Skills: Importance for the UK Economy and Quality of Life

Baroness Wolf of Dulwich Excerpts

Thursday 9th May 2024 Lords Chamber

[Baroness Wolf of Dulwich (CB)]

I, too, thank the noble Lord, Lord Aberdare, most sincerely for securing this debate and for his wonderful speech. I add my congratulations to the noble Lord, Lord Marks, on his inspiring maiden speech, and I look forward to hearing the maiden speech from the noble Lord, Lord Elliott. I declare an interest as a professor at King’s College London who teaches students and, one hopes, develops their skills. I have been actively engaged for many years in skills policy, including as a government adviser.

At one level, I am delighted at the great interest in this debate on all sides of the House. But, alas, as the old saying goes, “Fine words butter no parsnips”. If we do not get precise commitments on non-university skills spending and on individual access to skills training in forthcoming party manifestos, in my opinion we will continue to deliver inadequate and inefficient skills policies that fail repeatedly and systematically to solve our main skills problems. This is not because politicians and advisers, let alone Peers, are insincere—it is because not just underfunding but repeated short-term upheavals and repeated unpredictable cuts and changes in skills provision are currently hard-wired into our system.

Skills spending always ends up in the Treasury’s and indeed the DfE’s sights when deficits are looming or a bright new initiative is being marketed—so round we go again. Why skills? In common with other developed societies, absolutely rightly we guarantee all children a free education from the age of five to 18 or 19. We offer free early education to three and four year-olds. We quite rightly have legislative obligations to children with special needs and disabilities and, in England and Wales, we offer support to everyone over 18 who is accepted on to a course in a registered higher education institution.

These are clear entitlements and are clearly understood by the population—and, because they are transparent and stable, people can and do plan ahead to use them. Institutions are also able to plan and deliver. But when it comes to mid-level skills—the sorts of skills we are mostly talking about today and the ones for which our economy is currently desperate—clarity is replaced by confusion and repeated, inefficient, expensive and often destructive change. I shall give noble Lords one example. If you stay at school until you are 18 and you are moderately successful, you will be offered a free education up to and including a level 3 award. Level 3 is the skilled trades level, as well as the usual university entry level; it is the one where our skills shortages in this country are the most glaring.

If you leave school without a level 3, our society turns its back on you. As a citizen, you have a right to a free education while you are 18, but not when you were 20, 25 or 30. This is a travesty—it is a travesty in terms of equal treatment of citizens and a travesty in terms of any coherent skills policy. In the Augar review, on which I was privileged to serve and contribute, we strongly recommended that every citizen should have a right to a free level 3. So have many others, including the Economic Affairs Committee of this House. The current Government, back in 2020, did not make a formal commitment to an entitlement, but they acted fast in launching a new funded program which in practice made this available, on terms that made it feasible and attractive for colleges to plan and launch new courses, which is always a high-risk decision. Why did they do so? It was not because there was a sudden blast of light one day, but because earlier there was written into the manifesto a new £3 billion skills fund to be spent over the Parliament, which Treasury could not just wave away. I am 100% sure that without that manifesto commitment nothing would have happened.

Crucially, access to this programme was simple. If you did not have a level 3 qualification, it was open to you—just as now, if you are offered a place at a university, you have a right to Student Loans Company support. Normally in our skills system, working out what you can access at this middle level, and whether you have to pay and what you have to pay, is a moving minefield. Not surprisingly, most people walk away. It is not that people do not want to train or upskill, but the system is completely non-transparent. In other words, it is designed to cut off our skills pipeline at the ankles. Of course, one programme did not transform things, but it was a major step in the right direction. I say “was”, because now the DfE is announcing new restrictions that will make most of these programmes completely unviable. Why? Well, some poor official has written the usual guff about better targeting, but it is actually because the DfE needs to find some money and it is looking for things to cut. As always, the simplest place to look is skills programmes.

This Government have, in my view, done some very good things for skills—and not only when they were listening to me—but I want to emphasise that these things happened because there was a ring-fenced pot and a very clear commitment in a manifesto. No Minister and no Front-Bench spokesman is going to make a commitment of that sort to me today, so I am not even going to ask the Minister to do so. However, if we enter the next election with only high-level uncosted aspirations and with no clear commitments to access to those mid-level skills for people who do not already have a level 3, five years from now we will be making the same speeches—and, if anything, things will be worse.

Higher Education

Baroness Wolf of Dulwich Excerpts

Thursday 7th March 2024 Lords Chamber

[Baroness Wolf of Dulwich (CB)]

My Lords, I congratulate the noble Lord, Lord Blunkett, on securing this important debate, at a time when the university sector is under enormous pressure. He has rightly drawn our attention to the role of universities in growth, productivity and levelling up. This reflects the increasing tendency, at all levels of education, to discuss what we do in terms of the economy.

Universities have always been about training people for jobs, long before growth was seen as a central concern of Governments. Universities are indeed central to growth, productivity and levelling up. Without them, we would not have the levels of innovation and wealth that we do, or the genuinely improved opportunities—although they are not as great as they might be—for our young people.

I will use my short time in this debate to utter some words of warning and concern about our enthusiastic embrace of universities as engines of growth. There is a real danger, not just in this country but throughout the world, that a simplified understanding of this relationship and of what it means for government policy is a genuine threat to university excellence. It leads Governments down a path which does not deliver what they hope it will and leads to some reactions that we might wish to avoid.

Especially once the wonderful years straight after the Second World War came to an end and productivity suddenly started to be problematic—rather than something that just seemed to be happening and growing right, left and centre—Governments, intellectuals, academics and politicians cast around for some way of turbocharging growth. All over the world, they came to the conclusion that education was the answer—the more people we educated for longer and the more graduates we had, the more the economy would grow. It is true, I repeat, that without a highly qualified and well-educated population you cannot have a modern and innovative economy. But what has also happened is that we have all been rather disappointed: all over the world, there has been a huge increase and expansion in graduate numbers, but somehow growth has remained anaemic and productivity is not going in the directions we want.

All over the world, as the university sector gets larger and larger, resource per student tends to go down, and there are also some really concerning results: degrees become barriers to entry and you cannot get a job that you used to be able to get without a degree unless you have one. We should be very aware of this danger because it is starting to have a real impact on the way that Governments deal with the university sector in ways that threaten its ability to deliver the innovation and the type of education that we all value.

Australia, for example, having failed with one set of very complicated differential fees, is now about to introduce another set, which will apparently be based on the future contributions to the economy of different degrees—so this is not just a British disease. It has been true here, in the United States and elsewhere that we have focused more and more on whether individuals earn a lot from a particular degree. This is being hard-baked into our regulatory and accountability regime. We should take a deep breath and ask whether this is sensible, any more than it was sensible to believe that you would guarantee an uptick in economic growth simply by increasing the number of students.

Individual salaries depend on a very large number of things. They depend, for example, on whether you go into an occupation like nursing, where your wage is set not by a market but by a Government. They depend on which institution you went to and on the sort of occupation you go into. They also depend—this comes to levelling up—on where you are. You will not earn as much if you study in the north-east and stay there as if you study in the south-east and stay there—although actually you might be as well off, given house prices. But as a tool for steering, regulating and changing the higher education system, the way we have doubled down on the idea that we must look at whether a degree delivers growth—and that, if it does, it will deliver salaries—is very concerning. As well as celebrating the role of universities, I hope we will pay careful attention to some of the unfortunate consequences of focusing too much on growth.

Skill Shortages in Business and Industry

Baroness Wolf of Dulwich Excerpts

Wednesday 28th February 2024 Lords Chamber

[Baroness Barran (Con)]

I have already talked about some of the things we are doing. It is important that people know what options and opportunities are available in their local area, and the LSIPs are critical for that. In particular, the Government have invested up to £300 million in a network of 21 institutes of technology, which are providing exactly the kind of higher technical education to which the noble Lord refers.

[Baroness Wolf of Dulwich (CB)]

My Lords, the Government’s figures indicate that fewer than one apprenticeship in five is in a shortage occupation. Given those figures, is it really plausible that no changes are needed in the apprenticeship levy?

[Baroness Barran (Con)]

I hope I did not suggest that no changes are needed. What employers need and want is a degree of stability in the apprenticeship system. We have done a huge amount of work, and the noble Baroness has been a critical part of achieving that, in improving our apprenticeships system. I am not suggesting that there is not some tweaking required—the noble Baroness is a great expert on that. Broadly, stability for our employers is vital, so that they know how they can use the levy and that it will be here to stay.

Lifelong Learning (Higher Education Fee Limits) Bill

Baroness Wolf of Dulwich Excerpts

3rd reading
Tuesday 12th September 2023 Lords Chamber

[Baroness Garden of Frognal (LD)]

My Lords, I apologise profusely to the House for arriving after the Minister started speaking; business moved much more quickly than I expected.

From these Benches, I thank the Minister and the Bill team very much for all their work on the Bill. We remain concerned about how many adults will wish to take on debt in order to improve their learning, and we look forward to hearing updates from the Minister about how many people have done so. From these Benches, we feel that grants would be a much more effective way of persuading adults to learn. But, of course, we are all totally in favour of lifelong learning, and we wish the Bill well.

[Baroness Wolf of Dulwich (CB)]

My Lords, as many of you will know, the number 1 recommendation of the Augar review of post-18 education and funding was for this sort of reform. As someone who was a member of that review and who has spent a considerable part of the last three and a half years on secondment to government to work on the Augar review proposals, among other things, I take this opportunity to thank everyone involved.

I have been jinxed: I have not managed to contribute to any of the fine and informative debates that have taken place on this. They have highlighted some of the challenges that lie ahead. I am enormously encouraged by the cross-party support for the principle of a funding system that genuinely takes us forward into not just the 21st century but a future where post-compulsory lifelong learning is the rule, not the exception. We now have an opportunity to build on this.

I thank everyone involved in the drafting and passing of the Bill—although we have not quite passed it yet. I particularly put on record my appreciation of the work put in by a large number of officials who have worked enormously hard on this—on teasing out the policy implications and on minimising the amount that had to be put into primary legislation. I thank them and the Minister for her support. It is a little miraculous that we have moved from a major recommendation in 2019 to putting this reform on its way to implementation in 2023. So, on behalf of the Augar review team—and, I think, all the future students of this country—I thank everyone involved in this reform.

Bill passed.

Teacher Vacancies

Baroness Wolf of Dulwich Excerpts

Thursday 13th July 2023 Lords Chamber

[Baroness Barran (Con)]

I talk to a lot of schools and trusts, and I absolutely accept that there are particular areas and subjects where recruitment feels really hard at the moment. But I do not accept that this is the highest figure of leavers ever—I have the numbers in front of me. The trend over the past 10 years is pretty stable. It is only fair to look at the facts and to use the facts. I think that most parents feel that teachers go above and beyond to give their children a great education. The work that we have done to improve the curriculum over the past 10 years is a really important part of that.

[Baroness Wolf of Dulwich (CB)]

My Lords, teacher shortages in specialist subjects and short-lived responses have been common for decades. Shortages are also currently chronic in many other countries, notably France, Switzerland and Australia. Can the Minister inform us whether the Department for Education is conducting an in-depth review of the long list of previous short-lived policy responses or examining how other countries are responding to comparable shortages?

[Baroness Barran (Con)]

I am not aware that we are compiling a list of short-lived responses. We are committed to introducing improvements to the system that are based on evidence, such as the payments to early-career teachers in specialist subjects and the improvements that we have made to the early-career framework, which we introduced in 2021, providing mentors for every single early-career teacher. We are committed to building on those policies, including in relation to continuing professional development being a core part of every teacher’s experience in future.

Skills and Post-16 Education Bill [HL]

Baroness Wolf of Dulwich Excerpts

Consideration of Commons amendments
Thursday 24th March 2022 Lords Chamber

[Baroness Wolf of Dulwich (Non-Afl)]

My Lords, I declare an interest because, as the noble Lord, Lord Blunkett, pointed out, I am currently working as a skills adviser at No. 10. I was therefore quite involved in the skills White Paper, which led to much of the legislation today.

I very much appreciate the interest the House has taken in this Bill. Like the noble Lord, Lord Baker, and many other noble Lords, I have been bashing away at skills and vocational education for many years. It is wonderful to see that it is now a subject of such importance to so many of you.

I will say something about the local skills improvement plans and Motions 4, 4A and 4B. There is a danger that we are losing sight of what these were meant to be, can and should do, and what the White Paper set out to do. They were meant to be a simple way to create a stable mechanism to make sure that local employers’ voices and insights would be brought together and made available to providers. Colleges do not have to follow these plans in detail; they just have to take note of them. I am concerned that, with the best of motives, we are in danger of creating a vast, complex and bureaucratic process that will not do what it was meant to do, which was to take employers into account but also to reverse the 20-year trend of colleges and providers generally spending all their time worrying about ticking boxes for Whitehall and whether they have met regulations and requirements, but far too little time looking out to their local communities.

I put it on record that I am also bemused by why six pages of dense text are needed to put this simple idea into legislation. I am genuinely concerned that, in trying to enforce something that says, “You must take account of schools, and of this and that”, instead of creating a simple mechanism for employers to be part of the thinking about what is provided in a locality, we will create a new series of tick boxes.

I raise a question particularly on independent training providers, because I simply do not see how this will work. Independent training providers range from huge national providers, which are dominant in apprenticeship sectors, to tiny commercial companies of literally two people in a room above a chip shop. I tried to get my head around how you would take their views into account, when many of them are commercial concerns in determined competition with each other. I really wonder whether this will achieve what people want it to.

As I said, I take this opportunity to say, first, how very much I think the Bill and the support expressed for its purposes show how this country has moved on and really understood the importance of this, but also that local skills improvement plans are meant to be simple. They are meant to be not tick-box or expensive bureaucratic exercises but a way to ensure that employers are part of a process. They are something of which to take account, not an attempt to introduce central planning into what colleges decide to put on.

[Baroness Blackstone (Ind Lab)]

My Lords, it is a pleasure to follow the noble Baroness, Lady Wolf, who has fought so hard for the skills agenda. I associate myself with much of that fight and I very much welcome a great deal of what is in the Bill. However, I will say a few words in favour of Amendments 15A and 15B. All the key points on these amendments have already been made very eloquently by my noble friends Lord Blunkett and Lord Watson, and the noble Lord, Lord Baker. I strongly support the arguments they put forward and I will underline three points.

First, it is true that too many qualifications can be confusing. I have no doubt about that, so I understand what the Government are trying to do here. Nevertheless, I think they have got it wrong. There is no confusion about BTECs. They have been going for nearly 40 years. They are long established and well tried and tested. They play a really important role in the range of qualifications at level 3. It is particularly important that they combine the development of skills with academic learning. They are the only qualification focused entirely on that.

For all the positive aspects of T-levels, they do not do this. They are mainly designed to help those enrolled on them to become successful in specific occupations. Again, I do not want in any way to criticise their introduction—that is an important role—but BTECs allow those who are successful in completing them to go into higher education and in particular to take applied vocational degrees, of which there are many, or into the workplace, or, in some cases, into both, because there are quite a lot of part-time students at BTEC level. Therefore, they should not be ditched to try to bolster T-levels. It is not necessary to do that. I know the Minister has indicated that there are certain niche areas where they will survive, but they should survive as a whole. Moreover, as the noble Lord, Lord Baker, said, we need some time to see how T-levels bed down, who they are successful for, who is attracted to them and whether they are really working for employers.

That is my first point. My second is that the Government seem to have ignored the results and outcomes of their own consultations. Some 86% of respondents to its level 3 consultation disagreed with the proposal to remove funding from qualifications deemed to overlap with A-levels and T-levels. As has been said by the noble Lord, Lord Baker, there is a big issue about what is meant by “overlapping”. The fact their content might be the same does not mean that the approach to teaching and learning is the same. In fact, they are profoundly different. Neither of the two reviews the Government have cited, one undertaken by the noble Baroness, Lady Wolf, favoured the Government’s approach. In her review, the noble Baroness recognised the value of BTECs, and the Sainsbury review did not cover BTECs at all because they were not part of its remit.

My third point is that abandoning BTECs is likely to severely damage social mobility. It will block a route to university or skilled employment for large numbers of disadvantaged young people. This is reinforced by the evidence of the Social Market Foundation that 44% of white working-class students who entered universities studied at least one BTEC. I am familiar with this from my past role as a vice-chancellor. Many of these students do extraordinarily well when they get to university, often better than those who come in with rather poor A-level qualifications. As I think the noble Lord, Lord Baker, mentioned, 37% of black students went to university with only BTEC qualifications. Surely we should not block the route of these young ethnic-minority students into our higher education system by taking away a qualification deemed valuable for them.

Skills and Post-16 Education Bill [HL]

Baroness Wolf of Dulwich Excerpts

Report stage
Thursday 21st October 2021 Lords Chamber

[Lord Storey (LD)]

My Lords, I rise to speak on the issue of essay mills and contract cheating. I thank the Minister for tabling this amendment. There have been four Private Members’ Bills, three of them from me. The first time, I drew number 2, and then there was then a general election. I then drew number 50, which never got debated, and then I drew number 3—and we have the Private Member’s Bill up and running. I thank Chris Skidmore for putting one in the Commons as well.

More than 45 vice-chancellors and heads of UK higher education organisations wrote to the Secretary of State in 2018. The support and briefings of the Quality Assurance Agency for Higher Education have been fantastic. I also pay tribute to two professors who started this whole thing off before I got involved: Professor Newton and Professor Draper at Swansea University.

When I looked at a particular independent college in Greenwich and saw the effects of contract cheating and essay mills, I realised that this was a very serious problem that we faced not just in further education but in higher education and, increasingly, in schools as well, although this amendment does not deal with that. Some 15% of our students admit to using contract cheating services. Oxbridge Essays claims that it has produced, for cheating, 70,000 essays. This is not just about students being drawn into this situation—many of them are worried about their well-being, their mental state et cetera—it is also about the academic credibility of our higher education system. If we allowed this cancer to grow, it will affect our universities and colleges.

I pay tribute to the Minister’s legal team, which has nailed this properly. I showed the amendment to a number of people, and, as you can imagine, I got some quite important replies. They said that the proposed strict liability offence—whereby there is no need to prove intent—is really important because it means that essay mills will not be able to rely on disclaimers, although they do have a due diligence defence. Getting strict liability offences through Parliament is extremely rare, but it is absolutely critical to this offence having any impact.

I would also like in passing to congratulate the Minister’s press department or PR department. The Minister very kindly emailed me her intended amendment and it said, “Strictly embargoed for four days”. I thought after the third day I would tip off the Times Higher Education Supplement or FE Weekly so I might get a little bit of credit, and they said “Oh, we got it four days ago”. The Government obviously have an eye on publicity as well.

I thank the Government for this amendment. Students, vice-chancellors and universities up and down the country will be very grateful. This is not the end of it, in the sense that we have to make sure that we look at Wales and Scotland, because that is important, and we will at some stage need to look at secondary education as well. When the Minister winds up, will she consider saying that if breaches occur, we will look at how we can tighten up the situation? I am sure that these essay mills, which form a £1 billion industry, will be looking at ways around this, and we need to see whether we can find ways to stop breaches happening in future. I hope the House does not mind, but I am going to depart.

[Baroness Wolf of Dulwich (Non-Afl)]

My Lords, I, too, strongly welcome the amendments tabled in the names of the noble Baroness, Lady Barran, and the noble Lord, Lord Storey, which seek to address the pernicious effects of essay mills. I must declare an interest as an adviser on skills to the Prime Minister and as an academic employee of King’s College London. That is why I want to take this opportunity to say how important and welcome these amendments are. I pay particular tribute to the noble Lord, Lord Storey, who has been passionate and determined. Without his recognition that this is a major and serious issue which can be tackled, I am sure that these amendments would not have been tabled tonight.

There are a number of reasons why cheating has become a major problem for universities. It is partly to do with the pressure on people to get formal qualifications, the scale of universities and the temptation—you can do things you could not do before. There are two major sources of this. One is plagiarism, where we can fight software with software, and one is essay mills, where we cannot. I am quite sure that there will be a major improvement as a result of these measures: the firms will be unable to operate and students will take much more note of the risks attached to doing something illegal with these measures in place. The noble Lord, Lord Storey, has escaped, so I will send thanks in his direction. I say on behalf teaching academics all over the country that they will be extremely happy to see these amendments to the Bill, because it is almost impossible to know if somebody has used a commissioned essay.

[Baroness Sherlock (Lab)]

My Lords, I thank the Minister for introducing the government amendments and all noble Lords who have spoken. I shall say a brief word on government Amendments 58 and 72, on religious academies. When my noble friend Lord Touhig raised this matter in Committee, my noble friend Lady Wilcox made clear our support for his endeavour, so it is good to see the Government responding positively by bringing forward on Report their own amendments to address the problem. I congratulate my noble friend Lord Touhig. Given how long this has seemingly been worked on, I hope that at least one academy, the Lord Touhig catholic academy, will be appearing any day now to mark his success. I am going to ask him to put his name to my amendments in future, in the hope it will have a similarly positive effect on the Minister on future subjects. I look forward to his support. These amendments are very welcome.

Turning to the remaining government amendments in this group on essay mills, as I made clear in Committee, we fully support the outlawing of cheating services. Having had to research this matter for one of the many Private Member’s Bills proposed by the noble Lord, Lord Storey—I had only just taken the brief on—I was shocked to find how comprehensive the available services are. I think I have regaled the House more than once with my story about commissioning imaginary essays on Augustine and the problem of evil and various other things, and being astonished to find the precision with which one could request services. There was even a “comparethemarket.com” for it. The whole thing is extraordinary.

I have a small number of questions, and I apologise, but given the amendments have been brought forward on Report, we have not had an opportunity to ask about them, so I hope the Minister will bear with me.

First, one of the conditions is that material provided to a student has to have been prepared in connection with the assignment, rather than published generally. One of the abuses of the current system has been essay mills selling the same essay to more than one student, as the same topic comes up again and again. If material had been prepared for one student and was then resold to 15 more, is that one offence or is each sale an offence?

Secondly, the policy note talks about committing offences in England and Wales. What does that mean? Does it mean that the website is hosted in England or Wales, that the company that owns it is registered there or that the owners and essay writers live there? Who commits the offence? Is it the person writing the essay, the one promoting the service, the staff, the owners or all of them?

I have two other quick questions. We are told that enforcement of the law will fall to the police and the CPS. Given the pressures on both, do the Government have a sense of how many prosecutions, if any, are likely in a typical year or will this rely on deterrence as a way forward?

Finally, the penalty on conviction is a fine. I sought clarification offline as to the likely scale of this and was told simply that this will be determined by the courts in accordance with Sentencing Council guidelines, with no cap on the powers of magistrates to issue fines. When I have had to deal with these things on Bills before, I have normally been given some kind of heads-up about the likely tariff or scale from the Government Benches, so can the Minister give us an idea? Are we talking about £50, £5,000, £50,000 or £5 million, or something relating to the profitability of the company? Can she give us some sort of heads-up or a rough benchmark?

I commend the Government for acting on both these points and look forward to the Minister’s reply.

Education: Industrial Strategy

Baroness Wolf of Dulwich Excerpts

Monday 24th June 2019 Lords Chamber

[Lord Agnew of Oulton]

The noble Baroness will know that we have put a floor under funding for young people from 16 to 19. I cannot speak for what happened in 2010 or earlier, but if she would like me to write to her on that, I will be very happy to do so. However, we are absolutely committed to further education, and in an earlier answer I gave examples of some of the areas that we have put resources into.

[Baroness Wolf of Dulwich (CB)]

My Lords, the noble Baroness, Lady Bull, pointed out the chronic underfunding of further education and referred to the Augar review; I declare an interest as a member of the panel that produced that review. I will follow up on this by asking the Minister how the Government can possibly deliver on some of the specific commitments of the industrial strategy without rethinking in major form the way in which they fund further education. More than 60% of all private sector jobs are in small and medium-sized enterprises, which operate in a way that means they cannot work easily with universities and depend directly on the further education sector. The industrial strategy, among other things, commits itself to putting the UK at the forefront of high-efficiency agriculture and transforming construction techniques. I cannot see—I would like the Minister to tell us—how this can be delivered without changing the funding system.

[Lord Agnew of Oulton]

My Lords, we welcome the Augar review. It was the most far-reaching review of further and higher education since—amazingly—1963. It makes a number of recommendations that we are considering. The industrial strategy has aimed to support education and skills with a package of some £400 million. That includes a four-year programme to improve teaching and participation in computer science, an additional £50 million to improve the quality of post-16 maths teaching, £100 million of new government funding for the national retraining scheme, and £20 million to support providers to prepare for T-levels. We are doing a great deal to support the industrial strategy and it remains a key focus.

Higher Education and Research Bill

Baroness Wolf of Dulwich Excerpts

Ping Pong (Hansard): House of Lords
Thursday 27th April 2017 Lords Chamber

[Baroness Garden of Frognal (LD)]

My Lords, perhaps I may associate these Benches with the eloquent words we have already heard. It is inevitable that there will be a measure of disappointment that not all of your Lordships’ wisdom has been accepted unequivocally by the other House, but I think we can all agree that we have made immense strides in this Bill, and we are deeply appreciative of the way in which Ministers have listened and come forward with proposals. Perhaps I may pick up one thing about which we are particularly pleased, which is that there will be a delay in implementing this while a review is carried out. Some really key measures set out in the Bill need more reflection to see whether they are actually the right path to tread, so we appreciate the fact that the delay has been built in. Again, we appreciate the measures that the Government have taken to come towards us on these issues.

[Baroness Wolf of Dulwich (CB)]

My Lords, first, I should declare an interest as a full-time Academic Council member of King’s College, London. I had not expected to speak in this part of the debate and I am afraid that I will be speaking again later. But, since I am on my feet, I would like to say that I agree with all noble Lords who have expressed their appreciation of how the Government have listened to opinions and to the House generally. I, too, feel that we have come a long way. In this context, I will bring back a couple of points that were made in the earlier debates by the noble Duke, the Duke of Wellington, and by me in the context of amendments that we had tabled. Since the noble Duke is unable to be here today, I will make them briefly on behalf of us both.

Along with almost all noble Lords here, we strongly welcome the delay in implementing the link with fees—here I endorse the remarks of my noble friend Lord Kerslake. I am delighted to hear that we are moving quickly towards a position where we will have subject-level rather than institution-level assessments. However, one reason we became so concerned about the TEF is that putting a label on an institution is potentially very damaging to it.

One thing that has been rather an eye-opener for me is the extent to which—perhaps inevitably and as someone who teaches public management I should not be surprised—the “sector” is, in the view of the Government, the organised universities and Universities UK, and how few good mechanisms there are for the Bill team and the department to get the voices of students, as opposed to occasionally that of the National Union of Students. Students have been desperately concerned about this, because they are in a world where they pay fees and where the reputation of their institutions is so important. They have been worried about and deeply opposed to anything that puts a single label on them. This single national ranking caused many of us concern.

I will say a couple of things that I hope the incoming Secretary of State will bear in mind. First, as others have alluded to, we have a pilot going on and a system of grades that is out there. I fully understand that that is under way and there are enormous lessons to be learned from it. However, I hope very much that, after the election, whoever the Government may be will think hard about how they use that information, how they publish it, and whether they are in any sense obliged to come forward with the type of single-rank national league table that has caused so much anxiety to students. That is of great concern and it is hard to see how it serves the purpose, also expressed in the current Conservative manifesto, of preserving the reputation of our great university sector.

The other thing, on which I do not have any particular inspiration but about which I would love the incoming Government to think, is how to widen out their contacts with not just the organised sector and Universities UK but the academics and students who are really what the sector is about. We have great universities not because we have activist managerial vice-chancellors but because they are autonomous in large measure internally as well as vis-à-vis the state. That has been of real concern to me. Since we are going to have an Office for Students, it would be very good if, post the election, we could make it genuinely an office for students.

[Lord Stevenson of Balmacara (Lab)]

My Lords, this is a very big Bill. I share the feeling of the noble Lord, Lord Kerslake, that perhaps this subject is one we will not see again for some time to come and so ought to enjoy what we are seeing now. The train passes slowly, but it is a very important one and we should pay regard to it.

We should also bear in mind that the Bill attracted more than 700 amendments and resulted in, at our last count this morning, 31 major concessions made by the Government to the voices raised, in the other place and particularly in here, in relation to some of the issues we heard about today. The noble Baroness, Lady Deech, was right to reflect on the fact that what we have in front of us today, although really important, is the end of the process, not the whole of it. We should not forget that within the list of concessions—“concessions” gives the wrong sense; I mean the things that moved in the Bill—there are important aspects. There is not just freedom of speech, which she mentioned and which is of course tremendously important, but also measures that will improve collaboration within the sector, that will help reverse the decline in part-time students, that will assist mature students who wish to come back, and that pave the way for more work to be done on credit transfer and flexible courses. These are all really important changes to the infrastructure of our higher education system and will make it better. They have not been picked up today because they were dealt with earlier in the process, but they should not be forgotten as they are important.

We have also heard nothing today about UKRI and the developments made in that whole area, which are to change radically the consensus on operating within science and research more generally that has gone on for nearly 30 years in one form or another. It is important that we also reflect that those changes went through after debate and discussion—and some minor adjustments but not many—primarily because there was an effort to make sure that the words used to describe the change were understood properly. A lot of time was spent in going round talking to people and making sure they were happy with that. That was a good thing. Indeed, this whole process, as has been touched on already by a number of noble Lords, is an example of what this House is good at but should be more widely developed within our political debates and discussions: that there is room for civilised debate and discussion about every issue. It does not have to be party political, as my noble friend Lord Blunkett said. It can be small-p political. It can be aimed at trying to arrive at a better overall solution, and I am sure that what we are achieving today has ticked the box in all these areas.

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[Viscount Younger of Leckie]

My Lords, our reforms are designed to make it simpler for high-quality providers to enter the higher education market, contribute to greater student choice, and ensure that our higher education sector remains innovative and can respond to changing economic demands. However, we have been clear that encouraging new providers cannot come at the price of lowering the quality bar for obtaining degree-awarding powers. We are absolutely committed to protecting the value of English degrees and, throughout the passage of the Bill, we have added to the legislative protections to achieve this.

At Report in this House, we tabled an amendment, based on a proposal from the noble Baroness, Lady Wolf, requiring the OfS to request expert advice from a “relevant body” on quality and standards before granting or varying degree-awarding powers, or revoking them on grounds of the quality or standard of provision. The role of the “relevant body” would be similar to that of the QAA’s ACDAP, and the system that we are putting in place will build on the valuable work that the QAA has been doing over the years. Our amendments further strengthen this requirement for expert advice. In particular, this amendment makes clear that if there is not a designated quality body to carry out the role, the committee that the OfS must establish to carry it out must feature a majority of members who are not members of the OfS. Additionally, in appointing those members, the OfS must consider the requirement that advice be informed by the interests listed in the clause. This will ensure that the advice is impartial and well informed. This amendment also makes it clear that the advice must include a view on whether the provider under consideration can maintain quality and standards. In line with the arguments put forward by the noble Baroness, Lady Wolf, it requires the OfS to notify the Secretary of State as soon as possible after it grants degree-awarding powers to a provider who has not previously delivered a degree course under a validation arrangement.

Let me be clear that, as is already the case, I expect the Secretary of State’s guidance to the OfS on degree-awarding powers to continue to require that a provider’s eligibility be reviewed if there is any change in its circumstances, such as a merger or a change of ownership. The OfS has powers under the Bill to remove degree-awarding powers from a provider when there are concerns as to the quality or standards of its higher education provision following such a change. I can confirm that we expect the OfS to seek advice from the relevant body on any such quality concerns before taking the step of revocation. I beg to move.

[Baroness Wolf of Dulwich]

First, I take the opportunity to thank the Minister in this House and the Minister for Higher Education very sincerely for listening so carefully and patiently to the arguments that I and many others put forward on these issues. I follow other noble Lords in saying that, while this has been a grind, it has also been something on which all parts of the House have found a great deal to discuss and agree. In that sense, it has been perhaps not enjoyable but certainly an educational and ultimately a positive process. I repeat that I appreciate the time that everybody in the Lords has put into this, and I very much appreciate the time put in by Ministers and the enormous work put in by the Bill team.

I am very happy to see the clause moving towards the statute book, but it seems to be slightly ill understood perhaps outside this Chamber and certainly outside this building. It might be worth my while reiterating what I think is important about it, and I would be grateful if the Minister would let me and the House know if he disagrees with anything that I am just about to say.

One of the major reasons why the Bill is so important is that it sets out what is happening in the sector, quite possibly for decades to come. That is why we have to take account of both whether it can provide innovation and new ideas and allow the sector to move and whether it can provide guarantees of quality and standards and protect students, many of whom take out large loans, and the whole country against what is always possible: that some institutions and people will not have the interests of the country and the sector at heart. Innovation is a very important part of it.

I also take this opportunity to welcome in this House the fact that the Government have recently given some money to the new model university that is being established in Herefordshire, which is enormously important because of the role it will play in helping to develop engineering skills and in working with small businesses and supply chains. It is the sort of institution that we need many more of, and I am really pleased that the Government have given their support.

It is worth remembering that one thing that has bothered us very much in thinking about how this Bill should go forward is our knowledge that it is only too easy to create a situation in which institutions arise and gain access to public funds but whose existence is very hard to justify and that can do enormous harm. It is not just this country—the United States has given us the largest and most catastrophic bankruptcies, leaving students stranded—but it is, after all, not very long ago that the Home Office moved to investigate and shut down higher education institutions in this country that were, not to put too fine a point on it, fraudulent.

This part of the Bill has always been enormously important. I am extremely happy, because it seems that this new clause will institute a quality assurance process that focuses the attention of the Office for Students on a number of critical issues when it is granting or varying awarding powers, and clarifies the importance of independent advice from outside an institution. This is always important, because an institution creates its own understandings and inevitably becomes defensive against the world. The potential strengthening and improvement of the advice that the OfS will get from outside, which will build on the QAA but will potentially be more independent and therefore both add an additional safeguard and add substantively to the process, is very welcome.

This clause also clarifies for the general public the way in which the Government envisage new institutions coming through. They clearly envisage two pathways. Many people will come through validation, a process that itself has grown up over the years with remarkably little scrutiny, but if an institution is to get degree-awarding powers from day 1, this is something of which the Secretary of State must be aware. The noble Lord, Lord Willetts, pointed out in earlier debates that anything that goes wrong tends to land on the Secretary of State’s desk anyway. What seems to be important here is that we have an extra element not just of formal accountability but one that will bring into the process both a clear ability for the Secretary of State to create a new institution that has degree-awarding powers, because that is seen as something of which they are capable from day 1, and something to make the process public and one that cannot slide through unobserved.

This is an area in which we have made enormous progress. Perhaps all this would have happened anyway, but I am extremely happy to see it in the Bill. I finish by expressing my gratitude once again to everybody who has worked on the Bill and listened to our concerns and my appreciation of all the comments, information and hard work that colleagues on all Benches of the House have put into it. I welcome this amendment.

[Baroness Blackstone (Lab)]

My Lords, I speak very briefly just to endorse everything that the noble Baroness, Lady Wolf, has said. On behalf of the House generally I want to thank her for all the hard work and effort that she has put into securing these changes. It is fair to say that this part of the Bill, in its original form, was the one that gave cause to a great deal of worry, and for me personally the most worry of all because in my view it threatened the reputation of higher education not only in this country but overseas. With this amendment, we are now in a much better place.

The only thing that I ask is that there be some monitoring of how it works in practice. It is very important that there should be some evaluation to make absolutely clear to the higher education sector as a whole, and to those who might want to enter it, that there will be rigorous tests of both quality and standards before any institution can have degree-awarding powers and access to grants and loans through the system of financial support that we have. Having said that, however, I am really grateful to the Government and to the Minister for bringing forward this amendment. It is a huge improvement to the Bill compared to what we had originally.

Technical and Further Education Bill

Baroness Wolf of Dulwich Excerpts

Report stage (Hansard): House of Lords
Monday 27th March 2017 Lords Chamber

[Baroness Cohen of Pimlico (Lab)]

My Lords, I support the amendment. The Bill has cross-party support; it is potentially the greatest engine of social change that can be imagined and rights the injustice of the many years when technical education has been regarded as much less important than formal academic education. The effect of cancelling benefit for 16 to 18 year-olds embarked on apprenticeships will be to deter a small but important group of these young people from taking them up. Since the apprenticeship is not just education but a route into a job, this would be entirely wrong. In families with very low incomes, budgets are extremely delicate. Allowing one child to do an apprenticeship when they are not fully funded could damage the rest of the family and is therefore not likely to happen. I therefore hope that the Government will think again on this.

I will also speak to Amendments 14 and 16, which provide slightly different versions of guarantees if trainers go bust. I remind the House that I am chancellor of BPP University, with 2,000 degree-level apprenticeships, and my sister company has 2,000 16 to 19 year-old apprenticeships. It is not very difficult for long, well- established training operations to contribute to a contingency fund, if that is what is wanted, or to get a bank guarantee. I am thinking of new people who may want to come into this field, whom I believe the Government want to encourage. I suspect that having to contribute to a contingency fund, which is difficult and requires special provision, is possibly a barrier to entry, whereas producing a bank guarantee is—as my noble friend Lord Watson said—a well-understood route and I believe a lot of banks know how to do this. I would, therefore, much prefer any measure to require providers to produce a bank guarantee rather than a contribution to a contingency fund, or their own private contingency fund.

[Baroness Wolf of Dulwich (CB)]

My Lords, I also support the amendment and share its concern for the small but important group of young people who may be denied an apprenticeship. I will also speak to Amendment 16 tabled in my name and lend strong support to the general argument that we must provide financial guarantees and security to young people in the training field. I declare an interest that, as a member of the Sainsbury review, I was part of the panel which lies behind other parts of the Bill. I also strongly welcome the provisions to ensure that, should an FE college fail, special arrangements will be in place to make sure that students are looked after; that clearly set out procedures will swing into place; and that they will not just go to the bottom of the list after creditors, in the hands of administrators whose responsibilities and skills are essentially commercial. It is absolutely right that the Government have recognised this as their duty. It is their duty because, by funding young people and adults, encouraging them to enter training—and, in very many cases, to take out loans—the Government have implicitly promised that an institution to which they are lending money will give a good-quality education and will endure to see students through. The introduction of loans is a mammoth change and lies under much of the Government’s conviction that they need to change the HE regime. We must recognise that the Government’s ambition for huge increases in adult learner loans changes the environment in which young people and adults are studying and training.

Many noble Lords will know that failures are not unheard of—one wishes that they were. In the United States, huge companies have gone under, leaving many thousands of people with loans. These are not all at degree level; they are often at associate-degree level, which comprises two-year courses. On the one hand, therefore, it is very welcome that we have these provisions for FE colleges, but, on the other, I find myself completely unable to understand why equivalent protections should not be introduced for people training and studying in institutions which are not FE colleges and which also offer—and are being funded to offer—technical education. Many of these people have loans, and many of them are not mobile. The loans represent large sums of money for them, and they have made big changes in their lives to undertake this form of training. Again, it is tremendously welcome that the Government are putting so much effort and money into technical education. However, we have to ensure that the promise, encouragement and—sometimes—pressure to enter technical education is matched by a guarantee that the Government will deliver on their implicit promise.

Against this background, the repeated failures—that is what it has felt like—in recent weeks of a number of private training providers should make us aware that this is not a hypothetical situation. Like the noble Lord, Lord Watson, I was not very convinced by the letters from the department and the SFA. My noble friend Lady Watkins will speak in a moment. She and I had a very productive meeting with the Bill team. We appreciated their willingness to listen to our arguments. However, the letters that we received seemed to amount to a combination of the statements, “We are muddling through” and “There aren’t very many of them anyway”. That is not adequate at a time when we are embarking on a major rethink—and, I hope, a major expansion—of technical education.

In Committee, the Minister noted that you cannot treat private businesses as though they were public organisations. That is indeed true. Although many private training providers are small charities, many others are commercial organisations, as the noble Baroness, Lady Cohen, said. Many of them survive entirely on government contracts and are very small. That is why I have proposed a mechanism which I think would be entirely appropriate for this situation. We have heard about it already, and I thank the noble Baroness, Lady O’Neill, for first bringing it to my attention. It is well established, costs the Government nothing and would not cost providers anything that would begin to wipe out their margins. It is well and frequently adopted in other sectors and I cannot see why it should not apply here.

That brings me to my final point—the idea that we do not need to worry about this matter because only a few people are involved and the risks of failure are quite small. Even if the figure is less than 1%, that is hundreds of people a year on current levels of loans. If we have the expansion that we hope for, thousands of people a year will be affected. To give a medical analogy, if 1% of life-changing operations were cancelled and eventually lost because people got older and were never able to have their operations and had to go back to the bottom of the waiting list, I do not think that anybody would find that acceptable. Therefore, I strongly hope that the Minister will assure us that at Third Reading he will be able to bring concrete proposals to this Chamber and that we will see the same acceptance of the importance of looking after students in the entire technical education sector that we so happily see in further education colleges.

[Lord Storey (LD)]

My Lords, I will speak to Amendment 14 and to Amendment 16, which is linked to that, and will say a few words in support of Amendment 1.

It is interesting that a large part of the Bill is about insolvency—what happens if a college becomes insolvent. Yet it does not say very much about what happens if a poor student, through no fault of their own, becomes insolvent because of debt problems arising from the fact that their college no longer exists. We also encourage private providers—I say right at the outset that there are many good private providers, who have an exemplary record and are very worth while. Sadly, however, some providers have caused immeasurable harm to young people, and we need to ensure that there is a proper safety net for those young people.

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[Baroness Wolf of Dulwich]

My Lords, I rarely disagree with the noble Baroness, Lady Garden, on technical education, where I highly respect her expertise and experience, but I confess to a certain unease about the idea that there should be only one list and that it should overtly include everything. One of the key things that we are trying to do here is to create a highly respected and distinctive technical education course which sits alongside the academic one, and therefore by definition it cannot include everything that has passed a basic set of requirements for being an acceptable qualification.

I remind noble Lords that I have an interest in this, having been on the Sainsbury panel, but also looking back to my experience when I was doing the 14 to 18 vocational education review. I completely agree that one could go round for ever on vocational to technical to professional. But there is a really important distinction here between a limited set of qualifications that have been identified as having a very clear purpose and the possibility—and, I would say, high desirability—of allowing a very large number of qualifications to arise and be offered and meet a minimum threshold in the vocational and technical area. It may be that the wording of the noble Baroness’s amendment will not get in the way of that, but these distinctions are important.

When I made the 14 to 18 recommendations, I said explicitly that there should be a distinction between there being strong requirements before something could be offered in mainstream 14 to 16 education and a very different set of requirements which said that they could be out there and schools could offer them if they wished but they could not count in the league tables as being equivalent to GCSEs or A-levels. The same thing applies here with the task set for the new institute to identify qualifications which really meet the requirements of that distinctive high-status route. That is not the same as being on the Ofqual register.

This is not about whether it is craft or creative or technical, where I entirely agree with the noble Baroness, but about creating this “lost” route that we used to have without at the same time throwing overboard a large number of qualifications—some of them tiny, some of them big—which may serve quite different purposes. It is really important to recognise that one of the purposes of the institute is to create that alternative route and that part of that is about having a set of qualifications—probably not thousands long—that meet these criteria. Getting there is going to be difficult but if you do not have this end in view, it is hard to see how we will ever get out of what is at the moment a hugely confused and confusing mass of qualifications.

Again, to talk from personal experience, when I did the 14 to 18 review, I did not recommend anything like as much restriction at 16 to 18. What was recommended and adopted was this idea of a programme of study for each individual student between 16 and 18, which has worked quite well. I thought at the time that as a result of that we would move to a situation where a smaller number of good qualifications became clearly apparent as market leaders, and strongly established. I was convinced by Nick Boles, the Minister at the time the Sainsbury panel was set up, that this was just not happening; we needed to be more active and the programme of study was not enough.

It seems to me that a fundamental part of what the institute is about is creating a set of qualifications which meet the requirements for that alternative, high-status route from 16 on into adult life. Without talking to lawyers or drafting clerks, I do not know whether the amendment would have any negative impact on that but it is important to understand that one of the purposes of the institute, for which I think there is cross-party consensus, is to recreate that route. In my view, that means that you cannot just say that everything that is not an A-level can be on the institute’s list, because we need a list that is clearly part of this route without wiping out all the other many qualifications which may serve other and different purposes. That is what I wanted to say and I hope the noble Baroness and I do not really disagree.

[Baroness Vere of Norbiton]

My Lords, I welcome the opportunity to debate the amendments in this group. I thank all noble Lords for their contributions.

I fully understand why the noble Baroness and the noble Lord have tabled Amendment 6, which seeks to define technical education qualifications as,

“the full range of work-based qualifications”.

I reassure them that all relevant and appropriate occupations in the economy will be covered within the technical education routes. What is important is that there is good provision for everyone and that the reformed technical education system focuses on occupations for which skilled technical training is a requirement.

The Sainsbury panel report has already provided a clear definition:

“Technical education must require the acquisition of both a substantial body of technical knowledge and a set of practical skills valued by industry”.


Trying to define these qualifications in this manner could restrict the scope of technical education qualifications, both now and in the future. In practice, technical education qualifications will be defined by the coverage of the 15 technical education routes. Each route will provide a framework for grouping together occupations where there are shared training requirements. An occupational map will identify all the occupations within the scope of each route.

When defining the coverage of the 15 technical education routes, it is important to highlight that not all occupations will be included. The Sainsbury panel was clear that unskilled and low-skilled occupations that do not have sufficient knowledge requirements would not warrant a technical education route. Rather, these occupations can be learned entirely on the job, often within a matter of weeks. For these occupations, it would not be appropriate to offer technical education qualifications.

I reassure the noble Baroness and the noble Lord that within the technical education routes there will be comprehensive coverage of the skilled occupations that are vital to the success—

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Tabled by

[Baroness Wolf of Dulwich]

16: After Clause 35, insert the following new Clause—
“Providers of technical education: guarantee to students
(1) Any providers of technical education who are not covered by the insolvency regime created by this Act must provide a guarantee from a reputable financial institution to each Government supported student that, if the provider is made insolvent, the financial institution will cover the cost of operating that student's course until a suitable end point.(2) In subsection (1), a “suitable end point” means the completion of the course or the successful transfer of the student to an alternative institution.(3) In subsection (1), a “Government supported student” means any student whose education is funded directly by the Government through grants to the providers or student loans.(4) The cost of providing the guarantee under subsection (1) must be met by the relevant provider under subsection (1).”

[Baroness Wolf of Dulwich]

I note that the Minister did not reply to my amendment in his response, and I hope we can have further discussions before Third Reading.

Amendment 16 not moved.