Higher Education and Research Bill (Fourteenth sitting)

Roger Mullin Excerpts

Committee Debate: 14th sitting: House of Commons
Tuesday 18th October 2016 Public Bill Committees

[The Chair]

Welcome back for what I regret to inform Members will be the final sitting of the Committee. I remind Members that we finish at 5 pm precisely, which means we have to deal with any matters outstanding before then.

Clause 85

UK research and innovation functions

[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

I beg to move amendment 180, in clause 85, page 52, line 21, at end insert

“but must be exercised in such a way as to be for the benefit of England, Scotland, Wales and Northern Ireland.”

This amendment would place a general duty on UKRI to discharge its functions under section 85 for the benefit of the UK as a whole.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 181, in clause 88, page 54, line 4, at end insert—

“having regard to the economic policies of the UK Government, the Scottish Government the Welsh Government and the Northern Ireland Executive”

This amendment would ensure the specific duty of Innovate UK will be to have regard to the economic policies of the devolved administrations.

Amendment 326, in clause 89, page 54, line 33, after “appropriate” insert—

“including relevant bodies in the devolved administrations”

This amendment allows Research England to coordinate with its devolved counterparts.

Amendment 182, in clause 91, page 55, line 16, at end insert—

‘(4A) Before exercising his powers under subsection (4), the Secretary of State must consult the Scottish Government, the Welsh Government and the Northern Ireland Executive and have regard to their views in respect of any proposed research and innovation strategy.”

This amendment would place specific duty on the Secretary of State to consult the devolved administrations before exercising his powers in relation to a research strategy in section 91(4).

Amendment 184, in clause 94, page 56, line 24, at beginning insert “Subject to subsections (4A) and (4B),”

See explanatory statement for amendment 183.

Amendment 183, in clause 94, page 56, line 34, at end insert—

‘(4A) In giving direction to UKRI, the Secretary of State must act in the best interests of all constituent parts of the United Kingdom and, before giving such direction, must consult—

(a) the Scottish Government,

(b) the Welsh Government, and

(c) the Northern Ireland Executive

on research and innovation policies and their priorities.

(4B) Before giving any direction to UKRI under subsection (1), the Secretary of State must seek agreement to the terms of that direction from—

(a) the Scottish Government,

(b) the Welsh Government, and

(c) the Northern Ireland Administration.”

This amendment would ensure the Secretary of State takes account of the views of devolved administrations, including different research and innovation policy, before giving direction to the UKRI.

Amendment 185, in clause 96, page 57, line 14, at end insert—

‘(3) In exercising functions under this Part, the Secretary of State must act in the best interests of England, Scotland, Wales and Northern Ireland, having consulted—

(a) the Scottish Government,

(b) the Welsh Government, and

(c) the Northern Ireland Executive

before exercising these functions.”

This amendment would place a duty on the Secretary of State that in exercising their functions in relation to UKRI they must consider the needs of the entire UK and consult the Ministers of the devolved jurisdictions

[Roger Mullin]

What a pleasure it is to see you, Mr Hanson —my favourite Chair—[Hon. Members: “Ah!”]—for a Tuesday afternoon.

The Minister is such a reasonable person that I am sure he is keen to accept amendments 180 to 185. They would place a duty on the Secretary of State that in giving direction to UK Research and Innovation regarding research priorities, it is incumbent upon UKRI and the Government to ensure that the needs of the entire United Kingdom are met and to consult with Ministers in all the devolved jurisdictions.

The Scottish, Northern Irish and Welsh Governments must have a formal role in providing input to the UK Government. Too often, the needs of Scotland, Northern Ireland and Wales are forgotten. Allow me to give two examples related to the Bill—neither of which, I hasten to add, arose out of malice. My hon. Friend the Member for Glasgow North West and I noticed a few days before oral evidence sessions were due to start that every major institution in Scotland had been omitted from the list of those being called to give evidence. I know the Minister, and I know the Whip. They are reasonable people. I know they did not exclude us out of malice, but that omission demonstrated that we were an afterthought in a Bill Committee where they knew there would be representation from Scotland. For Scotland to be treated as a mere afterthought shows the need at times to put into legislation the right to be consulted. Being an afterthought is just not good enough.

Let me give another example. Later today, we will discuss an amendment relating to post-study work visas—a matter that has been raised many times by Scottish Members in this House and by the Scottish Government as it is of great concern to us and of great importance to our economy and our universities. What happened a few short weeks ago? Suddenly, the UK Government announced a pilot that involves no university in Scotland, Wales or Northern Ireland, nor any consultation with the Governments in the devolved Administrations. That is another example of us not being treated with any respect whatsoever. The amendment calls for formal recognition in the Bill that we will not be consigned to the role of a mere afterthought at the whim of this or any other Government.

The Scottish research sector has different priorities from much of the rest of the UK, and there is a concern that those priorities will be missed within the new UK-wide research body. For example, Scottish higher education institutions have been pioneers in research collaboration since the establishment of the first research pools in 2004. One of the key principles behind research pools was that they should support research excellence “wherever it is found”, which is sometimes in relatively small research groups in less research-intensive institutions. We are concerned that initiatives to encourage collaboration between mere institutions can sometimes exclude such pockets of excellence through, for instance, threshold criteria dependent on scale. Scotland’s higher education sector, as the Minister will know, is worth more than £6 billion to our economy, and we must ensure that that continues. As it stands, the Bill has the potential to harm Scotland’s world-renowned research.

The Minister and his Government need to ensure that devolved Administrations have an equal say and that their voices are heard within UKRI to ensure that this Bill will be of no detriment to any part of the United Kingdom. It is also critical to be able to take account of the different economic and social priorities of devolved Administrations. Mention was made of Brexit this morning—by the Minister, if memory serves me correctly—and it immediately brought to mind not the example of Scotland but that of Northern Ireland, where there are going to be particular challenges, not least in how cross-border trade, cross-border research collaboration and the movement of people will be handled. That presents a context in Northern Ireland that is not present in any other part of the United Kingdom. Its voice needs to be heard as well. Not to have proper input on these and other matters would potentially be not only disrespectful, but damaging. In Scotland our drive for innovation and growth and our highly distinct social agenda need to be factored in. I have no confidence that that will be possible without ensuring that a statutory duty is placed in the Bill. I beg to ask leave to move the amendment.

[Gordon Marsden (Blackpool South) (Lab)]

I wish to elaborate on my Scottish colleague’s comments, first by saying that you are my favourite Chair of all time, Mr Hanson, and not just for Tuesday—at least until someone else comes along and makes me a better offer.

Amendment 326 would allow Research England to co-ordinate with its devolved counterparts. I am very much in tune with the sentiments just expressed by the hon. Gentleman: nobody likes to be treated as an afterthought, though sometimes people are pleased just to be noticed. In these circumstances, the hon. Gentleman has put forward a powerful case. It is not a question of omission by design, we hope, but it is certainly omission by amnesia, to put it kindly. Rightly, he did not just put the case for Scotland, which he is bound to do, but referred to the situation in Northern Ireland. Those of us who can just about remember back to that steamy day of Second Reading, before the summer recess, will remember that there were representations from Northern Ireland Members on the Bill, not just about issues such as the teaching excellence framework and the future for Northern Irish students, but on some of the border issues. Since then those issues have come further to the fore.

It is a question of looking back as well as looking forward. The reality is that Research England will be inheriting, and will be challenged to perform on, the existing system. At the moment, the UK’s dual support system underpins an excellent research base. As Committee members probably know, it consists of two complementary streams: one targets specific discipline areas; the other is a block grant to institutions. Currently the former is disbursed by the seven research councils and the latter through the Higher Education Funding Council for England and its devolved counterparts, the Scottish Funding Council, the Higher Education Funding Council for Wales and the Department for the Economy in Northern Ireland.

As we heard this morning from the Minister, the proposed reforms will bring the seven research councils and the England-only research functions of HEFCE in the form of Research England—if the Committee has not been lost by this point, it will be shortly—into UKRI. The Scottish Funding Council, the Higher Education Funding Council for Wales and the Department for the Economy in Northern Ireland will remain sitting outside UKRI. Therefore, as the hon. Member for Kirkcaldy and Cowdenbeath rightly pointed out, it would be helpful to probe how UKRI will work with institutions in Scotland, Wales and Northern Ireland in providing strategic oversight of UK research.

I say gently to the Minister that the hon. Member for Kirkcaldy and Cowdenbeath has made it fairly clear—I support his view, and if I was a Member from one of the devolved Administrations, I would feel the same—that on this occasion simply rehearsing the line that we can be assured that UKRI will take such things into account is not going to be adequate, either practically or symbolically. If the Minister is in any doubt, since we have mentioned Scotland and Northern Ireland, I am now going to mention Wales and quote the written evidence that the Committee received from Universities Wales about three or four days ago. I refer to the section about UKRI governance and operation. Very much in the same spirit as the hon. Member for Kirkcaldy and Cowdenbeath, Universities Wales says:

“In the past the legislation has relied heavily on the Secretary of State and the Research Councils to act in the interests of the UK as a whole. With the increased divergence as a result of devolution, however, we question whether this will continue to be effective in appropriately reflecting devolved policy and interests. We welcome the UK Government’s proposed amendment”—

that is referred to as new clause 3, which we will come to—

“to enable joint working between relevant authorities where this is more efficient or effective. We would like the legislative framework to be strengthened, however, so that it not only facilitates joint working but ensures”—

I think there is a difference—

“that interests of devolved nations are catered for appropriately. In particular we agree with Universities Scotland that the legislation as a minimum must ensure there is appropriate representation on UKRI’s Council and on the Councils’ boards. The legislation must also include appropriate duties for UKRI and the Secretary of State not only to consult with devolved administrations but also to have due regard to devolved policy.”

That is the nub of it, and that is what we have tried to embody in amendment 326, which would give Research England the facility to co-ordinate with its devolved counterparts. That is the basis on which we have a great deal of sympathy with the amendments tabled by the hon. Member for Kirkcaldy and Cowdenbeath.

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[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

I will not join the auction of flattery, Mr Hanson; I feel that it is unnecessary, and I am sure you do not appreciate it. I am, however, glad to have the opportunity to assure Members, in particular those from Scotland, that I share their desire to ensure that the UK operates for the benefit of the whole of the United Kingdom.

Scottish and other devolved institutions are a vital part of our vibrant research base and have not been overlooked carelessly or by any other kind of omission in our preparations for these reforms or for the Committee. I know that it feels like a lifetime ago that we were sitting in Portcullis House listening to oral evidence, but I point out to the hon. Member for Kirkcaldy and Cowdenbeath that representatives of UK-wide bodies were invited to give evidence to the Committee, including Research Councils UK, Innovate UK and Universities UK. Those bodies all represent the totality of the United Kingdom, including institutions in Scotland, Wales, Northern Ireland and England.

I understand that all parties were invited to make submissions about who should give evidence before the Committee. We put forward a number of suggestions, as did the official Opposition. Relatively late in the day, Members from the Scottish nationalist party asked for additional people to be invited to give evidence, and we were delighted to accommodate Universities Scotland, the Royal Society of Edinburgh and the Scottish Funding Council to round out the evidence that we had already requested from those other representative bodies of the entirety of the United Kingdom. There was no omission. We were delighted to make time in the Committee’s proceedings to accommodate further Scottish voices, and we welcomed them, as we welcome them now.

[Roger Mullin]

I never suggested that there was any malice, but there was scope to have Scotland properly represented. The Scottish National party—I see there is still scope for education there, since the Minister does not know the name of the party that I represent—was not invited by the Government to give any suggestions about who should be invited, so I think it is fair to characterise it as an afterthought.

[Joseph Johnson]

I thank the hon. Gentleman for his further clarification. I am always happy to be educated by him in lots of ways, but on this matter we will have to disagree. We gave opportunities to the Committee to submit names to give evidence before it. As I said, we had already invited significant representations from UK-wide bodies and were delighted to accommodate the further suggestions his party made. I think we have to move on.

Turning to amendments 180 and 181, the research councils and Innovate UK, within UKRI, will continue to fund excellence wherever it is found in the UK. UKRI has the ability to work with the devolved bodies and a statutory duty to use its resources in an efficient and effective way, meaning it will look for all opportunities to collaborate. It is also important than Innovate UK can operate independently to spot opportunities and to provide the right access to finance conditions for economic growth. To improve its understanding and response to economic policies in the devolved Administrations, Innovate UK will be appointing full-time regional managers in Glasgow, Cardiff and Belfast. That means that UKRI and its councils will have to consider the whole of the UK, ensuring that the current co-operation will continue.

Turning to amendment 326, on Research England consulting relevant bodies in the devolved Administrations on grant conditions, block funding of universities for research—so-called quality-related funding—is a devolved matter. It is therefore not appropriate to require Research England to consult its devolved equivalents, just as the devolved funding bodies are not required to consult HEFCE now. Our approach mirrors that taken in the Further and Higher Education Act 1992. Of course, that does not mean HEFCE has operated in isolation—in fact, HEFCE works closely with its devolved equivalents, such as the Scottish Funding Council, on areas like the research excellence framework. A Government amendment ensures that Research England can continue that joint working in the future.

Turning to amendments 182 to 185, on the Secretary of State consulting the devolved Administrations before taking key decisions that will have an impact on UKRI, the Government work closely with the devolved Administrations now and UKRI will continue to work with them. However, we would not seek to bind UKRI into a restrictive process of consultation. Legislation must remain sufficiently flexible for the Government and for UKRI to react quickly to emerging issues, as the research councils acted earlier this year to promptly commission research into the Zika virus.

The amendments also require the Secretary of State to act in the best interest of all parts of the UK. As a UK Government Minister, I assure the Committee that that is already the case. That was recognised by the former vice-chancellor of the University of Dundee, Sir Alan Langlands, in the evidence he gave last month:

“Even given the dynamics of devolution and the fact that essentially we are dealing with four different financial systems and four different policy frameworks, the one thing that has stuck together through all this has been the UK science and research community. The research councils, HEFCE and, indeed, BIS have played a hugely important part in that.––[Official Report, Higher Education and Research Public Bill Committee, 6 September 2016; c. 26-27, Q40.]

I agree with Sir Alan. The research community functions remarkably well across the UK political landscape, not least because the UK Government and the devolved Administrations work together to make it do so. Therefore, recognising that the Government share the hon. Gentleman’s concern in ensuring that UKRI effectively serves the whole of the UK, I ask that he withdraws amendment 180.

[Roger Mullin]

I thank the Minister genuinely for his responses. I will not put the amendment to a vote, but I make two observations. I do not think establishing mere regional managers in Glasgow, Cardiff and Belfast, if I recall his statement correctly, are in any way sufficient to guarantee the type of high-level involvement that is being sought. There are examples—I gave one related to the post-study work visa pilot—of where decisions have already been taken by the UK Government without proper consultation of the devolved Administrations. I therefore beg to differ with the Minister on those two points, but I also beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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[Joseph Johnson]

The Government amendments in this group will ensure that, in setting the terms and conditions of grants to Research England, the Secretary of State is under the same limitations as in the Further and Higher Education Act 1992. Specifically, amendments 263 and 265 provide that directions or terms and conditions of grants can be given only if they apply to every institution, or to every institution of a specified description. In addition, the specific requirements must be met before financial support is given. Amendments 264, 266 and 267 are consequential changes required by amendments 263 and 265, and will ensure that the purpose of clauses 93 and 94 remains clear.

[Roger Mullin]

I thank the Minister for indicating earlier that he was willing to allow me to say a few words on amendment 284 before he responds to the debate.

My hon. Friend the Member for Glasgow North West and I have been contacted by many institutions in the devolved nations about amendment 284 more than any other. They are concerned about the potential that hazard will be placed in their way because of the funding structure. The amendment would ensure separate funding allocations for the research councils, Innovate UK and Research England. It is supported not only by the significant number of institutions that I mentioned earlier, but by the Scottish Funding Council. I have had extensive discussions with Dr John Kemp, who is the acting chief executive there.

We know that Scotland performs well in attracting funding—grants, studentships and fellowships—from the research councils, although it does not do quite so well in attracting funding for research institutes and research infrastructure. We of course recognise that there is always scope for flexibility in funding, but there is a difference between building flexibility into something and building in something that will create a hazard to core funding. That is what particularly concerns me about the clause: as it stands, it will allow the Secretary of State or the UK Government, if they so wish, to alter the balance of funding among the research councils.

Any grant to UKRI is ultimately research project funding, which of course should be competitively available throughout the UK. It is therefore necessary to have transparency about what goes to UKRI and what goes to Research England, given that the funds distributed for research infrastructure by the latter body will be available only to English institutions. Separate financial allocations must be introduced for Innovate UK, Research England and the different research councils collectively.

We are extremely concerned, too, that there are no provisions in the Bill to ensure that the Secretary of State and the UK Government do not give directions to UKRI to move funds in year on its own initiative between constituent parts—especially to Research England. That would definitely not be in the spirit of the Nurse report, nor would it give Scotland, Wales or Northern Ireland a fair and equal say in research allocation. If for whatever reason funds had to be moved between research councils and Research England or Innovate UK by the Secretary of State, that must surely happen only if the devolved Administrations gave their consent.

Amendment 284 would ensure that fairness and transparency were at the forefront of the reserved funding allocation to UKRI and the allocation to Research England. It would also ensure that the balanced funding principle was measured in relation to the proportion of funding allocated by the Secretary of State for reserved UK and devolved England-only funding, and that clarity was provided on when that might not be achieved. Many bodies that have talked to me are at a loss as to why the appropriate funding streams are not set out in the Bill. I am therefore particularly keen to hear the Minister’s response.

[The Chair]

Before I call the Minister, I remind colleagues that it is now 3.27 pm and the Committee finishes at 5 o’clock. Although there is potential for further debate, Members should bear that in mind if they want to debate later issues.

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[Roger Mullin]

I dearly wish that I could believe the Minister’s explanation. I am willing not to press amendment 284 at this stage, but I intend to go back to all those who have expressed such deep concern and potentially bring the issue back on Report.

Amendment 263 agreed to.

Amendment made: 264, in clause 93, page 56, line 22, at end insert—

“( ) In this section “specified” means specified in the terms and conditions.”.—(Joseph Johnson.)

This amendment is consequential on amendment 263.

Clause 93, as amended, ordered to stand part of the Bill.

Clause 94

Grants to UKRI from the Secretary of State

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[Gordon Marsden]

Again, I thank the Minister for using the opportunity of our probing amendment to say a little more about how he envisages the Haldane principle being enshrined in the Bill. That has been helpful. On that basis, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment made: 265, in clause 94, page 56, line 25, at end insert—

‘( ) The Secretary of State may give a direction under this section in respect of functions exercisable by Research England pursuant to arrangements under section 89, only if —

(a) it relates to requirements to be met before financial support of a specified amount or of a specified description is given by Research England in respect of activities carried on by an institution, and

(b) it relates to every institution, or every institution within a specified description, in respect of whose activities that support may be provided.”—(Joseph Johnson.)

This amendment provides that the Secretary of State can only give a direction about the allocation of grants to UKRI in respect of the functions exercisable by Research England if the direction relates to requirements to be met before the financial support is given and if it relates to all institutions or institutions of a particular description.

[Roger Mullin]

I beg to move amendment 285, in clause 94, page 56, line 25, at end insert—

‘(1A) Within six months of this Act coming into force, the Secretary of State shall give a direction to UKRI to commission an independent evaluation of the matters under subsection (1B) and shall lay the report of the evaluation before the House of Commons.

(1B) The evaluation under subsection (1A) shall consider—

(a) the effect of the absence of post study work visas for persons graduating from higher education institutions in the United Kingdom to be granted leave to remain in the UK on completion of their studies to work for up to two years for an employer on—

(i) the economy, efficiency and effectiveness of the higher education sector, and

(ii) the UK economy, and

(b) how post study work visa arrangements, applying either broadly or to classes of students, disciplines and institutions, could operate in the UK and their effect of each on—

(i) the economy, efficiency and effectiveness of the higher education sector, and

(ii) the UK economy.”

This amendment would require the Secretary of State to commission research from UKRI on the effects of the absence of arrangements for post study work visas and how such arrangements could operate in the UK and their effect on the higher education sector and the UK economy.

I could easily spend the next two hours discussing this subject [Hon. Members: “Oh no!”]—but perhaps I will not. This is a probing amendment, but it is important none the less, particularly for Scottish representatives. It would require the Secretary of State to commission research from UKRI on the effects of the absence of arrangements for post-study work visas, how such arrangements could operate in the UK and their effect on the higher education sector and the UK economy.

If ever there were an issue before this Parliament that demonstrates the completely different economic and social priorities of Scotland and the rest of the UK, this is it. Historically, Scotland’s problem has been not immigration but emigration. In my own family, both my brother and sister emigrated many years ago. My brother could not find a job after graduating in the early 1960s, but by the age of 30 was secretary of the Science Council of Canada and went on to be vice-president of the International Development and Research Corporation. He wrote the first science and technology paper for the free Government in South Africa after meeting Nelson Mandela but could not find a job in his own land. He was only one of thousands of people over many generations who had to emigrate.

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[Joseph Johnson]

I thank the hon. Gentleman for raising this important issue. International student migration and post-study working arrangements are important issues for the HE sector and the Government. Brain gain is definitely the key to our sustained success as a knowledge economy, but I do not believe that the Bill is the appropriate vehicle for commissioning research into post-study work. The Bill is focused on creating the necessary structures that will oversee higher education and research funding for many years to come. The amendment proposes a short-term piece of research on an element of migration policy, and that is not consistent with the scope and functions of UKRI. That said, I thank the hon. Gentleman for giving me the opportunity to explain briefly the Government’s approach to student migration and to post-study working arrangements for international students.

The Government greatly value the contribution that international students make to our universities, including those in Scotland. We want our top universities to continue to attract the best students from around the world. The UK has a generous post-study work offer for overseas students who graduate in the UK. International graduates can remain in the UK to work following their studies by switching to several existing routes. For example, if they get a graduate-level job, they can switch to a tier 2 skilled worker visa. If they start a business, they can move to a tier 1 entrepreneur or graduate entrepreneur visa, or they can do work experience under a tier 5 temporary worker visa. There is no cap, as we have discussed previously, on the number of students who can switch to a tier 2 skilled worker visa and all degree students are potentially eligible to stay on for post-study work.

[Roger Mullin]

The trouble is that the requirements and criteria set for graduate-level work might well be appropriate for the south of England, but looking at the recent case of the Brain family and the amount of work needed to allow that family from Australia to get a tier 2 visa and stay and contribute in Scotland—thanks to the work of my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford)—those requirements are not as suitable for our circumstances as the Government pretend. The Minister went on to talk about tier 1 visas; over the past year, in the region of 70% of applicants for tier 1 entrepreneurship visas have been rejected. It does not seem to me that that is adequate in providing for the future.

[Joseph Johnson]

We always want to ensure that our visa system is working well and we believe, with respect to people switching from tier 4—the student route—into tier 2, that it is working well at present. Certainly, at least looking at the numbers of people switching, under our current arrangements more than 6,000 international students switched from tier 4 into tier 2 in the UK in 2015; that is an increase from around 5,500 in 2014 and 4,000 in 2013. The hon. Gentleman mentioned tier 1 and the number of rejections. That reflects an element of abuse in the old tier 1 category, which was then the post-study work category, with a published Home Office assessment undertaken in October 2010 finding that three in five of the then tier 1 migrants were in unskilled work. That is the basis on which changes were made to our system.

Until 2012 there was a dedicated post-study work route under tier 1 of the visa system, as I just mentioned, which saw a significant number of fraudulent applications and graduates who were remaining unemployed or in low-skilled work. That is why we replaced it with a more selective system, as the hon. Gentleman mentioned. This reform to post-study work has not prevented the UK from attracting international students. Since 2010, applications to UK universities have gone up by about 14% and we remain the second most popular destination in the world after the US for international students.

I am therefore unconvinced that such research would add value, given that the current visa system provides generous post-study work opportunities and the Government will, in any case, shortly be consulting on these issues. As I have explained, the Bill is in any case not the appropriate mechanism for commissioning such research. On that basis, I ask the hon. Gentleman to withdraw the amendment.

[Roger Mullin]

I am happy to say I have made my point and I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendments made: 266, in clause 94, page 56, line 26, leave out “But”.

This amendment is consequential on amendment 265.

Amendment 267, in clause 94, page 56, line 34, at end insert—

“( ) In this section “specified” means specified in the direction.”.—(Joseph Johnson.)

This amendment is consequential on amendment 265.

Clause 94, as amended, ordered to stand part of the Bill.

Clause 95

Balanced funding and advice from UKRI

[Gordon Marsden]

I beg to move amendment 329, in clause 95, page 57, line 4, leave out “reasonable”.

This amendment seeks to establish what a reasonable balance between Quality Related funding and project-specific funding is and to clarify how the dual support system will be protected by this legislation.

The amendment might seem perverse, but it is a mechanism to explore with the Government what a reasonable balance is between quality-related funding and project-specific funding, and to clarify how the dual support system will be protected by the legislation. Again, as with the Haldane principle, which we just discussed, the Bill seeks to enshrine dual support in legislation for the first time. This is welcome; it has been welcomed by many people in the sector. This is a probing amendment to clarify how it will be protected by the legislation or, in other words, to invite the Minister to comment on what he, his officials and any others who he would expect to make judgments would expect a reasonable balance actually to look like.

The dual support system underpins our excellent research base, and I will not go into all the ways in which it is disbursed—we have dealt with that previously—but it would be helpful to understand what would be a reasonable balance between the two funding streams.

As the hon. Member for Kirkcaldy and Cowdenbeath has asked, how will the principle operate in Scotland, Wales and Northern Ireland? The Government’s October paper on UKRI says:

“The Bill requires the Secretary of State to consider the balance between these two funding streams ensuring that the dynamic balance that stakeholders have supported is protected and preserved.”

That is an interesting phrase, “the dynamic balance”. I am not sure what I think it means, but I know that concerns have been expressed not about the enshrining of the duty in the Bill but about precisely what teeth the enshrinement will have.

Chris Hale, the director of policy at Universities UK, wrote “The Higher Education White Paper—all you need to know” in May 2016, in which he said:

“At face value we will see for the first time dual support enshrined in a legislative arrangement (to date dual support has been largely a matter of convention), but the critical question is does this go far enough? While the Secretary of State may have to consider the balance under this new duty, this provision does not necessarily secure the health and dynamism”—

that interesting phrase again—

“of dual support. This is one to watch carefully and there may be scope to strengthen this in the Bill.”

Similarly, the Council for the Defence of British Universities has said that

“while the White Paper contained an undertaking…the requirement in clause 95 of the Bill that the Secretary of State should ‘have regard to…the balanced funding principle’ appears vague”.

The CDBU refers to my right hon. Friend the Member for Oxford East (Mr Smith)—both Oxford constituencies are getting a mention today—and his excellent speech on Second Reading, in which he aired some of the concerns of his constituents and, if memory serves, although I stand to be corrected, the University of Oxford on how the principle will be enacted.

The Minister referred to the Stern review earlier, and the CDBU says:

“An approach to strengthening the wording in the Bill is suggested by a passage in the Stern Review of the REF…which states that, in addition to competitive grant funding, the capacity of universities to sustain excellent research depends on ‘a long-term, stable block grant that allows universities to invest strategically in research in ways which foster its future development’. If all funding streams are administered through one body (i.e. UKRI), as currently proposed, this endangers the separate purposes of the two funding streams.”

The Minister may or may not wish to dissent from that view, which is put another way by the Royal Society in its commentary. It says:

“The ‘balanced funding principle’ is the principle that it is necessary to ensure that a reasonable balance, suitable for maintaining the long-term excellence and efficiency of the UK research base, and preserving the values, customs, partnerships and practices that have underpinned these, including allocation based on both retrospective and prospective assessment is achieved in the allocation of funding…However, we are not convinced that the ‘balanced funding principle’ as currently defined in the Bill includes sufficient content to fully embody the dual support system. The ‘balanced funding principle’ should be defined to make it clear that it entails substantial portions of research funding being allocated both via the block grant and via Research Councils. We would suggest the definition of the principle of balanced funding should be strengthened to make explicit reference to maintaining the values and customs of the research base, including a balance of retrospective and prospective assessments.”

Those sentiments and that terminology are not far away from the concerns that the CDBU expressed or, indeed, that my right hon. Friend the Member for Oxford East mentioned on Second Reading.

I would be grateful if the Minister could muse—if that is the right word—on the appropriateness of the word “reasonable” and on what it means, and give us a bit more chapter and verse on how he envisages the dual support being carried out in practice through legislation, as opposed to the statement of good intent, which we welcome.

--- Later in debate ---

[Roger Mullin]

I would like to say a few words in praise of the new clause. I have moved 10 amendments today. Many dozens of amendments have been tabled, but I think this is the most important one we face, because this is the one that speaks to who we are as a community and as a people. I would like to praise and thank the hon. Gentleman for his recognition of the work the Scottish Government have done in this field. I hope that any civilised society would see the need to support this measure.

[Joseph Johnson]

I also thank the hon. Member for Sheffield Central for tabling this new clause, which relates to access to support for students recognised as needing protection. I agree with the hon. Member for Kirkcaldy and Cowdenbeath and recognise his commitment to this issue. It is one that is already addressed, however, within the student support regulations.

I am pleased to say that those who come to this country and obtain international protection are already able to access student support. Our regulations have for some time included provision for those granted refugee status or humanitarian protection and their family members. In addition, we have recently amended the regulations to allow those who have been in the UK as a matter of fact for at least half their lives or at least 20 years to access student support after three years of lawful residence.

Those persons entering the UK under the Syrian vulnerable persons relocation scheme and granted humanitarian protection will be eligible, like UK nationals, to obtain student support and home fees status after only three years’ residence in the UK. Those with refugee status are uniquely allowed to access student support immediately—a privilege not afforded to UK nationals or those granted other forms of leave. There is a distinction in international law between such status and those in need of humanitarian protection.

Recently the Supreme Court upheld the Government’s policy of requiring most persons, including UK citizens, to be ordinarily lawfully resident in the UK for at least three years immediately prior to starting their course in order to be eligible for student support. That important rule establishes that generally the student has a solid connection with the UK before they are entitled to support and home fee rates. The second part of the amendment would, in effect, break that long-established policy by extending support to asylum seekers who have been granted temporary leave to remain only and who have only a recently established and potentially temporary connection to the UK. I therefore ask that the hon. Member for Sheffield Central withdraw the motion.