Draft Higher Education (Fee Limits and Student Support) (England) (Coronavirus) Regulations 2020

Michelle Donelan Excerpts

Wednesday 1st July 2020 General Committees

[The Minister for Universities (Michelle Donelan)]

I beg to move,

That the Committee has considered the draft Higher Education (Fee Limits and Student Support) (England) (Coronavirus) Regulations 2020.

On 4 May 2020, the Secretary of State for Education announced a package of stabilisation measures for the higher education sector in response to the covid-19 pandemic, one of which was the introduction of temporary student number controls. Higher education providers in England and institutions in the devolved nations have been allocated individual SNCs—a set number of students that we believe constitutes a fair maximum share of student recruitment for the academic year 2020-21.

If a provider in England recruits beyond its SNC this coming year, the regulations provide for a reduction in the maximum tuition fees that it can charge for the academic year 2021-22, the percentage of which depends on the extent to which it has exceeded the SNC. If an institution is in a devolved nation and recruits English-domiciled students in excess of its SNC in the coming year, the maximum tuition fee loan amounts for the new entrants only will be reduced by the same percentages in the academic year 2021-22. The SNC reflects the maximum number of students that the Government consider reasonable for providers, based on the provider’s predicted growth or the national average for those with that forecast, plus an extra 5%, which will still generously allow for providers to grow.

The regulations will set out in law what the restrictions in the maximum tuition fee and tuition fee loan amounts will be. They simply allow the Government to redress the imbalance where a provider has gained extra taxpayer-funded income through aggressive recruitment practices this year. Such recruitment practices have threatened to destabilise the sector, and mean that some providers are at risk of collapse. The change in recruitment practices has the potential to be to the detriment of students who have been encouraged to accept an offer from a provider that may not best suit their needs.

It is right that the Government control the taxpayer-funded student loans system in this way. This is about the effective and appropriate distribution of public money during a time of unexpected financial crisis. Providers recruiting additional students aggressively secure the tuition fee income attached to them, and consequently disproportionally increase the public funding flowing to them through the taxpayer-funded student loans system.

The Government’s policy position is that it is reasonable to conclude that, where a provider has chosen to exceed its SNC, it has taken more than its fair share of taxpayer funding. The Government and the taxpayer should be able to redress that imbalance in the following academic year. The Government have chosen to address this issue through the fee system, as it is where we best have the ability to control the flow of public funds to higher education. These short-term measures are necessary as a targeted response to the unprecedented circumstances caused by the covid-19 pandemic. The regulations will be in place for only one academic year.

I recognise the concerns of colleagues across the devolved Administrations, who say that the UK Government are interfering in a devolved matter. I have to make it very clear that that is not the case. The funding of English-domiciled students is not a devolved matter. It is right and fair that the policy should apply as consistently as possible wherever they are studying in the UK.

Student number controls for institutions in the devolved nations apply only to English-domiciled students, whose tuition fees will be supported through Student Finance England. Providers in the devolved nations will continue to be free to set their own fees, as they do now. The UK Government simply determine the level of student finance available to support English-domiciled students. That is not encroaching on devolution; in fact, it respects it, while ensuring that the higher education system is stable, ensuring that students have a positive experience and that public money is spent in the most effective way possible as we seek to recover and rebuild following the covid-19 pandemic.

--- Later in debate ---

[Michelle Donelan]

I am grateful to the hon. Member for Kingston upon Hull West and Hessle for her contribution. I echo the sentiment she has expressed regarding the work that universities and the further education sector have done over the past few months to cope with the coronavirus pandemic, and the support they have given to both students and staff. I will try to address some of the questions that were raised.

The first question was about consultation with devolved Administrations. My right hon. Friend the Secretary of State for Education and I have had regular meetings with Ministers from all devolved Administrations about higher education issues. Those discussions included the development of student number control policies, and my officials have kept in regular contact with their counterparts, with weekly meetings and discussions. I will continue to work closely with the devolved Administrations on strengthening and stabilising the higher education system following the coronavirus pandemic. It is important to stress that we needed a policy that would be fair across the UK and would work in practice.

The hon. Lady pointed out discrepancies in way in which the figures are calculated. For an English institution, they are based on that institution’s projected figures if they have been submitted; otherwise, the sector average will be used. For the DAs, we went for the sector average plus an additional 5% to make the policy workable, because these are not the figures of their total student population but of their projected English-domiciled students, so it is a harder figure for them to have already submitted.

The hon. Lady also mentioned the impact on those students who come from disadvantaged backgrounds and may be accepting late offers. It is important to note that these SNCs are extremely generous in their allocations: they are not only based on the sector average or the individual institution’s predicted growth, but have a buffer of 5%. In addition, institutions in England can apply for at least 5,000 places for nursing and allied healthcare professional courses, and there is a 5,000-place allocation that they can bid into across the UK for specific courses. I believe that the ramifications of the fee structure we have outlined are proportionate.

I stress again that this is a temporary policy designed to help mitigate the challenges that the higher education sector faces because of the coronavirus pandemic. Its fundamental goal is to stabilise that sector and protect the interests of students. As we all know, the pandemic has been extremely disruptive to every sector of society, and as Minister of State for Universities, Science, Research and Innovation, I will continue to do everything I can to maintain the health of the higher education sector. The introduction of temporary SNCs, together with these regulations, is part of the Government’s actions to tackle this issue and ensure stability. These necessary steps will help to ensure that we can stabilise the sector, provide value for money for the taxpayer, and above all maintain freedom of choice and a positive higher education experience for all our students.

I commend the regulations to the Committee.

Question put and agreed to.