Higher Education and Research Bill

Lord Kerslake Excerpts

Committee: 4th sitting (Hansard): House of Lords
Wednesday 18th January 2017 Lords Chamber

[Baroness Garden of Frognal (LD)]

My Lords, I have two amendments in this group, which complement those that the noble Lord, Lord Watson, has already spoken to. The Government’s current policy is for fees, even for those having achieved the top rate of the TEF, to increase only by inflation. However, paragraph 4(2)(b) of Schedule 2—on page 78, line 3—enables an increase by more than inflation if a resolution to that effect is passed in Parliament. Amendment 125 would remove this provision, thus requiring new primary legislation for any Government wishing to go further.

Amendment 199, which mirrors the amendment which the noble Lord, Lord Watson, has already spoken to, is somewhat of a pre-emptive amendment. No matter what your view of the TEF, it is clear that it is an attempt, albeit ham-fisted in our view, to give students more information and more security when choosing a course and to lift the standard of teaching in our university sector across the board. Both of these are noble aims. We agree with the aims, but challenge the methods proposed. We particularly deplore the categorisation of gold, silver and bronze, which seems to us to be extraordinarily damaging.

We do not have faith that the TEF will not be used for ulterior purposes in the future, in particular as part of the Government’s continued, blinkered action towards student immigration. This fear is not unfounded. Nick Timothy, the Prime Minister’s most senior adviser, is one of the biggest advocates of further crack-downs on student immigration. In a piece in the Telegraph in June 2015, he made clear his views that students should be,

“expected to leave the country at the end of their course, while only the very best of them should be allowed to work in the UK”.

In the piece, he states that these students are not, in fact, the best and the brightest and key contributors to our future prosperity, as,

“the number of foreign students at Oxford and Cambridge is a little more than 4,000, while there are about 66,000 at the remaining Russell Group universities”.

This attitude displays a staggering lack of understanding about the diversity and value of our higher education institutions and their graduates.

This amendment would prevent the TEF from being used in determining eligibility for a visa for students on leaving university. It would ensure that such a change would require primary legislation and not be possible through a simple change in Immigration Rules. If the Government were to seek to pursue such an approach, they should rightly have to make their case in Parliament. Can the Minister also clarify that the Government do not agree with the approach Nick Timothy has previously advocated? There are very many of the brightest and best students at universities outside the Russell group, and such discrimination can only be damaging.

[Lord Kerslake (CB)]

My Lords, I speak in favour of Clause 10 being removed from the Bill. In doing so, I declare my interest as chair of the board of governors of Sheffield Hallam University. I should also note that the vice-chancellor of the university, Professor Chris Husbands, is leading work on behalf of the Government on the development of the teaching excellence framework.

The effect of the deletion of Clause 10 would be to remove the power of the Office for Students to set the fee limit by reference to a provider’s rating under the teaching excellence framework. It is important to say first that I strongly support the Government’s desire to improve the focus of universities on teaching quality. That is absolutely the right thing to do. I am also not opposed to the introduction of the TEF per se. I do, however, have some significant concerns about the approach that the Government are taking to the TEF and, in particular, the link being made between fee levels and the TEF. My three main concerns are as follows.

First, there is not a straight read-across between teaching and research. At a very basic level, publicly funded research has a small number of very informed funders, which make their decisions with a long-standing knowledge of the providers. In this context, the REF provides an effective framework to drive research excellence. In the case of teaching, the decisions are made by millions of individual learners. They will base their decisions on a range of factors: the reputation of the university itself, the place it is located in and their likelihood of securing the necessary grades, but, most importantly, their views of the course of study itself. In this context, the TEF rating of the university will be of interest but it is unlikely to add a great deal to their decision. The value of the TEF is more to the institution than to the student. Having a rating itself, combined with changing demographics, will provide a powerful enough incentive for institutions to improve, just as the NSS scores are now. There is no benefit, and indeed significant perverse consequences, from adding in a link to fees. For example, those institutions most in need of resources to improve their teaching will be deprived of the means to do so.

My second objection is that the TEF is still in development. I have to say that I cannot think of anyone better than Chris Husbands to lead the work on it, but he is inevitably working within parameters set by the Government. The higher education sector is a very differentiated sector, and not all universities are the same. Reducing that wide variation down to a rating of gold, silver or bronze is for me, and I think for many, a gross simplification. A bronze rating risks being seen as failing or poor, even though in athletics, from which this was derived, securing a bronze would be seen, by me at least, as a considerable success.

There remains a very significant debate about the metrics for the TEF, but also about the distribution of the ratings—how many institutions will score the highest rating and therefore increase their fees. I currently understand that the plan is for it to be 15% bronze, 70% silver and 15% gold, but that may well change. Moreover, the TEF rating, as has already been said, is in the first instance about the institution and not the course. Yet the proposals will allow the institutions to raise fees regardless of individual course quality. All of these are symptoms of a system that is still in development and unproven. Until we are really confident about these issues, it seems to be completely wrong to link the TEF to fees.

My third and final concern is that, even if these issues can be resolved satisfactorily, it seems wrong in principle to approach increases in fees in this way. The reason that the vast majority of universities raised fees to the level of the £9,000 cap in 2012 was that they needed to offset the loss of other government support. Universities have been spared the brunt of the austerity measures experienced in local government and other sectors, but at the price of increased fees for students and, arguably, for future generations for those students who are unable to repay their loans.

There is an important debate to be had about the future resources that universities need, the level of student fees and indeed the amount of government funding provided to support them. No doubt vice-chancellors, faced with the prospect of this being the only way to increase fees, will go along with it. Fundamentally, though, it sidesteps what should be a public debate. If there is a case to be made for increasing fees in future then it should be made, but this is making that policy by the back door.

I recognise that the Government have dug in on this, but there is still time to think again. The proposal is understandably deeply unpopular with students and the NUS. In my view, it is also the product of some deeply flawed thinking.