Skills and Post-16 Education Bill [HL]

Lord Willetts Excerpts

Committee stage
Monday 19th July 2021 Lords Chamber

Moved by

[Lord Willetts]

88: After Clause 25, insert the following new Clause—
“The Student Loans Company communication with graduates
(1) The Secretary of State must by regulations provide that the Student Loans Company must—(a) provide universities with anonymised information about their graduates’ incomes;(b) facilitate universities’ communication through the Student Loans Company with their graduates without passing any personal data to any university, unless a graduate has specifically opted out; and(c) facilitate National Employment Savings Trust (NEST) communication through the Student Loans Company with graduates at the earlier of—(i) the two years preceding the predicted completion of their graduate repayments, or(ii) between the 28th and 30th year of their graduate repayments without passing any personal data to NEST,unless a graduate has specifically opted out. (2) Regulations under this section are to be made by statutory instrument, and a statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”Member’s explanatory statement
This amendment enables universities to use the SLC to communicate with their graduates to encourage greater uptake of lifelong learning opportunities. Anonymised SLC data about graduates’ earnings may also be provided to universities to enable them to improve graduate outcomes. It also could nudge graduates into greater pensions investment through NEST.

[Lord Willetts (Con) [V]]

My Lords, the background to this amendment is that the Student Loans Company has close contact with many graduates, which provides an opportunity to fulfil some of the Government’s objectives that lie behind the Bill. I indicate in the amendment three possible uses of that information.

The first is to give information back to the universities about how their graduates are doing. Everyone wants to see graduates doing well, but evidence is often cited about the difficulties that some graduates from some universities are having. The more information that is fed back to universities about the performance of their graduates—properly protected and anonymised, of course, with any confidentiality requirements that are necessary—the more that universities will have to shoulder their responsibility to do better.

That is communication back to universities, but—secondly—I also think there is a fantastic opportunity for the Student Loans Company to be a kind of post office, enabling universities to communicate with their graduates. That is surprisingly hard at the moment. Very few universities have anything like a database of their graduates, and most lose contact with most of them. But there are good reasons why universities should be able to communicate with their graduates, and it would be fantastic if our universities could match the performance of the American universities in communicating with them. I hope it is not too frivolous if I cite the American remark that “If only Osama bin Laden had been to Harvard, the Americans would have found him within a fortnight”. They are very good at tracking down their graduates, but we do not do that.

A particular reason why it would be great if universities could communicate with their graduates is to enable the universities to offer them lifelong learning opportunities, a cause that is rightly close to Ministers’ hearts. I make it clear that this post office function would not require the universities being given actual email addresses or other data; they would simply provide a message to the Student Loans Company that the company would then communicate to their graduates. There would of course need to be some process for agreeing that the messages were appropriate and approved of.

Still, imagine a university that said, “We completely take to heart Ministers’ strictures. We are very worried that too many of our graduates are not earning what they may have hoped to earn. Here is a message that we would like to send to all our graduates earning less than the following amount of money saying, ‘If you get in touch with us, we will investigate what we can do to provide you with extra skills and training so that you can boost your earnings.’” That kind of engagement with graduates over their working lives should be part of a university offer, and the lack of university information to enable them to communicate with their graduates is a barrier to that.

The third purpose identified in my amendment is rather beyond the scope of education but fulfils another purpose for which there is strong cross-party support. Auto-enrolment in pensions is a great British success, and it is a policy that all parties in their time in government have supported. The problem with auto-enrolment is that the amount of money that people are actually building up in their personal pension pots is very modest. If you look at the opportunities to get people to save more, you see that one opportunity is that, as people advance through their careers and perhaps begin to earn a bit more, they might be able to save more. A crucial moment is when they stop paying back the cost of their higher education, when their graduate repayments cease. I think it would be a reasonable use of public policy—again, without any data actually being handed on—for NEST, the body that currently auto-enrols people in pensions, to be able to communicate through the Student Loans Company to graduates when they are reaching a point when they are likely to have finished repaying their loans, saying, “You have been used to paying 9% of your earnings to pay back your loan. Before you start blowing the money on other things, here is a simple mechanism whereby you can divert it in future into a pensions pot.”

I see these as three practical ways where improved communication with graduates, both by universities and by a government body backing auto-enrolment, could harness a resource without harm to anyone and with proper protections for confidentiality. I very much hope that Ministers will look at this sympathetically. I beg to move.

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[Baroness Berridge (Con)]

My Lords, I shall first resist the temptation to respond to the noble Baroness’s comment that she has been in opposition too long. I pay tribute to all noble Lords who have outlined the role of the Student Loans Company. It has no statutory functions of its own but exists as the student loan delivery arm of the Secretary of State, exercising powers delegated by him or her. The noble Baroness, Lady Sherlock, is correct that my noble friend Lord Willetts is suggesting a fundamental change of role for the Student Loans Company, whether as a post box, a communications agent or a marketing agent. While I thank my noble friend for his amendment, I do not believe it is necessary or wise.

The Government already publish a wide range of data, including earnings information by higher education provider and subject of study up to five years post graduation. It comes from the longitudinal education outcomes database, commonly known as LEO. The database has a wider coverage than the Student Loans Company, as it considers all graduates rather than just those who take out a student loan. Secure access to this data is granted to accredited researchers through the Office for National Statistics, to answer research questions. So while HE providers, although they do some of the best research themselves, cannot access LEO data to look at individual graduate outcomes, the data that is already published is sufficient to meet those research needs. On the point made by the noble Baroness, Lady Sherlock, the LEO database holds data by subject, provider, gender and region—so it does provide good access.

In relation to the comments made by the noble Baroness, Lady Garden, obviously the data that I have outlined is only one factor in the value of a higher-education qualification. I hope that all noble Lords will agree that we see the value immensely of her education, and the roles that some people undertake for very modest salaries are incredibly valuable. We have seen that a lot during the pandemic.

The second part of my noble friend’s amendment includes a duty to facilitate universities’ communication with their graduates through the Student Loans Company, without passing on any personal data, unless a graduate has specifically opted out. I noticed the Member’s explanatory statement states:

“This amendment enables universities to use the SLC to communicate with their graduates to encourage greater uptake of lifelong learning opportunities.”


As I have outlined, the SLC is not really there to be used by the universities. It is there for the students and to ensure that there is proper finance. The Student Loans Company should hold data only on students who own or are repaying a loan, so not all graduates are captured. Again, the onus is on the graduate to ensure that the Student Loans Company has their most recent contact data after they complete their studies. It will not surprise noble Lords that, unfortunately, not all graduates do this.

To answer my noble friend’s question, are we really looking now to place a duty on SLC to chase down the graduates for contact information when it does not have it? Such a system, as outlined in the amendment, to facilitate communication between the universities and the Student Loans Company, unfortunately would incur up-front and ongoing costs, plus potential data implications, as the noble Baroness, Lady Sherlock, highlighted. The roles suggested would involve a considerable burden on the Student Loans Company. It is best left to universities to reach out to their alumni directly through existing communication channels. As I mentioned in relation to the Member’s explanatory statement, if the Student Loans Company were to take on a role of communicating about lifelong loan entitlements, would it be after just one university, or three institutions, as the noble Baroness, Lady Sherlock, outlined? This is a considerable administrative, communication or marketing task that we would be asking of the SLC.

The final part of the amendment proposes facilitating the National Employment Savings Trust to communicate through the Student Loans Company, effectively encouraging students to consider saving into the NEST pension scheme once they get towards paying off their student loans. Automatic enrolment has achieved a quiet revolution through getting employees into the habit of pension savings, reversing the previous decline in workplace pension participation seen in the decade before the start of the reforms. As my noble friend Lord Willetts mentioned, it has succeeded in transforming pension saving for millions of workers. Since 2012, workplace pension participation rates for eligible employees aged 22 to 29 increased from 35% to 86% in 2019.

While encouraging graduates to work towards future financial resilience is right, the Government do not agree that this amendment is the right means to do so. A graduate or postgraduate would not be able to join the NEST pension scheme directly. NEST was established to support automatic enrolment and operates under a public service obligation to accept any employer who wishes to use the scheme to meet their automatic enrolment duties. Given that NEST is a workplace pension scheme, this means that most people typically would join through their employer but, in some cases such as self-employment, people can enrol themselves. In addition to operating under a public service obligation, NEST also receives a government loan to cover its running costs. This amendment would be seen as giving NEST an unfair advantage in a competitive pensions market. I am sorry to inform my noble friend Lord Willetts that this too would not be possible.

I have to say that I also agree with the noble Baroness, Lady Sherlock, that this would also take away from the core role. Like any organisation, the Student Loans Company has a limit on what it can deliver at any one time and there is already an ambitious reform programme, including the delivery of the lifelong loan entitlement, which I assure noble Lords will keep all those employees, mainly in Darlington, very busy over the next few years.

Laudable though the aims of this amendment are, the Government’s position is that changing the role of the SLC is not the vehicle to deliver this. It is unfortunately not a treasure trove, as my noble friend Lord Lucas outlined. I thank my noble friend Lord Willetts for his amendment but hope that, having considered these points, he will withdraw it.

[Lord Willetts (Con) [V]]

My Lords, I am grateful to noble Lords for a very interesting debate. I particularly agree, of course, with the points made by the noble Lord, Lord Adonis, and my noble friend Lord Lucas. I assure the noble Baroness, Lady Garden, that—although it was fascinating to hear her personal biography, which is indeed a reminder that there is more to universities than subsequent earnings—there is nothing in this amendment that says that is the be-all and end-all of universities. It simply recognises that we have this organisation, the Student Loans Company, in place and that we have a problem, which I very much regret was not acknowledged by the Minister: most universities have no means of communicating with most of their graduates. That is a real barrier to the Government’s own objective of promoting lifelong learning, although there are other objectives as well and the point made by the noble Lord, Lord Adonis, about mentoring seemed to me very relevant.

Meanwhile, a separate government agency is communicating with graduates—namely, the Student Loans Company. Of course it is correct that, at the moment, it is simply collecting money from them, but I do not see why that is not also an opportunity to do something additional. I am very much aware of the practical operational problems of the Student Loans Company, having wrestled with them myself for several years, but this request would be under ministerial guidance; Ministers and the Department for Education, together with the Student Loans Company, would have the ultimate say on what messages were communicated. It seems to me that the Minister is in danger of missing out on a really important opportunity to achieve one of her own objectives.

This is the kind of debate that we might have had about NHS data 15 or 20 years ago, when some Health Minister turned out to say, “No, it wouldn’t be acceptable for hospitals to communicate with people who have had appointments or been at the hospital”. The fact is that data and communication matter. We have to be imaginative in harnessing the opportunities that we have to communicate.

I very much regret the Minister’s approach. I will, of course, withdraw my amendment now, but I hope it might be possible to consider further ways in which some version of this thoroughly innocuous amendment can be used to achieve an objective that is shared across the House. It should be done only within the capacities of the Student Loans Company, and only for purposes of which Ministers approve but I think that, if Ministers do not take this chance, there will be a moment in the future when they say, “Why on earth didn’t we do this? It would have been so useful”. We could be providing universities with more information about their graduates; we could be enabling graduates to have more information about what their universities can do for them and what they can do for their university. In the light of the debate so far, however, I beg leave to withdraw this specific amendment now.

Amendment 88 withdrawn.

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Moved by

[Lord Willetts]

89A: After Clause 25, insert the following new Clause—
“Access to learner data for research
(1) Key learner data must be shared for research purposes, including longitudinal studies, in accordance with Part 5, Chapter 5 of the Digital Economy Act 2017, or equivalent legislation concerning data not covered by the 2017 Act.(2) What constitutes “key learner data” must be reasonably defined by researchers on a case-by-case basis and may be taken to include, but not be confined to, graduates’ employment and income data. (3) Organisations controlling key learner data must take all reasonable endeavours to make the data available for research in line with subsection (1).”Member’s explanatory statement
The purpose of this amendment is to ensure that administrative data is available for research and longitudinal studies that will inform, and improve, public policymaking.

[Lord Willetts (Con) [V]]

I will refer to this amendment briefly as well, although it overlaps to some extent with the debate that we have just had. I begin by declaring some specific interests. I am on the board of UKRI, the public agency responsible for funding social science research and administrative data, and I am the president of a think tank, the Resolution Foundation, which has an interest in using and accessing research data.

The background to this is the battle on LEO data, which has already been referred to. I assure the Minister that I am very proud of having fought long and hard to get the LEO data made available—incidentally, in the course of it, overcoming objections rather similar to the ones she just made to my previous amendment. After battles with HMRC, we got LEO data, and it has improved the debate on universities—although, as the noble Baroness, Lady Garden, said in our previous debate, we should never think that earnings data are the be-all and end-all.

After long and difficult battles with HMRC, that data was made available to a small group of accredited researchers, and is now analysed closely by, above all, the Institute for Fiscal Studies. However, a lot of weight is placed on the LEO data, and there are other datasets about learner outcomes, not all of which are covered by the Digital Economy Act. I am worried that the debate on graduate outcomes is in the hands of a very small number of researchers with access to the LEO data. Researchers as a whole find it difficult to access data not covered by the Digital Economy Act. For example, health data is not covered by it. It would be very interesting to know—there is a lively debate about this—the extent to which going to university boosts health outcomes and life expectancy, for example.

Of course there must be rigorous standards for the researchers accessing such data: confidentiality, anonymity and a whole host of other requirements all need to be in place. However, we would have a better-quality and more wide-ranging debate about higher education if there were a wide range of perspectives informed by a wider range of empirical data about what is actually happening. After I successfully fought for the LEO data, I never expected that it would become the be-all and end-all. I see it as part of a much wider set of data types and a much wider range of researchers, properly regulated, analysing what happens in education.

The parallel with the previous amendment is that data matters. This Government are bold on science and technology. They understand the importance of data in good public policy. The DfE is not the worst offender when it comes to providing researchers with access to data, but there are certainly clear constraints at the moment on that access, going way beyond the necessary requirements of confidentiality and anonymity. I hope that, in the light of that, the Minister will consider undertaking that there should be a greater range of researchers with greater access to key learner data, so that we can all debate it with more information at our disposal. That is why I move the amendment.

[The Principal Deputy Chairman of Committees (The Earl of Kinnoull) (CB)]

My Lords, the noble Lords, Lord Aberdare, Lord Adonis and Lord Lucas, have withdrawn, so I call the noble Lord, Lord Watson of Invergowrie.

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[Lord Willetts (Con) [V]]

I am grateful to the Opposition Front Bench and the Minister for their interventions on my amendment. I was slightly surprised by the approach of the Opposition Front Bench on this occasion, because this is intended to inform debates on outcomes for higher education.

On the Minister’s point, first, the initiative on 7 July is very helpful for broadening access to LEO data. One of the aims of this amendment was to promote that broadening of access, so I am very grateful for what has happened. My one disagreement, if I may say so, with what she said is that, being very familiar with the Digital Economy Act 2017, which had a long gestation and undoubtedly has moved things forward a lot, I can say that the Digital Economy Act does not cover all sets of data that are relevant to educational outcomes. This amendment is therefore deliberately broader to enable, for example, health data to be used for educational research; clearly, as the Minister rightly said, with proper security to ensure protection of confidentiality, anonymity where appropriate, and suchlike.

I will of course withdraw the amendment today, but I hope that the Minister will accept that, if we can provide practical examples of any gaps in the current legal and regulatory framework which mean that we are falling short of the objective—the admirable objective she set out: that there should be proper access for all researchers to data relevant to researching learner outcomes—perhaps it might be possible to return to this issue at a later date.

Amendment 89A withdrawn.