Technical and Further Education Bill

Debate between Lord Watson of Invergowrie and Baroness Garden of Frognal

3rd reading (Hansard): House of Lords
Tuesday 4th April 2017 Lords Chamber

[Baroness Garden of Frognal (LD)]

My Lords, from the Liberal Democrat Benches I add our thanks to the Minister, the noble Baronesses, Lady Vere and Lady Buscombe, and the Bill team for their engagement, briefings and meetings in the course of the Bill’s passage.

We were grateful that the Government accepted the amendment of the noble Lord, Lord Baker, early on, which promised more movement than we subsequently achieved, but we hope that those amendments agreed by the House will be confirmed by the Commons when the Bill returns to it, particularly that of my noble friend Lord Storey on careers advice in FE colleges. We also welcome the movement on private providers and I thank the Minister for the meeting yesterday on that.

Perhaps as a result of the Bill we might hear more about the EBacc including more creative and technical subjects, to promote practical skills in the school timetable. It is surely in order that skills should be raised as early as possible in the schools programme, to open opportunities at an early stage to young people whose enthusiasms lie that way.

As the Minister is aware, we still have considerable concerns that some of the measures in the Bill will damage the chances for the Institute for Apprenticeships and Technical Education to be as effective as it needs to be. Among them is the issue of copyright, which will impede the awarding bodies in giving the wholehearted co-operation they might wish to give. I am grateful that we have a meeting with officials and others to discuss this in greater detail and hope that the Government might find a way forward before the Bill becomes law which does not prevent some of the most expert champions of practical, technical education from playing their full part.

There are other issues, such as single awarding bodies, consortia and certification which we would wish to continue to discuss and monitor. There is a deal of complexity in the model that the Government are proposing, and complexity does not help to promote the skills agenda.

In wishing the institute every success in its ambitious aims, we would also wish to check that it has the framework and the resources to raise the profile and standards of technical work-based achievement. We hope that it will continue to consult and take advice from those who have many years of experience in this sector—employers, awarding bodies, trainers and lecturers—who have ensured brilliant achievements by many people in skills areas. We only have to think of the UK’s successes in world skills competitions, for instance, and of some of our great entrepreneurs and leaders who began their careers through a skills-based route to see that we are not starting from scratch.

However, there is a mounting skills gap. In the interests of the country, the community and the individual learners, we have to hope that this Bill and the institute fulfil the high expectations placed upon them.

Once again, I express the thanks of these Benches for the way in which scrutiny has been conducted.

[Lord Watson of Invergowrie (Lab)]

My Lords, I have not written a speech but, if I had, it would have been more or less word for word what the noble Baroness, Lady Garden, has just said. That is probably an embarrassment to her, but there we are.

The Bill is not the heaviest we have dealt with or will deal with, but it has dealt with important matters. We have all recorded our disappointment that so much of it was to do with the insolvency angle, some of which has caused difficulties to further education colleges, bank loans and, potentially, pensions, but they will have to be dealt with down the line.

The fact that the Institute for Apprenticeships was established a few days ago is a welcome sign. I agree with my noble friend Lord Young that it was disappointing that the letter dated 30 March from the noble Baroness, Lady Vere, did not go into enough detail on what we were looking for in our amendment last week on the institute. However, it will develop and will become the Institute for Apprenticeships and Technical Education in a year’s time and we look forward to that.

I will say a word to the Minister which reflects the report to which my noble friend Lord Young referred. The business last week of the House of Commons sub-committee on education is worth reading. I do not agree with all of it but it highlighted the point—which was also raised by these Benches and other noble Lords over the past few weeks—that it is essential that the 3 million target does not allow quantity to trump quality. It is the quality of the apprenticeships that are provided in the years to come that will decide whether or not this is a success. We have to keep banging that drum. I know from what he has said that the Minister believes that as well. We will have to make sure that it happens.

I thank all those involved in the Bill. The Public Bill Office, as ever, has been extremely helpful. The Minister and the noble Baronesses, Lady Vere and Lady Buscombe, have been, if not accommodating in Committee, helpful in the briefings that we have had. The Minister’s officials and the meetings they set up have been useful in giving a better understanding of the Bill, its intentions, and how we might work with it or frame amendments to try and change it. I finish by thanking my colleagues, my noble friends Lord Stevenson and Lord Hunt. The Minister has a vast array and army of officials behind him but we have only one person—Dan Stevens, the legislative and political adviser for our team. He has been a tireless worker on what was his first Bill and I can pay him no greater compliment than to say that you would not know it.

Technical and Further Education Bill

Debate between Lord Watson of Invergowrie and Baroness Garden of Frognal

Report stage (Hansard): House of Lords
Monday 27th March 2017 Lords Chamber

[Lord Watson of Invergowrie]

My Lords, again, this is an issue that we considered in Committee. Indeed, it was also discussed in another place. But the fact that we continue to seek a greater level of reporting surely makes it clear to the Minister that we do not accept the responses given by him and his honourable friend the Skills Minister, Mr Halfon. We do not resubmit amendments without believing that they would enhance the Bill. I stress that there is no political point-scoring involved in amendments such as this. The Minister will know that when his arguments convince us—as, indeed, from time to time they do—we do not return to matters that have been taken as far as they usefully can be. But we do not believe that to be the case here.

The amendment is largely self-explanatory so I shall not rehearse the arguments that I used previously, but quality of outcomes will be absolutely key to the extent to which the skills gaps in the economy are able to be filled by UK workers trained for these jobs— initially in the decade ahead but also far beyond that point. The duties that would be placed on the institute by Amendment 2 are hardly onerous. The Minister stated in Committee that they are unnecessary as the Enterprise Act 2016 will require the institute to report on its activities annually. Of course that is the case—but not to the level of detail that we seek here.

The institute is about to come into being and will need some time to find its feet. But the Department for Education’s own website states that, according to the Bill, the institute will ensure, inter alia,

“high quality standards and assessment plans, which will lead to high quality apprenticeships”.

The extent to which the institute is successful will depend on assessing the job outcomes of those completing apprenticeships and the earnings that will result from those or from moving on to higher education. The rationale for the amendment is to go further than the basic reporting required by the Enterprise Act and to make public the extent to which both apprentices and employers believe that training and levels of employability are being strengthened and deepened as a result of the new landscape.

Surely the Secretary of State would expect nothing less than an annual report from the institute on the quality of outcomes from completed apprenticeships. So we ask, why not have that in the Bill? It follows, particularly when the Government are in pursuit of their target of 3 million starts by 2020, that Parliament should have the opportunity to receive and debate the report. If the Government want quality rather than quantity to be the driver, as they say they do, they should welcome the maximum amount of transparency in that regard. The fact that the amendment will require the institute to collect information from the department should be a positive and should be welcomed by the Government as a sign that it is meeting expectations. That is what Amendment 2 is designed to achieve.

Amendment 3 also requires reporting by the institute. I hope that the Minister will not again tell noble Lords that it is not necessary. Noble Lords will note that we are not asking the institute to do anything more than request from the department information which the department already holds. The purpose of doing so is to ensure that the institute is achieving success in turning round the situation identified by the Government’s Social Mobility and Child Poverty Commission, as it was then known, a year ago. It warned that the Government’s drive on apprenticeships was failing to deliver for young people and pointed out that almost all the recent increase in apprenticeship starts related to people over the age of 24, with the number of young people starting apprenticeships showing little change since 2010.

It also noted that, unlike academic courses, youth apprenticeships typically do not represent a step up. Most A-level-age apprentices do GCSE-level apprenticeships and almost all—97%—university-age apprentices do apprenticeships at A-level equivalent or lower. The commission also highlighted that most youth apprenticeships are in sectors such as health and social care, business administration, and hospitality and catering, which are characterised by low pay and, often, poor progression.

The Commission on Social Mobility also welcomed the Government’s efforts to improve the quality as well as the number of apprenticeships but said that there needed to be a real focus on improving the quality of apprenticeships for young people. It called on the Government to increase the number of young people doing higher apprenticeships to 30,000 by 2020 compared to the present 4,200 19 to 24 year-olds. It also called for a UCAS-style apprenticeship gateway that would give young people much better information on what apprenticeships are available—and, crucially, where they might lead.

Some advantages will be identified as a result of the establishment of the institute, but throughout the passage of the Bill here and in another place we have heard many fears expressed that the drive to 3 million apprenticeship starts risks double or even triple-counting some apprentices. There is a need for improved data transparency so that it is clear how many apprenticeships the starts data relate to. That is what the amendment seeks to achieve and why it makes the connection with those in receipt of the pupil premium, so as to be able to monitor the effect that completed apprenticeships have on young people’s lives in comparison with their more advantaged counterparts.

The Government consistently say that they are committed to social mobility. On that basis, I would say to them that they should embrace this opportunity to demonstrate the success of that aim. I beg to move.

[Baroness Garden of Frognal (LD)]

My Lords, I will speak to Amendment 21 in this group, which is in my name and those of my noble friend Lord Storey and the noble Lord, Lord Lucas, and add my support to Amendments 2 and 3 to which the noble Lord, Lord Watson, has just spoken. Our amendment came out of discussions with the CBI, which has a great deal of interest and expertise in the future of apprenticeships—indeed, its engagement is vital to the success of this scheme. It expressed the concerns of its members that the new institute will need monitoring and overview, particularly in its early days.

The amendment aims to ensure that there is regular reporting back to the Secretary of State on the quality of apprenticeships and technical education, calling for,

“a response … containing any actions to be taken as a result”.

Those “any actions” are particularly important because having action plans in response will surely make the difference. There needs to be ongoing communication. There is a weight of responsibility on the institute and high expectations that it will be a real engine for change and will counter generations of undervaluing practical, work-based skills. We need to ensure that there is transparency and accountability from the Government over the quality of technical and further education, and this amendment would help to ensure that the very welcome focus on the technical and further education sector is not lost after the Bill passes into law. I look forward to a positive response from the Minister.

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[Baroness Garden of Frognal]

The noble Lord, Lord Young, has tempted me, because I, too, bear the scars of the diploma, GNVQ and various other misguided projects of different Governments. He is quite right that my Amendment 28, which is in the next group, will be relevant here, too. I urge the Minister to consider just how sizeable this task is. We should not demolish existing vocational qualifications—as we were calling them—because many of them have great reputations and have served people well. If we are to build a new bright tomorrow for such qualifications, we need to use all the tools that we already have, which are serving the country well, and expand them into the next range of T-level qualifications.

[Lord Watson of Invergowrie]

My Lords, I thank my noble friend Lord Young for moving this amendment, which I am happy to support. In broad terms, we believe that the recommendations of the Sainsbury review should be fully implemented and funded. In the short term, there are three clear funding needs from the skills plan: fair funding for colleges; costs associated with finding and managing work placements, because they involve an individualised service to young people and employers rather than education to a group; and the cost of the transition year. A two-year full-time course would be the standard model under the plan, but with the expectation that some school leavers would need to take an additional transition year. This implies a full-time three-year programme. The current 16-to-18 funding system assumes a full two years and then administers a 17.5% cut in the third year. A sensible step, therefore, would be to maintain the full rate for three years for those students taking the transition year.

In his letter to noble Lords dated 22 February, the noble Lord, Lord Nash, stated that there are currently around 3,500 vocational qualifications. Most professionals in the sector have cited a figure of more than three times that amount, but more important is how the transition to the new regime is managed and funded. The Minister also said in his letter that the reforms would be phased in progressively, with the first routes available for delivery from September 2019. That apart, the transition was not set out and the amendment in the name of my noble friend Lord Young would enable that to happen. It would be a positive move and we believe that it is incumbent on the Minister to commit to it by accepting this modest amendment.

Technical and Further Education Bill

Debate between Lord Watson of Invergowrie and Baroness Garden of Frognal

Committee: 2nd sitting (Hansard): House of Lords
Monday 27th February 2017 Grand Committee

[Lord Watson of Invergowrie (Lab)]

My Lords, it is fair to say that the question of international students is, to put it mildly, a somewhat thorny one. I do not want to draw parallels too closely with the higher education sector, but there is no reason why the further education sector should not seek to attract more students, and indeed staff, from overseas. The debates that have taken place on the Higher Education and Research Bill suggest that the Government do not fully appreciate the value to many institutions of the contributions made by students from abroad, and I am not just talking in financial terms. The financial contribution is of course important to the further education sector, but no less so is the general contribution made by the presence of students from other countries. Despite the result of the referendum, we do not—and, I would say, must not ever allow ourselves to—live in a world of our own, unwilling to acknowledge or embrace the benefits that flow from interacting with those from other countries and cultures.

There is not a consistency of view regarding the value of those benefits. The Foreign Secretary is a man with whom, I must say, I rarely see eye to eye, but I was at one with him when he said in a recent speech that overseas students should be excluded from the immigration statistics. That is certainly the position of the Labour Party, and I know that it is shared by many others across your Lordships’ House and much further afield. Of course, Mr Johnson was not espousing government policy and he was overruled by 10 Downing Street, but on this occasion certainly he was right. It is common sense to treat international students as a benefit to, and not a burden on, this country.

Amendment 12 would place the onus on the Secretary of State to encourage international students. She could of course delegate that role, and might usefully do so, to the institute. Some further education colleges already reach out and have a presence in other countries—some more successfully than others, it must be said—so this is an area in which there is surely room for expansion. It should be made widely known, particularly when government Ministers are abroad, that applications to further education colleges by young people or by those who want to teach in FE colleges would be welcomed. Students may use this provision as a means to gain the qualifications needed to enter higher education, or teaching staff may use it to broaden their expertise, but whatever the reason, as we close the doors to the European Union, we should be opening them wide to many other countries. This amendment offers a means of doing so by highlighting what further education providers have to offer internationally, and I hope that the Minister will accept it in that light.

[Baroness Garden of Frognal (LD)]

My Lords, I support this amendment and entirely agree with the noble Lord, Lord Watson, on the importance of signalling to international students and staff that they are welcome. Not only are they welcome, they are invaluable in providing teaching skills that we are unable to provide from UK citizens and in bolstering student places in both quality and quantity.

Through this Bill, we would hope to send out positive messages to those from other countries that we are open for business, that we shall honour any commitments to staff or students and that we shall minimise the immigration conditions for all bona fide students and staff who wish to come to our further education colleges or providers. These measures are particularly important now in respect of EU nationals, who play such a significant part in the success of our further and higher education institutions and who are feeling particularly beleaguered and undervalued at the moment, but they are important too for the much wider international community. I hope that the Minister is able to accept this amendment.

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[Baroness Garden of Frognal]

My Lords, we now move on to the question of certificates, which has been raised already this afternoon. There are quite a few questions to be asked about the institute’s power to issue technical education certificates. This is another significant proposal and was not canvased in the skills plan. The proposal potentially removes any continuing link between the awarding organisation and the qualification that it has produced.

The amendment seeks clarity on the relationship between the issuing of the proposed certificates and the qualification certificates issued by the awarding organisations. Will these technical education qualifications be alongside the awarding organisation certificate? The Minister said that employers would pay for this certificate. Does that mean that the submission for it would come from the employer, the training provider or the awarding body? What assessment has been made of the resources required by the institute to authenticate, print and send out the 3 million apprenticeship certificates to meet the government target? Will the institute require the addresses of all the candidates, or will they be sent to the employer or training provider to distribute?

Government issuing of certificates is not common procedure at qualification level in any other area of the education and training system and would appear to bestow unnecessary cost, duplication and complexity on the Department for Education and/or the institute. Would it not be simpler if the certificate issued by the awarding organisation also carried the logo of the institute or of the Department for Education? The amendment proposes the much simpler solution of adding the backing and status of the institute or DfE to a certificate which has already been validated, processed and issued. I beg to move.

[Lord Watson of Invergowrie]

My Lords, I have added my name to this amendment, and the Labour Benches support the remarks made by the noble Baroness, Lady Garden of Frognal. She has a great deal of experience in the field of technical qualifications, so I have little meaningful to add. In earlier debates on the Bill, I have said that I hope to see a situation develop which leads to a small and relatively focused group of technical education qualifications. GCSEs and A-levels are instantly and universally recognised and accepted; I want to see something similar for technical education certificates. The current plethora of qualifications means that too few are understood, far less valued, and that diminishes the hard work that young people put into gaining them. How dispiriting it must be to emerge successfully from the end-point assessment only to find that the qualification gained is not widely recognised or transferrable to other employers.

Allowing the use of the DfE logo and consistent wording would standardise the technical education certificates issued, make it clear that they are overseen by the Department for Education and thus have a value transferrable throughout England. That measure is long overdue.

Technical and Further Education Bill

Debate between Lord Watson of Invergowrie and Baroness Garden of Frognal

Committee: 1st sitting (Hansard): House of Lords
Wednesday 22nd February 2017 Grand Committee

[Lord Watson of Invergowrie]

The noble Lord, Lord Baker is, of course, a novice at these procedures; or perhaps, like me, he is still getting his breath back following the words “I accept” from the Minister, which were much welcomed.

This is a probing amendment and, to some extent, a read-across from the Higher Education and Research Bill. It is pretty much self-explanatory, although that does not mean I can resist the temptation to say a few words. Almost three decades have passed since the Education Reform Act 1988 ended the tenure that had long been enjoyed by British academics, but an amendment to that legislation protected in law the freedom of academics to question and test received wisdom and to put forward new ideas and controversial and occasionally unpopular opinions without placing themselves in jeopardy of losing their jobs or the privileges they may have had at their institution. That right that should apply across the board to all academics, whether in higher or further education. I accept that this is an issue of more concern in higher education, but increasing staff insecurity in further education colleges and other further education providers leads us to believe that the principles that apply in higher education should also apply in further education.

The Minister may well say that academic freedom is already established by common practice, but that is not the view of teaching organisations. This amendment applies to the Secretary of State in issuing guidance and directions, and to the institution in performing its functions, giving them a duty to uphold the principles of academic freedom and institutional autonomy. It is not a draconian measure; it merely states unequivocally that institutions have the right to determine which courses to teach and who they appoint to teach them, and that academic staff have the right to speak freely about how their institution is run, what courses should be pursued and how, and to advance unconventional or perhaps unpopular opinions. Such expressions should not impact on the job security of academic staff, and for that reason we believe they have the right to have such protections clearly set out in the Bill.

Amendment 3 would also incorporate the human rights to freedom of expression, assembly, thought and belief. It is unfortunate that this amendment is necessary but, given the threats felt by universities as a result of the dramatic changes being introduced to the sector by the Higher Education and Research Bill, who is to say that providers in the further education sector will not sooner or later experience a similar feeling of threat? Forewarned is forearmed, which is why this issue must at least be highlighted today.

Freedom of speech is the subject of Amendment 7. It, too, is a provision that ought not to be necessary, but the hard facts are that it is necessary. Recent events, particularly in some educational institutions involving Jewish students or staff, demonstrate that for some people freedom of speech can and does become unlawful speech. My view on this goes back to my days as a student activist, some four decades ago, and is that a demand to no-platform a particular speaker is wrong. I have never believed that you deny someone a platform simply because you disagree with them. Even if you disagree vehemently with what they are saying, my response is that you should take them on by argument, but when that kind of speech enters the world of racism, misogyny, homophobia or threatening behaviour, it contravenes the law, and the law should intervene.

It is unfortunate that these matters have to be aired, but I believe they should be. They are matters of concern in the further education sector as well as the higher education sector. I hope the Minister will take them on board and given them due consideration. I beg to move.

[Baroness Garden of Frognal]

My Lords, I support these amendments. We had extensive discussions on these issues during the passage of the Higher Education and Research Bill, and they are no less relevant to further education colleges. Institutional autonomy is as important for colleges, where the people who work in them really know what works for their pupils and students, and academic staff having the freedom to question and test received wisdom is just as important for colleges as it is for universities. So is freedom of speech and preventing unlawful speech, which seems an increasing aspect of student life these days. In a way, it is almost more relevant for colleges as they have such a wide variety of students under their roofs. Both these amendments are entirely relevant to this Bill.

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[Lord Watson of Invergowrie]

I should say at the start that I am not quite sure why Amendments 6 and 8 have been grouped but, as they say, we are where we are.

Noble Lords may feel it a little odd that, in a Bill very largely concerned with assisting further education colleges that have slipped into insolvency, we find an amendment seeking to address new further education institutions. I am being upbeat here: it is to be hoped that the time will arrive when the Government of the day fund the further education sector adequately and the post-16 skills plan and the 15 occupational routes for apprentices are successful, so that the sector will be seen as attractive to new entrants. That is the situation in higher education and safeguards have had to be built in in anticipation of an influx of more new entrants. It may well be the case that a so-called challenger institution will seek to establish itself in the further education sector and, when that happens, the sector needs to be prepared.

It is no more than reasonable that, before the institute recommends to the Secretary of State that a new further education institution be admitted, that institution should be able to demonstrate that satisfactory validation arrangements have been in place for a minimum of four years. Noble Lords may be aware that the Higher Education and Research Bill suggests that new entrants should be able to be given, albeit temporarily, degree-awarding powers from day one. We strongly believe that that is not appropriate and that there has to be an amount of time in which an institution has shown its ability not just to operate as a business but to provide students with everything that they are entitled to expect when they sign up for courses. That is what is behind the mention of a minimum of four years in the amendment.

The Minister may say that this is unnecessary, but he said at Second Reading that he did not envisage the insolvency procedures being used other than in very rare cases. With 28 out of 45 clauses in the Bill concerned with insolvency, methinks he may have protested too much. None the less, reasonable man that I am, I am prepared to give him the benefit of the doubt and accept that these clauses may well prove necessary from time to time and that we need them. In return, I hope he will be willing to accept that Amendment 6 envisages a situation that may prove equally necessary in the future, and I await his response on that point with interest.

Amendments 13 and 14 are concerned with broadening access to post-school education or training, and Amendment 14 is specifically about equality of opportunity. The Learning and Work Institute gave evidence to the Public Bill Committee in another place in which it said that people with disabilities and learning difficulties and people from black and minority ethnic backgrounds had been under-represented in apprenticeships for many years. The introduction of the institute offers an opportunity to make a real difference by improving access to apprenticeships for traditionally under-represented groups.

The Government already have targets to increase the proportion of BME apprentices by 20%. Perhaps the Minister can say whether the intention is to do the same—not necessarily in terms of the percentage but in setting targets—for people with disabilities and those leaving care. Giving the institute a duty to widen access and participation would be beneficial for all parties. Only 50% of disabled people have a job, compared with eight in 10 able-bodied people. The Government have stated their aim of halving the level of unemployment among people with disabilities, so we believe that this offers an opportunity to use apprenticeships as a step towards narrowing that gap.

When it is fully established, we believe that the institute should consider as a priority what can be done for groups which are under-represented, not only women, those from black and minority ethnic backgrounds or those leaving care but also those who leave school with no qualifications at all. During consideration of this Bill in another place, the Minister for Schools, Mr Robert Halfon, talked about traineeships and the possibility of them forming an introductory route into apprenticeships. Traineeships would be particularly appropriate for the groups of people I have mentioned when it comes to promoting equality of opportunity for access and participation. Traineeships are also appropriate for retraining, particularly as the institute has now been given additional responsibility for technical education. I hope that the Minister will follow that up with his colleagues to consider what might be achieved. I beg to move.

[Baroness Garden of Frognal]

My Lords, I wish to speak to Amendment 8 in this group, which covers some of the same ground that we have already addressed. It seems appropriate, in setting up this new institute, to specify what it is supposed to do—its functions and duties. I have rather optimistically put its “additional” functions and duties because, looking through the Bill, it is difficult to see any clarity on what its functions and duties actually are. However, the role it will play in apprenticeship standards is obviously set out clearly in the Bill. I have added certification, although I think there is a later amendment on this aspect, which perhaps we should address at that point because I do not think it is as straightforward as it appears. It is particularly important that the institute should have an overview of where the skills shortages are and be in a position to divert funding and encourage participation to address those shortages.

The second part of the amendment deals with promotion and consultation. As we have discussed on previous amendments, having set up the new institute, surely it is only right that it should have a role in promoting apprenticeships and work-based skills. It would be a pretty poor body if it did not support the qualifications it has been set up to oversee, and we have such a long way to go. We have already discussed careers education, advice and guidance quite comprehensively, but we have heard from school leavers many accounts of the difficulties they face if they want to pursue the apprenticeship route rather than the university one.

There are steps that the Government could take, as we have already heard from the noble Lords, Lord Hunt and Lord Young, and the noble Baroness, Lady Morris. One would be to expand the measurements for school league tables to include vocational and practical achievement alongside academic results. Currently, schools get public recognition purely on their academic results, so obviously there is a lot of pressure on them to make sure that youngsters are diverted on to those routes regardless of where their aptitudes lie. They could also encourage schools to celebrate their students who leave to take up apprenticeships with the same enthusiasm they give to their university entrants. One can see on school noticeboards long lists showing how many students have gone on to university, and it would be cheering to read alongside them that a certain number went on to take up apprenticeships. However, schools do not seem to take that on board as something to celebrate. Instead, they keep trying to dissuade bright young people from seeking out apprenticeships, as we discussed when we were considering careers advice.

There was too little consultation with stakeholders before the Bill was drafted. It is difficult to believe that, in a rare further education Bill, they would have chosen that a major part of it—more than 30 clauses—should be devoted to the insolvency and financial difficulties of further education bodies. What a negative view of the sector when there are so many positive aspects of further education that could have been assisted through legislation. Even before the Bill has become law, this is having an impact. We are already hearing that, because of these provisions, banks and other financial organisations are treating colleges with some suspicion. The biggest area of current concern for colleges is the impact on local government pension scheme funds. What was the rationale in casting doubt on colleges, which will be one of the main providers of the qualifications the Government have said they wish to promote? With so many doubts being cast on the viability of the providers, how will that help to generate the 3 million apprenticeships being sought? There appear to be only sticks and no carrots from the Government.

The current situation requires very expensive financial consultants filling in enormous spreadsheets and application forms to the transaction unit—time and resources that could be spent more constructively. It may be better to have an orderly college insolvency regime that colleges hardly ever use than continuing the risk of a disorderly one, but why make it such a large part of the Bill? Which of the stakeholders supported this part of the Bill?

Higher Education and Research Bill

Debate between Lord Watson of Invergowrie and Baroness Garden of Frognal

Committee: 5th sitting (Hansard): House of Lords
Monday 23rd January 2017 Lords Chamber

[Baroness Garden of Frognal (LD)]

My Lords, I have added my name to the amendment moved by the noble Baroness, Lady Wolf, which is self-explanatory. She has set out very clearly the reasons behind it: to ensure that the OfS can place restrictions on the number of new students a particular higher education provider may enrol, if it has reasonable grounds for believing that the provider is in breach of a registration condition.

Given that the Bill aims to improve the student experience, it is particularly important that, if a higher education provider is falling short in the provision it should be offering, the OfS should, as part of its duty, have powers to intervene to prevent cohorts of new students being enrolled. The registration conditions in the Bill are important but, as the noble Baroness, Lady Wolf, set out, it is important that the OfS should have a range of sanctions available if a particular provider is not abiding by the registration conditions, and that those sanctions should be proportionate. On the amendment’s second paragraph, it is only right that that there should be regulations setting out the procedures, but only right too that rights of appeal for any such sanction should be added to the clause.

[Lord Watson of Invergowrie (Lab)]

My Lords, as the noble Baroness, Lady Wolf, set out very clearly, her amendment would allow the OfS to place,

“quantitative restrictions on the number of new students that the provider may enrol”,

if it has,

“reasonable grounds for believing that a registered higher education provider is in breach of an ongoing registration condition with respect to the quality of the higher education provided … or to its ability to implement a student protection plan”.

She went into some interesting and rather unfortunate detail about what can happen when colleges or providers get into serious difficulty.

The amendment has echoes of Amendment 142, moved by the noble Lord, Lord Lisvane, last week, which sought to replace the words,

“it appears to the OfS”,

with,

“the OfS has reasonable grounds for believing”,

relating to the power to impose monetary penalties in Clause 15. Restrictions on new students would be a new power following the provisions of Clause 15. In effect, it is another form of monetary penalty, which we support in principle, although we would be concerned if it were left open-ended. As soon as a breach is shown to have been brought to a conclusion, we believe the restriction should be lifted so as not to harm existing students, who are blameless but could be affected—as the noble Baroness, Lady Wolf, graphically explained—to their detriment through the institution either being closed, or having fewer resources.

I read closely the Minister’s response to the noble Lord, Lord Lisvane, from our debates on Wednesday. I cannot say that he made a convincing case for rejecting the rather stronger words in that amendment. He basically stated that as the wording in the Bill is used in other legislation—he quoted the apprenticeships Act of 2009—there was therefore no reason to change it. He did not come up with any other reason, despite the noble Lord, Lord Lisvane, saying in moving the amendment that “it appears to” was but one of the options available and one of the lower ones at that.

Although the words “it appears to” are used in other pieces of legislation, few use the formulation in the context of a decision to take enforcement action, which is what raises concern with this Bill. The noble Lord, Lord Lisvane, stressed that the aim was to raise the legal threshold before the OfS was entitled to take action. In doing so, he was supported by the noble and learned Lord, Lord Judge, one of whose cases was quoted. It seems at least odd that the Government feel that their lawyers, who I suggest probably do not have the noble and learned Lord’s expertise and experience, know better on this matter. The same applies to some extent to the amendment in the name of the noble Baroness, Lady Wolf. Having had time to reflect, perhaps the Minister will—if not today, before Report—come to the view that it is appropriate to raise the standard required of the OfS in such situations.

Higher Education and Research Bill

Debate between Lord Watson of Invergowrie and Baroness Garden of Frognal

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

[Lord Watson of Invergowrie (Lab)]

My Lords, I am speaking to the various amendments in this group in the name of my noble friend Lord Stevenson, including Schedule 2 stand part.

Schedule 2 is about linking the case for a fees increase to the teaching excellence framework. It provides a mechanism for the setting of fee limits, permitting providers to charge fees up to an inflation-linked cap according to their ratings for teaching quality established through the teaching excellence framework, which is referred to—though not, of course, by name—in Clause 25. The Explanatory Notes reveal the name of the TEF, which is supposed to enable the impartial assessment of different aspects of teaching, including student experience and the job prospects of graduates.

We believe it is important to break the proposed connection between measuring teaching quality and the level of fees that can be charged. Increasing fee limits in line with inflation is of course nothing new. It was introduced in Labour’s Higher Education Act 2004 and was routinely applied between 2007 and 2012, until ended by the coalition Government. What is new is linking fee limits to teaching performance, and that is what has alarmed so many people and institutions in the higher education sector.

The framework is described in Clause 25 as a system for providing,

“ratings … to English higher education providers”.

Schedule 2 sets out the meaning of a high-level quality rating, which will be determined by the Secretary of State. Our Amendment 122B seeks to ensure that the high-level rating is established by regulation so that it can be subject to proper scrutiny by Parliament. That rating will be the gold standard, irrespective of whether we have a traffic-light system, and, as such, will be of crucial importance in the future of higher education in England—too important, we would argue, to be left to the Secretary of State alone to decide.

Universities are rightly concerned about the use of proxy metrics, including statistics on graduate earnings, in a framework that is supposed to be about teaching quality. Also of concern is the fact that a gold, silver and bronze rating system is proposed to differentiate the sector based on those metrics. This will undermine the sector’s reputation both within the UK and overseas because universities deemed to be bronze will have been independently quality assured and have met all expectations of a good provider, but that is not how it will appear to those outside, whether in the UK or, indeed, further afield. That is why we have submitted Amendment 195, which seeks to ensure that the scheme has only two ratings: meets expectations and fails to meet expectations. That has the benefit of being simple to operate and, perhaps as important, simple to understand for those considering whether to apply to a particular institution. It also sends a clear message beyond these shores and enables comparisons to be made with providers in other countries without the confusion of a bizarre system of three categories.

Where metrics are used, they have to be much more securely evidence-based than those suggested. Our Amendments 196 and 198 contain proposals that would oblige the OfS to make an assessment of the evidence that any proposed metric for assessing teaching quality is actually correlated to teaching quality and would ensure that, prior to making that assessment, the OfS consult those who know first-hand what is needed to measure teaching quality namely, academic staff and students. Having carried out those requirements in the interests of full transparency, the OfS should publish the assessments. Surely any inconvenience that the Minister may point to in terms of administrative burdens on the OfS would be more than counterbalanced by the benefits accruing in terms of the much more robust nature of the metrics produced.

We also believe it is necessary for the OfS to demonstrate the number of international students applying to and enrolled at higher education providers that have applied for a rating. It is important to protect the number of international students that providers are permitted to recruit; and to ensure transparency on that, the OfS should be obliged to lay a report before Parliament each year. My noble friend Lord Stevenson has added his name to that of the noble Baroness, Lady Wolf, on Amendment 200 to emphasise that we believe it is essential that the TEF must not be used as a determinant when providers seek to enrol international students, and I look to the Minister to confirm that, even if he is unable to accept the amendment itself.

Those faced with a wide range of institutions from which to choose when considering their course of study have a right to the fullest possible information on which to base that choice. That is why our Amendment 176 seeks to alter the wording of Clause 25, in much the same way as is proposed by the noble Lord, Lord Norton, in his amendment, to ensure that all the relevant information is made easily accessible to staff, students and parents and that the information is made available in a consistent form in order to facilitate meaningful comparisons between providers.

Noble Lords on all sides of the House made clear at Second Reading their opposition to statutory links between teaching quality and the level of fees being charged for that teaching. Since tuition fees were increased from £3,000 to £9,000 in 2012, there is no evidence to suggest that there has been a consequential improvement in teaching quality. Indeed, the National Union of Students has said that there has been no change in student satisfaction with the teaching on their course, while institutions have, in some cases, been shown to spend additional income from the fees rise on increased marketing materials rather than on efforts to improve course quality.

Why do the Government now believe that there is a link between fees and teaching excellence? Indeed, which should come first or be expected to come first? This is a clear example of the Government’s view that the Bill is as much a question of consumerism as it is about education. As I said at Second Reading, we on these Benches reject the concept of students as customers or consumers in higher education. Many universities have said in their response to the Bill that there is no evidence to point to fee increases improving the quality of teaching. The University of Cambridge stated in its written evidence that the link between the TEF and fees is,

“bound to affect student decision-making adversely and in particular it may deter students from low income families from applying to the best universities”.

Another point of concern in relation to the fees link is that in further stages of the TEF, the Government are moving to subject-based assessment. We do not take issue with that, because universities are large institutions within which there are a huge range of subjects and a great diversity of teaching quality, but linking a fee with an institutional assessment cannot do other than mask that range of teaching quality. People studying in a department where the teaching quality is not as good as in others will also pay higher fees. This flawed proposal does not enhance the Government’s objective, and we believe it should be rejected.

What Schedule 2 would do is introduce the provision that only those providers that can demonstrate high-quality provision can maintain their fees in line with inflation. The specious reasoning behind this proposal, based on metrics that are widely seen as an inappropriate method in which to take such decisions, would lead to a skewed outcome because, as we heard at Second Reading, several high-performing institutions would lose out on a high-level rating through no fault of the actual quality of their teaching.

We of course welcome any means of improving teaching quality in higher education, and we do not oppose a mechanism to measure such improvement if a reliable one can be found. But the TEF as proposed is not that mechanism, for reasons that I have touched on already and shall expand on when we come to debate what is currently group 17. Schedule 2 introduces the whole area of the fee limit and fee regime, a link which we believe is without merit. As such, Schedule 2 is not fit for purpose, and that is why we believe it should not stand part of the Bill. I beg to move.

[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.