Higher Education and Research Bill
Debate between Jo Churchill and Gordon MarsdenMonday 21st November 2016
(7 years, 5 months ago)
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Gordon Marsden
I rise to speak to Labour’s new clause 5, which would revoke the Education (Student Support) (Amendment) Regulations 2015, which moved support for students from a system of maintenance grants to loans. I also rise to speak to Labour’s new clause 6, which follows on from the excellent speech made by my hon. Friend the Member for Ilford North (Wes Streeting) on new clauses 2 and 3.
At a time when the Government’s own Social Mobility Commission reported only last week that our nation is facing a crisis in social mobility, it is a travesty that I have to stand here today to talk about the problems caused by scrapping maintenance grants and replacing them with a further loan, disproportionately affecting students who come from a low-income background. As this House knows, students in the UK already face the highest levels of student debt in any European country. Figures from the Institute for Fiscal Studies show that the average student in the UK will leave university saddled with £44,000-worth of debt, and the Sutton Trust has suggested that the figure could go even higher. This figure is only the average; for students from low-income backgrounds, it will be much higher, and these changes will make it higher still.
Labour Members have pledged to bring back the maintenance grant. My hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), in the Bill Committee and recently at the Labour party’s north-west conference, gave powerful testimony as to why that is. It is not just because we cannot afford to lose these people from our economic process, or just because it will help to aid social mobility generally; it is because by doing so we will empower hundreds of thousands of people who will otherwise lose their life chances, or be in danger of that, under this process. There were half a million students in the last year before the Government scrapped the grant, many of whom were in higher education in further education colleges. If a significant number of those students do not take out loans because, for a variety of reasons, they do not wish to do so or are unable to do so, we will increase still further the progressive weakening that this Government have put on to the higher education and FE sector, which is currently servicing some 34,000 students who got the grant in the last year before the Government scrapped it, including a significant number of people in my own constituency pursuing higher education at the excellent Blackpool and The Fylde College.
The Government—I give credit to them for it—have put into the Bill the ability for FE colleges to have their own degree-awarding powers, and Blackpool and The Fylde College is one of those, but it is rather perverse then to introduce something that will weaken the support for such colleges. The Government seem not to think in holistic terms about further education. Taking people in higher education in further education colleges out of the equation will weaken the economic and social base of those colleges. The Government do not give anywhere near enough attention to that.
Jo Churchill
Will the hon. Gentleman allude to how Labour intends to pay for all these benefits, because I think I am right in saying that it was to be via corporation tax?
Gordon Marsden
The hon. Lady must be a mind reader because I am just coming to on that issue.
Bringing back the maintenance grant would help to enable over half a million students from low and middle-income backgrounds to go on to higher education. Rumour has it that in the autumn statement this coming Wednesday, the Chancellor is set to announce a further cut in corporation tax, helping only those at the top. We are asking the Government to reconsider this position. Our policy, which has been costed, of bringing back grants would be the equivalent of a rise of less than 1% in corporation tax. Do the Government not believe that this rise would be more beneficial to our nation as a whole—
Gordon Marsden
No, I will not—the hon. Lady has had one go. Let me proceed because we do not have a lot of time.
Do the Government not believe that that rise would be more beneficial to our nation as a whole than pushing ahead with a policy that benefits only a relatively small number of large corporations, and not even a big range? If the Government are serious about supporting social mobility, they need to do something about it. The Minister, in a rather Panglossian way, went on about all the terrible things that were predicted when loans were introduced not having come to pass, but that is actually not true, or certainly not true across the board. We have seen what a disaster the introduction of advanced learning loans for level 3 was for over-24-year-olds. Only 50% of the £300 million that was allocated for them was taken up, and that money has been sent straight back to the Treasury. Now, unabashed, the Government want to serve up the same recipe to 19 to 24-year-olds.
“Nudge” has been a fashionable word in the Conservative party in recent years—indeed, Lord Willetts wrote quite a lot about it—but it is possible to nudge people away from things as well as towards them. As the Minister well knows, the quality impact assessment on grants and loans let the cat out of the bag on the difficulties that would be faced by all the groups who desperately need access to higher education, such as women, disabled people, people from the black and minority ethnic communities, and care leavers. No wonder Ministers were so keen to bury this issue in a Delegated Legislation Committee. It took our efforts in bringing it to an Opposition day debate at the beginning of the year to have a decent debate on it.
The Government need to think again on this. I give notice that we will press our new clause 5 to a vote.
Jo Churchill
How does the hon. Gentleman explain the fact that covering the figure of £12 billion would mean a rise in corporation tax of between 4% and 5% rather than the 1% that he stated? Surely we need business and industry to be making money in order to create the jobs and opportunities for students once they leave education.
Gordon Marsden
That was a hell of a lot more than two seconds, but I forgive the hon. Lady. We need to look at this issue in the context of our proposal, to which I have already alluded.
New clause 6 deals with yet another regressive policy that has been highlighted during the passage of this Bill. My hon. Friend the Member for Ilford North spoke about some of the significant issues in this regard. The students affected will end up having to pay more than they were loaned as a greater proportion of their income. To those who have, more will be given, because they can pay their loans back more speedily; from those who have not, more will be taken. The Government seem to have been disregarding in their education policy the fact that there is a regional and demographic dimension to this as well. Constituents of mine taking up a graduate job in the past 12 months will have had a more reasonable ability to hit a threshold that was supposed to be uprated on a regular basis. Students in parts of the country where starting incomes for graduates are much lower than in London and the south-east will be particularly badly hit by this proposal.
Technical and Further Education Bill
Debate between Jo Churchill and Gordon MarsdenMonday 14th November 2016
(7 years, 5 months ago)
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Gordon Marsden (Blackpool South) (Lab)
I thank everyone who has spoken today. We have had a thoughtful, productive and constructive debate. Among Government Members, I particularly welcome the comments of the hon. Members for North Swindon (Justin Tomlinson), for Macclesfield (David Rutley) and for Dover (Charlie Elphicke). The hon. Member for North Swindon is not in his place—[Interruption.] Oh, I am sorry; he is. I particularly want to congratulate him and my constituency neighbour, the hon. Member for Blackpool North and Cleveleys (Paul Maynard), on the work that they did on the review of access to apprenticeships for those with learning disabilities, which was really important.
We have had some excellent speeches from Opposition Members. My hon. Friend the Member for Stoke-on-Trent Central (Tristram Hunt) quoted the famous American academic Robert Putnam on the decline of technical education and made a powerful argument for UTCs. My hon. Friend the Member for Manchester Central (Lucy Powell) talked about the importance of adult learning and the need to worry about the binary split, and I will say a couple of things about that. My hon. Friend the Member for Bristol South (Karin Smyth) pressed hard the need for upskilling, on the basis of the number of people in FE and schools in her constituency. My hon. Friend the Member for Scunthorpe (Nic Dakin), a most excellent former college head, spoke doughtily for his sector. He talked about the “cavalry coming over the hill”, but I think that the area-based reviews are not so much the cavalry coming over the hill as the “Charge of the Light Brigade”.
My hon. Friend the Member for Hove (Peter Kyle) drew on his considerable business and FE experience and talked about the rigidity of the levy. The Minister and his colleagues would do well to take on board the points he made. My hon. Friend the Member for Luton North (Kelvin Hopkins) brought his own wealth of experience to discuss the pitfalls of reorganisation, and he reminded us all of how these processes come and go and sometimes reincorporate themselves.
The Bill is timely, even if the methodology of its appearance is curious. If we wonder why it is necessary and why the Government should introduce it in a mood of humility, we need only survey the state of play in the twin areas of its operation. I bring to the House’s attention a document published today by Alison Wolf called “Remaking Tertiary Education”, which was supported by the Education Policy Institute. That research finds that technical education at levels 4 and 5 is on the verge of total collapse in terms of numbers. In 2014-15, only 4,900 learners achieved level 4 awards. In England, technical post-secondary awards now account for less than 2% of the qualifications taken and well under 1% of all qualifications funded in the skills system. Where level 4 and 5 qualifications are being delivered, they are not in subjects that meet the needs of the UK economy or labour market. Those are things that we should all think very hard about, and I look forward to Professor Wolf’s further observations when she comes before the Bill Committee as a witness.
We have heard about the decline in the financial health of the sector, and current forecasts suggest that the number of colleges under strain is set to rise rapidly. As my hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) said in her excellent speech, it is no wonder, given the alarm bells about their continued viability that the Skills Funding Agency and the National Audit Office have been ringing. It is not just FE colleges that are feeling the strain. In September 2016, a Sixth Form Colleges Association survey showed that two thirds of colleges had dropped courses as a result of funding pressures, a third did not believe that next year’s funding would be sufficient and 31% thought that the college would cease to be financially viable in the next three years.
That is the context in which the Government decided to introduce a stand-alone Technical and Further Education Bill. We all know why they have done so: because the academies Bill into which they wanted to drop these measures as a feel-good sweetener has itself been dropped. The entire process has been mired in dither, uncertainty and an overall lack of connection. There was no attempt to put these measures into the Higher Education and Research Bill, where they would naturally have fitted. Rightly, the HE White Paper banged on strongly about the importance of technical and higher education skills. However, we have to look at the Bill before us.
As we have said, there is no role in the Bill for apprentices or learners to be on the board or to be involved with setting standards. We are right to draw parallels with the way in which, in the recent Higher Education and Research Bill, the Government resisted putting stakeholders—in that case, students; in this case, apprentices—into a new institution that is crucial for their success.
Gordon Marsden
I am afraid that I will not because I am short of time. [Interruption.] I am sorry, but it was indicated that I had 10 minutes.
The Government’s argument was, “You can trust us. You can leave it to us.” However, the evidence is clear: we cannot leave it to them. The skills plan consistently talks about the Institute for Apprenticeships and Technical Education being employer-led. That is precisely why FE colleges, other training providers and learners need to be an essential component of it.
The Government gave us a body that has had two shadow chief executives so far—one was a career civil servant who left fairly rapidly to become a university registrar, and the other was the head of the Education Funding Agency and the Skills Funding Agency, Peter Lauener, who was drafted in part time. That is very much of a piece with the “make it up as you go along” way in which the Government have proceeded so far. It is therefore right for us to ask how the new institute will co-operate with the Office for Students, given how inadequate the current arrangements are for involving learners and providers. Given the fiascos during the past 18 months—for example, the Apprenticeship Delivery Board, which is tasked with advising the Government, has, with the new Government, lost its tsar and now has only the previous private sector co-chair of the board as its sole chair—we are right to ask such questions. Six months after their introduction, we are no closer to finding out how the two bodies will interact with each other.
We have had no word about what capacity the Institute for Apprenticeships and Technical Education will have, and many concerns have been expressed about that. My hon. Friend the Member for Hove did us all a service by putting that question to the Minister. We know that the body was originally going to involve only 40 employers; it is now suggested that there will be 100 employers. As the chief executive of the Association of Colleges has said, in neither case will it be adequate for the purpose.
The Government have shown little sense about how the institute will operate in the jungle of organisations that now exist. There is the EFA, the SFA, the National Apprenticeship Service and the Apprenticeship Delivery Board. How will their roles overlap? What role will Ofsted play in the process? What about Ofqual? At best, it is an alphabet soup. At worst, it could become a tug of war in Whitehall, with the interests of providers and apprentices pushed from pillar to post.
The Bill has more than 20 clauses on insolvency and administration, which shows the direction in which the Government think things are going in the next few years. We believe that the outcomes of the area reviews may entrench, rather than remove, such liability. The college insolvency regime is being introduced alongside the Treasury-controlled restructuring facility. We will want to look very closely in Committee at that process and at the consultation process. We will also want to make sure that public assets are not handed to private, for-profit companies if an insolvency process is taken forward. We agree with the Association of Colleges that the Government have missed an opportunity to introduce a legal scheme that would cover both FE and HE corporations. This means that a college might have an additional regulatory burden that will make it harder to secure finance.
The skills plan itself is not without criticisms—how strategic it will be post-Brexit, and on productivity, workplace training and adult training—and the Government will need to talk about such issues. The concerns about binary choices and standards, which my hon. Friend the Member for Manchester Central spoke about, have been echoed by me, the general secretary of the Association of Teachers and Lecturers and the University and College Union. We are also concerned about the potentially limiting scope of some of the routes. As Mark Dawe, the chief executive of the Association of Employment and Learning Providers, has said, a large proportion of jobs in the economy will be outside the scope of the routes. As a Blackpool MP, with my local FE college, I believe it is crucial that the service sector, which will potentially provide huge numbers of apprenticeships and jobs, is not left out of the process.
There is no reference to the new institute having any responsibility to widen access, and nothing on a strategy to promote participation among care leavers, people from black and minority ethnic backgrounds or those with disabilities. We need that to be in the Bill. We agree with the excellent analysis of Shane Chowen, the head of policy at the Learning and Work Institute, on that point. We agree that the Bill ought to enshrine the recommendations of the Maynard review, to which we contributed. It suggested that the Department for Business, Innovation and Skills revisit the recommendations of the Little report of 2012. The Bill needs to do more for looked-after children and care leavers.
Insolvency might force some students to travel longer distances, but the Bill makes no reference to how they might be compensated or how difficult it might be for suburban and rural colleges. All these points strengthen our argument for the return of the education maintenance allowance.
I spoke earlier this afternoon about the problems the Government have got themselves into over careers advice. If we are to make a success of the institute, it is crucial that young people are alerted early in their school life to the importance and attraction of technical routes, and we must maximise the opportunities for them to get work tasters that translate into real work experience.
I am glad that the Minister for Apprenticeships and Skills has shown more enthusiasm for the progression from traineeships to apprenticeships than a couple of his predecessors. Traineeships are a key point of entry that can make more young people competitive. However, traineeships have to be progressive. If not, there is a danger that we will see some of the issues we saw in the 1980s.
Finally, I come to the issue of devo-max. In view of the potential for combined authorities to take on skills and education, why does the Bill not take more account of the potential for devolved skills policy? All it contains is a brief but important reference to the need for such authorities to report their statistics to preserve a national database. That is hardly an endorsement of the potential to drive apprenticeships and skills at a local level.
We speak in this debate having seen two overviews from two key think-tanks, the Institute for Public Policy Research and Policy Exchange, cast doubt on the Government’s direction of travel. The Government need to think very hard about some of the issues raised, such as whether level 2 apprenticeships are too job specific and whether a significant proportion of the apprenticeship standards are inadequate and a cause for concern. We will give the Bill a fair hearing. We want the Bill to succeed, but if it is to succeed there needs to be more detail and we need to hear less self-congratulation from Ministers and more aspiration for the groups that they have signally not included in the Bill.
Higher Education and Research Bill (Seventh sitting)
Debate between Jo Churchill and Gordon MarsdenThursday 15th September 2016
(7 years, 7 months ago)
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Gordon Marsden
My hon. Friend, indefatigable as ever, makes an excellent point. I will not dwell on the issue to which she refers. It was part of the substance of the Prime Minister’s speech, and a lot of it was in the statement made by the Secretary of State for Education the other day, so I will not go into any detail on it other than to observe that my hon. Friend is absolutely right: if universities are to take on a significant, major role—there can be lots of discussions about how that is done, the value of it and all the rest—inevitably that is another element that will call upon their resources.
Jo Churchill (Bury St Edmunds) (Con)
I would like to try to understand where the Labour party is on this matter. If we are not allowed to build in for inflation, what do we do? For example, I believe fees have now dropped back to £8,500 in real terms. We are merely building in inflation proofing, so that universities can think about how they invest in relation to the teaching excellence framework and invest for students by delivering courses of quality. What do we hear from the Opposition? At the general election, the then Leader of the Opposition was talking about taking fees down to £6,000, and I think that the latest policy is for university education to be free. We have to pay for excellence and quality.
Gordon Marsden
I thank the hon. Lady for her extremely eloquent intervention. Perhaps it will set a trend for Government Members to speak on some of these very important clauses. I am sure that their constituents would like to know that the hours that they spend in the Committee Room, which inevitably are taken from other things, are rewarded by their saying something about the Bill. So far, we have not heard much from them.
The hon. Lady’s intervention enables me to make two points. First, I remind her gently that she is a Member of the Government party, and it is the Government who are advancing these proposals. It is not a question of what the Labour party may or may not have promised.
Higher Education and Research Bill (Third sitting)
Debate between Jo Churchill and Gordon MarsdenThursday 8th September 2016
(7 years, 7 months ago)
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Mr Marsden
Okay. On the issue of alternative providers, the QAA’s most recent survey shows that shortcomings were uncovered in a third. Are the proposals for registering alternative providers adequate? That is obviously a point that Sorana might want to comment on. The other point is about the process on the creation of the OFS. The complicated architecture between QAA, HEFCE and all the rest of it will take up to two or three years. Are either of you alarmed that that will create problems for the UK brand abroad?
Douglas Blackstock: Starting with the current arrangements, I think that they have been proved. We have made significant steps through the introduction, in our activities, of financial sustainability checks, and HEFCE has been doing that as well. The creation of the register will strengthen it too. It is a sign of the system’s success that the providers that are doing well have come out well. We have now had the first alternative providers that have commended judgments and are doing well, but where there have been shortcomings, they have been exposed in public reporting.
In the five years we have come through since we took on the review of alternative providers, the market has reduced in terms of the number of providers, but the stronger ones have survived and are doing better in reviews. We recently published an analysis of our reviews of alternative providers, and those that have a partnership with a university do well. They come out well, because they have a mature relationship.
Sorana Vieru: I am alarmed by the fact that these are risky reforms that are being pursued at risky times, and I cannot see where student representation sits. With the split of knowledge exchange—with it coming out of HEFCE and going into UKRI—do postgraduate research students fall through the cracks? I would like to see more clarity about where those functions are. We are creating an office for students without having student representation designated on the board or the quality assessment committee, or any statutory duty placed on that office to work with and consult students to represent their interests.
Jo Churchill
Q Mr Blackstock, you have said that you welcome the single register, financial stability and so on, but you are the quality body for higher education, so do you believe that the necessary quality safeguards are in place to do that intelligent monitoring that you spoke about and to ensure that there is quality for all students of any age at any institution?
Douglas Blackstock: We are in the process of reform anyway, and there has been a detailed consultation and a move towards this risk-based system, which involves an annual provider review. There is much more regular checking up on how institutions are performing, and then a series of triggers to investigate where there are problems. That is all strong and good, and I welcome it. My one residual concern was put rather nicely to me recently by a vice-chancellor of a prestigious university: “If we never look at the best, how will we know what good looks like?” That is my one concern—that we need to work with the system on an enhancement approach that would help improve quality, perhaps learning the lessons from the quality enhancement framework that we operate in partnership with others in Scotland.
Higher Education and Research Bill (Fourth sitting)
Debate between Jo Churchill and Gordon MarsdenThursday 8th September 2016
(7 years, 7 months ago)
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Mr Marsden
In the Minister’s concluding remarks on the previous group, he referred to the important role of the director for fair access and participation. In the amendments we are proposing now—I see that my hon. Friend the Member for Ilford North has tabled other amendments in this regard, too—we want to explore the independence and flexibility of the director with the Minister. He rightly described that in his comments as part and parcel of what the Government want to embody in the Bill.
I am not being particularly critical, but, as always, we did not have a great deal of time to tease out some of the implications for the director—whoever holds that office—when the current director of fair access appeared in the evidence session. We could take enough from what he said to know that the ability of the director for fair access and participation to negotiate with institutions—whether soft-baked, hard-baked or anyway-you-want-baked—would be seriously compromised if the director did not have the ultimate authority to approve or refuse access and participation plans. My hon. Friends who have tabled amendments and I believe that that is not sufficiently clear in the Bill, so we want to pursue the matter further with the Minister.
To ensure that the targets set by universities and colleges are sufficiently challenging will always involve tough negotiations. For the director to have had that independence to engage in negotiation free from conflicts of interest has been crucial in securing high levels of commitment by institutions to date—the key factor in OFFA’s success, which vindicates the decision of the Minister’s predecessor, David Willetts, to appoint Les Ebdon to the post in the first place. Negotiations can secure significant additional investment in access and a marked increase in the ambition of many universities and colleges. For example, in the 2016-17 access agreements the director’s negotiations led to improved targets at 94 institutions, and 28 increased their level of predicted spend, which secured an additional £11.4 million for fair access and participation.
Those are the statistics, and statistics are important. After all, we often talk about evidence-driven policy, and it is gratifying when there is evidence to drive the policy. It also, incidentally, strengthens the Minister’s hand in the financial discussions that he has to have from time to time with the Treasury. Behind the figures, however, lies the success story, or aspirational stories, of hundreds and thousands of not only young people, but—I speak with feeling as a former Open University tutor—older people who traditionally thought that higher education was not for them. In any system, some people will always be able to bustle their way through, even when they have not had opportunities on a previous occasion, but the whole point of a director for fair access and participation is to spread best practice, not only from the best universities and the most determined students, but generally.
I am labouring this point, because it is so important to continued success. When an important new framework is to be established with the office for students, it is crucial that the director’s ability to do his or her job is not impeded, whether by omission or by unexpected and unplanned consequences. If the director for fair access and participation can be bypassed and overruled by the chief executive or board of the office for students, we believe, as do others, that that would significantly undermine his or her ability to negotiate directly with vice-chancellors and to offer a robust challenge. That would probably lead to a significant scaling down of ambition by some institutions. That, I am sure—indeed, I do not need to be sure, because the Minister has waxed eloquent on it in several speeches and lectures at a number of institutions over the past year—is not the Minister’s intention. The amendments are, therefore, genuinely intended to be helpful in getting clarification.
It is vital to have a high-profile director for fair access and participation with the authority and credibility to offer robust challenges to institutions. A director who has first-hand experience of how tension at a higher education provider plays out in practice—in relation to finance, marketing, recruitment, student voice, learning and teaching, and Government policies and initiatives—will be well positioned to make nuanced judgments across access agreement negotiations about what is reasonable and achievable. That would obviously require the director to be a credible champion and a high-profile person in this field.
If the director does not have responsibility over access agreements and that is not clear in primary legislation—putting to one side the helpful advice that Ministers may be able to give subsequently—that will send out the wrong message for the institutions that we would expect to engage in the new settlement resulting from the Bill, and will make much more difficult both the Government’s avowed intent to widen participation and access and the specific responsibility of the director to pursue that.
Jo Churchill (Bury St Edmunds) (Con)
I am getting a little lost. Is not the hon. Gentleman being a little managerial now by saying that only the director for fair access and participation is responsible? Based on the arguments he made in favour of previous amendments—that we should be looking at the broader ability of the board to make decisions—should it not be the responsibility of the whole board to feed into such a position in order to ensure that the important area of access and participation really does what it says on the tin?
Mr Marsden
I have considerable respect for the hon. Lady, not least on the basis of the speech she made on Second Reading, and she has made a valuable point. It is not my intention, or that of my colleagues, to say that the director for fair access and participation should sit in a great bubble somewhere thinking great thoughts and that the OFS should simply rubber-stamp them at the end of the day. It is about who takes the initiative and carries things through on a day-to-day basis. With the best will in the world, we do not believe that that should be left to the board.
I have served on boards, committees, trusts and all the rest—as have, I am sure, many Committee members from both sides of the House—and everyone knows that one of the most difficult things to get right is the balance between overall strategic policy and the day-to-day administration of that policy. In my view—I have not heard many people dissent from this position—the director of fair access has been a successful innovation. It is important that those elements of the role that have worked so well so far are not restricted, unintentionally—I am not saying there is a dastardly plot to undermine them—by a defective or unclear identification and delegation of the director’s powers in the Bill.
This is a question not of managerialism but of realpolitik. We all know that in the real world and in the political world, if people’s powers are not well defined, there will always be someone who at some point will try to chip away at them. That is the point I am trying to get at. I understand entirely the point that the hon. Member for Bury St Edmunds was making. I do not wish to micromanage the affairs of the office of the director for fair access and participation any more than I think the Minister does, but I do not want to see set in legislation a train of views that takes us down the path I have described.
To meet the Government’s goal of doubling the rate of young people from disadvantaged backgrounds entering higher education by 2020 will require an acceleration of the process and a director who can continue to offer those robust challenges. If the director does not retain the authority to approve or reject an access and participation plan, if it is not clear that he or she retains that authority, or if that power can be delegated to others and decisions overturned, there is a real risk that the director’s position will be seen as weakened. Believe me, having sat on the Education Committee, I do not think that lawyers and judicial reviews or internal rows in Departments, detracting from the work of that Department, are something to be recommended.