Higher Education and Research Bill

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Wednesday 26th April 2017

(7 years ago)

Commons Chamber
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Lord Johnson of Marylebone Portrait The Minister for Universities, Science, Research and Innovation (Joseph Johnson)
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I beg to move, That this House disagrees with Lords amendment 1.

Natascha Engel Portrait Madam Deputy Speaker (Natascha Engel)
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With this it will be convenient to discuss the following:

Government amendments (a) to (d) in lieu of Lords amendment 1.

Lords amendments 2 to 11.

Lords amendment 12, and Government motion to disagree.

Lords amendment 209, and Government motion to disagree.

Lords amendment 210, and Government motion to disagree.

Government amendments (a) to (g) in lieu of Lords amendments 12, 209 and 210.

Lords amendments 13 and 14.

Lords amendment 15, Government motion to disagree, and Government amendments (a) and (b) in lieu.

Lords amendments 16 to 22.

Lords amendment 23, Government motion to disagree, and Government amendments (a) to (c) in lieu.

Lords amendments 24 to 70.

Lords amendment 71, Government motion to disagree, and Government amendment (a) in lieu.

Lords amendments 72 to 77.

Lords amendment 78, and Government motion to disagree.

Lords amendment 106, and Government motion to disagree.

Government amendments (a) to (h) in lieu of Lords amendments 78 and 106.

Lords amendments 79 to 105.

Lords amendments 107 to 155.

Lords amendment 156, Government motion to disagree, and Government amendments (a) to (c) in lieu.

Lords amendments 157 to 182.

Lords amendment 183, and Government motion to disagree.

Lords amendment 184, and Government motion to disagree.

Lords amendment 185, and Government motion to disagree.

Lords amendments 186 to 208.

Lords amendments 211 to 244.

Lord Johnson of Marylebone Portrait Joseph Johnson
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The Higher Education and Research Bill sets out the most significant legislative reforms of the sector for 25 years. The world of higher education has changed fundamentally since the Further and Higher Education Act 1992, leaving a regulatory system that is complex, fragmented and out of date. The sector has consistently called for new legislation to update the regulatory framework and just yesterday the two main sector groups, Universities UK and GuildHE, reiterated their full support for this important legislation.

Given its scale and importance, this Bill has understandably received robust and constructive debate as it has progressed through this House and the other place. I would like to put on record my thanks to all Members and noble Lords who have engaged with it during the process, throughout which we have listened, reflected and responded. This group includes no fewer than 240 amendments agreed in the other place which strengthen and improve the drafting of the Bill. They cover a range of issues including institutional autonomy, the inclusion of collaboration and diversity of provision in the Office for Students’ duties, student transfer and accelerated degrees. The other place also agreed amendments to strengthen the research provisions in the Bill, including putting the Haldane principle into legislation for the very first time. Today, I am pleased to show once again that we are willing to engage and respond. I hope that hon. Members will bear with me if I speak at some length: there are many important points that I would like to set out clearly.

Turning first to Lords amendment 1, we listened carefully to the debate in the other place about the role and functions of universities. At its heart was the importance of protecting institutional autonomy, which we fully support. We responded to this with a significant package of amendments designed to provide robust and meaningful protection of institutional autonomy across the whole of the Bill, which I was pleased to see receive support from all parties. On the definition of a university, in a limited sense a university can be described as predominantly a degree-level provider with awarding powers. If we want a broader definition, we can say that a university is also expected to be an institution that brings together a body of scholars to form a cohesive and self-critical academic community to provide excellent learning opportunities for people. We expect teaching at such an institution to be informed by a combination of research, scholarship and professional practice. To distinguish it from what we conventionally understand a school’s role to be, we can say that a university is a place where students are developing higher analytical capacities: critical thinking, curiosity about the world and higher levels of abstract capacity in their analysis.

Further, the strength of the university sector is based on its diversity and we should continue to recognise that a one-size-fits-all approach is not in the interests of students or of wider society. In particular, small and specialist providers that support, for example, the creative arts, theology and agriculture have allowed more students with highly specialised career aims the opportunity to study at a university. Indeed, as we have said in our White Paper and throughout the passage of the Bill, the diversity of the sector and opportunities for students have grown as a result of the important changes introduced by the previous Labour Government in 2004, including the lifting of the requirement for universities to have students in five subject areas and to award research degrees. No one would want, and we would not expect, to go back on the specific changes that the party opposite made.

To protect the use of university title, we have tabled amendments (a) to (d) to Lords amendment 1 to ensure that before allowing the use of that title, the Office for Students must have regard to factors in guidance given by the Secretary of State, and that before giving the guidance, the Secretary of State must consult relevant bodies and persons. This consultation will be full and broad. It will reference processes and practice overseas, for example in Australia, and provide an opportunity to consider a broad range of factors before granting university title. Those factors might include a track record of excellent teaching; sustained scholarship; cohesive academic communities; interdisciplinary approaches; supportive learning infrastructures; the dissemination of knowledge; the public-facing role of universities; academic freedom and freedom of speech; and wider support for students and pastoral care.

In the other place, we tabled an amendment based on a proposal from Baroness Wolf requiring the Office for Students to take expert advice from a relevant body on quality and standards before granting, varying, or revoking degree-awarding powers. I can confirm that the role of the relevant body will be similar to that of the Quality Assurance Agency for Higher Education’s advisory committee on degree-awarding powers, and the system we are putting in place will build on the QAA’s valuable work over the years.

Amendment (a) in lieu of Lords amendment 71 further strengthens that provision. Specifically, the amendment makes it clear that, if there is not a designated quality body to perform the role, the committee that the OFS must establish to perform it must feature a majority of members who are not members of the OFS. Further, in appointing those members, the OFS must consider the requirement that the committee’s advice be informed by the interests listed in the proposed new clause, which will ensure that the advice is impartial and informed. The amendment also makes it clear that the advice must include a view on whether the provider under consideration can maintain quality and standards, and it requires the OFS to notify the Secretary of State as soon as possible after it grants degree-awarding powers to a provider that has not previously delivered a degree course under a validation arrangement.

I also confirm that I expect the Secretary of State’s guidance to the OFS on DAPs to continue to require that a provider’s eligibility be reviewed if there is a change in its circumstances, such as a merger or a change of ownership. The OFS has powers under the Bill to remove DAPs from a provider where there are concerns as to the quality or standards of its higher education provision following such a change. We expect the OFS to seek advice from the relevant body on any such quality concerns before taking the step of revocation.

In the other place we made amendments providing additional safeguards on the revocation of DAPs and university title, recognising that those are last-resort powers. Amendments were also made relating to appeals against such decisions. Amendments (a) to (h) in lieu of Lords amendments 78 and 106 achieve the same aims as the Lords amendments but will align the wording more closely with terminology used elsewhere in legislation. The amendments allow an appeal on unlimited grounds, and permit the First-tier Tribunal to retake any decision of the OFS to revoke DAPs or university title.

Over the course of the Bill’s passage we have seen complete consensus in both Houses on the importance of teaching in higher education. We have always been a world leader in our approach to higher education in this country, but we cannot and should not be complacent. The teaching excellence framework offers us the opportunity to safeguard the UK’s best teaching and to raise standards across the sector. For the TEF to work properly, however, there must be reputational and financial incentives behind it. We propose to disagree with Lords amendments 12 and 23, which would render the TEF unworkable.

Almost 300 providers took part in the first round of assessments, and we have received vocal support for the TEF from the major sector representatives. The sector has voted with its feet and has demonstrated real confidence in the framework. It would not be appropriate to stop or fundamentally alter the TEF now.

Roberta Blackman-Woods Portrait Dr Roberta Blackman-Woods (City of Durham) (Lab)
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I hear what the Minister is saying about the TEF, but does he accept that, although there might be widespread consent across the sector for a TEF-type exercise, the sector is not happy about the traffic light system and wants to see the review he is establishing?

Lord Johnson of Marylebone Portrait Joseph Johnson
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I thank the hon. Lady for raising that point, which enables me to discuss the amendment that the Government have tabled precisely to address those concerns.

I am pleased to present to the House a series of amendments that demonstrate our continued commitment to developing the teaching excellence framework iteratively and carefully. We have consulted widely on the TEF, and we want to continue drawing on the best expertise as we develop this important scheme. That is why I am pleased to have tabled amendment (c) in lieu of Lords amendment 23, as it requires the Secretary of State to commission an independent review of the TEF within one year of the TEF clause being commenced. Crucially, the amendment requires the Secretary of State to lay the report before Parliament, ensuring parliamentary accountability for the framework as it moves forward.

The report must cover many aspects that have concerned Members of this House and the other place, including whether the metrics used are fit for use in the TEF; whether the names of the ratings, to which the hon. Lady alluded, are appropriate for use in the TEF; the impact of the TEF on the ability of providers to carry out their research, teaching and other functions; and an assessment of whether the scheme is, all things considered, in the public interest. I am happy to confirm that the Secretary of State will take account of the review and, if he or she considers it appropriate, will provide guidance to the OFS accordingly, including on any changes to the scheme that the review suggests might be needed, whether in relation to the metrics or any of the other items the review will look at.

We have also heard concerns about the impact of the link between TEF and fees. We recognise the important role of Parliament in setting fee caps. That is why I am also pleased to propose amendments (a) to (g) in lieu of amendments 12, 209 and 210, which amend the parliamentary procedure required to alter fee limit amounts, to ensure that any regulations that would raise fees would be subject, as a minimum, to the affirmative procedure. That provides a greater level of parliamentary oversight on fees than the measures originally put in place under the Labour Government in 2004. I have also today brought forward a further motion to disagree with Lords amendments 183 to 185, which are no longer required as a consequence of these amendments. That is a purely technical change as a result of the wider set of amendments regarding fee amounts.

Furthermore, today’s amendments demonstrate our commitment to a considered roll-out of differentiated fees. Amendments in lieu (c ) and (d) will delay the link between differentiated TEF ratings and tuition fee caps, so that this will not come in for more than three years, with the first year of differentiated fees as a result of TEF ratings being no earlier than the academic year beginning autumn 2020.

Rupa Huq Portrait Dr Rupa Huq (Ealing Central and Acton) (Lab)
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If I have understood it correctly, the linking of the TEF and the fee level is just being postponed, and these things are not being completely decoupled. I wonder whether the Minister might be able to provide reassurance to the University of West London in my constituency, which has 17,000 students who are worried about this. They like Lords amendment 156, which relates to international students, and fear that they are going to go completely bankrupt if things are not kept as they are in the Lords amendment.

Lord Johnson of Marylebone Portrait Joseph Johnson
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I can reassure the hon. Lady that we are committed to ensuring that universities are able to increase their fees in line with inflation, provided they can demonstrate that they are delivering high-quality outcomes through the TEF. We are going to be introducing this scheme gradually and we are not going to be differentiating according to the fee uplift that institutions are able to get before the academic year starting August 2020; until that point there will be no differentiation of fee uplift based on performance in the TEF.

This means that differentiated fees will not be introduced until after the independent review has reported to the Secretary of State and to Parliament. Until that point all English providers participating in the TEF will receive the full inflationary uplift. It will be up to devolved Administrations, as before, to determine whether they are content for their institutions to participate in the TEF and what impact participation may have on their fees. I can confirm today that the ratings awarded under the TEF this year will not be used to determine differentiated fees, unless a provider actively chooses not to re-enter the TEF after the independent review. In practice, this means that this year’s ratings will only count towards differentiated fees if, after the review, a provider does not ask for a fresh assessment before their next one is due—that is an opportunity that will be open to all participants.

Before moving on to our other amendments, I would like to reiterate our commitment that the TEF will evolve to assess the quality of teaching at subject level, as well as institutional level. We recognise that subject-level assessments are more challenging, which is why I have already announced an extension to the roll-out of subject-level TEF pilots, with an additional year of piloting. This follows the best practice demonstrated in the research excellence framework, and means the first subject-level assessments will not take place until spring 2020.

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Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
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I thank the Minister for his comments on the work that we have done on this issue. The Cabinet Office has been extremely helpful from the very start in supporting the initiative with the University of Sheffield. Nevertheless, does the Minister recognise that the critical game-changer is the seamless integration of electoral registration and student enrolment? When other universities—not only Sheffield—have taken that up, they have seen levels of registration that the simple promotion of the voter registration portal, or giving direction towards it, have not succeeded in achieving. In monitoring the effectiveness of the Government’s proposals, will the Minister look at effective outputs? If universities’ outputs through methods of co-operation with electoral registration officers do not deliver the sort of 70% mark that integrated systems have delivered, will he expect them to be pushed in that direction by the Office for Students?

Lord Johnson of Marylebone Portrait Joseph Johnson
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I thank the hon. Gentleman for his continued and thoughtful engagement with this issue. We look forward to continuing to work with him as we develop the guidance that will be given to the OFS. As we have said previously, we do not expect that there will be a one-size-fits-all approach. We need an approach that recognises the particular circumstances at different institutions. We look forward to continuing to engage closely with the hon. Gentleman in the coming weeks and months, subject to the results on 8 June.

It is vital for this country that we have a healthy democracy that works for everyone. The Government share the aim of increasing the number of students and young people who are registered to vote. It is vital that the views of students and young people are taken into account in the democratic process, and our amendments will help to deliver that.

Last but by no means least, amendments (a) to (c) in lieu of Lords amendment 156 relate to international students. I reiterate that the Government value and welcome international students who come to study in the UK. We recognise that they enhance our educational institutions, both financially and culturally, enrich the experience of domestic students, and become important ambassadors for the UK in later life. It is for those reasons that we have no plan to limit the number of genuine international students who can come to study in the United Kingdom. I need to be very clear that that commitment applies to all institutions. We have no intention of limiting any institution’s ability to recruit genuine international students. We have no plans to cap the number of genuine students who can come to the UK to study, or to limit an institution’s ability to recruit genuine international students based on its TEF rating or on any other basis.

Richard Fuller Portrait Richard Fuller (Bedford) (Con)
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Can the Minister explain the logic of including in a statistic which the Government wish to limit a statistic that they have no desire to limit?

Lord Johnson of Marylebone Portrait Joseph Johnson
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I can reassure my hon. Friend that this Government welcome international students, who deliver huge value to our institutions, our economy and our learning environment. However, it is also important to recognise that the independent Office for National Statistics classifies students as part of migration. The ONS has an independent status and it applies that definition accordingly. It is appropriate that the matter is treated in the way that it is at present in our immigration system.

Neil Carmichael Portrait Neil Carmichael (Stroud) (Con)
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I thank the Minister for these amendments, as they reflect very well what the Education Committee said in its recent report on the university sector and implications of leaving the European Union. I, like the Minister, believe that it is important to ensure that our sector—this very important sector—is attractive abroad.

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Lord Johnson of Marylebone Portrait Joseph Johnson
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Indeed. No one would disagree with that. It is good news that the UK continues to be a highly attractive place in which international students can come to study. Numbers of international students are running at record highs, and we have more than 170,000 non-EU entrants to UK higher education institutions for the sixth year running. The latest Home Office visa data show that, since 2011, university-sponsored visa applications have risen by around 10%.

None Portrait Several hon. Members rose—
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Lord Johnson of Marylebone Portrait Joseph Johnson
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I will take one more intervention—[Interruption.] I will take two more interventions on this subject.

Wes Streeting Portrait Wes Streeting (Ilford North) (Lab)
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I am grateful to the Minister for giving way, but he is being rather selective with the statistics, because the UK is losing market share across the world when it comes to international students. In fact, the Higher Education Statistics Agency shows that the UK has seen a reduction of more than 50% in students coming to the UK from India. More than half of international students in the UK say that they do not feel welcome. Does he recognise the scale of that problem?

Lord Johnson of Marylebone Portrait Joseph Johnson
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Perhaps the hon. Gentleman is being selective. I can easily point to the 8% increase in visas from Chinese nationals in 2016. Overall, if we look at the numbers since 2011, visa applications are up by 10%, but let us not get distracted further. I will take a further intervention and then I shall move on.

Ben Howlett Portrait Ben Howlett (Bath) (Con)
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My hon. Friend has been a great advocate on this issue for a long time. I personally thank him for delivering these amendments. Given that there will be a new duty on institutions to give out their numbers of international students, what will happen to institutions that, for any reason, do not give that information to HESA under the terms of the enforcement powers?

Lord Johnson of Marylebone Portrait Joseph Johnson
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I thank my hon. Friend for his intervention. We would expect all higher education providers on the OFS register to be compliant with the duties and conditions imposed on them. If they are not, the OFS has a range of regulatory tools at its disposal to deal with such eventualities.

Paul Blomfield Portrait Paul Blomfield
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Will the hon. Gentleman give way?

Lord Johnson of Marylebone Portrait Joseph Johnson
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For the last time.

Paul Blomfield Portrait Paul Blomfield
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I thank the Minister for giving way. I understand his discomfort on the issue. He talked about numbers, but does he not recognise that in the latest year for which numbers are available—2014-15—new enrolments of international students fell by 3%, so he cannot say that the numbers are going up?

Lord Johnson of Marylebone Portrait Joseph Johnson
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We can certainly say that visa applications have risen by around 10% since 2011, although there might be fluctuations from year to year. That has been the case for many periods in the history of international students coming to study in this country. There has not been a story of continued growth; there have been ups and downs. Since 2010, which is a longer timeframe, we have seen applications up by around 10%.

Lords amendment 156 could do real damage. For example, it would prevent international students being treated as long-term migrants. The internationally recognised definition of a long-term migrant is anyone moving countries for a period of more than a year. If we were not able to apply to international students the key features of our work immigration regime, such as the need to obtain a time-limited visa that specifies the terms on which the migrant can come and a requirement to return home upon expiry of the visa, that could undermine our whole student migration system. I cannot advise the House to agree to that amendment.

Secondly, the Lords amendment would prohibit any change to the future student migration regime that could be interpreted as more restrictive than that in force when the Bill is passed. Any future changes—even minor technical changes—would require fresh primary legislation rather than being made by immigration rules laid before Parliament. I do not believe that that would be sensible or helpful, particularly given how crowded the forthcoming legislative programme is likely to be.

That said, I recognise the strength of feeling on the issue, so I am pleased to ask the House to support amendments (a) to (c) in lieu of Lords amendment 156. The Bill already creates for the first time a requirement for information on higher education providers to be published. It also puts in place a statutory duty to consider what would be helpful to students on higher education courses here, prospective students and higher education providers. Our amendments expressly extend that important new duty to cover what information would be useful to current or prospective international students in higher education and to the providers that recruit them or are thinking of doing so. They will also specifically require a consideration of the publication of international student numbers. All this is designed to help to ensure that as much information as possible is available about the UK’s offer to international students. We have a good story to tell and the Government are keen to ensure that it is told.

The Bill is long overdue. It will streamline the higher education system’s regulatory architecture. It will give students more choice and opportunity. It will strengthen our world-class research and innovation capabilities, and it will enhance the competitiveness and productivity of our economy. I thank all Members for their constructive engagement throughout the Bill’s passage.

Gordon Marsden Portrait Gordon Marsden (Blackpool South) (Lab)
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It is a great pleasure and privilege to speak on these amendments this afternoon. I join the Minister in thanking the various teams of drafters and Clerks for all the work they have done. He and I have had some intense discussions in the past three to four days, and they must have put great pressure on the Clerks to produce the substantial amendments that are before us today. I want to give special thanks to the Public Bill Office. Most people who have been in opposition, of whatever party, know that it is very much, in terms of resources, a David and Goliath process and we are enormously grateful for the professional work of the Public Bill Office in assisting us.

I want to place on record, because we are talking about Lords amendments, my gratitude and that of many in the House for the robust exercise by the House of Lords of its historic privilege, which is to revise, to remind and to warn. It has done all three things with this raft of amendments, which, combined with the intense pressure that was applied across the sector by numerous groups, the work that we have put in and the Minister’s co-operation in recent days, has brought us to where we are today.

I am sorry that the Minister, in his measured presentation, did not find time to talk about the contribution of the people who work in universities. Their contribution is just as important as that of students and teachers, because without them we would not have universities or other higher education institutions. I place on the record also my thanks to the various sector groups who have assisted us: the National Union of Students, which delivered thoughtful and trenchant critiques that helped us get to where we are today, as did the other unions involved—the University and College Union and Unison—and the Council for British Universities, as well as the whole range of universities, modern and traditional. I must not forget the submissions from the further education sector and the Association of Colleges, because as I frequently remind the Minister, 12% and rising of higher education in this country is provided by further education colleges.

This process has been about the dialogue with university vice-chancellors and junior lecturers. We are in a much better place because of the specialist critique and the Lords amendments that the Minister has accepted on UK Research and Innovation, and on research. As the hon. Member for Glasgow North West (Carol Monaghan) is in the Chamber, I pay tribute to her and her team for the points they made about the importance of the devolved Administrations.

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Gordon Marsden Portrait Gordon Marsden
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My hon. Friend knows that I cannot be responsible for the Minister’s mood music. I can only respond to what he has committed to do in the Bill, and its commitment to an independent review is very important. A whole raft of people, not just the Lords, are concerned. The combined efforts of an outside challenge, the wisdom of the Lords, who constrained the Minister by inserting the original amendment, and our determination have resulted in welcome concessions.

Lord Johnson of Marylebone Portrait Joseph Johnson
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To reiterate what I said in my speech, I am happy to confirm that the Secretary of State will take account of the review and, if he or she considers it appropriate, will provide guidance to the OFS accordingly, including on any changes to the scheme that the review suggests are needed, whether they be in relation to the metrics or any of the other items that the review will look at.

Gordon Marsden Portrait Gordon Marsden
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I am grateful to the Minister for that important clarification. It is also important that all fee regulations under the Bill that were previously subject to negative procedure will now be subject to affirmative procedure. That puts daylight on issues related to rocketing fees, and I believe that it will be entirely possible that the Secretary of State, whoever it will be, will have to listen to a dogged independent statutory review that says, “This ain’t working. Either it won’t ever work, or it certainly won’t work for the time being.” It is in all of our interests to make sure that that statutory review is as potent as we wish it to be.

I welcome the Government’s electoral registration amendment, which strengthens the current position to some extent. We would have preferred a full commitment to ensuring block registration, but nevertheless we wholeheartedly welcome anything that will facilitate greater student interest in and awareness of political affairs. I pay tribute to the fantastic work of my hon. Friend the Member for Sheffield Central and to the pilot work undertaken at the University of Sheffield and the University of Bath. I also praise my fellow member of the Bill Committee, my hon. Friend the Member for Ilford North, and my hon. Friends the Members for Ealing Central and Acton (Dr Huq) and for West Bromwich West (Mr Bailey), all of whom have concerns about students and feel very strongly about the matter. It is important to note that we are not just relying on nudges. The Minister was kind enough to refer to the involvement of the Cabinet Office in this regard, and there will be specific powers to impose an electoral registration commitment to deal with HE providers not doing enough.

Finally, let me turn to the amendments on international students. I praise and welcome the doggedness with which Lord Hannay pursued this matter with the coalition that worked across Parliament to insert the original amendment. I hoped and thought that the strength of that coalition might have moved the Government, but unfortunately it is not a question of the warm words, values and welcomes which the Minister talked about and to which, I am sure, he signs up—he was a dedicated remainer before the election. Unfortunately, he has a Prime Minister who has been at best curmudgeonly and at worst obstructive on this issue. The sharp questions from the hon. Member for Bedford (Richard Fuller) and the contribution of the Chair of the Select Committee on Education, the hon. Member for Stroud (Neil Carmichael), show where we are on this matter.

At a time when Brexit is throwing up fresh problems for the higher education sector, the Government’s stance is threatening both the sector and our reputation worldwide. Those new issues are about whether we will be able to stay in Erasmus or get funding for beyond Horizon 2020, and about European structural funding, but the university and HE sector has enough to contend with without having a Prime Minister who appears to wrinkle her nose and, sometimes, attach manacles to her colleagues in Cabinet every time they suggest a different path.

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Paul Blomfield Portrait Paul Blomfield
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I thank the hon. Lady for her intervention. She pre-empts me perfectly, because that was the point I was coming to. We are talking not simply about an extraordinary opportunity in an ever-smaller world for UK students to learn and study alongside those from many other countries, but about the contribution to research. I see that not only from our universities, but from my local businesses that benefit in Sheffield, and it is of huge importance.

To that list we should add the enormous benefits of the lasting relationships we build with those who study in this country. Last year I was talking to the high commissioner of a country that is one of our major trading partners and an important ally. He said to me, “Do you realise that more than half our Cabinet were educated at UK universities?” According to the Higher Education Policy Institute, 55 world leaders from 51 countries studied here. That is the sort of soft power that other countries would die for—political influence and commercial contracts based on the affection that people feel around the world because of their experience of studying in the UK.

All those things are in addition to economic benefits—almost £11 billion of export earnings. One would imagine that the Government would be celebrating that great British success and trying to make it stronger, but that is not the case. Throughout the last Parliament, to growing concern, the Government undermined our ability to keep up on international student recruitment. The Minister contests that claim and says that the numbers have stayed broadly level. I agree that largely they did—they dip off, and I will return to that point—but staying level in a growing market represents a failure. Holding level is not good enough when it means that we are reducing our market share, to the benefit of our competitors. As I said earlier, in 2014-15, the latest year for which numbers are available, new international student enrolments fell by 3%. He says that these things go up and down, but we can contrast that figure with the position in the United States, which has the biggest share of international students and where enrolments increased by 7%. The situation also contrasts with what is happening in Australia, where enrolments increased by 35%. Seeing our weakness, it put in place a strategy that was deliberately designed to take students from the UK. Canada is also planning to double its numbers, all at our expense.

Throughout the last Parliament, new measures introduced by the Government made the UK a less attractive destination. Those measures were put in place to help the Government to hit their net migration targets, and this is why the point made by the hon. Member for Bedford is so relevant. The problem is that the Government view international students as part of the migration debate, but that is not how the public see them. As he said, polls show that 75% of the public want international student numbers to stay the same or go up. It is also not the way this place sees them, because in the last Parliament an unprecedented five Select Committees of the House of Commons and the House of Lords called for change and for taking international students out of the net migration targets. These are challenging times for our country as we chart our course in the post-Brexit world. We need to win friends, not alienate them. As the Prime Minister’s trade mission to India last year demonstrated, many of those friends will put access to our universities at the heart of their discussion about our future trading relationships. We need to build on our successful sectors.

In terms of export earnings, universities are a huge success, but that is put at risk by Brexit. This is about not just the 125,000 EU students who are here, but the 30% of non-EU students who said that the UK would be a less attractive destination if we left the EU. We face losing up to half our international students if we do not get this right, and that will have an impact on the economy of every town and city across the country that has a university. As the Minister knows, it puts at risk critical courses, particularly in STEM subjects at a postgraduate taught level, which depend on numbers of international students.

A sensible Government and Prime Minister would look at those facts and say, “How can we strengthen our appeal to international students?” While our competitors are doing just that by developing recruitment strategies to win more students, the Prime Minister is saying no. There is no other sector in our economy that the Government would treat this way. The die is cast for this Bill but, as the hon. Member for Bath said, Members on both sides of the House will ensure that this issue will return in the next Parliament. Ultimately, common sense will prevail.

Lord Johnson of Marylebone Portrait Joseph Johnson
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With the leave of the House, I wish to say a few words of thanks to Members and others for their contribution to the development of the Bill and, most pertinently for this afternoon’s purposes, for the insightful points made during this debate. We have heard agreement that the Bill is an important one that has been carefully developed through dialogue on the Floor of the House, in Committee and in the other place, as well as through the extensive consultations dating back to the initial Green Paper in November 2015. It has benefited tremendously from thoughtful input from experts, reviews and independent reports. It was introduced right at the beginning of this parliamentary Session—perhaps even on its very first day—and it will still be going strong on its last day, so it is fair to say that no opportunity to scrutinise it has been missed. I am pleased that both sides of the House recognise that today’s amendments will strengthen the legislation still further.

I shall address briefly some of the questions asked during the debate. The hon. Member for Glasgow North West (Carol Monaghan) asked about the role of the independent review with respect to the TEF. The independent reviewer will consider the devolved Administration providers as part of the review. The Bill will allow the devolved Administrations to continue to decide whether they wish to allow their providers to participate. She also asked about UKRI’s executive committee. As UKRI is established, we will work closely with the devolved Administrations to ensure that the UK’s research and innovation base remains one of the most productive in the world. I can confirm that we amended the Bill on Report to require the Secretary of State to have regard to experience of working in the devolved Administrations when appointing the UKRI board. The executive committee is, though, an internal management committee for UKRI.

The hon. Lady also asked about post-study work for international students, a subject on which many Members focused. I reiterate that there is no limit to the number of international students graduating from UK universities who can move into skilled jobs in the UK. They do not count against the tier-2 limit and, actually, numbers have been rising year on year for the past three years.

The hon. Member for Sheffield Central (Paul Blomfield) asked about the transfer of ownership of degree-awarding powers. The answer is that, yes, should a provider with no track record buy a provider with degree-awarding powers, a full review of the provider’s continuing eligibility for degree-awarding powers would be undertaken.

I thank the Members who have given such time and so much energy during the many hours of debate we have had. I particularly thank the members of the public Bill Committee, which sat in the autumn, and pay tribute to the Opposition Members involved, especially the hon. Member for Blackpool South (Gordon Marsden).

Gordon Marsden Portrait Gordon Marsden
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The Minister will recognise that on such occasions certain things have to be said, and said forcefully, but I put on record how courteous he has been to me and the rest of our team.

Lord Johnson of Marylebone Portrait Joseph Johnson
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I am grateful for that. It has been a pleasure to work with the hon. Gentleman and his colleagues, including the hon. Member for Ashton-under-Lyne (Angela Rayner). I also pay tribute to the devolved Administrations who have played a full part in the scrutiny of this Bill, especially the members of the Scottish National party, including the hon. Member for Glasgow North West who has been tireless in her scrutiny of the measures.

The other place has excelled itself, with extensive and very thoughtful debate on this legislation. I thank all those who have given their time and energy to this Bill, including the very large number of highly distinguished academics, former Ministers and those who have extensive experience of the university and research sectors in the other place. Their passion for the sector has been clear to all those who have followed these proceedings.

I also add my thanks to those more widely in the sector, including the two main representative bodies, Universities UK and GuildHE, which have given their time in abundance to ensure that the sector’s views have been fully heard and understood and reflected in this legislation. That explains why they have repeatedly expressed their support for passing this Bill into legislation.

There is absolute agreement on the importance of our world class HE sector and our globally leading research. I am pleased that we in this House have agreed a Bill that finally fits this important sector for the 21st century, putting students, choice, value for money and global competitiveness centre stage.

Lords amendment 1 disagreed to.

Government amendments (a) to (d) made in lieu of Lords amendment 1.

Lords amendments 2 to 11 agreed to.

Lords amendments 12, 209 and 210 disagreed to.

Government amendments (a) to (g) made in lieu of Lords amendments 12, 209 and 210.

Lords amendments 13 and 14 agreed to.

Lords amendment 15 disagreed to.

Government amendments (a) and (b) made in lieu of Lords amendment 15.

Lords amendments 16 to 22 agreed to.

Lords amendment 23 disagreed to.

Government amendments (a) to (c) made in lieu of Lords amendment 23.

Lords amendments 24 to 70 agreed to.

Lords amendment 71 disagreed to.

Government amendment (a) made in lieu of Lords amendment 71.

Lords amendments 72 to 77 agreed to.

Lords amendments 78 and 106 disagreed to.

Government amendments (a) to (h) made in lieu of Lords amendments 78 and 106.

Lords amendments 79 to 105 and 107 to 155 agreed to, with Commons financial privilege waived in respect of Lords amendments 138 and 139.

Lords amendment 156 disagreed to.

Government amendments (a) to (c) made in lieu of Lords amendment 156.

Lords amendments 157 to 182 agreed to.

Lords amendments 183 to 185 disagreed to.

Lords amendments 186 to 208 and 211 to 244 agreed to.

Motion made, and Question put forthwith (Standing Order No. 83H(2)), That a Committee be appointed to draw up Reasons to be assigned to the Lords for disagreeing to their amendments 183 to 185.

That Jo Churchill, Chris Heaton-Harris, Joseph Johnson, Gordon Marsden, Carol Monaghan, Wendy Morton and Karl Turner be members of the Committee.

That Joseph Johnson be the Chair of the Committee.

That three be the quorum of the Committee.

That the Committee do withdraw immediately.—(Andrew Griffiths.)

Question agreed to.

Committee to withdraw immediately; reasons to be reported and communicated to the Lords.