Draft Tertiary Education and Research (Wales) Act 2022 (Consequential Amendments) Order 2026
(1 day, 9 hours ago)
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The Parliamentary Under-Secretary of State for Wales (Anna McMorrin)
I beg to move,
That the Committee has considered the draft Tertiary Education and Research (Wales) Act 2022 (Consequential Amendments) Order 2026.
It is a pleasure to serve under your chairship, Mrs Harris. The draft order was laid before the House on 2 February. It will make changes to UK legislation that are necessary as a consequence of the Senedd’s Tertiary Education and Research (Wales) Act 2022. The order must be enforced by 1 April to coincide with the Welsh Government’s commencement plan for the Act.
The 2022 Act created a new statutory framework for publicly funded tertiary education and research in Wales. It established the Commission for Tertiary Education and Research—recently named Medr—which is responsible for funding and overseeing the tertiary education sector in Wales. The sector encompasses higher education, further education and training, apprenticeships, sixth forms and adult community learning. I will refer to that body as either the Commission or by its name, Medr.
The Act provides the Commission with new powers to fund tertiary education in Wales and repeals corresponding functions that were previously in place. The order ensures that several pieces of UK legislation are kept up to date by making amendments that account for the new system introduced by the Senedd’s 2022 Act. The order mainly removes references to the powers that are now being repealed and replaces them with references to the equivalent powers in the 2022 Act. That ensures that the legislation being amended will continue to operate in largely the same way as it does now, but with the Commission integrated into the legislative framework.
Article 2 of the order amends the Value Added Tax Act 1994 to ensure that education and vocational training provision funded through powers in the 2022 Act will be an exempt supply for the purpose of value added tax. The Income Tax (Earnings and Pensions) Act 2003 includes provision for the tax treatment of income derived from shares in research institution spin-out companies. Article 3 ensures that the definition of “research institution” in that Act includes any university or other educational institution receiving funding under powers in the 2022 Act.
Article 4 amends the Higher Education and Research Act 2017 to enable Welsh Ministers to exercise functions in the 2022 Act jointly with other public authorities, including the Office for Students and UK Research and Innovation. Article 5 amends the Charities Act 2011 (Principal Regulators of Exempt Charities) Regulations 2013 to designate the Commission for Tertiary Education and Research as the principal regulator for specific charities in Wales. That reflects the fact that the Commission—or Medr—will now be responsible for regulating further education and training in Wales under the 2022 Act, whereas previously Welsh Ministers were. The order also ensures that existing restrictions on principal charity regulators relating to the onward sharing of His Majesty’s Revenue and Customs information are applied to the Commission.
Article 6 amends the Seafarers’ Wages Regulations 2024 to ensure that the apprenticeship rate for seafarers can apply to those carrying out apprenticeships funded by the Commission under powers in the 2022 Act.
The amendments to UK legislation in the draft order fall outside the legislative competence of the Senedd as they relate to reserved matters such as tax, charities and employment. Taken together, those amendments ensure that existing legislation will continue to operate as intended by taking account of the changes made by the 2022 Act.
I welcome the implementation of the Senedd’s Tertiary Education and Research (Wales) Act and the positive impact that Medr is already having in Wales. The draft order will make the consequential amendments necessary to keep UK legislation up to date, and it will help ensure that the 2022 Act can take effect as intended.
Mims Davies (East Grinstead and Uckfield) (Con)
It is a pleasure to have the opportunity to respond to this timely and important discussion on behalf of His Majesty’s loyal Opposition. I welcome today’s discussion on tertiary education, which is long overdue. I thank the Minister for her helpful introduction to the order.
The 2022 Act abolished the Higher Education Funding Council for Wales, and, as the Minister spelled out, the new Commission for Tertiary Education and Research— Medr—became operational in August 2025, bringing responsibility for higher education, further education, apprenticeships, sixth forms and adult learning together in a single strategic body. I recognise that the draft order does not revisit policy decisions; it simply updates legislation so that it continues to function properly following the creation of Medr.
While the instrument is technical, as the Minister said, it sits within a wider set of reforms that will shape the future of tertiary education in Wales. Audit Wales has rightly emphasised the importance of ensuring that Medr’s strategic planning reflects the views of learners, employers and providers, and that its long-term planning aligns with statutory missions.
Education as a whole should be at the forefront of the Government’s focus for Wales. Many members of the Committee will be concerned that, while Welsh Labour has been in charge of education in Wales from as far back as 1999—when Tony Blair was still Prime Minister—it has been somewhat distracted by other priorities, with some youngsters leaving school unable to progress. The Opposition have concerns about politicians ploughing hundreds of millions of pounds into other focuses, such as Cardiff airport, or sending millions of pounds to plant trees in Uganda.
Those spending decisions reflect where the Labour Welsh Government’s focus has been, so I welcome this interest in tertiary education in Wales. There will be some who feel that Labour Ministers in Cardiff Bay have somewhat ignored this issue. Every Government’s first duty should be to create the right conditions for our young people to succeed, no matter where they live, because they are the future of our country.
Under both Governments either side of the M4, ideological decisions have impacted on education in Wales in some way. A lack of ambition and motivation is a concern, particularly in higher education. The educational evidence is clear that Welsh pupils continue to record the lowest scores in mathematics, science and reading across the United Kingdom in the PISA figures. Those inherent weaknesses in schools are having a profound effect on the broader tertiary system because they mean that pupils are poorly prepared for further and higher education.
It is important to recognise that the target of delivering 125,000 apprenticeships has currently fallen short in Wales by around 25,000 places—or 25,000 opportunities that young people in Wales simply do not have—so it is important that this measure works. There is a shortage of degree apprenticeships, which has been exacerbated by the previously somewhat narrow scope in Cardiff Bay, and flexibility is needed.
There is also a degree of worry about developments in universities in Wales. Given these concerns from parents, guardians and students, I would appreciate the Minister’s addressing some points on the proposals and changes. First, will she outline any specific detail on how today’s proposals will tangibly improve tertiary education across Wales? What is her understanding on that? Secondly, will she kindly explain how the proposals address the worrying decline in the number of people entering Welsh tertiary education? Thirdly, what feedback has been received from relevant authorities, particularly in relation to article 4, which requests them to carry out joint functions? Fourthly, has there been an impact assessment to evaluate the potential consequences or opportunities of the proposals? Fifthly, will the Minister outline how these changes will affect the private school sector, which is somewhat struggling in Wales? Sector leaders are approaching us as the official Opposition, because they are currently unable to obtain answers from the Wales Office or indeed from Education Ministers in Cardiff Bay. Sixthly, will there be an update to the House on how any change in these regulations will directly deliver for the people of Wales and support the college sector? Finally, can the Minister talk about the transition to the new Commission? Is it proceeding smoothly? It is, as I know the Minister will understand, a large institutional change. Any evaluations and safeguards are key so that it is properly regulated and all responsibilities and changes are understood. I look forward to her response.
Anna McMorrin
I thank the shadow Minister for her valuable contribution to the debate this afternoon and members of the Committee for being here. This order provides for several consequential amendments to UK legislation necessary before the next phase of the 2022 Act comes into force in April.
The shadow Minister made several points in her speech. I am very pleased that Wales managed to withstand 14 years of austerity from a Tory Government. More than that, the Welsh Government invested in building more 21st-century schools than anywhere else in the UK. Medr is shaping a tertiary education system in which everyone can acquire the skills and knowledge they need for a changing economy and society. The Welsh Government reflected and consulted on that—they consulted widely with tertiary education providers—and they are taking it forward. Medr was established last August and is looking at tangible improvements to raise standards across the board. That is why the 2022 Act is in place. Importantly, it will ensure that education, skills and apprenticeships are available for everyone, no matter what their background.
I offer my thanks for the constructive manner in which the UK and the Welsh Governments have worked in preparing this order, and in which the shadow Minister made her points. I commend the order to the Committee.
Question put and agreed to.