Oral Answers to Questions

Michelle Donelan Excerpts

Monday 14th March 2022 Commons Chamber

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

8. What assessment he has made of the potential impact of changes to student loan requirements on social mobility.

[The Minister for Higher and Further Education (Michelle Donelan)]

Our changes mean a fairer deal for students, graduates and the taxpayer, and build on our work to drive up quality so that more young people go on to complete their education and then go on to graduate jobs, delivering real social mobility.

[Margaret Ferrier]

Decreasing eligibility, extending the repayment period and lowering the repayment threshold for student loans will disproportionately impact students from low-income families, and removing education opportunities will impact the trajectories of their lives and careers. What impact assessment has been undertaken on these changes from an equality perspective and how they will stifle student numbers?

[Michelle Donelan]

When we published our response to Augar, we also published our impact assessment in full, but at the heart of our plans is fairness, as I have said, for the taxpayer, for students and for graduates. No student will pay back more in real terms than they borrow. This is the Government delivering on our manifesto pledge to cut interest rates.

[Matt Western (Warwick and Leamington) (Lab)]

Research by the Higher Education Policy Institute shows that 70% of parents with children aged 11 to 15 want their children to go to university, but the Government do not share their ambitions. Instead, the Minister is proposing minimum entry requirements of a grade 4 in GSCE English and maths to access student finance. About 70% of pupils in England achieve a grade 4 in GSCE English and Maths, but that falls to less than half for those on free school meals. Why is the Minister prepared to sacrifice the aspirations of students and their families, particularly those from disadvantaged backgrounds?

[Michelle Donelan]

Once again, this shows the Opposition’s obsession with targets and numbers. We want an education system that delivers for the individual, whether that means going into further education, an apprenticeship or university. We want to ensure that every young person knows that whichever option they pick, it is a high-quality option.

[Dan Carden (Liverpool, Walton) (Lab)]

9. What recent assessment he has made of the availability of specialist support for children with special educational needs and disabilities. [R]

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[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

13. What steps he is taking to help support young people from deprived backgrounds access higher education.

[The Minister for Higher and Further Education (Michelle Donelan)]

We have asked the Office for Students to refocus the access and participation regime on real social mobility by getting students on to courses that they complete and that lead to graduate jobs, not just getting them to the door. We have also committed up to £75 million to a national state scholarship to support high-achieving disadvantaged students.

[Andrew Bowie]

In the Secretary of State’s statement on the Augar review last month, he said:

“Access to higher education must be dependent on attainment and ability to succeed, and not inhibited by a student’s background.”—[Official Report, 24 February 2022; Vol. 709, c. 489.]

Will the Minister expand on how the Department will ensure that that is the case, so that we avoid the situation overseen by the Scottish Government where people from a deprived background are now less likely to enter higher education than when they took office?

[Michelle Donelan]

Under our Government, disadvantaged 18-year-olds in England are now 82% more likely to go to university than in 2010. We want universities to play an even greater role in improving access for those who are disadvantaged, however, so we are asking them to raise standards in schools and colleges; offer flexible and skills-based courses; tackle drop-out rates; and support students throughout university and on to graduation.

[Mr Speaker]

We have shadow Minister Mr Toby Perkins.

[Mr Toby Perkins (Chesterfield) (Lab)]

Whether we look at the national tutoring programme, which is failing to reach disadvantaged children; qualification changes that Ofqual admits will hamper progress to HE; the disparaging of university courses with higher numbers of deprived students on them; or the falling apprenticeship numbers, the truth is that this is a “Get back in your place” Government who stand as a barrier to aspiration for deprived students. Does the Minister not realise that the Government have not a shred of credibility on this subject? Their policies are the barrier to working-class aspiration, not the solution.

[Michelle Donelan]

It is a desperate time when we have a question such as that from the Opposition, which is not even really a question. The Government are delivering on our manifesto and enhancing quality, and have aspiration at the heart of everything we do.

[Mr Speaker]

Order. I think I will decide whether something is in order or not, but thanks for that little lesson for me. Just to say, I do laugh when you talk about policy when the Government have been in power, so I try to balance out the political issues and objections on both sides.

[Danny Kruger (Devizes) (Con)]

The Higher Education (Freedom of Speech) Bill is one of the most important Bills now before Parliament. When does my right hon. Friend expect the Bill to come back before the House?

[Michelle Donelan]

I can inform the House that the Bill will be back in due course, and we can guarantee this Government’s commitment to honour our manifesto pledge to strengthen free speech in our universities, because of how important we believe it to be.

[Mr Speaker]

I call the SNP spokesperson, Carol Monaghan.

[Carol Monaghan (Glasgow North West) (SNP)]

According to the Government’s own equality analysis of their reforms to student finance, those likely to see a negative impact, with increased lifetime repayments, include female graduates and those from disadvantaged backgrounds. Male graduates and those from more privileged backgrounds will benefit more than average from the changes. Can the Minister explain why policies that will hinder social mobility and undermine equality of opportunity in higher education have been introduced?

[Michelle Donelan]

Fairness is at the heart of our announcement that no student will pay back more in real terms than they borrowed. It is also about rebalancing for the taxpayer, as every pound that is not paid back by a student is paid back by a taxpayer.

[Bob Seely (Isle of Wight) (Con)]

14. What assessment he has made of the potential impact on education outcomes of an education investment area on the Isle of Wight.

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[Sir David Evennett (Bexleyheath and Crayford) (Con)]

20. What steps his Department is taking to prioritise improving the quality of higher education.

[The Minister for Higher and Further Education (Michelle Donelan)]

For the first time ever, the Office for Students is setting minimum thresholds for completion and for progression rates to graduate jobs. We are also consulting on stopping the uncontrolled growth of low-quality courses.

[Claire Coutinho]

The hon. Member for Warwick and Leamington (Matt Western) suggested that it was an injustice to introduce minimum requirements for going to university, but does the Minister agree with me that the greater injustice is that one in five students feels that their course did not add any value to their career? Moreover, the reforms to interest rates will now mean that nobody will pay more than they borrow in real terms.

[Michelle Donelan]

My hon. Friend is absolutely right. From September 2023, we are reducing interest rates on student loans to the retail price index only. This, combined with the tuition fee freeze for over seven years, means that students can graduate with up to £11,500 less debt from the off.

[Sir David Evennett]

I fully support the idea of minimum eligibility requirements to maintain the high quality of our degrees. However, will my right hon. Friend assure me that students who do not meet those requirements will have alternative routes open and available to them, including via foundation years or college courses, that will allow them to progress subsequently to university when they are ready?

[Michelle Donelan]

I agree with my right hon. Friend. Too many young people are pushed on to courses that they are not ready for at the moment, which is why we are capping the cost of foundation years to enable more people to use this as an access route. We are also introducing the lifelong loan entitlement, which will make higher education and higher technical education much more flexible.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

21. What steps his Department is taking to help ensure political impartiality in schools.

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[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

T3. What plans does the Minister have to help enable universities to diversify their international student cohorts, so that they are not reliant on funding from countries such as China?

[The Minister for Higher and Further Education (Michelle Donelan)]

We recently updated our international education strategy, and we are proud to be home to so many international students who enrich our culture in our universities and local towns. We have beaten our target many years ahead, which is testament to how dedicated we are to continue to grow our international pool of students.

[Lee Anderson (Ashfield) (Con)]

T5. Government Front Benchers need not bother visiting Ashfield—I have got two new school rebuilds coming, so they can go somewhere else—but they will be aware of the problems that I have had with Kirkby College, which is a failing school. It is going to be rebuilt, which is fantastic news, but will the Minister please use all his levers to ensure that that happens as quickly as possible?

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[Patrick Grady (Glasgow North) (SNP)]

T8. Next week, staff at Glasgow University will be among 50,000 across the UK striking in protest at the 35% cut to their guaranteed pensions. It is in the interests of both students and staff that a negotiated settlement can be reached as soon as possible. What discussion are Ministers having with university employers to encourage them to engage in meaningful dialogue with staff and trade unions?

[Michelle Donelan]

I and the rest of the Government continue to encourage a meaningful dialogue, because, at the end of the day, those missing out are students, who have suffered unbelievably during the pandemic and faced challenges. The last thing they need is strikes and further disruption to their face-to-face education.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Equipping young people with the skills of the future is vital not only for green jobs, as we have heard, but for other emerging technologies. However, many such jobs will be underpinned by an understanding and appreciation of engineering. Will my right hon. Friend therefore consider introducing a new design, technology and engineering course as one of the science options?

Higher Education Reform

Michelle Donelan Excerpts

Thursday 24th February 2022 Written Statements

[The Minister for Higher and Further Education (Michelle Donelan)]

Today I am announcing the Government proposed plans to reform the higher education sector through the launch of two linked consultations on higher education reform and the lifelong loan entitlement.

The Secretary of State for Education will make an oral statement to the House of Commons later today.

Our university sector is a great success story, home to world-leading universities that are true powerhouses of innovation and research and I am very proud that four of our great institutions are ranked in the top 10 in the world.

That does not mean our system is perfect and it is our duty as Ministers at the Department for Education to deliver solutions to the problems the higher education system is facing and to deliver a fairer deal for students and taxpayers.

These problems were examined in great detail with the review of post-18 education and funding, launched in 2018.1 am grateful to Sir Philip Augar and his panel for their thoughtful and important recommendations across the higher and further education sectors, and I am pleased to say that with the publication of these documents, which address the pivotal higher education recommendations, we have brought this review to its long-awaited conclusion.

Lifelong loan entitlement

One of the independent panel’s core recommendations was the provision of a lifelong learning entitlement. That is why we, the Government, are launching today a consultation on the lifelong loan entitlement, to seek views from the sector and public on the shape and scope of this policy.

Under this flexible skills system, new students will be able to sign up and log in online to find a lifelong loan entitlement worth the equivalent of four years of post-18 education (£37,000 in today’s fees) to be used across Higher and Further Education as they choose. This entitlement can be used for individual modules or full years of study, at higher technical and degree levels, provided in colleges or universities.

People will have the opportunity to train, retrain and upskill as needed, in response to changing skill needs and employment patterns. The lifelong loan entitlement will turn education from a narrow, set destination, into an accessible, long-term and flexible journey.

Picture vehicle technicians who have worked building and fixing diesel vans for 10 years. They know their current roles will eventually become extinct and they want to move to higher-wage, higher-skilled jobs in a growing part of their sector like electric vehicle production. Maybe they have children and time constraints, so they never imagined they would be able to flexibly reskill on a higher education course.

After 2025, these technicians will be able to log onto their online lifelong loan entitlement account and see their loan entitlement and receive clear signposting of the courses and modules they can enrol on in order to reach their career goals.

We will be the first country in the world to implement a system like this at scale. This places us in a brilliant position to have an education system and economy that work hand-in-glove together to produce a highly skilled, highly paid workforce. I look forward to working closely with the sector to implement this entitlement as part of the wider levelling-up agenda.

Interest rates and tuition fees

We have thought carefully about fairness for students in our consideration of the independent panel’s recommendations. I am delighted to announce that we will deliver our manifesto commitment to address the interest rates on student loans, by reducing interest to inflation only for new borrowers starting their courses in academic year 2023-24. This will mean that, under these new terms, borrowers will not repay more, in real terms, than they borrow.

We will also continue to freeze tuition fee caps for undergraduate degrees up to and including academic year 2024-25, meaning the maximum fee cap will have remained at £9,250 for seven years. This will reduce debt levels for students in real terms and encourage higher education providers to increase efficiency further. In combination, the reduction in interest rates and the two-year fee freeze mean a borrower entering a three-year course in academic year 2023-24 could see their debt reduced by up to £6,500 at the point at which they become eligible to repay. When the total seven-year fee freeze is taken into account, this totals up to £11,500 less debt, at the point at which they become eligible to repay.

Fairer system for students and taxpayers

It is now more important than ever that we have a funding system for Higher Education that is fair for both students and taxpayers. Without intervention, the student loan book is estimated to reach over half a trillion pounds, in financial year 2020-21 prices, by April 2043, up from £161 billion in April 2021. Only 23% of borrowers who enter full-time higher education in academic year 2023-24 are forecast to repay their loans in full. This is not fair for taxpayers, many of whom will have chosen not to go to university. This is not a sustainable basis upon which to maintain a world-class university sector.

Further changes to student loan repayment terms are necessary to keep higher education accessible for students with the ability and desire to benefit from it, while keeping costs down for the taxpayer. The annual income threshold above which post-2012 student loan borrowers are required to make repayments on their loans will be kept at its current level of £27,295 until April 2025. For new student loan borrowers who start their studies from September 2023 onwards, there will be a repayment threshold of £25,000, rising with inflation from April 2027 onwards, and a loan term of 40 years. With the current 30-year loan term, graduates who finish their course in their 20s will have unpaid loans written off in their early 50s, a period when the earnings premium for most borrowers is still likely to be significant. These changes will increase the proportion of 2023-24 entrants who are forecast to repay in full to over half, as well as enabling the significant reduction in interest rates for new loan borrowers.

We have considered carefully how we can support disadvantaged students with this package of reforms. We want access to higher education to be dependent on attainment and ability to succeed rather than background. Our proposals to reduce the fees and loans for foundation years will help make them more affordable for those who would benefit from another chance to access high-quality higher education at lower cost. Our flagship national state scholarship worth up to £75 million will help support high-achieving young people from disadvantaged backgrounds to achieve their dream, regardless of course or university.

The changes to student finance and funding are detailed in full in the higher education policy statement and reform consultation.

Investment in higher education

In addition, we are putting almost £900 million of new investment into our fantastic system over the next three years. This includes the largest increase in Government funding for the sector to support students and teaching in over a decade. £750 million will be invested in high-quality teaching and facilities including in science and engineering, subjects that support the NHS, and degree apprenticeships.

Consultation proposals

We are consulting on policies that will help to ensure every student can have confidence that they are on a high-quality course that will lead to good outcomes. These policies build on the significant regulatory reform we are taking forward with the Office for Students to drive up quality and standards, and tackle pockets of low-quality provision, setting expectations on completion rates and progression to graduate jobs or further study, and taking action where provision does not meet these expectations. These are key priorities which we recognise the importance of taking forward. We are also working to improve transparency in course advertising, so that in next year’s admissions cycle, adverts provide comparable data on the percentage of students who have completed their course, and the percentage who have gone into professional employment or further advanced study.

Our consultation on low-level minimum eligibility requirements and limited student number controls will seek views on how we can ensure everyone who goes to university will be able to reap its benefits and help us to deliver real social mobility. This means shifting from a focus of simply getting students through the door, to ensuring they complete their course and secure good outcomes after they graduate.

It is therefore right that we have the conversation about low-level minimum eligibility requirements, which could for example be a return to the old requirement of two E grades at A-level, or a grade 4 in GCSE English and Maths. These could also include a number of exemptions on which we are consulting. We should not be pushing young people into university if they are not ready.

Bringing further education and higher education closer together

Higher technical skills are vital to meeting the needs of the economy now and in the future. As a result, and as a pathway to the lifelong loan entitlement, we are rolling out higher technical qualifications (HTQs). These are level 4 and 5 qualifications approved as providing the necessary knowledge, skills and behaviours that employers need. Higher technical qualifications are approved by the Institute for Apprenticeships and Technical Education, drawing on the advice of their employer panels, using the same framework of employer-led standards which underpin higher apprenticeships. They will be offered by further education colleges, universities, independent providers, and institutes of technology.

Higher technical courses can lead to better life chances for those who take them. We are addressing financial barriers for learners and moving towards the flexibility envisaged by the lifelong loan entitlement by placing the student finance package for higher technical qualifications on par with degrees, from academic year 2023-24. This means extending student finance access to higher technical qualifications and allowing part-time learners to access maintenance loans, as they can with degrees. Together these reforms will help to bring together further and higher education, in line with the independent panel’s recommendations.

Post-qualification admissions

While we are considering and implementing a range of reforms, after careful analysis of responses to the separate consultation on post-qualification admissions, we have decided not to proceed with this at this time. I want to thank the sector for their considered input and assure them that we will work to address underlying problems that underpinned calls to introduce post-qualification admissions.

As a whole, I believe that these reforms are fit for a dynamic and growing economy. I am confident they will set up the sector for great success in the years to come. These reforms will keep our student finance system future-proofed and fair for students and taxpayers and help to ensure that higher education remains open to anyone with the ability and desire to benefit from it.

[HCWS630]

Oral Answers to Questions

Michelle Donelan Excerpts

Monday 31st January 2022 Commons Chamber

[Danny Kruger (Devizes) (Con)]

2. What steps his Department is taking to tackle the provision of low-quality university courses.

[The Minister for Higher and Further Education (Michelle Donelan)]

I believe that every student has the right to a high-quality education. The Government are committed to tackling low-quality courses and ensuring that students and the taxpayer see a return on their investment. We have worked with the Office for Students to tackle low-quality higher education courses and it will now, for the first time, impose stringent minimum standards for drop-out rates and progression to graduate jobs.

[Danny Kruger]

Wiltshire has no university, as my right hon. Friend knows, but we have something better in the form of Wiltshire College, which provides a fantastic range of courses for young people and adults, including at the great agricultural campus at Lackham. Will she join me in congratulating Wiltshire College on its retention of students and the progression that they achieve? It does that by working with employers to design courses that work for the local economy. Does she encourage universities to learn from the college sector how it does that?

[Michelle Donelan]

I agree completely with my hon. Friend’s assessment of Wiltshire College. Like so many further education colleges, it works closely with local businesses to ensure that residents get the skills that local employers need. That is why the Government are investing in further education. We are providing investment to transform the Lackham campus into an agritech hub, with £1.2 million of capital funding for Wiltshire College, as well as £4 million for the delivery of T-levels to ensure that learners continue to have high-class learning facilities.

[Matt Western (Warwick and Leamington) (Lab)]

Parents and families are rightly proud of a child or family member who secures a place at our world-class universities, yet last week many will have seen the Minister belittle their courses and hard work. Her new proposal to fine universities if they do not meet universal thresholds risks punishing universities with more disadvantaged, black and ethnic minority or mature students, who are more likely to take different routes through to higher education. Why is she putting barriers in the way of universities seeking to widen access to higher education?

[Michelle Donelan]

It is a shame that the hon. Member did not pay attention to the announcement we made. Is he actually saying that we should expect the dumbing down of some courses, because those who are disadvantaged do not deserve high quality? Is that really what the Opposition stand for? Let us not forget that many universities are excelling at supporting disadvantaged students to complete courses and go on to get graduate jobs—look at Sheffield Hallam, Nottingham Trent and Kingston. I believe that every student deserves a high-quality education, and so should the Opposition.

[Siobhan Baillie (Stroud) (Con)]

It is not just the quality of courses that the Department and my right hon. Friend are working on; it is also the experience of students. Will she give an update on what steps she is taking to ensure that universities stop using non-disclosure agreements to silence the victims of sexual abuse?

[Michelle Donelan]

Last week, I launched a pledge, working with the likes of Universities UK and Can’t Buy My Silence. It is very important that universities stop using non-disclosure agreements in respect of sexual assault, sexual abuse and harassment. They are morally inept and have no place on our campuses. I encourage every vice-chancellor to sign the pledge.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

3. What recent assessment he has made of the adequacy of (a) student and (b) graduate finance in the context of the cost of living.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

21. What recent assessment he has made of the adequacy of (a) student and (b) graduate finance in the context of the cost of living.

[The Minister for Higher and Further Education (Michelle Donelan)]

We have frozen maximum tuition fees for the fifth year in succession, saving a typical full-time student finishing a course in the 2022-23 academic year over £3,000 in fee loans for the three-year degree. Maximum grants and loans have increased by 3.1% for the current academic year, with a further 2.3% increase announced for the next academic year.

[Marion Fellows]

As a result of their extremely high tuition fees—the highest in the world—English students leave university with three or four times the amount of debt that Scots do. Freezing the loan repayment threshold—along with the national insurance hike and the high, rising costs of food—significantly affects young graduates. Why are the Government failing to support students and graduates during this cost of living crisis?

[Michelle Donelan]

As I said, this will be the fifth year in succession that maximum fees have been frozen, saving a full-time student finishing a course over £3,000. With median non-graduate salaries at £25,000, it is right that we work to make the system sustainable and fair for the taxpayer, including those who do not choose to attend university, especially when only a quarter of those currently starting a course will actually fully repay their loan.

[Patricia Gibson]

Despite what the Minister said, the fact is that the Government have broken yet another promise that the student loan repayment threshold would be frozen. That means that, when student loan repayments are taken into consideration, together with the national insurance tax hike, graduates earning just over £27,000 a year will pay a marginal tax rate of an eye-watering 42.25%. Will the Minister explain to the House why she thinks that is fair?

[Michelle Donelan]

It is important that we strike a fair deal for students, graduates and the taxpayer. Only a quarter of those who take out a loan now will fully repay it, and as the hon. Member knows, the terms of these loans are very different from commercial loans. For instance, if someone loses their job or their salary reduces, their payments will change immediately.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

Universities have a duty to provide students with value for money and they have undoubtedly been receiving a poorer education through remote learning. Does my right hon. Friend agree that, now that plan B measures have ended, every university should welcome back students to lecture halls, or provide refunds?

[Michelle Donelan]

I do agree. Online learning can be a great way to supplement and enhance learning, but let me be clear: it should not be used as a cost-cutting exercise and it should not be used to avoid utilising face-to-face provision. As the Secretary of State has outlined, we expect universities to be up-front and transparent about what students can expect, and I am personally calling vice-chancellors where we are concerned that this is not happening.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Surely the ministerial team realise that student finance is in a terrible mess, with many students struggling to pay money back and many students refused a mortgage because of their student debt. This is a serious situation. The Government have got to get a handle on it and do something about what is going on, particularly in relation to the weak and enfeebled Office for Students.

[Michelle Donelan]

Contrary to the hon. Member’s assertion, mortgages do not take into account student loans and we should put that on record. We are committed to a sustainable higher education funding model that supports high-quality provision, meets our skills gaps and maintains the world-class reputation of our higher education institutions, which is exactly why we will respond to the Augar review in full in due course.

[Robbie Moore (Keighley) (Con)]

4. What steps his Department is taking to support young people into high quality jobs.

[The Minister for Higher and Further Education (Michelle Donelan)]

We are increasing spending on skills by £3.8 billion over this Parliament—that includes growing apprenticeship funding to £2.7 billion by 2024-25—and our skills revolution will ensure that young people have the skills that they need to access high-quality jobs through skills bootcamps, T-levels, traineeships and apprenticeships.

[Robbie Moore]

The Government’s apprenticeship scheme has done a fantastic job in giving young people from across Keighley and Ilkley a route to high-skilled work. I saw that at first hand when I visited Byworth Boilers and met Suzanne Rutherford, Jago Harry and Curtis Daly, all of whom made that progression through the apprenticeship scheme. What plans does my right hon. Friend’s Department have to ensure that success stories such as the Byworth Boilers apprenticeship scheme are repeated all across the country?

[Michelle Donelan]

As so many companies, such as Byworth Boilers, are recognising the benefits of growing their own, there have been 130,000 apprenticeship starts in the first quarter of this academic year, up 43% on the same period last year and 3.5% higher than before the pandemic. Apprenticeships can be transformative, and I am sure that Suzanne Rutherford, Jago Harry and Curtis Daly will find that for themselves.

[Mr Toby Perkins (Chesterfield) (Lab)]

Apprenticeships are the best way to support young people into high-quality jobs, but Government data shows the total number of apprenticeships fell by almost a quarter from 2001 to 2019, even before the pandemic. The levy has been described by the Chartered Institute of Personnel and Development as having failed by every measure and that it shuts out small businesses and young people. Is the Minister really satisfied with this failure? Can she explain why no reforms to apprenticeships are proposed in the Skills and Post-16 Education Bill?

[Michelle Donelan]

Our high-quality apprenticeship do not just satisfy us; they satisfy the thousands of people undertaking them. There have been 130,000 apprenticeship starts in the first quarter of this academic year, which is up by 43% on the same period last year.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

I am really proud of the many outstanding schools in my constituency, but it is important to remember that a degree is not the only route to a successful career. Does the Minister agree that apprenticeships are just as vital as university degrees, and will she arrange for the right Minister to meet me ahead of Apprenticeship Week, starting 7 February, to discuss what more can be done to promote apprenticeships?

[Michelle Donelan]

Both I and the Under-Secretary of State for Education, my hon. Friend the Member for Brentwood and Ongar (Alex Burghart), who is the Skills Minister, will be delighted to meet our hon. Friend. I absolutely agree with him on the importance of apprenticeships, and that is why we have just launched our new skills campaign, Get the Jump.

[Daniel Zeichner (Cambridge) (Lab)]

Does the Minister realise that many of the routes into quality jobs are in those very universities that she has been disparaging through her tax on so-called low-value courses? Does she agree that we need a much better metric than salary outcomes? Just because someone is not very well paid does not mean that they are no value.

[Michelle Donelan]

It is a shame the Opposition did not read our announcement the other week. In fact, we have not based it on salaries; we have based it on graduate outcomes, so there is a range of jobs that people can progress into.

[Greg Smith (Buckingham) (Con)]

5. What steps his Department is taking to protect freedom of speech on university campuses.

[Mark Logan (Bolton North East) (Con)]

15. What steps his Department is taking to protect freedom of speech on university campuses.

[The Minister for Higher and Further Education (Michelle Donelan)]

Freedom of speech is a fundamental principle of higher education and this Government will not allow the continued self-censorship of individuals facing negative repercussions for lawfully expressed views, which is why our Higher Education (Freedom of Speech) Bill will strengthen existing freedom of speech duties.

[Greg Smith (Buckingham) (Con)]

The University of Buckingham in my constituency has twice topped the charts for the university with the least restrictions on free speech, and under the outstanding leadership of its vice-chancellor, Professor James Tooley, proposals have been drawn up calling for new laws to ensure that academics can sue an institution or use the complaints scheme if it fails to protect them from targeted campaigns of harassment related to their academic freedom. Will my right hon. Friend the Minister work with the University of Buckingham to make that new protection a reality?

[Michelle Donelan]

I welcome the University of Buckingham continuing to champion free speech. Our Bill contains exactly those sorts of measure to further strengthen protection for individuals who are being harassed for expressing their lawful views, and I am sure my hon. Friend will support it when it returns to this House.

[Mark Logan (Bolton North East) (Con)]

Will the Minister agree to visit my constituency to see the efforts of some of our schools, including Eden Boys School, which is a feeder school into the University of Bolton, to make sure we get the balance right between freedom of speech and respect for religious values?

[Michelle Donelan]

Of course I will be delighted to visit Bolton North East. Maintaining free speech in our universities and political impartiality in our schools while also respecting religious values is imperative, as tomorrow’s generation shape their views.

[Jane Stevenson (Wolverhampton North East) (Con)]

6. What steps his Department is taking to promote lifelong learning and skills development.

--- Later in debate ---

[Christine Jardine (Edinburgh West) (LD)]

10. What recent discussions he has had with the Chancellor of the Exchequer on future funding for education.

[The Minister for Higher and Further Education (Michelle Donelan)]

At the spending review, the Government set out spending plans for the Department for Education worth more than £86 billion for 2024-25. This is an £18.4 billion cash increase over the Parliament, showing that this Government are serious about skills, schools and families across the country.

[Christine Jardine]

I associate myself with the remarks made by the Minister for School Standards, the hon. Member for Worcester (Mr Walker) about the late Member for Birmingham, Erdington.

We now know that £2.7 billion was spent on personal protective equipment that cannot be used, and that £4.3 billion of the money that was stolen during covid through the furlough scheme and other schemes is being written off by Her Majesty’s Revenue and Customs. Does the Minister share my concern about the difference that that cash could have made in meeting the target of more than £15 billion that the Government’s own tsar reckoned was needed to catch up on the days that our children have lost in school? Will she call for a review of this?

[Michelle Donelan]

This Government are investing £4 billion extra on schools next year and £5 billion for recovery. This Government prioritise the skills of the future and the catch-up of children in schools.

[Sir John Hayes (South Holland and The Deepings) (Con)]

Will the Minister, mindful of what she has just said, investigate how much local authorities are spending on so-called anti-racist education, which is based on deceit, spreads dismay and causes division? She will know that this is happening in Brighton and elsewhere. Will she therefore meet Don’t Divide Us—parents and teachers who are highlighting these matters—with a view to issuing guidance and if necessary taking legislative steps to prevent this kind of indoctrination?

[Michelle Donelan]

I know that the Minister for School Standards, my hon. Friend the Member for Worcester (Mr Walker), will be only too happy to meet my right hon. Friend. It is important that I remind the House that schools are subject to political impartiality, and guidance on this will be updated shortly.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

Taxpayer-subsidised childcare is increasingly being taken over by large for-profit companies quartered overseas, according to new research by University College London and the Nuffield Foundation. These companies have growing debts and charge high fees to parents while having among the lowest levels of staff qualifications and pay. They are reinvesting little in childcare provision. Does the Minister believe that repaying corporate debt represents value for money for taxpayers while families across the country struggle to access childcare that they can afford?

[Michelle Donelan]

We are investing additional funding for the entitlements worth £160 million in 2022-23. I know that the Minister for Children and Families, the Under-Secretary of State for Education, my hon. Friend the Member for Colchester (Will Quince), will be only too happy to meet the hon. Member to discuss this in detail.

[Carol Monaghan (Glasgow North West) (SNP)]

Full membership of Horizon Europe continues to be treated as a negotiating pawn by this Government, but it is a very important source of higher education funding. When the Government talk of funding safety nets, they fail to recognise the importance of the rich collaborations that result from Horizon. When will this Government stop faffing about and make a concrete decision on the UK’s full participation in Horizon Europe?

[Michelle Donelan]

We recognise that the ongoing delays by the EU have led to uncertainty for researchers, businesses and innovators. We have made it very clear that, in the event the UK is unable to associate with Horizon Europe, the funding that has been put aside will go to the UK Government’s research and development programmes, including those that would form partnerships internationally.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

11. What steps he is taking to provide information in schools for at-risk children on forced marriage and child marriage.

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[Rachel Hopkins (Luton South) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Minister for Higher and Further Education (Michelle Donelan)]

As was explained to the House earlier, the Secretary of State is currently isolating, but on behalf of him, myself and the Department, I thank the staff and young people and their families across education and childcare for their perseverance and dedication. Face coverings are no longer recommended in schools, colleges or universities. Regular testing, vaccinations and enhanced ventilation continue to help to reduce transmission and thereby protect face-to-face education, which is our No. 1 priority.

The Government will spend another £8 million to support the crucial in-school vaccination programme. After the delivery of more than 353,000 carbon dioxide monitors, we are following the evidence and delivering up to 9,000 air-cleaning devices to fulfil all eligible applications where there is less natural ventilation. Because this Government have got the big calls right, 99% of children are back in school and learning face to face.

[Rachel Hopkins]

The most deprived schools have seen the largest cuts over the past decade, with a 14% real-terms fall in per-pupil spending between 2009-10 and 2019-20, compared with a drop of only 9% for the least deprived schools. That is not levelling up. Is the Minister content that her Government are funnelling money away from the schools and communities that need it the most?

[Michelle Donelan]

As the hon. Member knows, this Government are determined to level up, which is exactly why we have introduced a real-terms 5% increase in school funding and have the highest ever level of pupil premium.

[John Penrose (Weston-super-Mare) (Con)]

T3. The Secretary of State is sadly unable to be with us today, but will one of his Ministers commit him to meet me to discuss the universal accreditation scheme proposed in my recently published “Poverty Trapped” paper? It would mean that universities and colleges could give credit for knowledge and skills gained not just in formal education but in work or informal settings, to make it easier, cheaper and faster to switch careers and to level up opportunities so that everyone has a better chance to succeed.

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[Carol Monaghan (Glasgow North West) (SNP)]

Times Higher Education has reported that several UK universities are providing Afghan Chevening scholars with considerable financial assistance, from food vouchers to laptops. Although that is to be commended, it is shocking that the financial contribution of the UK is not covering what these students need. What discussions has the Minister had with colleagues in the Foreign, Commonwealth and Development Office to increase the financial contribution and to properly support these Afghan students?

[Michelle Donelan]

I welcome the contribution that universities are also making to Afghan refugees. I will meet the hon. Member to detail exactly what the Government have done to support those studying here.

[Richard Fuller (North East Bedfordshire) (Con)]

T6. Will the Minister join me in thanking the headteacher and staff of Ivel Valley School in my constituency? They are in discussions regarding a much-needed refurbishment. Will the Minister advise me on what the Government’s plan is for upgrading the estate of schools that deal with children who have severe learning difficulties?

--- Later in debate ---

[Michelle Donelan]

We are a Government who are committed to ensuring free speech on our campuses, which is exactly why we are honouring our manifesto commitment and bringing free speech legislation to the House. I point out that the University of Sussex is already being investigated by the Office for Students. Other universities should take note.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

T5. Research published by the Social Market Foundation has shown that students from working-class backgrounds accepted into university are more likely than their peers to hold a BTEC qualification. After failing my GCSEs as a working-class 16-year-old, it was a BTEC in performing arts that got me back into education and ultimately into university. The Minister has already been asked this question by my hon. Friend the Member for Westminster North (Ms Buck), but does he agree that the decision to hastily remove BTEC funding makes a mockery of the Government’s claims to be levelling up in education?

Student Loan Repayment Thresholds

Michelle Donelan Excerpts

Friday 28th January 2022 Written Statements

[The Minister for Higher and Further Education (Michelle Donelan)]

I am announcing details of the repayment threshold and interest rate thresholds that will apply to post-2012 (plan 2) student loans, and the repayment threshold that will apply to postgraduate (plan 3) student loans, for financial year 2022-23.

Plan 2 student loan repayment threshold

I can confirm today that I intend to bring forward regulations that will keep the repayment threshold for plan 2 student loans—the income level above which post-2012 student loan borrowers are required to make repayments—at its current level for the financial year 2022-23. The threshold will be maintained at its financial year 2021-22 level of £27,295 per year, £2,274 a month, or £524 a week. The post-study interest rate thresholds that apply to plan 2 loans will also be kept at their current levels in accord. For financial year 2022-23, the lower interest rate threshold will remain at £27,295—to align with the repayment threshold—and the upper interest rate threshold will remain at £49,130.

It is now more crucial than ever that higher education is underpinned by just and sustainable finance and funding arrangements, and that the system provides value for money for all of society at a time of rising costs. This Government have already confirmed that we will freeze maximum tuition fee caps again for the 2022-23 academic year, the fifth year in succession that we have held fee caps at current levels.

The ongoing fee freeze is reducing the burden of debt on students and is helping to make higher education more affordable for them. However, the overall cost to taxpayers of the system is rising. Since 2018, the repayment threshold for plan 2 student loans has increased each April in line with changes in average earnings. If we do not keep the threshold at its current level, it would rise by a further 4.6% in April 2022.

Maintaining the repayment threshold at its current level, alongside the ongoing freeze in fees, will help to ensure the sustainability of the student loan system, while keeping higher education open to everyone who has the ability and the ambition to benefit from it, including the most disadvantaged.

We will also shortly set out further plans for addressing the student finance recommendations made by the independent panel that reported to the review of post-18 education and funding.

Postgraduate (plan 3) student loan repayment threshold

I can also confirm today that the repayment threshold for postgraduate student loans will remain at its current level of £21,000 per year, £1,750 a month or £404 a week for financial year 2022-23.

Postgraduate loan outlay is forecast to increase in coming years, and 30% of borrowers holding a master’s loan (academic year 2020-21 entrants) are not expected to repay their loans in full. We must ensure that postgraduate loans remain sustainable and that is why we are also retaining the current repayment threshold for postgraduate loans.

[HCWS568]

Careers Guidance in Schools

Michelle Donelan Excerpts

Tuesday 11th January 2022 Westminster Hall

[The Minister for Higher and Further Education (Michelle Donelan)]

I want to start by congratulating my right hon. Friend the Member for Tatton (Esther McVey) on securing this really important debate, and on building on her years of pioneering work in this space by setting up the charity If Chloe Can, which is empowering thousands of young girls and women in Cheshire and beyond. Like her, I know from personal experience that role models can inspire and change lives. I am sure that many of us would not be sitting in this room had it not been for role models in our lives, but not everybody has that luxury. The value of having people whom we look up to and turn to for guidance and support at a young age is something that I see every day in the Department for Education, so I am delighted that If Chloe Can is helping to connect schools to leaders and mentors from many different industries and sectors.

Having spoken in Westminster Hall and the main Chamber a number of times over the last two years about the exciting skills and careers revolution that is taking place in education, I must say that I am pleased to be here today to talk specifically about what we are doing to improve careers guidance across all our schools and colleges. As my right hon. Friend the Member for Tatton and my hon. Friend the Member for Bolsover (Mark Fletcher) highlighted, all the evidence shows that improving careers guidance fuels ambition, lifts aspiration and encourages young people to reflect on their strengths and interests, to find careers that they are interested in pursuing, and to develop the skills and attributes that they need to succeed in those careers. The foundation of making that a reality is careers guidance in our secondary schools.

As I am sure right hon. and hon. Members agree, every secondary school pupil, regardless of background or geography, should have inspiring careers resources available to them, just as the hon. Member for Portsmouth South (Stephen Morgan) outlined. Clear, universal careers guidance from an early age not only ensures that everyone has a fair opportunity to get on in life; it also levels up the playing field. That is why we are strengthening the legal framework so that every secondary pupil is guaranteed access to high-quality, independent careers guidance. Careers guidance, in itself, is not the panacea; the quality is absolutely crucial.

[Ben Bradley]

My hon. Friend is right to say that high-quality careers advice should be available to everybody throughout their time at secondary school. I once asked a former Secretary of State for Education what happens if the Baker clause is not enacted by the school and it is not delivering such education or allowing outside bodies to come in and deliver careers advice. He replied that the Department would write a strongly worded letter to the school in order to insist that they should, but that did not really have a great deal of leverage. Can the Minister confirm that the Skills and Post-16 Education Bill strengthens the ability of the Government to direct that and ensures that it is much more likely that children will have access to external education providers?

[Michelle Donelan]

I can confirm that. Ofsted is now playing a much more active role in looking at the careers support and guidance that is available to schools, including their utilisation of the Baker clause, so that we do not have the postcode lottery to which the hon. Member for Portsmouth South referred. My right hon. Friend the Member for Tatton spoke in support of the Education (Careers Guidance in Schools) Bill, which is sponsored by my hon. Friend the Member for Workington (Mark Jenkinson). The Government wholeheartedly support that important Bill, which will, as my hon. Friend the Member for Keighley (Robbie Moore) outlined, extend careers provision to all pupils in state education, bringing year 7 and upwards into scope for the first time—something that my hon. Friend the Member for Loughborough (Jane Hunt) called for in the debate. The Bill will also place a duty on all academy schools and alternative provision academies.

Through the Skills and Post-16 Education Bill, we are also improving access to colleges and opportunities so that young people can hear directly from providers of approved technical education qualifications and apprenticeships about the wide range of opportunities that are open to them beyond school. A recent report by The Careers & Enterprise Company shows why that is so important. Uptake of apprenticeships was 16% higher in the schools that provided information on apprenticeships to most or all of their students, compared with the schools that provided information to a small minority.

It is for that very reason that we have taken such committed action in this area. First, we have put in place support to help schools to develop their careers offer so that pupils have much more comprehensive support, something that was stressed by my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes). That support helps them to plan for the next stages in their lives.

The Gatsby benchmarks, for example, are eight clear benchmarks recommended in the “Good Career Guidance” report produced by Gatsby, a leading education charity. Data from schools in England has shown that when all eight Gatsby benchmarks are met, the proportion of students in sustained post-16 education, employment or training rises by nearly 10%. In disadvantaged areas, that same figure rises by a staggering 20%. We have adopted the Gatsby benchmarks as our career framework for secondary schools and colleges. They are based on robust international evidence and they provide a clear definition of what world-class careers guidance really looks like.

In fact, we are investing £28 million this year for the CEC to support schools and colleges to implement the Gatsby benchmarks. That is part of a total £100 million investment in careers guidance for the financial year 2021-22. New careers hubs allow schools and colleges to form strong local partnerships with businesses, providers and the voluntary sector so that they can collaborate and improve careers guidance. By September 2021, two thirds of schools and colleges in England were already part of the careers hub. Additionally, careers leaders are a brand-new workforce of specially trained staff who will drive forward careers programmes in schools and colleges. Since the launch of the training in September 2018, more than 2,200 careers leaders have engaged in the funded training. In addition, around 4,000 senior business volunteers are now working as enterprise advisers to schools and colleges.

Already 21 secondary schools and colleges in the Cheshire and Warrington LEP are in a careers hub, and enterprise advisers are already matched with 90% of schools and colleges across the area. Of those enterprise advisers, 64% are sourced from small and medium enterprises, and I am pleased to say that 52% are female.

To return to the importance of role models, our funding is helping to increase young people’s exposure to employers and the world of work. That includes schools and colleges linking up with providers and employers that offer mentoring opportunities.

My right hon. Friend the Member for Tatton also raised important points about the work of the CEC in relation to the National Careers Service. Sir John Holman has been tasked with making recommendations to drive greater alignment and collaboration between the CEC and the service. I am pleased to inform my hon. Friend the Member for Totnes (Anthony Mangnall) that those findings will be published in the summer. I am sure that hon. Members will be updated as and when those responses are forthcoming. It is a brilliant achievement that, through the CEC, we are now working with 300 cornerstone employers to challenge those negative stereotypes identified by Members to—as the hon. Member for Stoke-on-Trent Central (Jo Gideon) put it—instil aspiration and understanding of the opportunities available. Those employers are working closely with local partnerships at schools and colleges to support employer encounters and ensure that young people are exposed to the world of work and the broad possibilities of potential career paths lying ahead.

Employers such as the Nuclear Decommissioning Authority, Gatwick airport and Hilton hotels have seen benefits from their roles as cornerstone employers in developing their pipeline of skilled employees. As a cornerstone employer, Pinewood Studios has recently co-designed immersive maths lessons for pupils at 21 different secondary schools. Thanks to that partnership, 14,000 young people are now learning about careers in new ways, and the ambition is to showcase those lessons to hundreds more schools in the coming years.

With those achievements in mind, I want to conclude with a look ahead to the future. Our skills revolution, combined with an innovative new careers guidance system, will help to lead millions of young people into the careers that suit them. Initiatives like If Chloe Can are helping to drive us forward. I am delighted that my right hon. Friend the Member for Tatton is due to meet the Secretary of State for Education to explore how we can collaborate and build on that excellent work. I am sure that the skills Minister will be only too happy to join that meeting.

[Christina Rees (in the Chair)]

Esther McVey, you have one minute.

Government’s Skills Revolution

Michelle Donelan Excerpts

Wednesday 5th January 2022 Written Statements

[The Minister for Further and Higher Education (Michelle Donelan)]

On 17 December 2021, I announced a package that forms part of the Government’s skills revolution which will level up more opportunities for everyone and plug skills gaps to boost the economy. Adults and young people across the country will benefit from more high-quality and flexible education and training—levelling up opportunities and supporting more people into higher skilled, higher wage jobs.

A further nine institutes of technology were also announced and will join the 12 already up and running. The Government’s network of institutes of technology are unique collaborations between employers, further and higher education providers—backed by £290 million of Government funding—that specialise in delivering high-quality higher technical education and training across a range of STEM occupations and industries, in subjects such as advanced manufacturing, digital and cyber security, aerospace, automotive engineering and healthcare to train people for technical careers that will plug skills gaps. The new institutes of technology, in locations including Blackpool, Derby, Salford and Essex, will help deliver the skilled workforce businesses need and support people of all ages to get better jobs and fulfil their potential. This takes the total to 21 institutes of technology, delivering on the Government’s manifesto commitment.

People looking to upskill or retrain will have access to more than 100 short courses starting from September 2022, lasting between six weeks to a year, helping to fit training around their lives. More than 20 universities and colleges will offer the courses in subjects where there are skills shortages such as digital, net zero, education, STEM and healthcare, and offering an alternative to studying a traditional three-year degree. Student finance will be available to students taking the courses, marking the next step in the development of the Government’s lifelong learning entitlement which, from 2025, will provide individuals with a loan entitlement to be the equivalent of four years of post-18 education they can use flexibly over their lifetime.

The Office for Students has made awards totalling £128 million to 100 successful further and higher education providers who will lead projects to modernise facilities following the outcomes of the Office for Students’ strategic priorities grant 2021-22 capital bidding exercise, with a particular focus on STEM and supporting the disadvantaged. Two examples of successful projects include funding for Nottingham College to create a new laboratory science and innovation centre to expand their training offer, and funding to Roehampton University to deliver a new healthcare hub to support more higher technical, apprenticeships and flexible modular training. Details of all the successful projects can be found on the Office for Students’ website.

On 17 December 2021, we also opened the bidding for a share of over £150 million from the fourth wave of the T-level capital fund, for colleges, schools and sixth forms delivering T-levels. The funding will be used to refurbish buildings and build brand new facilities, including creating training kitchens for catering students, studios for media students, and facilities for agricultural courses such as trainee milking parlours or labs to learn about land science in readiness for students starting courses in September 2023. The fund will also enable providers to buy up-to-date, industry standard equipment.

A further 12 projects totalling £16 million supported by wave 3 of the T-level capital fund were also announced, bringing the total to 77 projects that will provide new buildings and facilities for students studying T-levels from September 2022. Successful projects include Gateway Sixth Form College in Leicester, awarded funding to create a dedicated health suite and a central learning resource space for students, and UTC South Durham, awarded funding to extend their engineering hall, to include two engineering workshops and an IT suite.

The Chancellor announced in the Budget that an extra £1.6 billion would be invested in 16-19 education and training by 2024-25 compared with 2021-22. The Department for Education has published details of how £615 million of that funding will be invested next year, resulting in the per student funding being boosted by over 8% from £4,188 in 2021-22 to £4,542 in 2022-23. This includes funding for an extra 40 hours of education per student to help them catch up on lost learning due to the pandemic. On top of this, funding for high value courses—those that deliver the skills that the country needs and which can lead to higher wages for students—and high cost courses including building and construction will also be increased.

The measures announced on 17 December will help level up opportunities for people and communities across England, and ensuring we have the skilled workforce needed to boost our economy.

[HCWS518]

Institutes of Technology

Michelle Donelan Excerpts

Wednesday 5th January 2022 Written Statements

[The Minister for Further and Higher Education (Michelle Donelan)]

I am pleased to say that on 17 December we announced the creation of nine new Institutes of Technology (IoTs) following the conclusion of the Wave 2 competition, subject to their proposals being turned into binding agreements. This brings the number of IoTs across the country to 21. All nine proposals met our quality standards and having an additional IoT to that which we committed to in our manifesto will provide even greater geographical coverage.

The Wave 2 competition delivered a range of high-quality proposals demonstrating a keen understanding of learner and employer needs and clear partnership working. They will benefit from up to £120 million of Government investment to fund industry-standard facilities and equipment. I am pleased to announce the lead organisations for the successful proposals and the areas they will cover below:

Blackpool and The Fylde College (Lancashire LEP area)

Cheshire College South and West (Cheshire and Warrington LEP area)

Chichester College Group (Coast to Capital LEP area)

DN Colleges Group (Sheffield LEP area)

Newcastle and Stafford Colleges Group (Stoke on Trent and Staffordshire LEP area)

Solent University (Solent LEP area)

South Essex College (South East LEP area)

University of Derby (D2N2 and Leicestershire LEP areas)

University of Salford (Greater Manchester LEP area)

Institutes of Technology (IoTs) are collaborations between further education providers, universities and employers, with employers at the heart of decision making, curriculum development and delivery. They specialise in delivering higher technical education, supporting our aim to reform technical training to help employers get the skilled workforce they need and offer local people rewarding jobs and higher paid long-term careers.

The first wave of 12 Institutes of Technology in areas such as Yorkshire and Humber, the West Midlands, North East, South West and London were backed by £170 million investment to fund industry-standard facilities and equipment. Most are already open to learners.

[HCWS515]

Maximum Student Loan Interest Rate

Michelle Donelan Excerpts

Thursday 9th December 2021 Written Statements

[The Minister for Further and Higher Education (Michelle Donelan)]

I am announcing today a temporary reduction in the maximum student loan interest rate following the continued reduction in the prevailing market rate for comparable unsecured personal loans.

In accordance with the Teaching and Higher Education Act 1998, where the Government consider that the student loan interest rate is higher than the prevailing market rate for comparable unsecured loans, we will take steps to reduce the maximum student loan interest rate.

The Government regularly monitor the interest rates set on student loans against the interest rates prevailing on the market for comparable loans.

Following the continued reduction in the prevailing market rate, I have today [9 December] laid legislation to cap the maximum post-2012 income contingent repayment undergraduate and the postgraduate income contingent repayment student loan interest rate in line with the prevailing market rate. The cap will come into effect from 1 January 2021 and last for a period of two months.

The reduction will be 0.1 percentage point on the maximum student loan interest rate to reflect the average market rates during the preceding monitoring period.

The maximum post-2012 undergraduate income contingent repayment student loan interest rate and the postgraduate income contingent repayment student loan interest rate will be 4.4% between 1 January and 28 February.

From 1 March 2022, the post-2012 undergraduate and postgraduate income contingent repayment student loan interest rates will revert to the standard rate +3%.

Further caps may be put in place should the prevailing market rate continue to be below student loan interest rates.

[HCWS462]

Oral Answers to Questions

Michelle Donelan Excerpts

Monday 6th December 2021 Commons Chamber

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

2. What plans the Government have to change the threshold for student loan repayments.

[The Minister for Further and Higher Education (Michelle Donelan)]

We are considering reforms to continue to drive up the quality of higher education, promote genuine social mobility and ensure better value for money for both the taxpayer and the student. I will not comment on speculation, but we remain committed to a fairer funding model for students in higher education and will conclude the post-18 review in due course.

[Andrew Bowie]

I thank my right hon. Friend for that answer. I know that she is as aware as I am of the effect of lockdown on the education of the current generation of students, so may I urge her, whatever decision she and the Department come to regarding the threshold for student loan repayments, to ensure that we do not do anything that would be perceived as punishing this generation—a generation that feels so hard done by as a result of the necessary decisions taken over the past two years?

[Michelle Donelan]

My hon. Friend is an assiduous campaigner on behalf of students. I reassure him and the House that we are committed to a funding model for higher education that is fair for students and the taxpayer—a system that enables those with the ability and the ambition to go to university, complete their course and get a graduate job.

[Matt Western (Warwick and Leamington) (Lab)]

The Prime Minister is notorious for sitting on reports—he must have piles—but Augur predates even him. With regard to higher education funding, there are reports that the repayment threshold on student loans may drop to £22,000 before graduates start paying back their student loans, which would be both regressive and burdensome. It would be regressive because, according to the IFS, a cut in the repayment threshold would impact worst female graduates and those from more deprived backgrounds, and burdensome because a graduate earning £30,000 a year would have to pay about £400 more on top of £500 more in national insurance contributions, which would represent a real-terms tax rate of 50%. Will the Minister confirm that changes to the threshold will be guided by the principles of fair and progressive taxation? When can we expect the Government’s response to Augar?

[Michelle Donelan]

As I have already outlined, we will report back on Augar shortly. The principles underlying our policies are: a more sustainable student finance system, driving up quality, seeing real social mobility and maintaining our world-class reputation in higher education. That is what we stand for and will continue to work towards.

[Carol Monaghan (Glasgow North West) (SNP)]

I welcome the new shadow Education team to their positions. Young people in England already graduate with an average of £50,000 of debt as a result of the huge tuition fees, so for the Government even to contemplate lowering the threshold for student loan repayments will only compound the financial struggles of those young people. It is not good enough to say that we will hear about Augur shortly. Augur recommended that tuition fees be lowered by this academic year. So can the Minister explain why, contrary to recommendations by experts commissioned by her own Government, tuition fees have still not been lowered?

[Michelle Donelan]

As the hon. Member will know, the Augur report was comprehensive, so it is right that we look at everything outlined in it and take our time to get this right. As I have said, at the heart of our decision making will be: students; ensuring that our higher education institutions retain their international reputation; and ensuring genuine social mobility. I wish that Opposition parties would focus on that, too.

[James Daly (Bury North) (Con)]

3. What steps his Department is taking to support young people into high-quality jobs.

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[Martyn Day (Linlithgow and East Falkirk) (SNP)]

4. What recent discussions he has had with Cabinet colleagues on immigration rules for (a) international students and (b) researchers participating in education in the UK.

[The Minister for Further and Higher Education (Michelle Donelan)]

The student and graduate routes offer a streamlined process and are a competitive post-study work offer for international students. We are working with the Home Office to drive reforms forward to improve high-skilled migration routes for innovators and top talent, as well as making the UK the most exciting place to locate as a researcher.

[Martyn Day]

Since Brexit, the number of EU students studying in UK universities has fallen by 56% in Scotland, 54% in Wales, 42% in Northern Ireland and 36% in England. There has also been a massive drop in EU school trips to the UK due to the scrapping of group passports and increased paperwork for visas. How does the Minister plan to repair the damage that Brexit has caused UK educational and cultural institutions?

[Michelle Donelan]

We value all international students, including EU students, not just for the financial benefit, but for the cultural benefit and the benefit to our society. That is exactly why we updated our international education strategy. We are on track to see 600,000 international students a year and to increase our education exports to £35 billion, and we have appointed an international education adviser.

[Dr Julian Lewis (New Forest East) (Con)]

Of the 16 Afghan scholars sponsored by the Council for At-Risk Academics, 10 remain trapped in Afghanistan; four, with the welcome help of the Home Office, have managed to come to the UK; and two remain waiting for visas—one of them in hiding. Will it be possible for the Ministers to co-ordinate efforts with the Home Office to ensure that those who have paid-for studentships in the UK get their visas as soon as possible?

[Michelle Donelan]

We already work very closely with the Home Office. I am more than happy to meet my right hon. Friend to discuss the case in more detail.

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[Stephen Crabb (Preseli Pembrokeshire) (Con)]

20. What steps his Department is taking to promote lifelong learning and skills development.

[The Minister for Further and Higher Education (Michelle Donelan)]

We are supporting adults to get the skills they need through the adult education budget, and we are delivering on the Prime Minister’s lifetime skills guarantee, which includes the offer of free level 3 courses for jobs, skills bootcamps and, from 2025, the introduction of a lifelong loan entitlement, enabling more flexible and modular study across higher and further education.

[Stephen Crabb]

Giving people greater choice over how and where they study is one of the keys to improving the skills of our workforce and opening up new opportunities, especially for those from disadvantaged backgrounds. Does my right hon. Friend agree that the Government’s new lifelong learning entitlement has the potential to transform options for learners across the whole of their lives?

[Michelle Donelan]

I could not agree more with my right hon. Friend. The LLE is at the heart of our skills revolution and will open up higher and further education by allowing people to study in a more modularised fashion. With that extra flexibility, it will be much easier for people to reskill and upskill, which will in turn support our businesses, our productivity and job creation.

--- Later in debate ---

[Mark Fletcher (Bolsover) (Con)]

T2. I was grateful to the Minister for Further and Higher Education, my right hon. Friend the Member for Chippenham (Michelle Donelan) for meeting me last week to discuss the lack of post-16 educational opportunities in the Bolsover constituency. Does she agree that in order for the next generation of young people in Bolsover truly to reach their potential, it is vital that they can access the full suite of educational choices locally?

[The Minister for Further and Higher Education (Michelle Donelan)]

I absolutely agree that it is important for people of all ages to have access to higher education and training wherever they live. Learners in Bolsover are served by three general further education providers in the surrounding area, but I shall work with my hon. Friend on this issue and urge him and the Derbyshire local authority to use the published process to bring it to the attention of the Education and Skills Funding Agency for consideration. In addition, secondary schools rated good or outstanding by Ofsted can put forward proposals for the addition of sixth-form provision.

[Carol Monaghan (Glasgow North West) (SNP)]

I associate myself and the rest of us on the SNP Benches with the Secretary of State’s remarks about little Arthur.

Reports that the student loan repayment threshold will be lowered are most concerning for those who are already experiencing graduate debt. Will the Minister detail the discussions she has had with Treasury colleagues? Will she confirm whether any proposed threshold change would be applied retrospectively?

[Michelle Donelan]

As the hon. Member knows well, we will not comment on speculation. We will shortly respond in full to the Augar review, and the best interests of students, taxpayers and universities will be at the heart of that report.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

T3. Even before the pandemic hit we knew that getting more young people into science, technology, engineering and maths subjects was vital. Now that we seek to build back better, what are my right hon. and hon. Friends on the Front Bench doing to get more young people, and especially more young women, throughout the United Kingdom into STEM subjects?

[Michelle Donelan]

Ensuring that everyone, regardless of their background, has the opportunity to pursue STEM subjects is a key priority of this Government. We fund multiple programmes to boost STEM uptake, particularly among girls—that includes providing £84 million to improve computing teaching and participation at GCSE and A-level and £76 million for maths teaching for mastery—and we have more than 20,000 STEM ambassadors, of whom 40% are women.

[Alison Thewliss (Glasgow Central) (SNP)]

T5. The post-Brexit Nobel laureate scheme was touted as a way to get the best and brightest scientists into the UK but has failed to attract a single application. Will the Secretary of State explain the reason for this complete failure? Could it be the Home Secretary’s hostile environment?

[Michelle Donelan]

The prize route is just one option under our global-talent route, through which we have received thousands of applications since it was launched in 2020. As the hon. Member knows, the prize route has a high bar: only those who are at the pinnacle of their career and who have already received and accepted prestigious prizes in their field qualify. The list of awards was drawn up in consultation with the relevant global talent-endorsing bodies and we continue to keep it under review.

[Laura Trott (Sevenoaks) (Con)]

T4.   The Government are taking necessary and precautionary steps to deal with the omicron variant, but can my hon. Friend reassure the House that, whatever happens with this virus, he will not shut primary schools and nurseries? It is impossible for children this young to learn properly online and the damage that it does to their education and wellbeing is immense.

Oral Answers to Questions

Michelle Donelan Excerpts

Monday 1st November 2021 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

9. What steps he is taking to support (a) universities and (b) students in higher education to make up for learning experiences lost as a result of the covid-19 outbreak.

[The Minister for Further and Higher Education (Michelle Donelan)]

The teaching staff at our universities have done a fantastic job in delivering high-quality teaching throughout the pandemic, but I am sure everyone will agree that there is no substitute for face-to-face teaching. Last week I wrote to all providers emphasising the importance of face-to-face provision, not just in teaching but in the rich extracurricular activities that should be provided for students to ensure that they are given a fair deal.

[Paul Blomfield]

I welcome the Minister back to her role, and I agree with her about the fantastic job that universities have done. However, the Office for National Statistics reported recently that nearly 40% of first-year students had shown symptoms of depression and anxiety this autumn, and similar numbers felt unprepared for university because of the loss of in-person learning during the pandemic. What support is the Government giving stretched universities to ensure that both new and continuing students succeed despite the difficulties that they have faced, and will the Minister take this opportunity to deny rumours that the Government are planning to add to their worries by making graduates on lower incomes pay more of their student debt, by reducing the repayment threshold?

[Michelle Donelan]

Throughout the pandemic we have prioritised the welfare and wellbeing of students, and we will continue to do so. We will respond to the Augar report shortly. As for the transition of students to university, we have worked with universities on that. We have held a session with more than 200 schools and higher education providers, and published a guide to assist with the transition. We have invested £15 million in mental health and welfare support, and with our help £3 million has been provided for Student Space by the Office for Students. It is this Government who continue to support students.

[Dr Julian Lewis (New Forest East) (Con)]

The Minister is doing a first-rate job for students in promoting freedom of speech on campus. Does she agree, however, that it would not help students to recover from everything they have been going through and everything they have lost during the pandemic if they faced the prospect of having to pay back already excessive student loans at a lower threshold? Does she also agree that too many universities have become academically indiscriminate cash cows for overpaid university administrators?

[Michelle Donelan]

In response to Augar, we will be reporting shortly. We want to ensure that a more sustainable student finance system exists. We want to drive up the quality of higher education provision, ensure that courses meet the skills needs of this country, maintain our world-class reputation and promote social mobility.

[Carol Monaghan (Glasgow North West) (SNP)]

I welcome the new Secretary of State and his team, who are also new, with the exception of the Minister for Further and Higher Education, the right hon. Member for Chippenham (Michelle Donelan), although I of course welcome her as well as she returns to the Front Bench. I welcome the entire team. She has quite rightly commended university staff for the job that they have done over the past 20 months in supporting students as they shifted their entire courses online, but those same individuals are now facing severe cuts to their retirement benefits—essentially a 35% cut to their pensions and lump sums. Given the work that these staff have done over the pandemic, what action is the Minister taking to ensure that this brutal pension reduction will not go ahead?

[Michelle Donelan]

I am deeply concerned about this issue, and that is because of the threat of strikes. Our students are now in a position to have face-to-face teaching, and I would urge every lecturer to reconsider taking strike action. Strikes have not helped the situation before, but they have impacted students who deserve a fairer deal.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

10. What recent assessment he has made of the effectiveness of the national tutoring programme in improving the educational attainment of pupils in the north of England.

--- Later in debate ---

[Craig Tracey (North Warwickshire) (Con)]

13. What steps his Department is taking to help support young people in securing high quality jobs.

[The Minister for Further and Higher Education (Michelle Donelan)]

I am proud to say that our plan for jobs is working, with unemployment falling to 4.5% last month. Our £3.8 billion skills revolution will ensure that young people have the skills they need to access those jobs, with T-levels, with the largest-ever expansion of traineeships and with an incentive of £3,000 for employers hiring apprentices, creating new pathways for high-quality employment.

[Ian Levy]

Blyth Valley is currently at the forefront of the green industrial revolution, with many fantastic businesses such as the Offshore Renewable Energy Catapult in Blyth and Merit in Cramlington, which can provide a wealth of opportunities to our young people. Will my right hon. Friend agree to meet me so that we can discuss how to best meet the educational needs of our young people and employers, and bridge that skill gap to ensure we have the best facilities for all the pupils in Blyth Valley?

[Michelle Donelan]

We have embarked on a skills revolution that brings together our business and education communities to ensure that all courses are of a high quality and fit for purpose. I would be delighted to meet my hon. Friend, who is an excellent champion for his community.

[Craig Tracey]

I chair the women and enterprise all-party parliamentary group, and we are about to deliver our latest report, which focuses on skills and education. The Government skills bootcamps have been a fantastic innovation, but can my right hon. Friend provide more detail on how successful they have been in encouraging and inspiring young women and girls into new careers, particularly in more male-dominated industries?

[Michelle Donelan]

Our programmes and reforms are designed to ensure that all students get the chance to undertake high-quality learning. Our digital bootcamps had 47.9% female attendance, and every student gets an interview, including in male-dominated industries, because we are the party and the Government of opportunity.

[Mrs Flick Drummond (Meon Valley) (Con)]

14. What recent comparative assessment he has made of the potential educational disadvantage due to school and classroom closures as a result of the covid-19 outbreak for (a) those eligible for the pupil premium and (b) other pupils.

--- Later in debate ---

[Angela Richardson (Guildford) (Con)]

I was very sad to see that Professor Kathleen Stock decided to step down from Sussex University following a sustained campaign of bullying and harassment. Will my right hon. Friend outline how the Higher Education (Freedom of Speech) Bill will uphold freedom of speech in our higher education institutions?

[The Minister for Further and Higher Education (Michelle Donelan)]

I, too, was horrified by what has happened in regard to Professor Stock, who has had to resign due to sustained harassment and bullying. This cannot be tolerated on our campuses, which is why the Government are delivering a freedom of speech and academic freedom Bill that will ensure that universities not only protect, but promote free speech. I welcome at this opportunity—

[Mr Speaker]

Order. I call Munira Wilson.