Part-time and Continuing Education and the Open University

Viscount Younger of Leckie Excerpts

Thursday 5th July 2018 Lords Chamber

[Viscount Younger of Leckie (Con)]

My Lords, it is a great pleasure to respond to this debate on part-time and continuing education, and I note the specific reference to the future of the Open University. I thank the noble Baroness, Lady Bakewell, very much for raising this subject again. Studying part-time and supporting the education of individuals throughout their lives can bring considerable benefits for individuals, employers and the wider economy.

Let me start by setting the scene. Noble Lords have spoken at length today about the importance of the Open University, and they are right to do so. It has been particularly interesting to hear remarks from those who have been its previous leaders and from its current leaders and alumni, and particularly from those who have taught at it—including, if I picked it up correctly, the noble Baroness, Lady Taylor, and the noble Lord, Lord Shipley. Since 1969, the Open University has brought the opportunity to engage in higher education to people across the country who would not otherwise have had the chance to do so. There has been a theme of social mobility in what has been said today.

I also say at the outset how much I appreciated the maiden speech of the noble Baroness, Lady Bryan of Partick. She gave a particularly warm and thoughtful speech and I am certain that her experience as a graduate of the OU has added greatly to the debate today—and that she will continue to do so in the future. We also look forward to no doubt hearing the views of Keir Hardie transmitted from above via the noble Baroness in the future. Given that football is in vogue, in addition to the importance of study, I hope that she is a keen supporter of Partick Thistle.

The Minister for Universities, Science, Research and Innovation last month described the Open University as,

“essential to our future higher education landscape”.

I agree with Sam Gyimah on this point. I can also report that the Minister took part in an online meeting with Open University students on Monday, making use of the same videoconferencing technology that they use for their studies, to join in a conversation with students from all parts of the country. I am myself looking forward to joining the noble Baroness, Lady Lane-Fox, chancellor of the Open University, and others at a round-table meeting to discuss the work of the OU on 16 July. I note its important work for education in prisons, which we are reminded of today.

It stands to reason that part-time education offers opportunities to many people who are not catered for by the traditional undergraduate model of university. We know that the part-time student population in higher education is different from that for full-time—the noble Lord, Lord Parekh, cited some demographics. Over half of part-time students are older than 30, while this is the case for only 7% of full-time students. As an observation, part-time students also happen to be nearly 10 percentage points more likely to be female than their full-time equivalents. There are numerous testimonials provided by Open University graduates over the years that speak to this. These include people whose caring responsibilities or disabilities made part-time study the appropriate choice for them. Part-time education, however, also carries benefit that will follow an individual throughout their career. Many of those who choose to study through such routes do so because it can complement their existing job roles. Research has found that there are significant employment advantages for those who complete part-time courses, when they start with only a level 3 qualification or below.

Education is of course considered to be a pleasure and a challenge in itself, stimulating and maintaining what Monsieur Poirot referred to as those “little grey cells”. I hope that this will be the experience of the lady wife of my noble friend Lord Northbrook when she graduates. Part-time and continuing education allows this pleasure to be extended to a broader span of the population. Put simply, it is good for people’s well-being and mental health, where appropriate. Contrary to what the noble Viscount, Lord Hanworth, said, we do understand this and I hope that he realises that.

The Open University stands out as by far and away the largest provider of part-time higher education in England. In 2016-17, over a quarter of all entrants to part-time undergraduate study started at the OU. I will though also pay tribute to other universities and institutions, such as Birkbeck—where the noble Baroness, Lady Bakewell, is president, and where the noble Baroness, Lady Blackstone, was previously and the noble Baroness, Lady Garden, is now a fellow. I also mention Teesside University. All make important contributions to part-time study in this country. I also point out that—as the noble Baroness, Lady Bakewell, will know—over 93% of part-time undergraduate qualifiers at Birkbeck were in further study or employment six months after graduating. As noble Lords know, outcomes are a very important part of our government policy.

The noble Baroness’s Motion refers to continuing education as well as part-time education. Continuing education of course extends beyond what we may commonly refer to as higher education and I will return to this theme later on.

Let me now address directly the challenge posed by the changes observed in participation in part-time higher education in recent years. There are now record numbers of 18 year-olds going to university to study full-time, including those from disadvantaged backgrounds. However, we know that there has been a marked decline in the number of people studying part-time in higher education in England. This downward trend goes back to 2008. The noble Baroness, Lady Bakewell, eloquently highlighted the statistics, and a number of reasons for this have been given during the debate, which I will not rehearse again. The Government have taken a number of steps to address the decline in part-time study in higher education. First, noble Lords will recall that, during the passage of the Higher Education and Research Act, the Government brought forward an amendment that gave prominence to part-time study, distance learning and accelerated degrees. This amendment set out that such types of study are included in the need to promote choice for students, which the Office for Students must have regard for in pursuit of its wider functions. The Government also offer part-time tuition fee loans. I am pleased to note that in 2016-17, 47,000 OU students were able to benefit from a tuition fee loan for undergraduate courses. OU students made up around 64% of all the part-time students supported by English tuition fee loans in that year.

I pause for a moment to note that, just this week, the Government have announced that the maximum tuition fees that a university will be able to charge in the 2019-20 academic year will be frozen for the second year running. My noble friend Lord Forsyth spoke passionately on this particular matter. The Government have removed, as he has said, the “equivalent or lower qualification” restrictions—the so-called ELQ restrictions —for all science, technology, engineering and mathematics part-time degree courses. This means that students who already held a degree on these courses were then able to access support through student loans.

[Lord Forsyth of Drumlean]

My Lords, I am most grateful to my noble friend for giving way, and for the initiative that has been taken in respect of that particular group of students. However, if the Government have conceded the principle, why not extend it more broadly? Am I right in saying that the number of students who have benefited from that are a few hundred? After all, in the whole of England this year, the number of students who did A-level engineering was 10.

[Viscount Younger of Leckie]

My noble friend will know that I do not have those statistics to hand but I take note of what he has said. It ties into the report that he has produced, and I hope that at a later point we will have time to debate the details of that report.

I turn to HEFCE—now replaced by the Office for Students—which targeted an element of the teaching grant in recognition of the additional costs of part-time study. Twenty-nine and a half million pounds of the £72 million made available through this allocation was granted to the Open University. Importantly, in addition, this Government have in recent months tabled regulations that will allow part-time students on higher education courses to access maintenance loans similar to those received by their equivalents on full-time courses. These loans will be available to students starting honours and ordinary degrees, and equivalent qualifications, on or after 1 August this year.

[Baroness Blackstone]

I mentioned the likelihood of the take-up of these loans being very low because they will simply add to the debt of these debt-averse students. Perhaps the Minister would like to comment on that. What number does he believe will take it up? I suspect that it will be very small.

[Viscount Younger of Leckie]

We hope to be more positive on that. However, on a specific question like that, I think that it would be wise for me to write to the noble Baroness with details of how we see this going forward.

In their response to the part-time maintenance loan consultation in March 2017, the Government committed to seek to introduce maintenance loans for part-time distance learning courses. This is subject to the development of a robust control regime to manage the particular risks and challenges associated with this mode of study.

The noble Lord, Lord Addington, asked a question about credit transfer. He may know that Section 38 of the Higher Education and Research Act provides the OfS with the duty to monitor and report on the availability and take-up of student transfer arrangements, together with the power to encourage or promote awareness of such arrangements.

I turn now to the post-18 review. Your Lordships will know that the Government are undertaking a major review of post-18 education and funding to ensure that we have a joined-up education system that is accessible to all and encourages the development of the skills that we need as a country. It is looking at how to ensure that funding arrangements across post-18 education and training are transparent and do not act as a barrier to choice or provision. The noble Baronesses, Lady Bakewell and Lady Blackstone, asked a number of questions about this review. It will look at how we can ensure that the system is supported by a proper funding system that provides value for money and works for students and taxpayers alike. It will also ensure that the system gives everyone a genuine choice between high-quality technical, vocational and academic routes.

The review is being informed by independent advice from an expert panel chaired by Philip Augar. Indeed, the noble Baroness, Lady Wolf, is a member of the independent panel, sitting alongside representatives from further education, higher education and industry. My understanding is that the panel will publish its report at an interim stage at some point this year, before the Government conclude the overall review in early 2019. That is as far as I can go in answering the question raised by, in particular, the noble Lords, Lord Storey and Lord Watson.

Of particular relevance to this debate, the review’s terms of reference state that it will address:

“How we can encourage learning that is more flexible (for example, part-time, distance learning and commuter study options) and complements ongoing Government work to support people to study at different times in their lives”.


To reassure my noble friend Lord Holmes, the word “flexible” is very much in there.

My noble friend Lord Forsyth and the noble Lord, Lord Kerr, shared with us a glimpse of the findings of the important work that the Economic Affairs Committee has done. We agree with the committee that for too long young people have not had a genuine choice post-16 about where they study and what they study. For exactly that reason, we have overhauled apprenticeships to focus on quality and are fundamentally transforming technical education. As I said earlier, there will no doubt be an occasion when we can more fully debate the committee’s findings in this area.

The noble Baroness, Lady Kennedy, raised her concern about turning universities into businesses. Students and taxpayers all contribute to our higher education system and rightly expect value for money. Our reforms are continuing to open up access to higher education, enabling students to make more informed choices. However, I say to the noble Baroness that there is a balance to be struck, because part of that value is having the student experience at university—that is equally important—and I think that she has probably heard me say that before.

The noble Lords, Lord Rogan and Lord Griffiths, asked about funding arrangements in Wales and Northern Ireland. The review is looking widely at the evidence and ideas available, including those from other countries such as the devolved Administrations. The Government noticed with interest the recent changes in Wales.

I said earlier that continuing education, of course, extends beyond what we might commonly refer to as higher education. In order to respond to changes in the labour market, including from the impact of automation, which includes artificial intelligence, it is becoming increasingly important that people both upskill and reskill throughout their career. The right reverend Prelate the Bishop of Oxford and others rightly pointed out the changes that we must acknowledge and address to help the next generation and those beyond. The right reverend Prelate and the noble Baroness, Lady Bakewell, spoke about changes that have come about with the digital revolution. Through innovative industrial, skills and digital strategies, government departments are working together to ensure that the population is prepared to seize the opportunities that the fourth industrial revolution might bring.

Following a manifesto commitment, the Government announced at the Autumn Budget 2017 that the national retraining scheme would be set up by the end of the Parliament. This is an ambitious, far-reaching programme to drive adult learning and retraining. The noble Baroness, Lady Lane-Fox, and the noble Lords, Lord Haskel and Lord Watson, asked whether there is a cohesive plan or strategy. They also asked for an update on career learning. In response, I can say that the strategic direction of the national retraining scheme is being set by the National Retraining Partnership, which is a coming together of employers, workers and government. The national retraining scheme will include a series of phased interventions and pilots, starting this year. As part of these, the flexible learning fund pilot, launched in October last year, is designed to address barriers relating to the “delivery side” of learning. It aims to do this by supporting providers to develop and test ways of delivering accessible learning for adults with low or intermediate-level technical skills or those who simply lack basic skills.

The Open University, in partnership with the Bedford College Group, Middlesbrough College and West Herts College, was successful in its £1million bid to develop its “bringing learning to life” proposal. Targeted at adults in paid work, or those looking to return to the labour market following an absence, it proposes to expand its existing online platform, OpenLearn, to include functional skills English and maths provision.

I was going to go on to talk about apprenticeships but that subject did not crop up in the debate as much as I thought it might, so I will move on swiftly to some concluding comments. I should like to focus on an important subject raised by the noble Lord, Lord Puttnam—productivity. The positive effects of part-time and continuing education should not be considered through the prism of individual benefit alone. We should also bear in mind the impact that they have on our nation’s productivity and broader economy.

Education and training make people more productive and they contribute more to our economy as a result, which I think was the gist of the noble Lord’s argument. Some estimates value universities’ contribution to human capital in one year alone to be as high as £63 billion. This Government therefore, rightly, value the world-class higher education system that exists in England, and they are taking steps to transform the other post-18 education options that are available. At this point, perhaps I will sympathise with the noble Lord, Lord Addington, who said that we are “in the first act”. I do not know how many acts he has in mind as part of his play but, to reassure him and the House today, I can say that there is an awful lot of work to do.

As the largest provider of part-time higher education in this country, the OU plays an important role in this system as it approaches its 50th year. I have two or three more questions to answer but I fear that we are running out of time. I will therefore write to the noble Lord, Lord Haskel, and the noble Baronesses, Lady Blackstone and Lady Garden, on a number of questions that they raised. However, I hope that today noble Lords have been left in no doubt that we hold the OU in high esteem and will continue to support and applaud its successes.