Post-18 Review of Education and Funding
Debate between Viscount Younger of Leckie and Baroness Blackstone
Viscount Younger of Leckie
I accept what the noble Baroness said and I note her point that we are not the only Government to have focused on education. Her point is noted and I will go back and read the part of the Augar review that she pointed to. On her point about the proposed reduction in fees to £7,500, as I said before, we are going to look carefully at the proposal. Of course, what we are trying to do is create a balance between how we fund higher and further education and how we give value for money for students and more focus on courses. The quality of courses is terribly important, not just for the students but for Britain as a whole and for helping with productivity.
On the timetable, as I said earlier, the pledge is that the Government will conclude this review at the time of the spending review, which is sometime in October.
Baroness Blackstone
Would it be possible just to say when the spending review is likely to take place?
Lord Cormack (Con)
My Lords, like others I welcome the review, but I have two concerns. One is that I do not believe that the quality of careers guidance is anything like as high as it should be, a point touched on by the noble Baroness, Lady Garden. Nor do I believe that citizenship education is of a quality that the country deserves and should demand. Will my noble friend agree to talk to the Secretary of State and others in his department and tell them that unless we get these two things right, many of the other admirable proposals in this report will in fact come to naught?
Brexit: EU Students’ Tuition Fees
Debate between Viscount Younger of Leckie and Baroness Blackstone
Viscount Younger of Leckie
The noble Baroness will know perfectly well that we do indeed have a strategy for the case where there is a deal and that there is also a strategy for no deal. There has been a lot of no-deal planning. She will also know that we published fairly recently the International Education Strategy.
Baroness Blackstone (Ind Lab)
My Lords, will the Minister tell the House what calculations the Government have made in considering this policy? Have they looked at the differential effect on different universities of removing home status tuition fees for European students? Many universities do not have many EU students; others have a large number. What steps will the Government take to support universities that have large numbers and are likely to lose them and hence find themselves in some difficulty? Secondly, will he say what the effect may be on British students wishing to study in European Union countries, who may well be charged very high fees in return?
Viscount Younger of Leckie
On the second question, we are not there yet in understanding the status of the UK students; we want to be sure there are proper reciprocal arrangements in place. The noble Baroness will know that there are twice as many students coming in from the EU as UK students going to the EU.
Higher Education (Fee Limits for Accelerated Courses) (England) Regulations 2018
Debate between Viscount Younger of Leckie and Baroness Blackstone
Baroness Blackstone
My Lords, the Minister, as is his wont, has very courteously answered most of the questions put to him. I am feeling a bit miffed, because I put a question to him that he has not touched on. I argued that it is of course legitimate to incentivise universities to provide more of these courses, but there is more than one way of incentivising them. Why choose a route that disincentivises the students from taking these courses? Higher fees are likely to lead to mature students looking at the up-front fee and thinking, “I don’t want to do this programme”. Why not pay a government grant? You then avoid having to put the fees up. Fees are already very high and there is a huge amount of criticism out there, as the Minister is fully aware, of the size of fees and the amount already charged. This is an example of going yet higher. Could the Government come back to look at whether a government grant could be paid directly to universities, having considered carefully how much extra cost they are having to sustain, rather than laying it on the students to pay a higher fee? It is a simple question.
Viscount Younger of Leckie
It is indeed, but I cannot give a simple answer to that one this afternoon; I can only say that I very much noted what the noble Baroness said about seeking grants. As I said earlier in response to a question from my noble friend Lord Willetts, I suspect this is a matter that Philip Augar will look at in his review. The bigger issue is whether it should be tuition fees, grants or a mixture of the two. I am not in a position to answer that question today.
However, I would like to go further, because the noble Baroness raised an interesting point about mature students. It might be helpful to say that we hope and envisage that mature students will look at these proposals seriously. Points have been raised about the cost involved for mature students. It depends on how you define “mature”, but I would imagine that it is those who have had several years in employment, who perhaps are not particularly comfortable in that employment and want to make a change, and for whom a two-year degree at a total cost of £22,000 might just be within their scope. Some people might say that is quite expensive, but we think there could be some demand for that. The noble Baroness, Lady Blackstone, raised the point that it would be more applicable to mature students, rather than younger students setting out from school. This may be the case, but as I said earlier, it is early days and I think we need to see how this is rolled out and how universities and providers grab the opportunity and market it. We then have to monitor it carefully, not just in three years but over the period up to three years, when we can have a proper review. I hope that helps, but I am not in a position to answer the noble Baroness’s first question.
Today’s debate will continue to inform and help us to meet the wider challenges of expanding higher education provision. It will also help raise awareness and understanding of accelerated degrees for providers, potential students, employers and the wider public. I commend these regulations to the House.
Student Loan Books
Debate between Viscount Younger of Leckie and Baroness Blackstone
Viscount Younger of Leckie
Indeed, my noble friend is right. My noble friend Lord Forsyth will know that I have taken a keen interest and looked carefully at the report he wrote as chairman of the Economic Affairs Committee. A number of recommendations were made by his committee and we have provided a response. We are taking it very seriously. I hope that reassures my noble friend.
Baroness Blackstone (Ind Lab)
My Lords, given that the sale of student loans in the past has led to considerable loss of revenue, can the Minister tell the House what the long-term fiscal justification for this policy is?
Part-time and Continuing Education and the Open University
Debate between Viscount Younger of Leckie and Baroness Blackstone
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.
Student Finance
Debate between Viscount Younger of Leckie and Baroness Blackstone
Viscount Younger of Leckie
I thank the noble Baroness for her point. We are alert to a certain number of students who have accumulated debt but the changes today—raising the threshold to £25,000, and at the upper level from £41,000 to £45,000—should and will help students and will provide some relief. We firmly believe that the tuition fee system is working. It has certainly enabled more people from disadvantaged backgrounds to go to university, which I think everybody recognises, and that must be an extremely good thing.
The advanced learning points that the noble Baroness has raised may well be included in the comments that will come out towards the end of the year. I hasten to add that the noble Lord, Lord Hunt, talked about a major review—yes, the Prime Minister did say that. The issue is that there is a constant review going on, so there will be some views coming out towards the end of the year. There will be no formation of a committee coming out of that review, however, just specific review comments.
Baroness Blackstone (Lab)
My Lords, I find the Minister’s response to my noble friend Lord Hunt’s question about the independent review, and indeed what he has just said in response to the previous question, a little puzzling and confusing. Surely there is some urgency in setting up this independent review that the Prime Minister announced. The current system is not working as well as the Minister has just claimed: the level of debt is now enormous and the amount of repayment is far below what was originally anticipated, so the hole in the public finances in the future will be huge. Moreover there is a very important group—part-time and mature students—whose numbers have declined hugely as a result of the enormous rise in fees from £3,000 to £9,000. Can the Minister go back to his colleagues and to the Minister in the other place and express the views of this House—certainly it is my view and I think that of others who have spoken—on the importance of getting on with this review and that part-time and mature students should be considered? Students doing vocational and technical courses should also be considered, not only in higher education but in further education, as that group has been hugely neglected in the past.
Viscount Younger of Leckie
I am well aware that the noble Baroness has taken quite a lead, particularly during the passage of the higher education Act, on part-time and mature students. The Minister in the other place will take this into account; I have no doubt that that will be the case in constantly reviewing this aspect, although I cannot confirm whether it will be at the top of the list. In terms of her concerns about urgency, we issued a Written Ministerial Statement on Monday and followed that up with the announcement today, and here I am at the Dispatch Box. These changes are as a result of our listening to students and to parliamentarians—we have taken some action. The resource and accounting figures are kept constantly under review but there will be a slight increase, of course, as a result of our changes; I made that point earlier. Tuition fees are, in effect, a subsidy to the nation to allow more people to go to university.