Higher Education and Research Bill (First sitting)

Debate between Matt Warman and Carol Monaghan

Committee Debate: 1st sitting: House of Commons
Tuesday 6th September 2016 Public Bill Committees

[Carol Monaghan]

Q The OFS as the regulating body will be funded by subscriptions from higher education institutions. New providers or new entrants, by their nature, will be a higher risk than the more established institutions. Is it right that all institutions pay the same amount of subscriptions or should there be some sort of sliding scale?

Professor Simon Gaskell: Some thought needs to be given to this because you are right, not every institution will require the same degree of scrutiny. You could argue that the most established and most reliable institutions should pay least. To be fair, there is some offset against that, building on my earlier point: we are all concerned with the reputation of the sector and we all have an interest in the sector. I would not suggest an exact proportionality, but some system that takes note that the greatest demands on the OFS will come from the providers who represent the greatest risk seems to me a reasonable principle.

Pam Tatlow: I understand there will be a consultation if this remains in the Bill, but the more general point is that this is a direct switch from funding from what is now the Department for Education to universities and the average would be about £62,000. If you look at the White Paper, it shows that over several years, the bulk of funding for the OFS will come from providers.

Paul Kirkham: To be clear, not all independent providers are new and pose that kind of risk. Many have decades, if not hundreds of years, of experience in provision. My second point is that it should be equitable in terms of the cost. Many of the incumbent universities’ perceived lower risks have been achieved through decades of taxpayer support and I think it would be grossly unfair if a sliding scale were applied on the basis of some form of perceived risk.

Gordon McKenzie: As well as risk, it is also important to take account of a university or a provider’s size and resources.

[Matt Warman (Boston and Skegness) (Con)]

Q This is a question specifically for Professor Gaskell. I should begin by declaring that my wife is technically a student at Queen Mary University London.

Professor Simon Gaskell: What does technically mean?