Draft Higher Education (Fee Limits for Accelerated Courses) (England) Regulations 2018

Gordon Marsden Excerpts

Monday 14th January 2019 General Committees

[Gordon Marsden (Blackpool South) (Lab)]

It is probably almost too late, but may I wish you, Mr Robertson, and the Committee—not least the Minister—a happy new year?

I am glad that we finally have the opportunity to debate the proposed changes, because over the years—I do not think it is down to any particular Government—the gap between something being passed and in some cases being implemented, and its reaching the backstop of parliamentary approval seems to have become longer and longer. I am glad we now have the opportunity to continue the significant debate we had on the Higher Education and Research Bill.

I welcome the Minister’s enthusiasm for the broader issues that he believes accelerated degrees may open up. We can all agree that there is a need urgently to address the lack of flexibility in our higher education system. With the emerging challenges of Brexit and automation, the world of work changing, and higher education, further education and online learning slowly merging, our education system urgently needs to adapt. I have said frequently that that will involve people, young and old, doing not only the traditional three-year degree model, but short, sharp training courses to help retrain and upskill, and being able to drop in and out of education to suit their life circumstances. Incidentally, these are all things that our party’s national education service and lifelong learning commission will focus on. We must develop a higher education system that will produce a high-skilled workforce to meet those growing demands and fit our local economies.

The essential question—where, I am afraid, I begin to part company with the Minister—is whether today’s proposals, which greatly expand and increase accelerated degrees on an annual basis, will help or hinder that process. I am grateful to my hon. Friends who have posed questions, as the Minister has already heard some concerns and about the need to nail down not just aspirations but facts about how this is will be taken forward and what its implications will be.

During all the stages of the Higher Education and Research Bill, in both Houses, we talked about the importance of making the current system fit for the 21st century. Accelerated degrees might play a useful part in a more flexible HE system for all ages. However—this is crucial to our misgivings about the regulations, not just about what they say but about when this will happen—as my colleague Lord Stevenson said in the debate in the Lords, it should only be as part of a wider overhaul in the sector. That overhaul is nowhere near happening yet.

[Gareth Thomas]

Would it be fair to say that today we are being asked to vote for a 20% hike in tuition fees, albeit for accelerated degrees, without any commensurate guarantees of an improvement or at least maintenance of quality of tuition and other provision from universities?

[Gordon Marsden]

My hon. Friend hits the nail on the head and echoes the other misgivings expressed by colleagues.

As the Minister pointed out, accelerated degrees—fitting three years into two—are not new, and have always been with us. He has quoted some examples. They have often been crafted closely to specific needs of individual HE institutions. I hear what he has to say about the various universities; they have clearly found that that is a good model, which they have wanted to take forward. The devil is always in the detail; it is the details and the firm focus on increasing the maximum fee cap to which we are vehemently opposed, because we do not believe that, at this stage, they will bring the wider benefits to universities and most importantly to would-be students that the Minister thinks they will.

It is not just us saying that; a large number of dissenting voices the demand for accelerated degrees in the form that the Government propose. It is all well and laudable for the Minister to talk about how we might see the effects that we would all like to, but at the moment that has not been the case. That is reflected in the comments of the various university groups. The chief executive of the Russell Group, for example, Dr Tim Bradshaw, said:

“Greater choice for students is always good but I would caution ministers against ‘overpromising’…The Government’s own projection for the likely take-up of these degrees is modest and we actually hear many students calling for four-year degrees, for example, to spend a year on a work placement or studying abroad.”

The group MillionPlus said something similar:

“Demand for accelerated degrees has been low for many years and is unlikely to increase significantly on account of these fee changes.”

Who therefore will the accelerated degrees benefit? The trade union that represents many of the staff in universities states that

“there is little evidence of solid demand for this type of course”,

and that—I am afraid to say that I agree with this, in particular because it is the thrust of what the Minister’s predecessor but one, the hon. Member for Orpington (Joseph Johnson), laid out clearly in the White Paper and the Bill that followed—

“this decision is being driven by the government’s marketisation agenda and the need to row back on the spiralling costs of university education, particularly in light of the withdrawal of maintenance grants.”

We await the Augar review, and lots of promises are floating around, but as of this moment nothing concrete is in place.

I have emphasised time and again that the Government’s need to facilitate changes for a better work-life balance and the progression needed to benefit our economy must include looking at credit transfers, flexible courses and urgent action to address the catastrophic fall in part-time learning since 2010. Unfortunately—which this is, because I wish we could have a consensus on it—the Government’s pitch for the accelerated degrees we are debating smacks simply of a PR initiative that has been fashioned for new HE entrants, often with narrowly focused HE objectives, which my hon. Friend the Member for City of Durham (Dr Blackman-Woods) and others were worried about during debate on the Bill.

The result of the Government’s 2012 HE funding changes, including the tripling of tuition fees—we cannot get away from this—is that the average debt for students in England is £46,000. The Institute for Fiscal Studies found that the removal of maintenance grants from students from low-income families meant they were graduating with the highest debt levels, which are in excess of £57,000. We therefore have clear evidence that the nudge factor, which the Government—or their predecessor—have been very keen to push, is actually operating to nudge people against participating in higher education. Yet the Government have chosen this time to introduce this statutory instrument, before the Augar report has even appeared.

During the passage of the Bill, we challenged them consistently about the way in which they wanted to use the teaching excellence framework to increase or remove the fee cap. The draft SI increases the higher amount to start a degree to £11,100 on an annual basis. We have to address the impact that that will have on less well-off students’, or would-be students’, ability or willingness to take places on those courses. Can we realistically expect all the people who might want to do such a course to ratchet up to the figure mentioned?

As the University and College Union has said:

“This is not about increasing real choice for students,”

but it could allow

“for-profit companies to access more public cash through the student loans system…Instead of gimmicks which risk undermining the international reputation of our higher education sector, the Government should focus on fixing the underlying problems with our current student finance system, which piles debts on students.”

The idea that accelerated fees only mean a cut in student debt is, I am afraid, knowingly or unknowingly, hiding another motive. Wedded as they still appear to be—I have heard no repudiation of the broad themes that the hon. Member for Orpington spelled out when the Bill was introduced—to an outdated market-driven view, the Government have pinned their hopes on a rapid expansion of new providers that charge the higher fees on a two-year basis. All that is all in the various secondary papers and instruments that were produced during the Bill. So far, we have seen no evidence of that expansion.

Do all the leaks that suggest that Augar is now under pressure from the Government to lower tuition fees per year make nonsense of the rhetoric and the introduction of this statutory instrument? Incidentally, will the Minister give us the latest estimate for when the Augar review is to report?

The draft explanatory memorandum lists the theoretical benefits for providers and students, but it also refers to the numerous concerns that have been expressed across the sector. It says:

“Students on existing accelerated degrees report a very high level of satisfaction, and highlight the opportunity to graduate and start or resume work a year sooner”—

the Minister talked about that—

“together with costs savings and academic benefits.”

How many and what sort of students, and with what financial background, were interviewed to reach that conclusion? It ignores the fact that those degrees would be available only to students able to study all year round. That has major implications for access and participation, which are already faltering for part-timers under this Government.

The total number of English undergraduate entrants of all ages from low-participation areas fell by 17% between 2011-12 and 2016-17. There were 12,600 fewer English undergraduate students from low-participation areas starting university courses each year than there were in 2011-12. We must ask ourselves what these accelerated degrees, on the basis on which they have been put forward in the statutory instrument, do for them, and the answer is relatively little. There has been a 54% fall in entrants from low-participation areas studying part time, who will not be able to access funding for accelerated degrees. How does the Minister plan to address that? Can he explain in any shape or form how accelerated degree will address the devastating fall in part-time HE study?

Critics have also pointed out the danger of squeezing three years into two for personal development opportunities or participation in extracurricular activities and volunteering. Does the Minister not value the important personal development that our universities provide outside the classroom, which could be denied by this acceleration? UCU also pointed out:

“Accelerated degrees...result in reduced opportunities for students to engage in part-time employment over the course of their studies. This limitation is particularly acute for students from disadvantaged backgrounds who are more likely to need to seek employment…to fund themselves through university.”

We would like a situation with fees in which students did not have to work part time as much as they do, but given that that is the case, perhaps the Minister will admit that the giveaway in the accelerated degree proposals is that they are not focused on those sorts of people, but in many cases on richer or employer-funded applicants. UCU also said:

“The lack of holiday time factored into these degrees also means that they could prove difficult to student parents; those with caring responsibilities; and students whose disabilities mean that they might benefit from low-intensity study. For this reason, there is a risk that take-up of these courses could have strong socio-economic stratification and that students from less advantaged backgrounds might have lower attainment on these courses.”

Incidentally, there is a reference in the draft explanatory memorandum to the impact of the statutory instrument on the Erasmus+ programme. Will the Minister tell us the situation regarding ensuring our continued participation in the scheme?

[Tim Loughton (East Worthing and Shoreham) (Con)]

I have listened very carefully to the hon. Gentleman for some time now. He seems to be talking an awful lot about accelerated degree courses and very little about fee limits, which is what this statutory instrument is supposed to be about. What he has not mentioned but might want to, because it was mentioned by one of his colleagues, is value for money.

I have two daughters, one of whom has just left university and one of whom is still at Cambridge, where she has intensive tutoring. The one who has just left was at another university, where she was lucky to get five hours a week. Even if that were doubled, it would not mean a shortage of time outside the lecture room. Does the hon. Gentleman think the proposals offer better value for money? Should not he really be getting at the question whether students get value for money? At the moment, in my experience, they do not.

[Gordon Marsden]

The hon. Gentleman’s comments are enlivened and enriched by his personal family experiences, but the difference of outcome in his family rather makes the point. It is not just a matter of what students get and do on courses, although I fully accept that that is important. It is also about how students are put off courses in the first place. I think most of my hon. Friends would, like me, find it difficult to see how a suggested 20%-a-year increase will encourage, rather than deter, people who already find it difficult to make such a decision.

The Open University says that

“there needs to be increased choice and flexibility for students to study at a time, pace, mode and place that they choose.”

One of the stated objectives of the 2012 funding reforms in England was to

“allow greater diversity of provision, which means more short two-year courses and more part-time opportunities”.

However, we know that the reforms have failed spectacularly to achieve that objective, with 59% fewer people in England entering part-time undergraduate higher education each year than in 2011-12, before the reforms. That is why it is vital to increase options.

However, the Government have failed to address the crisis for the OU and other adult learning providers. Another increase in tuition fees, which they are now presiding over, and which would allow higher education providers to charge more per year, will not help the process. MillionPlus agrees. It says that

“accelerated degrees are just one form of flexibility”

and that Government have missed out on the opportunity of creating

“greater flexibility in fee structures and loan availability to enable students to access financial support for periods of study of less than a year (for example to borrow by modules rather than by year)”.

The hon. Member for East Worthing and Shoreham prayed in aid his personal experience. My experience as a former Open University tutor—although somewhat long in the tooth—is that it is precisely the people, particularly adults, from disadvantaged backgrounds, who would like support for funding by module. That is what they do not get at the moment.

“True flexibility…can only come when students are not penalised for studying part-time, or for shifting between full and part time study.”

Those are not my words but the words of MillionPlus.

The Government have given little thought to the impact on staff workloads of accelerated degrees. UCU has rightly expressed concern that the changes could put yet more pressure on its members without much immediate or direct benefit to them, at a time when they believe—and we agree—that they are getting a raw deal on full-time contracts, pay increases and progression.

Despite the Minister’s enthusiasm and good intentions, there is no guarantee that existing university teachers will be willing or able to teach the new accelerated degrees as configured. There is a risk that the move to accelerated degrees will compromise time currently allocated by such teachers to research, and fuel—of necessity, if they are not prepared to do the relevant work—the use of even more casualised teaching staff to deliver provision during the summer months. With threats to our existing world-class higher education institutions and research piling up from the uncertainties of Brexit, should we be taking that chance?

Issues to do with short-term contracts, extra bureaucracy and guarantees of quality still need to be addressed. What steps have the Government taken to alleviate the pressures on staff that these courses may create? Ministers should focus not simply on accelerated courses for a market driven by untested new providers, but on protecting the global strength and reputation of UK higher and further education.

The proposal is irrelevant to the main priorities of the HE sector in 2019. It is irrelevant to the multiple threats that existing universities and providers face from a chaotic Brexit, and the collateral damage they face from lack of certainty about our participation in Horizon research programmes through the 2020s after we leave; lack of certainty that HE students, providers and staff will continue to benefit from Erasmus+ over the same period; and the withdrawal of European Social Fund and European Regional Development Fund funding, from which many community-focused universities and providers have benefited.

The proposals, cast as they are today, represent a developing market model that the hon. Member for Orpington left in the out-tray for his successors. They do nothing to strengthen our HE sector internationally or nationally. They do not address the important issues that Augar is supposed to be looking at. That is why we will not support the regulations.

--- Later in debate ---

[Chris Skidmore]

I will come to the hon. Gentleman’s heckle in a moment. I wanted to start on a point of agreement, which is that Members on both sides of the Committee share the ambition that we can and must do more for post-18 education. As for the regulations—the point on which the hon. Gentleman heckled—increasing the cost of fees by 20% must be seen in the round: this is a saving of £5,500 for a two-year degree as opposed to fees for a three-year degree. It is a saving of one year, or £7,500, on living costs and, crucially, potentially a gain of up to £19,000 of annual earnings if that student is able to access the workplace early. I stress that this is not a silver bullet. It is not the only part of a strategy that must deliver for students in higher education; it is opening up a menu of options that we hope to develop.

The shadow Minister talked about access for disadvantaged students. The Government want to ensure that the most disadvantaged students are able to access this provision. Our consultation on accelerated degree proposals asked higher education providers specifically about access arrangements, and 74% responded that they wanted accelerated degrees to be treated the same as any other higher course fees for the purpose of access. We have seen a revolution in the amount of funds spent on access and participation over the past four or five years, from £440 million to £860 million. We must look at how we can invest to ensure that we open those routes for the most disadvantaged students.

[Gordon Marsden]

I appreciate that I spoke at some length. Access and participation are absolutely crucial, but one question is whether the money is spent well in the first place. I am sure the Minister will look at that. He also talks about the financial details and all the rest of it. The truth of the matter is that many people, particularly adult students, for perfectly good reasons will not sit down with a three-year prospectus but will ask themselves what they can afford that year. That is the crux of it, and that is why we are concerned that this 20% increase will nudge people away from participating, rather than nudging them towards it.

[Chris Skidmore]

I politely disagree with the hon. Gentleman on discouraging access. The figures demonstrate that, when students have been asked about potential two-year degree routes—in the context of saving over an envelope of two years instead of three—60% responded that they would have considered it had it been on offer. It is important that we allow an opportunity for this course provision to be established. We are not forcing universities or HE providers to offer accelerated degrees as an option. We are just ensuring that we can incentivise it for the future.