient, effective and economic way”.

Under section 2(1)(g), the OfS must have regard to best regulatory practice, which includes ensuring that regulatory activities are proportionate and

“targeted only at cases in which action is needed.”

As the hon. Gentleman mentioned, that is a risk-based regulatory framework that is expected to drive down the costs of regulation and, consequently, the overall costs to the OfS and providers. The duties written into the Act will help to ensure that registration fees represent value for money for registered providers.

There are also several mechanisms in the Act that allow the Secretary of State to hold the OfS to account for both the performance of its functions and value for money. Under section 2, the OfS must have regard to guidance issued by the Secretary of State; under section 74, the Secretary of State has the power to attach terms and conditions to any grants given to the OfS; under section 77, the Secretary of State has powers to give directions to the OfS; and under section 78, the Secretary of State has the power to require information and advice from the OfS about any of its functions. Of course, under schedule 1, the OfS must also provide the Secretary of State with an annual report on the performance of its functions, which the Secretary of State must present to Parliament.

In summary, the Government firmly believe that giving students real and well-informed choices is the most effective way achieve quality higher education, and that the regulatory system should be designed to support that. The regulations support the regulatory ecosystem in line with accepted best practice across the public sector. The fee structure is designed to subsidise fees for new and very small providers of higher education to encourage diversity in the sector.

The 2017 Act established the Office for Students, which is already operational and will become fully operational on 1 August 2019. The regulations provide a strong incentive to ensure that the sector can hold its regulator to account for efficiency. I hope that the Committee agrees that the regulations are ultimately beneficial to students and the sector alike.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

I, too, was on the Higher Education and Research Bill Committee and at the outset we raised a number of issues with the funding regime for the OfS. Despite what I have just heard from the Minister, a number of questions about the OfS and its funding still need to be addressed.

To date, the Government have funded the OfS, but the SI will change that, and from 1 August, universities will largely have to pay for the OfS. That shift, as the Minister said, is entirely due to a policy decision by a Government who believe that regulated bodies should fund the cost of their regulation. Unfortunately, in the case of the OfS, I do not think that the Government have understood the implications of that, not just for the university sector, but for students themselves.

Paragraph 7.2 of the explanatory memorandum states that the funding model that the Government are setting up will

“reduce public spending and will encourage those regulated to hold the OfS to account for its efficiency.”

To date, efficiency savings have not been made by the OfS, so we can see from the outset that that is a complete policy failure. The OfS—never mind the institutions that it regulates—is not being held to account by anyone. That is the key point about accountability raised by my hon. Friend the Member for Blackpool South. The Minister must explain what he will do to make the OfS more accountable.

During debate on the fee rise in the Higher Education and Research Bill Committee, it was pointed out to the Minister—I accept that it was not the Minister who is before us today—that the cost of regulation, although borne by universities, would in fact be borne by students, because universities are mostly funded by income from students. The last time I checked, student fees were still called “tuition fees”; they were not called “funding-the-complete-costs-of-universities fees”.

I hardly need to remind the Minister that students bear those costs through their fees, and that once they earn above the threshold, they pay back to the Government not only the cost of their loan, but interest, which varies between 3.3% and 6.3%, meaning that they leave university with debts of at least £40,000 to £50,000. As tuition fees are currently held constant, while the cost of the OfS is increasing, over the years more and more of the student fee will go towards regulation. That funding model is not fair to students. What does the Minister think about that?

Thanks to the work of Universities UK, we know—I am not sure that we would have known through the Minister—that since the first impact assessment was carried out in 2017, the average increase in university fees has been a massive 62%. Since the DFE consultation last year, there has been an average increase of 18%.

The table the DFE has published about the funding of the OfS is interesting. From it we can see that, far from the OfS being efficient and required to cover its costs, the Department thinks that in three years it will cost another £3 million and in five years it will cost another £5 million; that is £27.2 million in 2019 and £32.6 million—almost another £5.5 million—in 2024. I do not think the Minister really answered our question: why are the costs rising in the way that they are and why is the amount of money that the Government are putting into the OfS so small? In 2020, the cost will be £28.6 million, with only £1 million coming from the Government.

[Chris Skidmore]

Taxpayer.

[Gordon Marsden]

Government.

--- Later in debate ---

[Chris Skidmore]

To conclude my remarks, it is in every student’s interests that higher education is well regulated, and the OfS has been set up to act in their interests. While HE providers are autonomous institutions, the regulatory framework is designed to ensure that they are providing value for money for students; they are taking action to improve access and participation; and they have student protection plans in place in case of any market failure. It is incredibly important that the OfS plays that role in ensuring that there are standards within the sector, that those are observed, and that we can ensure that we work collaboratively with the sector to make sure that it acts in the best interests of students. If there are substantial concerns, the OfS can carry out efficiency studies to scrutinise whether providers are providing value for money for students and taxpayers.

As I have said already, the cost of registration fees will be comparatively small in the context of the overall HE sector’s income, an increasing proportion of which comes from Government-backed student loans. Students themselves have a strong interest in ensuring that HE providers are properly regulated. The approach that we have taken when it comes to looking at the cost of regulation is in line with other regulated markets or public bodies, and it is right that we take those actions.

It is expected that the annual registration fee amounts will be updated to reflect the OfS’s operating budget for the year in question, subject to Treasury agreement, and we would expect that any changes would require regulations to be updated and laid before Parliament, following approval by the Treasury. We expect that any significant changes would also involve further consultation with the sector.

I do not intend to get into a general debate about student finance or HE. We have already had an urgent question on European students and I am sure we will have more debates on the subject in the main Chamber. Today, we are focusing on this specific regulation and the fee levels. As I have set out, we had a consultation on the indicative fee levels, not the existing fee levels, and the regulation and the explanatory memorandum make that clear.

I am keen to ensure that, as a Minister, I support the OfS. It is acting in the best interests of students and is fit for purpose, contrary to what the shadow Secretary of State for Education imagines. We need to ensure that the organisation is given the opportunity to benefit all students, including pupils who want to go to university from across the country, and to do the important work that needs to be done so that universities and higher education providers realise their responsibilities to improve access, participation and progress. Delivering successful graduate outcomes is equally important work, aside from the financial sustainability regulation that the OfS will monitor in universities when it comes to registration conditions.

The OfS will also encourage the higher education sector to continue its long history of working together to ensure that we take into account the interests of students in local areas. The OfS is keen to encourage this work, not just between universities, but between HE and FE, and with local authorities, employers, health services and other organisations. For example, we have not talked today about the work of the OfS national collaborative outreach programme, which sees universities, colleges and other partners work together to deliver programmes to widen participation in HE.

It is important to reflect on the fact that the OfS has a positive, future-facing and supportive role. It will play a key role in the establishment of future organisations such as the institutes for technology, which will allow collaboration between universities and colleges to offer high-level technical education at levels 4 and 5— just below degree level. That will support the aims of our industrial strategy and the OfS is encouraging HE providers across cities and regions to work jointly with local enterprise partnerships to contribute to local economic growth.

We are moving away from universities being seen in their own individual silos, and I believe the OfS has an important role to play when it comes to the establishment of that civic role of universities, being able to demonstrate best practice and to spread that positively across the country. The OfS is also funding and promoting work to support growth in key sectors of the economy—for example, the Institute of Coding, which is a consortium of universities and employers with a mission to develop the next generation of digital talent.

I have just met the Israeli ambassador to the UK to talk about hate crime and discrimination—[Interruption.] It is important—

[Gordon Marsden]

It is nothing to do with the regulations.

[Chris Skidmore]

It is important, because this is about the scope of the OfS. Our debate today has focused simply on the financial role of the OfS in regulating universities. It also has a role in promoting access and diversity, to ensure that all students have the opportunity and the freedom to study. That work is not some spread of a quango, as the hon. Member for City of Durham said; it is really important work. We should be able to look at how we ensure that hate crime is addressed effectively and that we adopt a collaborative approach. The OfS as a body provides a national focus to ensure that these measures are taken forward constructively.

When it comes to the development of the OfS, I urge all Committee members to support it and look at its work in universities in their region, because it is an important organisation that will benefit students, and not just by providing best value for their courses. We can talk about the cost of the registration fees; I think the OfS will pay back the cost of the registration fees to the universities more, and not just in kind, but by being able to look at what is an incredible value-for-money argument.

It is important that we work to ensure that the OfS can continue to develop its plans for the future. I have already helped to sign off the access and participation plans framework guidance for the OfS this year. I am keen to ensure that we work on developing that for next year and the years after and on ensuring a positive relationship with the sector.

[Dr Blackman-Woods]

Just for the sake of clarity, I would not wish the Minister to get the impression that we do not think that ensuring a strong role for our universities in their local communities or widening participation are important. The real question for us today is how all those laudable things are paid for. Our real question, which the Minister is not answering, is: why should all that fall on the cost of student fees? Why should students bear that cost?

[Chris Skidmore]

Without getting into a wider debate about access to university finance, we are talking about 0.1% of universities’ income. Not all income is simply from university student finance; there are other sources of income. I think it represents incredibly good value for money for universities, as registered providers, to be able to demonstrate their commitment to improving access and participation, and to demonstrate their role as civic bodies, working alongside other universities and collaborating with other access and participation charities. The OfS plays a crucial linking role in that, which is why, when it comes to registration fees—I am afraid that we will have to disagree about the cost to provider; it is not the Government paying—I personally believe that it is right that those who are regulated should pay. That is widely accepted practice right across government, and I urge all members of the Committee to support the regulations.

Oral Answers to Questions

Chris Skidmore Excerpts

Tuesday 30th April 2019 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

4. When his Department plans to publish its smart export guarantee proposals for new solar households.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The smart export guarantee will pave the way to a smarter, more flexible energy system and ensure small-scale low-carbon generators are paid for the electricity they export to the grid. Yesterday, we published a consultation on the SEG draft licence conditions. We intend to start the legislative process for the smart export guarantee before the summer recess. There are already encouraging signals from the market and suppliers are beginning to voluntarily offer smart export tariffs.

[Kerry McCarthy]

I think a lot of people in the sector will feel that the delay is not acceptable. Does the Minister agree that the Government must mandate a fair minimum floor price to prevent suppliers from taking advantage of solar households and other small-scale solar generators? The energy price cap is there to ensure suppliers sell power at a fair price. We need a similar mechanism to ensure they purchase at a fair price, too.

[Chris Skidmore]

That will be part of the consultation. We will set out our final proposals for the guarantee as soon as possible—as I said, before the summer recess. In the meantime, the right signals are already emerging. Energy suppliers are voluntarily bringing forward smart export tariffs.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

As we have heard, rather than publish a smart export guarantee that actually works, the Tories plan to further stifle the industry by hiking VAT on solar. Is it not time that the Minister’s Government stopped the Tory war on renewables and started taking climate change seriously by following the leadership of Scotland’s First Minister and declaring a climate emergency?

[Chris Skidmore]

The hon. Gentleman fails to mention the success story that is solar photovoltaic. Over the past eight years since May 2010, under the coalition Government and this Government, 99% of capacity has been deployed. That is 49% of the total investment in the EU. We have installed more than twice as much solar capacity as any other European country—more than Germany, France and Australia combined. That is something he should welcome rather than talk down.

[Drew Hendry]

The Minister has his head in the sand over climate change. Last week, the Business, Energy and Industrial Strategy Committee concluded that the UK could not credibly adopt a net zero emissions target without greater investment in new technologies. If the Tories will not act, when will they devolve the powers to Scotland, so the Scottish Government can show them how to do it?

[Chris Skidmore]

On the net zero target, we will obviously wait on the Committee on Climate Change report, which will be published on Thursday 2 May. I am sure the hon. Gentleman welcomes the Government’s success story on solar capacity and renewables. In comparison with the early 1990s, emissions have come down by 40% while the economy grew by 72%. There is more to do—there will always be more to do—but we are on the right track and doing the right thing. Solar capacity has reached 30 GW, compared with an estimate of 10 GW to 12 GW. We continue to ensure we exceed our targets.

[Rachael Maskell (York Central) (Lab/Co-op)]

5. What steps he has taken to promote the use of sustainable packaging.

--- Later in debate ---

[Geraint Davies (Swansea West) (Lab/Co-op)]

7. What steps he has taken to reduce methane leakages as a result of fracking.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The UK has many years of experience regulating the onshore oil and gas industry, and measures are in place to minimise methane emissions. The Environment Agency issues and robustly enforces legally binding environmental permits regulating methane emissions. Under these permits, operators must have an agreed gas management plan to detect leaks and make repairs over the lifetime of site operations. They must also monitor emissions before and during shale gas operations.

[Geraint Davies]

The Minister will know that NASA and satellite data show that 5% of the methane from fracking is leaked through fugitive emissions and that methane is 85 times worse than carbon dioxide for global warming, which makes fracking worse than coal for climate change. Will he meet me to discuss my fracking Bill, instead of listening to Jim Ratcliffe, the richest man in Britain, from Ineos, who is hellbent on Brexit to avoid the environmental controls on fracking currently imposed by the European Union?

[Chris Skidmore]

I would be happy to meet the hon. Gentleman and I would emphasise his comment about feeding in space data research. It highlights the importance of the UK space industry in looking at environmental issues. The Government also have a grant funding and environmental monitoring programme led by the British Geological Survey in respect of shale gas sites. All the information for that is publicly available. I also note that the MacKay-Stone 2013 report concluded that the carbon footprint of UK shale gas would be much less than that of coal and comparable to that of imported liquefied natural gas.

[Patrick Grady (Glasgow North) (SNP)]

There is no fracking in Scotland, there has been no fracking in Scotland and, under the SNP, there will be no fracking in Scotland. If we going to be serious about the climate emergency, there should not be fracking anywhere in the United Kingdom, so will the UK finally follow Scotland’s lead and rule out fracking on these islands?

[Chris Skidmore]

Unfortunately, residents and households in Scotland still need to use gas, given that 85% of UK households use gas for heating, and it is right that we look at opportunities to meet our energy demand. Some 47% of gas was imported in 2017, but if we do not take action, this could rise to 72%. We want to increase our opportunities for generating electricity through renewables. In quarter 3 of 2018, just 2.5% of electricity was generated by coal, compared with 40% in 2010, so we are going in the right direction, but we cannot forget that people will be using gas in Scotland.

[Bob Blackman (Harrow East) (Con)]

8. What recent steps he has taken to promote international collaboration in the science sector.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

As announced in the spring statement, I have invited Professor Sir Adrian Smith to provide independent advice on potential future funding schemes in the context of the UK’s future ambitions for European and international collaboration on science and innovation. I also look forward to welcoming delegations from over 50 countries to the EUREKA global innovation summit in Manchester this May.

[Bob Blackman]

Our world-class scientists collaborate across the world, with the EU and beyond, and that collaboration is vital for further research and innovation in this country. Horizon 2020 is a ready-made platform for that collaboration. Will my hon. Friend commit to joining the Horizon 2020 programme as we leave the EU?

[Chris Skidmore]

The Government have committed to guaranteeing all existing Horizon 2020 projects before Brexit. That was issued in August 2016 and demonstrated the Government’s commitment early on to protecting our scientific partnerships. We then had the underwrite extension in July 2018 which said that even once we had left the European Union—for two years up until December 2020—we would commit to funding those projects for the lifetime of them. We are now moving into negotiations on Horizon Europe, which is the successor scheme to Horizon 2020. I took part in the EU Competitiveness Council in February—I hope also to attend on 28 May—and it is our ambition to associate into Horizon Europe. On investment, my hon. Friend will be well aware that through our world-class universities we put in £4 billion and got back £5.7 billion in investment.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Even at the height of the cold war, there was a surprising level of collaboration between Russian and UK nuclear physicists. Will the Minister assure me that there will be similar collaboration when it comes to the skills that we have in the UK—particularly at Dounreay, in my constituency—in nuclear decommissioning, which is an industry that we could export and which could make a lot of money for the UK?

[Chris Skidmore]

I entirely agree, and I pay tribute to the UK nuclear decommissioning sector. As science Minister, I have seen the innovation that is being developed. I recently announced £93 million for a robotics for hazardous environments programme involving about seven universities across the UK, which are looking into how we can use robotics more effectively to help nuclear decommissioning. I am delighted that that is now being transferred to Fukushima in Japan. The Government are ensuring that scientific collaboration is international. We will publish an international research and innovation strategy shortly, and I shall welcome any opportunities, involving any countries, to continue that work.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

9. What recent representations his Department has received on proposed changes to employment contract terms and conditions in the supermarket sector.

--- Later in debate ---

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

11. What recent discussions he has had with the Secretary of State for Environment, Food and Rural Affairs on tackling climate change.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

Tackling climate change is a cross-Government priority. Just last week my right hon. Friend the Minister for Energy and Clean Growth made an oral statement outlining the Government’s climate change priorities. Ministers in the Departments for Business, Energy and Industrial Strategy and for Environment, Food and Rural Affairs meet regularly to discuss matters including waste management, agriculture, forestry, resource efficiency and the environment Bill. We will host the upcoming Inter-Ministerial Group on Clean Growth to discuss the report from the Committee on Climate Change and the UK’s offer to host the United Nations Conference of the Parties in 2020.

[Luke Pollard]

After the Government’s refusal to declare a climate emergency, may I ask the Minister what he has personally taken away from the visit of 16-year-old Greta Thunberg and her most powerful advocacy on the need for urgent action?

[Chris Skidmore]

I think we will be having a thorough debate on this issue of climate change emergency in the Opposition day debate tomorrow. When it comes to my personal role as the Minister with responsibility for science, innovation and research, I entirely agree that we need to be making more investment in climate change technology in order to reach our target of 2.4% of GDP on research and development. We have already announced our missions in relation to clean growth. I absolutely believe we should be listening to the experts—that includes the scientists—and learning from climate science, wherever that may be, to make sure we can reduce our emissions.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

Since the Rio summit in 1992, the UK has actually decarbonised more than any other G7 economy, while growing our economy the most at the same time. However, we need to do more, which is why I am looking forward to the Committee on Climate Change report on Thursday. If it does indeed recommend a net zero target, will the Minister commit to ensuring that that is something the Government will very seriously consider bringing into law at the first opportunity?

[Chris Skidmore]

My hon. Friend is absolutely right to highlight the achievements that have been made in recent years, but it is important that we redouble our efforts. The Committee on Climate Change report, which will be published on Thursday, was commissioned by the Government, and the Government will be taking actions on the back of its recommendations. It is important that we look to continue our actions, but it is also important that we do so with our international partners. We have the UN summit taking place in September and future COPs, including the one we would like to host in 2020.

[Rachel Reeves (Leeds West) (Lab)]

19.   The Committee on Climate Change says that we need to double our production of onshore wind in the next decade; instead, it is likely to halve because of this Government’s ideological opposition to it. We are not on target to meet our fourth and fifth carbon budgets, let alone achieve net zero, so will the Government end their ideological opposition to onshore wind so that we can hand a better planet on to future generations?

[Chris Skidmore]

I would not call listening to local communities and reflecting on the need to create sustainable communities locally “ideological opposition”. We need to work with everybody—all citizens. There has been talk of citizens’ committees, so why not ensure that local communities are able to reflect on the benefits of renewable energy in their communities, and begin such dialogues with them, rather than call them ideological opponents of renewables? I do not think that is very fair on those communities.

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

I would like to send the thoughts of Opposition Members to the Minister for Energy and Clean Growth. I welcome this Minister to his place and look forward to our exchanges over the Dispatch Box.

In 2016, the UK’s carbon emissions fell at 6% a year, and in 2017, emissions fell at 3% a year, but in 2018, the figure was 2%—just a 2% fall—so at a time when action should be ramping up to tackle the climate emergency, can the Minister explain why the UK’s progress is slowing down?

[Chris Skidmore]

I do not recognise that. The fact is that we have met our first and second carbon budgets over the 2008 to 2012 and 2013 to 2017 periods. We have managed to reach those targets. Turnover for clean business was up 7% in 2017, contributing £44.5 billion to the economy. When it comes to ensuring that we look at our clean growth strategy, we have set out quite clearly opportunities to halve the energy use of new buildings by 2030 and to establish the world’s first net zero carbon industrial cluster by 2040. By comparison with our European neighbours, we are racing ahead—we are leaders in this field—and we want to make sure that we can continue to do so.

[Rebecca Long Bailey]

With respect, the Minister is alluding to the UK’s emissions cuts since 2010, when the UK still benefited from policies put in place by the previous Labour Government—policies that the Conservatives have now scrapped. Secondly, it is irrelevant, quite frankly, to climate physics whether the UK is doing slightly better or worse than other countries that are also failing to take the necessary action.

I ask this in good faith and in all seriousness: does the Minister accept that the UK’s stalling progress is related to banning—in effect—onshore wind, reducing almost all support for solar power, scrapping the zero-carbon homes standard and selling off the Green Investment Bank? Will he be honest about the challenge, and work with Labour and Members right across this House on turning this around, so that we can truly tackle climate change and properly seize the economic opportunities within the green economy?

[Chris Skidmore]

It is important to recognise that 56% of electricity power generation is now based around low-carbon economy generation and that 33% of that is from renewables, up from 7% in 2010. Coal represents 2.5% of our electricity generation, and last weekend the UK went 90 hours without any coal electricity generation for the first time since the industrial revolution. As we are now involved in the fourth industrial revolution, we want to ensure that we continue to power through and that we can adopt more renewables for the future.

[Anna McMorrin (Cardiff North) (Lab)]

12. What plans the Government have to expand the use of renewable energy sources.

[Kirstene Hair (Angus) (Con)]

18. What progress he has made on promoting renewable energy generation.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

Last year, renewable generation provided a third of our electricity and, as I have stated, over the Easter weekend we went 90 hours without any coal generation. Both were new records. Our next contracts for difference allocation round will open next month. We are driving down the cost of clean technologies and investing £2.5 billion in low-carbon innovation.

[Anna McMorrin]

Far from leading the way, the UK has plummeted to the bottom of SolarPower Europe’s league table of 20 world markets in solar, and we are one of the few EU countries not providing any support at all to solar power. Not only has solar had all support removed prematurely but it is being hit by wave after wave of fresh damage, making it harder to meet our climate targets. Will the Secretary of State or the Minister meet me to discuss the damaging net effect of the Government’s policies on solar and on the transition to clean energy?

[Chris Skidmore]

I am sure that the Minister for Energy and Climate Change will be happy to meet the hon. Lady, but as I have stated, photovoltaics is a UK success story. We have seen 830,000 installations, and I have mentioned the smart export guarantee tariff that is being designed. We want to ensure that this will be able to generate profit for those companies, and that we continue to be able to lead Europe on this.

[Mike Wood]

Eliminating net carbon emissions by 2050 is both ambitious and achievable. Does my hon. Friend agree that the progress made over the past decade demonstrates that, where there is the political will, it is possible to reduce emissions while supporting economic prosperity?

[Chris Skidmore]

Absolutely. We need to deliver ambitious reductions in emissions, considering our long-term targets in the light of the latest science. That is why we have asked the Committee on Climate Change for advice on our long-term targets, including that net zero target. The committee’s advice will be published this Thursday, and we will consider it carefully.

[Kirstene Hair]

Of course we have a record to be proud of when it comes to renewable energy, but we should always continue to be as ambitious as we have been. How significant has the UK’s contribution been to ensuring that Scotland meets its renewable targets?

[Chris Skidmore]

The Government are firmly committed to the renewables industry, and Scotland has benefited proportionately more than the rest of the United Kingdom under existing policies. It will continue to benefit from future investment. Fifteen Scottish projects have been awarded contracts for difference with a total capacity of 2.57 GW, and the Government and numerous other public sector organisations have provided £15 million to fund the European Marine Energy Centre in Orkney, which is one of the world’s leading wave and tidal demonstration centres.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The truth of the matter right now is that, far from expanding the source of renewables, the Government have narrowed the use of renewable energy in recent years. Of course we should strongly support the development of offshore wind, but the Minister must acknowledge that marine and tidal power has been almost strangled at birth by the Government’s indifference and even active hostility, and that onshore wind and solar PV have been severely hampered by adverse Government decisions on support and planning. On lack of support, will the Minister answer a specific question? Why is he sanctioning a VAT rate rise to 20% on solar power while at the same time maintaining a rate of just 5% on coal and fuel oil?

[Chris Skidmore]

The industry has invested more than £92 billion in clean energy since 2010. As I have stated, renewables now generate 33% of our electricity, and 52.8% comes from low-carbon sources. As for the VAT issue, we are working with organisations and companies to ensure that we can get the best possible deal when it comes to renewables. I am sure that my right hon. Friend the Minister for Energy and Clean Growth will be happy to discuss the matter with the hon. Gentleman in further detail, but we are committed to ensuring that we have a wide range of renewables, including marine energy and offshore and onshore wind, to make sure that we can continue to drive up our renewable capacity.

[Antoinette Sandbach (Eddisbury) (Con)]

14. Thirty gigawatts of installed solar shows that it is an essential tool to ensure clean growth and is vital in our fight against climate change. Despite the Treasury’s consultation, does the Minister agree that it should keep the reduced VAT rate for solar, which was guaranteed as recently as 2016?

[Chris Skidmore]

The hon. Member for Southampton, Test (Dr Whitehead) also reflected on that, and it is vital that renewables remain an important part of our energy generation mix. Our clean growth and industrial strategies set out how we will build progress in all such areas, but I am sure that the Minister for Energy and Clean Growth will be happy to meet my hon. Friend the Member for Eddisbury (Antoinette Sandbach) to discuss the issue.

--- Later in debate ---

[Sarah Newton]

Thank you, Mr Speaker.

Yesterday, the Princess Royal helped to mark a significant milestone in the exploration of deep geothermal energy in Cornwall, as the deepest and hottest hole on the UK mainland has been successfully drilled. Will my right hon. Friend the Secretary of State meet me to discuss what more the Government can do to support this potentially scalable new source of renewable energy?

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

I congratulate my hon. Friend’s constituents on the work they have done on geothermal energy, which is an exciting form of renewable energy. I am going to Cornwall on 24 May, so I will see whether I can meet my hon. Friend. I know that the University of Exeter is involved in the project, and I would be keen to pursue the matter further.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

T8. I came to the House today hoping for some passion and leadership from the Secretary of State. There is a real opportunity for British business and universities to tackle climate change with innovation and enterprise. What do we get today? The dullest Question Time I have ever seen in this place.

--- Later in debate ---

[Peter Heaton-Jones (North Devon) (Con)]

In North Devon, we are proudly playing our role in clean energy generation with two major wind farms. Does the Minister agree that, to ensure our security of supply and to get the best climate change outcomes, we need a mix of clean energy generation?

[Chris Skidmore]

Absolutely. It is important that we put that mix in place. We have already heard from my hon. Friend the Member for Truro and Falmouth (Sarah Newton) about looking at other forms of renewables. There is also carbon capture and storage. We need to ensure that we look at new technologies to be able to deliver a low-carbon future.

[David Hanson (Delyn) (Lab)]

The enterprise finance guarantee scheme and its continued use by the Royal Bank of Scotland is still causing controversy. Even this week, we have seen discussions from the hon. Member for Thirsk and Malton (Kevin Hollinrake) around the use of debt. Will the Minister, or the Department, discuss with the Treasury how this scheme and its legacy are now operating?

--- Later in debate ---

[Chris Skidmore]

I entirely sympathise with the hon. Gentleman’s frustration on this point. I hope that he also noticed when it came to the London marathon this weekend—congratulations to all hon. Members from all parts of the House who took part in that marathon—that the water was in bottles made not of plastic, but of compostable seaweed. As a science Minister, I can say that a key issue is looking at what we can do to develop alternative forms of plastic, but we have to work with local authorities and supermarkets to make that happen.

[Robert Courts (Witney) (Con)]

I know—from chairing the all-party parliamentary group for small and micro-business, and from talking with west Oxfordshire businesses—that one of the major challenges that small organisations face is finding sufficient people of the right skills to grow their businesses. What are Ministers doing to provide a national strategy to ensure that our young people have the skills they need for the future?

Tuition Fees: EU Students

Chris Skidmore Excerpts

Monday 29th April 2019 Commons Chamber

[Angela Rayner (Ashton-under-Lyne) (Lab)]

(Urgent Question): To ask the Secretary of State for Education if he will make a statement on Government policy regarding tuition fees for EU students after the UK has left the European Union.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The Government have repeatedly made it clear that we absolutely value international exchange and collaboration in education and training as part of our vision for a global Britain. We believe that the UK and European countries should continue to give young people and students the chance to benefit from each other’s world-leading universities post exit.

Over the weekend, the media reported on a leaked Cabinet document discussing Government policy on EU student access to finance products for the 2020-21 academic year and beyond. At this time, I want to tell the House that no decision has yet been made on the continued access to student finance for EU students. Discussions at Cabinet level are ongoing and should remain confidential. I will make no comment on this apparent leak, which is deeply regrettable.

Students from the EU make a vital contribution to the university sector. It is testament to the quality and reputation of our higher education system that so many students from abroad choose to come and study here. As I stated earlier, since 2017 EU student numbers are up 3.8% and non-EU student numbers are up by 4.9%. In July 2018, we announced that students from the European Union starting courses in England in the 2019-20 academic year will continue to be eligible for home fees status, which means that they will be charged the same tuition fees as UK students and have access to tuition fee loans for the duration of their studies. Applications for students studying in academic year 2020-21 open in September 2019 and the Government will provide sufficient notice for prospective EU students and the wider higher education sector on fee arrangements ahead of the 2020-21 academic year and the subsequent years, which, as I have just stated, will obviously reflect our future relationship with European Union and the negotiations on that going forward.

[Angela Rayner]

Thank you, Mr Speaker, for granting this urgent question. We have all read in the leaked reports that the Secretary of State plans to withdraw the home fee status for EU nationals from 2020 onwards. The Minister cannot confirm the Government’s policy today, so when will universities get the certainty they need to plan for their future? Has his Department carried out any assessment of how many EU students would no longer study here as a result of this change?

At a time when the finances of universities are a matter of increasing concern, what impact will these changes have on the sustainability of our institutions? This issue should concern us all. International students make a net contribution to the public finances of tens of billions of pounds a year, so can the Minister tell us how much our public services will lose if fewer EU students come to study here, and how much education exports would fall by if EU students lost home fee status?

Only a month ago, the Secretary of State, along with the International Trade Secretary, launched an international education strategy. They said that education exports would reach £25 billion a year by 2030 and international student numbers would reach 600,000 by the same year. How can they publish this strategy one month, and then pursue a strategy that will undermine it the next? Does he still expect that 600,000 international students will come to the UK every year by 2030 if this rise in tuition fees is introduced?

Time and again, this Government have undermined our universities through their shambolic handling of Brexit. The future of Erasmus and Horizon 2020 are already in doubt, and now the very opportunities that we offer to young people from across the EU are being taken away. It is not in our interest to build walls between our world-class universities and our nearest neighbours, yet this Government are committed to doing exactly that.

[Chris Skidmore]

I thank the hon. Lady for raising this urgent question. It is important that we all recognise that EU students and staff make a vital contribution to our universities. It is also important that those people understand that the Government are determined to ensure that, even though we are leaving the European Union, we are not leaving our academic research partnerships behind. While I sit in the Department for Education as Minister for Universities, I also—[Interruption.] The hon. Member for Wythenshawe and Sale East (Mike Kane) is chuntering; either he wants to hear my answer or he does not. When it comes to setting out a position, it is important that this House does not go down a route of unnecessary negativity and does not somehow send out a message that the United Kingdom is an unwelcoming place.

We are determined when it comes to our universities and our EU student exchanges, and we have set out the international education strategy, which has the ambition of 600,000 extra international students by 2030, as well as setting an investment figure of £35 billion. [Interruption.] As the hon. Member for Ashton-under-Lyne (Angela Rayner) says—if she would not interrupt me—the economic importance of our higher education sector is reflected in the need to attract EU students and students from across the globe. That is the crux of the matter. We want to ensure that our nation is attractive internationally.

We have given commitments and guarantees regarding all successful Erasmus participations and regarding the Horizon 2020 science programmes, from which so many of our universities benefit. We made it a priority very early on after the referendum that we would set out the post-EU exit Government guarantee and the Government guarantee extension—that is, that we would fund the lifetime of these projects before Brexit if these applications were successful, and even post Brexit to December 2020.

We are drawing up our immigration system for January 2021 onwards. [Interruption.] The hon. Member for Wythenshawe and Sale East is again chuntering. Labour Members have called for an urgent question; either they want me to answer it or they do not. The point is that they are threatening a situation and claiming that we are somehow turning our backs to our European partners. That simply is not the case. With regard to our negotiations, I have spoken to about 15 European higher education Ministers. We need to make sure that we commit to them that Britain remains an attractive place for students from all nations across the world to come for work and to study. That is why we have established our international education strategy, why we have made the commitment on the guarantee, and why, rightly, we continue to work on our negotiations with the EU. If we had signed and passed a deal in this House, we would have had the certainty going forward to December 2020. Labour Members, with their Janus-faced—two-faced—approach, cast aspersions about the levels of uncertainty with regard to EU student funding when we would have guaranteed that funding for the next two years but they decided to vote against it. We need to work with universities globally to make sure that we raise our attainment. Our universities are world-class, with four in the world top 10 and 18 in the top 100. We want to support our universities. That is why we have published the international education strategy and why we want to work with them going forward.

Labour already offers students supposedly free tuition fees. Of course, there is no such thing as free tuition fees—they are paid for by the taxpayer, and this would cost the taxpayer an additional £12.5 billion. Labour’s additional policy, now, of saying that it would fund all EU students coming here to be able to study free of charge without having to pay back their tuition fees would cost at least £445 million a year. We have talked about magic money trees in the past—when it comes to Labour, it seems that we are talking about a magic money forest. We need to make sure that we have a fiscally responsible Government who look after our universities. That also means ensuring that we do not deceive our universities by claiming that we can spend money that we do not have.

It is not right that we should discriminate against our other international students. Does the hon. Member for Ashton-under-Lyne believe that we should offer a student finance package for European students once we have left the EU—a system that we have belonged to as members of the EU? Once we are no longer members of the EU, is it right that we then discriminate against Indian students or Chinese students? What does she say to them? How would she address the fact that her policy would discriminate against most of the students across the globe, at the same time as not having the money to be able to fund these student places?

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Does my hon. Friend agree that if we are going to spend limited hard-pressed taxpayers’ funds, it would be better to spend them on the poorest countries in this world—the developing nations—and not on some of the richest, most well-to-do countries in the world?

[Chris Skidmore]

It is important to reflect on our obligations with regard to international policy in terms of both higher education and our sustainable development goals agreed by the United Nations. That is why, in science and research, we have looked at things like the global challenges research fund, which focuses specifically on developing nations, and the Newton fund, worth £735 million, which also focuses on those developing nations. We want to ensure that we can be developing student partnerships and exchanges with all countries. I recently met the organisers of the Fulbright scholarships. Last December, we increased the amount going into those scholarships by about £400,000. We have also set up the Generation UK programme for China.

[Carol Monaghan (Glasgow North West) (SNP)]

It is interesting to hear the Minister talk about these UK taxpayer-funded schemes, because we know that many of the people involved in them are not able to get visas to come and collaborate with their colleagues here in the UK, so the system is already failing.

The SNP recognises that our EU students are a national asset. As such, the Scottish Government have confirmed that EU students starting courses in Scotland in 2020 will continue to receive free tuition, because these young people across the EU are already planning where they are going to be studying in 2020. Can the Minister confirm when the fee status of EU nationals starting courses in England in 2020 will be announced? They must know this very soon, or we will lose them anyway. The European temporary leave to remain scheme will not suit many courses, as was mentioned in Education questions. Will he therefore work with the Home Office to ensure that his scheme matches a course rather than matches an idea that suits a very small number of students?

Contrary to the assertions of the Universities Minister earlier, the Higher Education Statistics Agency reports that after years of growth in EU student numbers, enrolments of EU students dropped for the first time last year. He must recognise that. We are already making the UK a less attractive place to study, and that is economically damaging. Although he is right to recognise the importance of international students, having EU students enables richer participation in schemes such as Horizon 2020. The Government have expressed enthusiasm to participate in the successor programme. How does he envisage that happening when our credibility in Europe has been undermined? Finally, the post-study work scheme has been economically and culturally beneficial to Scotland. When will the scheme be reintroduced for international students from the EU and further afield?

[Chris Skidmore]

I will touch on several points that the hon. Lady made. During oral questions we heard concerns raised about the right to remain. I regularly meet Scottish Minister Richard Lochhead, and I will reflect upon representations he has made to me and work with the Home Office. The immigration White Paper will look at all issues relating to visas or post-study work schemes. It is important that that consultation takes place, and I urge Members to participate in it.

At the moment, we are keen to look at association to the successor scheme to Horizon 2020, Horizon Europe. That will begin later this year. The key point is that postgraduate tuition fees are separate from undergraduate tuition fees, and we do not want to do anything that will damage the potential of UK universities to research and continue with their research partnerships. [Interruption.] The hon. Member for Blackpool South (Gordon Marsden) seems keen to keep on chuntering from a sedentary position. He is welcome to make a contribution in a moment, but I am trying to answer the points made by the hon. Member for Glasgow North West (Carol Monaghan).

I welcome the hon. Lady mentioning that this is taxpayers’ money and that subsidy is involved. It is right that we consider how that subsidy is spent effectively. I urge caution that we do not simply send out a message that EU students happen to be unique. We want students from all parts of the globe—Chinese students, Indian students and students from the ASEAN countries—to be involved and raise their opportunity, and to send out a crucial message that when it comes to soft power, the UK will remain a global leader in higher education.

[Mr Sam Gyimah (East Surrey) (Con)]

I thank my hon. Friend for his explanation; I know he thinks deeply about these issues. Does he agree that if we want our university sector to continue to be world-leading, our action must match our ambition? While no decision has been made on this policy, the cumulative impact of some of our policy decisions—whether it is the proposed immigration cap, which would make it more difficult for researchers from abroad to work and study here, or this policy, which would hike up fees for EU students, or the lack of clarity on Erasmus—could be that we undermine the university sector and make it more difficult for young people from this country to live, study and work abroad, and this Government could be portrayed as one who are against young people.

[Chris Skidmore]

I thank my predecessor for his remarks. The work that he did so soon after we voted to leave the European Union, making the Government guarantee in July 2018 and extending student finance for home fees last year, has set us in a position that is welcome among our European partners. I would also like to put on record my thanks for the work he did in establishing the high-level group on EU exit, which meets monthly. It gives the opportunity for university professionals, including the Russell Group, the University Alliance and MillionPlus, to meet and discuss issues of concern and to ensure that those are fed in internally and that we listen to those points—and we are listening.

We are listening when it comes to the consultation on the immigration White Paper. We are listening when it comes to ensuring that we have a sustainable future with our relationship with the European Union. We are listening when it comes to working on our plans for future association with and participation in the International Science Council, including on making guarantees about Horizon 2020 and looking at association on Horizon Europe. It is right that the Government do this, in tandem with working across all Departments with a cross-Government approach to looking at how we exit the European Union, and I will continue to make sure that I play my role as Universities Minister in backing our universities.

[Hilary Benn (Leeds Central) (Lab)]

The political declaration agreed between the EU and the UK talks about establishing

“general principles, terms and conditions for the United Kingdom’s participation in Union programmes…in areas such as science and innovation, youth, culture and education”.

Do I take it from the reply the Minister has given this afternoon that the question of tuition fees—fees charged to EU students studying here in the UK and to UK students studying elsewhere in the EU—does not come within the terms of that wording, and that if that is the case, there is no bar to the Government choosing to increase those fees before any negotiations on the future partnership with the EU have even begun?

[Chris Skidmore]

I think the right hon. Gentleman is pointing to paragraph 61—is it?—of the political declaration on the future partnership with the EU. I wish he would support the political declaration, alongside voting for the deal, because we could then get on with discussing those issues with our European partners.

When it comes to Horizon and Erasmus, part of the reason why we find ourselves in difficulties is the uncertainty that there is without knowing whether we are in a deal or a no-deal situation. For all the Opposition Members talking about instability and the lack of certainty, it is on their backs that this is taking place. Those voting against the deal have prevented us from moving on to phase 2 of the negotiations.

We have made commitments on 2019-20 student finance, and we will shortly be making an announcement for 2020-21, ready for applications opening in September 2019. Obviously, any future financial obligations will be part of the spending review, and it is right that they are looked at by the Chancellor of the Exchequer.

[Sir Nicholas Soames (Mid Sussex) (Con)]

Does my hon. Friend agree that, generally speaking, the rule the Government should adopt, given the unfortunate decision that this country has taken to leave the European Union and in order to make our way in the world to the greatest advantage, is that we must retain a very open system to allow the brightest and the best to come and study here from all over the world at equal rates of charging, but also with a regime that allows them to stay here and work in an orderly, sensible manner that is easily enforced?

[Chris Skidmore]

From the international perspective of the United Kingdom’s universities, I entirely agree that we now have the highest ever number of applications from foreign countries—about 158,000.[Official Report, 9 May 2019, Vol. 659, c. 10MC.] Looking at this in the round, it is important to reflect on the fact that people want to come to the United Kingdom, and we have an obligation to ensure that we make that possible. However, I suggest that we will support our universities and ensure, as we develop our partnership with the European Union, that we do not exclude those from other foreign countries. That is why we will shortly be publishing our international research and innovation strategy, in addition to the international education strategy. It will ensure that we have a cross-Government approach not just to finance but to the welfare of students, so that when it comes to mental health, accommodation and the full range of student experience, we align in a way that ensures international students feel welcome in this country.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I tell the Minister that this was a deeply disappointing statement? He may not have been chuntering, but he was certainly not sending out a clear message. I do not know of a university leader, or university town or city, that is persuaded by the kind of stuff he is saying about the role of universities in the coming years. The fact of the matter is that there has always been the possibility of being a citizen of Europe for someone who is wealthy, like many of the people on his Back Benches, but not for an ordinary member of this society. Our students have been able to be European citizens—that is what they value—but now they have been cheated of that. This will not be about pounds, shillings and pence, but about robbing young people of the heritage of being real European citizens.

[Chris Skidmore]

I thank the hon. Gentleman for his comments. Further to a previous intervention of his, I am looking forward to coming up to Huddersfield on 10 May. That demonstrates that I do take action when he asks about my commitment to universities. I am looking forward to meeting the vice-chancellor and other university representatives there, and I am sure that they will discuss these issues with me.

When it comes to opportunities for UK students, it is worth noting that, yes, 16,000 UK students benefit from a European education—that is obviously part of the current system through the EU structures—but that contrasts with a total of 34,000 UK students who are educated internationally, in both EU and non-EU countries. We want to be able to grow that number as well. There is, however, a disproportionate impact on the number of UK students studying in the EU compared with the number of EU students studying in the UK. We would obviously wish to rebalance that and ensure that UK students have the opportunity to study abroad, both in the EU and outside it.

[Mr Speaker]

I do not know whether the Minister has been to the University of Huddersfield before.

[Chris Skidmore]

indicated dissent.

[Mr Speaker]

Not yet. Well, I myself gave a lecture there on 24 June 2016, and it is a very fine establishment indeed. I hope that the Minister enjoys his visit there as much as I enjoyed mine.

[Vicky Ford (Chelmsford) (Con)]

Last November, the EU27 and the UK agreed to the 147-point document about the future framework. Point 11, right at the top, sets out the ongoing commitment to co-operation in science, innovation, youth, culture and education. It calls for

“fair and appropriate financial contribution”

and “fair treatment of participants”. Does my hon. Friend agree that the best way to help support our ongoing co-operation on science and students is to vote for the withdrawal agreement and firm up the details of our ongoing co-operation, as already agreed between the UK and the EU27?

[Chris Skidmore]

Absolutely. As a Minister, I am keen to move to the next stages of the negotiations around our future partnerships—in fact I am desperate to do so. I encourage Members who voted against the deal to recognise that it is a great deal when it comes to continuing our education and science partnerships.

I attended the EU Competitiveness Council on 18 February, and I talked to EU Ministers. They recognise the world-leading position of UK universities and that the UK does disproportionately well out of scientific grants. We put £4 billion into Horizon 2020, but we get £5.7 billion back. Why would we not want to continue to participate in that?

We are moving on to Horizon Europe as the next process of the scientific partnerships. I will attend the EU Competitiveness Council on 28 May as Science Minister. I will discuss with colleagues on the margins issues such as Erasmus education partnerships and exchanges, which the deal would also have protected. I urge all hon. Members to give me the opportunity to go to Brussels and get on with the next stage of the negotiations.

[Tom Brake (Carshalton and Wallington) (LD)]

If UK universities have to increase their fees for EU students and the EU universities reciprocate, will that not mean that only the richest UK students will be able to study abroad? What specifically does the Minister intend to do about that?

[Chris Skidmore]

I go back to the statement. All these issues around reciprocal arrangements and partnerships are matters for future negotiations. I am keen to make sure that we can get on to that page. I hope that the right hon. Gentleman will now vote for the deal, to make sure that we can do so.

[Suella Braverman (Fareham) (Con)]

Does my hon. Friend agree that, post Brexit, we want to continue to attract bright students from many countries all over the world? The proposal that we should exempt EU students from paying fees yet impose them on those from other countries is inherently unfair and, in fact, discriminatory. It does not make economic sense or reflect the open Britain that we are striving to create.

[Wes Streeting (Ilford North) (Lab)]

She’s not voting for your deal either.

[Chris Skidmore]

I urge my hon. Friend to do so as well. I will not discriminate on either side of the House. It is a great deal, which will provide us with certainty. We have been closely involved with our European partners for many decades. Ensuring that we continue some of those partnerships, which have both social and economic value, is important.

My hon. Friend is right about the international perspective. People voted to leave the European Union to ensure that Britain can be outward-looking, positive, not insular and not nativist. We want to be able to reach out to other countries and meet our responsibilities on the sustainable development goals. We want students from India and ASEAN—Association of Southeast Asian Nations—countries who want to come to the UK to study, but cannot at the present time, to have the opportunity to do so. Why should European students be given a disproportionate opportunity when it comes to fee levels? She has a valid point.

[Wes Streeting]

UK higher education is one of our great national and international success stories, yet there can be no doubt that the Prime Minister’s immigration policies have done enormous damage to our international reputation. And here we are again—the cat is out of the bag—looking to charge EU students tuition fees and make as much money out of them as possible before the withdrawal agreement has even been signed. Will that not just use EU students as cash cows, but rob UK students of the opportunity to study abroad? How many more national success stories are we prepared to sacrifice on the altar of Brexit?

--- Later in debate ---

[Chris Skidmore]

When it comes to national success stories, I want to ensure that our international education strategy provides opportunities for UK students to go to every corner of the globe, not just the EU. We have provided student finance for 2019-20 and will shortly be making an announcement on 2020-21. Any future decision on access to finance for EU nationals will come later on as part of the negotiations we will take forward. The hon. Gentleman’s logic is: why not ensure that access to student finance is free for every student internationally? The Labour Front Benchers have just proposed a policy that would ensure that British taxpayers pay for European students’ fees in their entirety. I do not feel that that is necessarily best value for the taxpayer, and I am not sure his constituents would either.

[Tom Pursglove (Corby) (Con)]

Despite what all the doomsayers constantly claim, will the Minister confirm for the record what is actually happening in relation to the numbers of foreign students coming into this country to study?

[Chris Skidmore]

As I stated, since 2017 there has been a 3.8% increase in EU students applying and a 4.9% increase in non-EU students. It is welcome that last year we had a record number of international students, both EU and non-EU, applying to our British universities. I congratulate all universities on being able to be so welcoming. We want that to continue.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

The Minister must know that the university recruitment cycle for 2020 is already under way, and the ability of UK universities to attract and recruit students from the EU will be seriously affected if the fee status remains uncertain. He has the ability to settle this matter today. We do not need to vote for a flawed withdrawal agreement; the Minister could simply roll the current arrangements forward.

[Chris Skidmore]

I recognise the hon. Lady’s point, which was made to me by Vivienne Stern, the director of Universities UK International. The recruitment procedures are ongoing. Applications for the 2021 academic year will open in September, and I am keen for the Government to make an announcement shortly. We have to go through cross-Government processes, which is one of the reasons why we have seen this unfortunate leak in the first place. As a Minister, I am keen to ensure we can put that security in place for universities. I hope to ensure that we can do so in due course.

[Henry Smith (Crawley) (Con)]

With four of 10 of the top universities globally being in the UK, international students are fortunate to be able to access higher education in this country. As a member of the International Development Committee, I am keen that students from the developing world have the same access. Does the Minister agree that students from relatively well-off EU countries should not be subsidised at the cost of students coming here from the developing world for higher education?

[Chris Skidmore]

When we look at the new immigration system, the new student finance system that will emerge post ’20-21 and whatever new system emerges on future scientific partnerships, it is important that we are bold and that we go beyond the status quo. What we have already established with developing countries, such as the global challenges research fund and the Newton fund, ensures that British researchers can work in partnership with researchers from those countries. We should look at expanding those opportunities.

I am keen to expand opportunities that may not have existed before and to ensure that opportunities that were there previously are able to continue. I am sure that our international education strategy, as well as our international research and innovation strategies and the spending review—when it comes to looking at investments that we will need to make, that is obviously a critical part of the next financial framework—will have that international context in mind.

[Ann Coffey (Stockport) (Change UK)]

I support the concerns expressed by the hon. Member for Ashton-under-Lyne (Angela Rayner) about the consequences of these proposals for universities. However, this is unfortunately yet another example of the damage that Brexit is likely to inflict on future generations of young people. The House will return to further discussion of Brexit soon. When he casts his vote on various options, will the Minister consider the damage that will be caused to our universities and to the standing of British higher education around the world by any Brexit?

[Chris Skidmore]

I am afraid that I do not agree with the hon. Lady on this. The British people voted to leave, and I am determined to ensure that I fulfil my manifesto commitments to my constituency, which also voted to leave, by making sure that that happens. I want to ensure that we can mitigate any circumstances that may arise from leaving the European Union, to ensure that we continue to benefit from the opportunities that we have had as a member as we move forward into the new relationship with our EU partners and also move forward internationally.

On the votes, when it comes to looking at the deal and the future economic partnership, I ask the hon. Lady to please, although it sounds like she will not—[Interruption.] Brexit is happening, and we need to ensure that we have—[Interruption.] Hon. Members seem to query that and suggest that they do not want it to happen, but I am afraid that is what the British people voted for. I am sure that when we, as a House— [Interruption.] I cannot actually believe what I am hearing from Opposition Members. When they stood in 2017, they also said that they were going to respect the result of the referendum; it sounds like they do not believe in the manifesto commitments that they made.

However, I believe that the deal is a good one. It is vital for scientific and education partnerships going forward, which it will protect for the next two years, and will allow for future negotiations, in order to make sure that we can continue to work with our European neighbours.

[Jeremy Lefroy (Stafford) (Con)]

As a member of the board of the Liverpool School of Tropical Medicine, I agree with my hon. Friends the Members for North East Somerset (Mr Rees-Mogg) and for Crawley (Henry Smith) about the importance of encouraging students from low-income countries to come here. I would like us to provide more scholarships and bursaries out of our international development fund than we do at the moment; we are falling behind quite a number of other countries, but by doing that we can increase our influence. Does the Minister agree that it is absolutely vital to avoid any kind of cliff edge and have a smooth transition from the arrangement we have now, which is beneficial, to the future arrangement, and that we do not suddenly cut off opportunities, both for our students studying in the European Union and vice versa?

[Chris Skidmore]

I thank my hon. Friend for his comments. When it comes to tropical diseases, future scientific research on climate change or the opportunities that agri-tech might present to developing countries, it is absolutely right that we look at what we can do to play our part to help the poorest countries across the globe in those endeavours. I will be happy to discuss with him, and the Liverpool School of Tropical Medicine when I am next up in Liverpool, any potential policy initiatives that he might have in this sphere.

On the point about a transition period, the deal is a transition. We will be able then to get round the table and open up the square brackets around our future relationship, which are currently closed because of Members’ indecision and failure to back this EU deal—the EU helped to put it together and backs it also—so that we can move forwards together, safeguarding scientific partnerships and working on education partnerships.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

In many of his responses, the Minister has seemed to imply that being a member of the EU was stopping the UK having people from elsewhere in the world, but that is up to the Home Office here. He must recognise that the workforce is the biggest problem for all four UK health services. Medical and dental degrees take five years. Does he seriously think people will come here, pay enormous fees and then at three years roll the dice on whether they get a continuing visa?

[Chris Skidmore]

It is important to reflect that leaving the EU provides us with an opportunity to decide our own immigration policy—we are beginning that work for 2021 onwards, which is why we have the immigration White Paper and consultation—and the freedom to decide our own immigration policy. On the future position of fees, obviously we have been in the EU and have reciprocal fee requirements, but we also want to make sure that international students are not discriminated against, as they currently are—the hon. Lady cannot deny that international student fees are significantly more than those for EU students. It is important that we listen to universities about what future schemes for immigration and student exchange should look like.

[Thangam Debbonaire (Bristol West) (Lab)]

The Minister says he wants us to continue to enjoy the current benefits of our EU membership but after we have left the EU and that he wants us to vote for a withdrawal agreement to end discrimination against international students, but there is absolutely nothing stopping him today ruling out this increase in fees for EU students and the wider international student body. It matters greatly that we can attract people but also offer our young people those opportunities in EU countries. Does he not understand that his failure to rule out these increases today will have an impact on the decisions of students for 2019-20 in both the EU and the wider international student body?

--- Later in debate ---

[Chris Skidmore]

We have already guaranteed home fees status for EU students for the 2019-20 academic year. The decision for 2020-21 will be made shortly and applications will open in September 2019. I think that the guarantee for 2019-20 shows we are keen to work on this in the negotiations. It is a cross-Government piece of work. As I have mentioned, it is vital that we work on issues such as immigration and build international relationships, but that involves the Foreign Office and the Department for International Trade, which are involved in the international education strategy, which is why I cannot give such a guarantee on the Floor of the House. It is important that we have a joined-up piece of work from the Government and that we guarantee our responsibilities to our European partners—and I hope that, to do that, the House will vote for the deal to give us that opportunity—while continuing to build on commitments internationally.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

Surely, the Minister must accept as a point of general principle that if a student wants to come to the UK to do an undergraduate degree, they should be able to apply for and obtain a visa that covers the whole period of that undergraduate degree and that it is utterly unfair and counterproductive to ask them to apply for a completely different type of visa either three quarters or three fifths of the way through.

[Chris Skidmore]

On this point about European temporary leave to remain, which we also discussed in oral questions earlier, I have spoken to the Scottish Higher Education Minister, Richard Lochhead, about the 36 months and the issue of moving to a four-year course, which disproportionately affects Scottish universities, and I have relayed those concerns to the Home Office. I hope that, given the White Paper approach to consultation, we can consider the implementation of a wide range of issues, including visas and the issue that the hon. Gentleman has raised. However, it is important to recognise that it is permissible to apply for a tier 4 visa to continue to study.

[James Frith (Bury North) (Lab)]

Will the Minister confirm that the number of EU nationals applying to UK universities is already falling and will be down this year, even before Brexit bites fully? How does he suggest that universities should mitigate that loss of student numbers on the roll?

[Chris Skidmore]

There are currently a record 139,000 EU students at UK universities, and the number of EU applications has risen by 3.8% since 2017. It is important for us to put out a positive message rather than encouraging European students who may happen to be watching our exchanges not to apply. Of course they should apply. People say, “Erasmus will be affected, so do not apply,” but the Government have given guarantees on Erasmus, on science research funding and on 2019-20 home fee status. We will make announcements about 2020-21 before September, so that students will have the necessary knowledge when they apply.

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

A 17-year-old constituent of mine came to my surgery a few weeks ago in great distress. She has lived here for 16 years, since she was one year old. She is at St Roch’s Secondary School and wants to take a place at college, but she cannot obtain student finance to do so because, according to the rules, she does not qualify within the meaning of the Immigration Act 1971. Does the Minister not recognise that that is an absurd aberration? What will he do to help my constituent?

[Chris Skidmore]

I will happily take a look at that specific issue and take it up with the Student Loans Company, which I visited in Glasgow about a month ago, and I am happy to continue our correspondence about the issue.

[Matt Western (Warwick and Leamington) (Lab)]

Our higher education sector has been one of the great success stories of recent years, and we have seen huge expansion, which has been predicated on our being part of the European Union and attracting the best international students. The Minister speaks of talking this country down, but the reality is that universities such as Warwick, which is part of the Russell Group, have lost 3% of undergraduate applications from the EU and 9% of postgraduate applications. Will the Minister meet me, and the vice-chancellor of Warwick University—one of our finest international universities—to discuss his proposals and what their economic and financial impact will be?

[Chris Skidmore]

I should be happy to have the opportunity to meet the hon. Gentleman and the vice-chancellor of Warwick University. I do not remember exactly where Warwick comes in my universities tour, but it may be coming up shortly. I recognise its international importance. I last visited it two years ago, in a different ministerial guise, and had the opportunity to meet Lord Bhattacharyya, who, sadly, departed recently. He worked across an international field to establish the university’s manufacturing centre.

I listen to concerns that are expressed. I have quoted figures that have been published, but some Members have raised issues relating to the current academic year, in respect of which figures have not been published. I want to ensure—as I do when I go to Brussels, when it comes to some of the negotiations on Horizon Europe—that I make the positive case that we want to protect postgraduate students in particular. We are committed to spending 2.4% of GDP on research and development, and if we are to hit that target by 2027, it is vital that we have a pipeline of talent that is national, European and international. That was a long answer to the hon. Gentleman’s question, but, yes, I will certainly meet him and the vice-chancellor.

[Diana Johnson (Kingston upon Hull North) (Lab)]

I was pleased to hear that the Minister will shortly visit the University of Huddersfield. As he is coming north, I wonder whether he would like to travel a little further and visit the University of Hull. We should be very pleased to see him.

Many EU students are currently studying at Hull university. Can the Minister guarantee that no matter what they are studying, as undergraduates or postgraduates, they will not be affected by the proposed changes?

[Chris Skidmore]

I would certainly be delighted to come up to the University of Hull, which is one of the homes of one of my poetic heroes, Philip Larkin. I think also that Lord Norton of Louth still teaches politics at Hull. I would be keen, but I cannot guarantee that that would be on the same day as Huddersfield. However, going forward, if we can get the deal across the line—again, I urge Members to allow the opportunity to be able to begin future negotiations on education partnerships and on looking at both science and research when it comes to higher education—I want to ensure that we have the opportunity to provide those guarantees post 2021, although, obviously, we have made the guarantee for 2019-20. We will shortly be making announcements when it comes to the 2020-21 academic year. Going forward, that will be a matter for future negotiations with our EU partners.

[Mr Speaker]

I was reading Philip Norton’s text books as part of my undergraduate studies 35 years ago, but of course, Philip Norton was a very, very young man as a distinguished academic at that time. He does not seem to have got much older as far as I can tell.

[Daniel Zeichner (Cambridge) (Lab)]

These exchanges have shown exactly the problems with the political declaration: the Minister talks about guarantees, but of course they are not guarantees; they are aspirations for future negotiation. But there is one thing he could do today, which is reassure the 17,000 Erasmus+ students who are likely to be approved in May or June this year about 2021. Could he at least do that?

[Chris Skidmore]

The Government guarantee, when it comes to participation in the Erasmus programmes, has stated that all successful participations as approved by the EU Commission will be eligible for the Government guarantee. I wrote to every single Higher Education Minister in Europe and the European economic area to ensure that they were aware of that guarantee commitment—many were not. I think that it is often a case of communication to make sure people are aware so that when it comes to those Erasmus participations being approved, the Government will fund them—not just for the year, but for the entirety of the exchange programme as it takes place.

[Geraint Davies (Swansea West) (Lab/Co-op)]

On EU students, the Minister will know that, as he plans to raise the drawbridge into England through raising fees, in Wales we intend to keep a welcome in the hillside by keeping fees down. What impact does he imagine that differential fee rates will have on local economies? Does he not think it premature to announce raising fees when we have not exited on exit day, we are likely to have a European election and we might not—I hope not—leave the EU at all?

[Chris Skidmore]

Again, we have made no announcement on raising any fees. The future decision on fee rates for EU students has yet to be made, as I stated in my opening remarks. The hon. Gentleman is right that setting tuition fees is a devolved matter. I work closely with devolved Ministers, and also make sure that we have a united approach in the United Kingdom to Welsh, Scottish and English university policy. However, I also totally respect the right of Welsh higher education policy makers to be able to look at different systems—for example, the Diamond review looked at access and part-time study.

We can learn a lot from each other in due course, and I have already been to Cardiff to meet the vice-chancellor Colin Riordan, who has raised research issues. Obviously, that is a UK-specific reserved matter, and I think it is important that we continue those dialogues, but I would say that no decisions have been made. We have provided the certainty on 2019-20, and an announcement on 2020-21 will be made shortly. Any future policies will be part of those future negotiations, which, if we can have the EU deal voted through by the House, we will be able to get on with.

Intellectual Property Office: Performance Targets

Chris Skidmore Excerpts

Thursday 4th April 2019 Written Statements

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

Our industrial strategy sets out the Government’s vision for making the UK the most innovative country in the world. The UK starts from a position of strength and is already ranked in the top four of the global innovation index and top 10 by the World Bank as the best place to start and grow a business. But the global landscape is changing and we must continue to invest in research and development. The industrial strategy has set an ambition to raise total research and development to 2.4 per cent of GDP by 2027, helping businesses access the right funds and equip them to face the challenges and opportunities presented by new technologies and new ways of doing business.

Intellectual property (IP) plays a crucial role in innovation and touches everything that makes modern life more enjoyable, easier, safer and prosperous. It provides inventors, creators and entrepreneurs with the confidence to invest knowing that they will reap the benefits of their investments. UK investment in IP rights reached almost £64 billion in 2016 and studies have shown that industries that rely on IP have accounted for over a quarter of UK employment and almost half of GDP. Our IP system matters. It creates jobs and economic growth and is helping to propel Britain to the forefront of innovation.

The Intellectual Property Office (IPO) corporate plan 2019-20 explains how through its stewardship of the IP system, it will help the UK to be the most innovative and creative country in the world. It will do this through delivering excellent IP services, creating a world leading IP environment and attracting and retaining the best people by making the IPO a brilliant place to work. This plan outlines the start of the IPO’s transformational journey, which will provide truly modern IP services to its customers.

The UK already has one of the best IP regimes in the world, consistently ranked as one of the top regimes in indices such as those from the Taylor-Wessing Global IP Index and US Chamber of Commerce International IP Index, and during 2019-20, the IPO will continue to contribute to building a business environment that makes the UK the best place in the world to start and run a business.

As an executive agency and trading fund of the Department for Business, Energy and Industrial Strategy, the IPO has set targets which are agreed by Ministers and laid before Parliament. I am glad that today I can inform the House that for 2019-20 the IPO’s targets are:

At least 85% of our customers to rate us 8/10 for overall satisfaction.

By the end of March 2020 we want 90% of renewals to be conducted via the new enterprise-wide digital renewals service.

75% of the businesses we reach confirm that they are able to make informed decisions about their IP.

Deliver our services efficiently through continuously improving our systems, processes and ways of working to make things better for our customers and our people, reduce costs and improve the value for money we provide. Our target is to achieve efficiencies worth at least 3.5% of our core operating costs.

[HCWS1485]