Higher Education Funding

Baroness Barran Excerpts

Thursday 12th September 2024 Lords Chamber

[Baroness Barran (Con)]

My Lords, I too congratulate the noble Lord, Lord Krebs, on securing this important debate. I add my warm welcome to the noble Lord, Lord Tarassenko, and thank him for his maiden speech—in particular for his insights into the impact of the student finance system on the number of home students doing PhDs in his field.

As we have heard, the challenges facing our higher education institutions are not isolated. They are interconnected with the challenges facing students, taxpayers and, more broadly, the economy. We are rightly proud of our universities and need them to thrive as part of building a path to higher economic growth and prosperity in terms of undergraduate and graduate degrees, and of research.

I was struck by the comments of the noble Lords, Lord Krebs and Lord Rees of Ludlow, and the noble Baroness, Lady Wolf, suggesting that we should perhaps consider a more intentional split between research and teaching. In preparation for this debate I read the paper Triangle of Sadness, produced last year by the vice-chancellor of King’s College London, Professor Kapur, which many of your Lordships may have seen. He made the contrast—I hope I reflect this accurately—between a state such as California, which has a GDP of similar size to the UK and a similar number of universities which are split very much between research, teaching and state institutions. I would be interested to hear the Minister’s reflections on the potential for that in this country.

The last Government tried, in a different way, to encourage collaboration between business, the further education sector and the higher education sector through the institutes of technology, which I hope the new Government will encourage and develop further. I also hope they will build on our record of access and participation for students from disadvantaged areas.

I attempted to make a point in a debate last May—clearly completely unsuccessfully—when we debated the excellent report from the Industry and Regulators Committee on the Office for Students on the risks of making sweeping statements about the financial health of the sector. Despite having failed in May, I will make another attempt today. Both in that debate and today, a number of your Lordships cited the figure of 40% of the sector being in deficit. To put this in context, this is a sector that has grown 50% over the past few years. The OfS report projected a surplus of £2.1 billion for the sector for 2026-27 and a margin of 3.9%. Average borrowing in the sector is 30%. That is not a typical picture of a sector facing impending collapse.

The point I am trying to make is that some universities remain financially very solid and successful. The aggregate deficit of providers in England, referred to in the recent report from the OfS, was just over £330 million, the aggregate surplus of those in surplus was £3.3 billion, and 50% of the aggregate deficit was accounted for by 10 providers. We need to focus on the institutions that are financially fragile, but not to paint the whole sector that way. None the less, obviously, there is a risk that an individual institution could get into serious financial difficulty. I, along with other noble Lords, would find it interesting to hear the Minister’s plans to address that, and in particular, how they plan to protect student interests if it does happen, to ensure that students’ education is not disrupted. 

As for the pressures on students from the affordability of their university education, I absolutely recognise your Lordships’ comments and criticisms of our policy to freeze fees for the last seven years. But, looking forward, I am interested in whether the Minister can update the House on the Government’s plans, and whether they intend to keep the student loan system as we have it today. I cannot quote my noble friend Lord Johnson of Marylebone accurately—but I am referring to the Churchill version.

In her speech to the Universities UK conference last year, the now Secretary of State mentioned

“modelling showing that the government could reduce the monthly repayments for every single new graduate without adding a penny to government borrowing or general taxation”.

I wonder whether the Government still hold that view.

The Minister will be aware that there are Muslim students who have been excluded from higher education because of the nature of the student loan system. Can she confirm that she will continue to meet stakeholders quarterly to ensure that alternative student finance is delivered in a timely way?

We have seen an extraordinary expansion in the number of students in franchised provision, and in universities offering foundation years. I would be interested in the Minister’s reflections on whether those students are getting value for money, and how the Government will ensure that.

I echo the questions from other noble Lords about international students, given that the Office for Students projects that international students will account for 48% of university income by 2026-27. What is the Government’s assessment of the risk to universities from volatility in international student numbers? Obviously, we have seen the depreciation of the Nigerian currency, and the impact on students from that country.

This House has often debated the need for more qualifications at levels 4 and 5, as well as level 6, and of course our further education colleges play an important part in the delivery of those. I wonder what the Minister’s response is to the Association of Colleges report which says that almost a quarter of colleges have waiting lists for qualifications such as engineering, which the economy so badly needs.

The previous Government very much appreciated the support that the current Government gave us when in opposition with the introduction of the lifelong learning entitlement. That is obviously a huge opportunity both financially for universities, because there is a cohort of potential students who could benefit from additional qualifications, and for our economy. I know that the Open University has been calling for those entitlements to be able to be used more flexibly to facilitate the growing demand for accelerated part-time study, and I would be grateful if the Minister could comment on that.

Before I close, I want to pick up very briefly the comments made by the noble Baroness, Lady Fox of Buckley, on the issue of academic freedom and freedom of speech, because that is clearly one of the challenges that our higher education institutions face. I know the noble Baroness committed recently to looking at the Secretary of State’s decision further, but I wonder whether she will take this opportunity to withdraw what felt like an ill-advised statement describing the Act as a hate speech charter, since obviously, as she knows, it does not change people’s rights to free speech under the law but rather gives them easier redress.

We have heard a thoughtful and well-informed series of speeches in your Lordships’ House today, and I look forward very much to the Minister’s reply.

Erasmus+

Baroness Barran Excerpts

Thursday 12th September 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The noble Baroness makes an important point about the aspirations of young people for our relationships internationally, and particularly with our former EU colleagues. The Paymaster-General, who is also the Minister for the Constitution and European Union Relations, is leading the reset of the UK-EU relationship in the negotiations that the noble Baroness outlines. I will pass on to him her concern that young people are involved in the preparations and the process of that negotiation so that their aspirations can be met by the negotiations that the Government will undertake and the review of the trade and co-operation agreement.

[Baroness Barran (Con)]

My Lords, the last Government introduced the Turing scheme with three very clear principles in mind: first, to make sure that disadvantaged pupils and students had greater opportunities to access it; secondly, to give the scheme a truly global focus; and, thirdly, to ensure value for money for taxpayers. I would be grateful if the Minister could reassure the House that she agrees with those principles and set out how she plans to build on the success of the scheme so far, and indeed give us a clear assurance that the Government plan to continue with the scheme.

[Baroness Smith of Malvern (Lab)]

The noble Baroness is absolutely right about the objectives of the Turing scheme but she will also be reassured by the results that we have seen this year. For example, we have seen an increase in the proportion of people from disadvantaged backgrounds taking part in the scheme—60% compared with 51% last year. We have also seen a broadening of the possibilities for those who take part in the scheme. Whereas five out of 10 of the most popular destinations under the Turing scheme are within the EU, the other five are outwith the EU, so it is widening the opportunities for young people and those looking to both work and study. The Government have committed £110 million of funding for this academic year, and we will certainly review the success of this scheme and, in the context of the spending review, think carefully about its future.

Independent Review of Children’s Social Care

Baroness Barran Excerpts

Monday 9th September 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The noble Baroness makes a very important point. The Local Government Association also found that, whereas in 2022-23 91% of councils that responded spent at least £10,000 per week or more for one placement, in 2018-19 that had only been 23%. Not only does the position in the placement market disadvantage children in not being able to find those loving and stable placements that they need, but it is also an enormous burden to local government. That is why, as she said, we have to build on, for example, the £45 million invested in the Families First for Children pathfinders this year to help families get support earlier. Where there is clear profiteering from some providers in the placement market—evidence of this has been discovered—we need to take action and we will do so.

[Baroness Barran (Con)]

My Lords, I recognise the Minister’s sincerity and that of her colleagues in addressing this issue, but we know that when we talk to children with personal experience of the care system, what they tell us is how many different social workers they interact with. I am not sure what the opposite of stability is, other than instability, but it is a series of fractured and fragmented relationships. Can she update the House on how the Government plan to address this?

[Baroness Smith of Malvern (Lab)]

The noble Baroness is right. I have recently been in a position to talk to children in social care in Sandwell and she is absolutely right, as one of their top concerns is not having continuity of social worker. That is why it is so worrying that local authorities are becoming even more reliant on agency social workers, as 17.8% of all local authority child and family social workers are agency workers currently. There are many good and high-quality social workers who come through the agency route, but their position is more likely to be unstable than it would be with a permanent worker. That is why the department is already building a new relationship with the children’s social care workforce and is looking at how to improve support for workers in children’s social care. Thinking particularly about working conditions as a key factor in keeping social workers in the profession, this autumn we will release resources to support local authorities with best practice to retain social workers. We will continue the work of the national workload action group, which will make independent recommendations on acting on workloads by January 2025.

Independent Schools: VAT Exemption

Baroness Barran Excerpts

Thursday 5th September 2024 Lords Chamber

[Baroness Barran (Con)]

My Lords, I too thank and congratulate my noble friend Lord Lexden on securing this debate and on his exceptionally clear and lucid introduction. I also congratulate noble Lords on the high quality of all their contributions today. Like others, my inbox has been full of correspondence from numerous parents who wrote to me. I thank them too and share with the Minister—her private office inbox may also be full, but they might not have got to her —just some of the questions they asked, because I would be interested to know her response and what she would say to those parents.

Many of them point to the sense of rushed policy and poor planning that we have heard from so many of your Lordships this afternoon. I do not know what the Minister would say to the mother of a child who has just finished their first year of A-levels in subjects that their local state schools do not offer, or to children in year 11 who have been doing the IGCSE syllabus, which again would not be available to them, to the parents of children in state schools who will have bulge classes to accommodate new entrants from private schools, or to the parents of children with special educational needs who now feel that they will need to go through the process, which we heard about so vividly from the noble Lord, Lord Addington, of getting an EHCP for their child in order for their needs to be met.

We have heard from many of your Lordships, including, of course, my noble friend Lord Lexden, about the very important contributions that independent schools make to our education system and economy. That is through bursaries, through partnerships with state-funded schools, such as those that the noble Lord, Lord Winston, articulated, through the provision of places for children in the care system and, crucially, as we have heard from around the House, through support for 90,000 children with special educational needs and disabilities.

We have heard about the range and variety of schools, including from the right reverend Prelate the Bishop of Southwark, and we even had the noble Lord, Lord Alton, channelling his inner Lord Pannick to raise questions about the legality of the policy, which I am sure the Minister will take away and consider. I shall pick up on some of these themes and ask the Minister a number of questions.

In terms of timing, which my noble friends Lord Maude and Lord Lucas and many others raised, could the Minister explain to the House and the parents who will be impacted by this change why the Government judge it to be the right balance to introduce VAT in January 2025 rather than in September next year? We all understand that it raises more money, but the disruption of moving a child part-way through the school year is something that every parent seeks to avoid. The technical note provided by the Treasury states that:

“The Government understands that moving schools can be challenging”.

I have to say that is quite an understatement, even from the Treasury.

Why the rush? It leaves so many unanswered questions and puts so much avoidable pressure on parents, teachers and, most importantly, children. I hope the noble Baroness will consider some of the suggestions about a phased introduction, such as those raised by my noble friend Lord Forsyth of Drumlean.

I turn to the amount of money this may raise, which was touched on by the noble Lord, Lord Hacking. The Government tell us that this change is not ideological; it is about raising an estimated £1.3 billion to £1.5 billion to fund additional teachers and a long list of other things. Will she confirm that, if the tax fails to raise additional revenue, her Government will reverse this proposal, and if not, why not? Will she confirm that the Office for Budget Responsibility will give an annual update on the net financial impact of the proposed change once it is clear how many children have left independent schools and joined the state sector, and not simply—again, I quote from the technical note—

“certify the government’s costings and impact analysis for these measures”?

I turn to capacity in the state sector. The Government have said that they are

“confident that the state sector will be able to accommodate any additional pupils and that there will not be a significant impact on the state education system as a whole”.

I know that the noble Baroness understands that this is not really about the system as a whole. We know that there are parts of the country with plenty of capacity in the state system, but it is about what happens in each local area. It would help reassure the House if she could explain what assessment the Government have made of the impact on children in state schools in areas with very high percentages of children in independent schools—for example, Surrey or, as we heard, Edinburgh? There are also areas such as Bristol, where there is already pressure on state school places, and Salford and Birmingham, where there are many small Muslim and Jewish schools.

Turning special educational needs and disabilities, can the Minister reassure the House that VAT will not be charged on places for children with special educational needs? We heard very powerfully from the noble Lord, Lord Addington, about some of the issues. My noble friend Lady Monckton of Dallington Forest spoke about specialist further education colleges. It would be helpful if the Minister could clarify if they will be impacted by this. Will non-maintained special schools be able to recover VAT? What assessment have the Government made of the demand for additional EHCPs as a result of this policy?

A number of noble Lords, including the noble Earl, Lord Devon, and my noble friends Lord Black of Brentwood and Lord Kempsell, raised the important issue of military families who serve their nation abroad and, as we heard, need boarding places for their children. Can she confirm that their personal contribution will be exempt from VAT?

I look forward to the Minister’s response to the questions from my noble friend Lady Fraser and the noble Baroness, Lady Bull, about the impact on specialist music and dance schools, the future of which is now in peril. I hope the Minister can respond to these questions from the Dispatch Box but, if not, perhaps she could confirm that she will write to me with the answers.

Time does not permit me to cover other points today, so I will close with the feeling these proposed changes give me, and many others, as we have heard in your Lordships’ House today. This feels like a Government who are focusing on division, rather than aspiration; a Government who are seeking to run down private schools, rather than challenging them to contribute more to the overall education sector. The suggestions from the noble and learned Lord, Lord Etherton, were extremely helpful. These proposals will take away parental choice not from the super-rich—from the people the Prime Minister described as having the broadest shoulders —but from those with shoulders already burdened by choosing to prioritise education for their children in the way that they want. That erosion of choice bodes ill for our country.

I will leave the Minister with one last question. I think the House is just asking the Government to listen. I hope very much that she can answer that they will.

Ofsted

Baroness Barran Excerpts

Thursday 5th September 2024 Lords Chamber

[Baroness Barran (Con)]

The improvement in our schools under the last Conservative Government reflected a combination of high autonomy—we trusted our school and trust leaders to know the answers for their school and their community—and high accountability, so that the interests of children are protected and clear action is taken if a school is underperforming. That action is led by our best school trusts, and that is why our international rankings in England in reading, maths and science have all risen, while in Labour-run Wales they have sunk. It feels like these principles, which have driven success and opportunity for our children, are being eroded, and the changes being proposed to Ofsted inspections require further explanation.

I acknowledge that the Government say standards will rise as a result of the changes they are proposing, but school leaders and parents need to know how. Can the Minister explain what will actually be new on the new school report cards? There is an enormous amount of information and publicly available data on schools, and there is obviously a great deal of detail in the existing Ofsted reports. What is the gap that the Government have identified and what is the problem they are trying to solve? What evidence does the Minister have that the regional improvement teams proposed by the Government will be more effective than strong academy trusts in turning around underperforming schools? Finally, how will decisions on interventions in underperforming schools be taken between now and September 2025?

[The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)]

In response to the noble Baroness’s first remarks, I agree that teachers and school leaders deserve enormous congratulation on the improvements that they have made in schools, and this Government are committed to supporting them to achieve even higher standards for all our pupils.

The announcement that the Government have made alongside Ofsted is the removal of the single headline grade for Ofsted inspections, something that provided a relatively low level of information but of course had enormously high stakes for schools. In doing that, we are absolutely committed to ensuring that parents have the information they need to be able to make decisions for their children, and that schools have the information to enable them to improve. That is why we will work with schools, parents and young people themselves, and Ofsted will lead this to help to develop the report cards that will provide more useful information.

The noble Baroness was, understandably, particularly interested in the impact on intervention. To be absolutely clear, where Ofsted identifies serious concerns with a school, the current situation whereby the Secretary of State can ensure that a maintained school becomes an academy or a failing academy is forced to become part of an academy trust remains. There is no change there but where schools could benefit from improvement, the development of regional improvement teams, apart from an early structural intervention in the management of schools, gives us an additional way to promote improvement in our schools and make sure that all children, wherever they are learning, are gaining the highest standards and schools are being held to account for delivering those.

Schools: Mental Health and Poor Attendance

Baroness Barran Excerpts

Wednesday 24th July 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The noble Baroness is absolutely right that, where special educational needs come alongside mental health problems and other issues in children’s lives, they are more likely to be absent from school. Of course, while they are absent from school, they are not learning and it is also likely that mental health issues will increase, not reduce. That is why, for the vast majority of children with special educational needs who are being educated in mainstream schools, early intervention through the use of access to mental health support workers will be an important first way to support them and prevent conditions from becoming worse.

[Baroness Barran (Con)]

My Lords, improving attendance is the most urgent and important priority to support our children’s well-being and their academic attainment. There is rightly a focus on the most vulnerable children who are severely absent from school, including those with mental health issues. They represent about 2% of school-age children, but there is a much larger group—about 37% of our children last year, or 2.7 million pupils—who miss between 5% and 15% of school, with all the impact that has on behaviour and attendance, and the pressure it puts on teachers. What are the Government planning to do to help schools to improve the attendance of those children?

[Baroness Smith of Malvern (Lab)]

The noble Baroness has done considerable work in this area, as I was reminded while being briefed for this Question. In particular, the whole range of work outlined in the updated Working Together to Improve School Attendance guidance, which of course becomes statutory in August, is important in outlining the responsibility of schools to develop a policy and the support that needs to be available to children and young people to enable them to attend. She worked carefully on improving access to data, so that schools can have a more granular approach to the reasons why individual children or cohorts of children may be missing from school, and can put tailored interventions in to support them. She will know that 93% of schools already provide that data to the department, and from September that will be compulsory for all schools.

King’s Speech

Baroness Barran Excerpts

Friday 19th July 2024 Lords Chamber

[Baroness Barran (Con)]

My Lords, I open my remarks with a warm welcome to all noble Lords who made their maiden speeches today. The speech of my noble friend Lady Monckton of Dallington Forest was striking both for her modesty about her skills in public speaking and for her very evident compassion and extraordinary achievements through Team Domenica. I also thank the noble Baroness, Lady Jolly, for her moving valedictory speech, which I gather got her to almost 600 contributions in Hansard in your Lordships’ House.

In particular, I congratulate the noble Baroness, Lady Smith of Malvern, on her maiden speech. She brings not only a lot of experience but relevant experience to your Lordships’ House, and I know that this will be valued by all of us. She and I share some things. Her work with the Jo Cox Foundation focused on loneliness, and I had the privilege to cover that in DCMS. Sadly, there is one important divide between us which I am not sure we will be able to bridge: the noble Baroness clearly has great skills on the dance floor. My ballet report at the end of my first term, aged four, said “Diana has no natural talent”.

I also welcome the noble Baroness, Lady Merron, to her place, and I wish her and the noble Baroness, Lady Smith of Malvern, every success in their new roles. My noble friend Lord Howe once said to me that there are two departments to which every person in the country wants to succeed: one is health and the other is education. They have very special roles.

It struck me, when I looked back over many years at speeches from both the Opposition and the Government in these debates, and at election results, how much commonality of aspiration there has been between different parties on all sides of the House on the issues that we are debating, although we may differ on the ways of achieving those aspirations. That is in part reflected by the legislation in the King’s Speech, as several Bills in this area were part of the previous Government’s legislative plans.

Before I go on to talk about the substance of the King’s Speech and the Government’s proposals, I will make my round of personal thank yous. I am very touched by all the thank yous I have received from your Lordships today, but I particularly thank the noble Lord, Lord Watson of Invergowrie, and the noble Baronesses, Lady Twycross and Lady Wilcox of Newport, who generated just the right level of anxiety for me, every time I was on the Front Bench, to keep me on my non-dancing toes.

I turn to the legislation, starting with the health Bills. On this side of the House we welcome the decision to progress with the reform of the Mental Health Act. The previous Government undertook very thorough pre-legislative scrutiny and worked hard with families, the mental health voluntary sector, practitioners and parliamentarians to make sure that the legislation would genuinely result in better decisions when someone needs to be detained under the Mental Health Act, in particular—as we heard from a number of your Lordships—when that detention relates to a child. I would be grateful if, in her closing remarks, the noble Baroness could reassure the House that the substance of the Government’s new Bill will reflect the previous Government’s commitments in this area. Understandably, the Government have said that implementation will take place in phases, when there is sufficient skilled workforce to deliver the reforms. When will the Government set out their timetable for implementation?

We also welcome the decision to proceed with a tobacco and vapes Bill, and we agree with many of your Lordships’ comments about the important contribution that this can make to the health and well-being of our nation.

I think I am right in saying that there was an announcement this morning that the Government will proceed with a royal commission on social care. There have been multiple reviews of social care, so it would help the House if the noble Baroness could explain which unanswered questions a new royal commission would focus on and what its timescale is.

On education, there are elements of the children’s well-being Bill that we on this side of the House welcome. In particular, we are pleased to see plans to set up a register for children not in school, which is something that we had wanted to do and spent many hours debating in this Chamber—as my noble friend Lady Berridge said—often ably led by the noble Lord, Lord Soley. We also worked hard behind the scenes to reconcile some strongly felt views in this field, by both home-educating parents and local authorities, as demonstrated by the consultation on elective home education guidance, which closed in January this year and which I hope will prove useful to the new Government as they work on this area.

I was pleased to hear from the Minister that the Government intend to look at unregulated settings, but are there plans to look also at the quality of the education children educated at home receive? The scale of that issue has changed out of all recognition since Covid, and of course, every child has the right to a decent education.

Turning to the proposed multi-academy trust inspections, we also recognise the need to return to the basic principle that has underpinned so much of the success of schools in England: that accountability and autonomy are aligned and require high levels of transparency. The growth of multi-academy trusts has meant that, in some cases, accountability via Ofsted inspections has been at a school level while autonomy has been at a trust level. Rightly or wrongly, that has contributed to a sense of unfairness in our inspection system. The previous Government had begun work on this area, and we will offer constructive scrutiny of the new Government’s plans. While the principle of MAT accountability might be clear and simple, the implementation will certainly be complex, with implications for school inspections—which the Government are also proposing to change—for intervention powers and policies, and, not least, for the skill set that will be required of Ofsted to deliver that. Indeed, there is a valid question about whether inspection is the only or best route to achieve accountability.

More broadly, it is hard for us to discern the new Government’s vision for our schools from this Bill. We are genuinely puzzled by the focus on requiring all academies to adhere to the national curriculum: not only is this already the case for the vast majority but, even for the small number who do not adhere to it, the rigour of the Ofsted inspection regime assures the quality of the curriculum being taught in all our schools. Similarly, with close to 100% of teachers holding qualified teacher status, we are puzzled as to why this is a priority and what problem it really seeks to solve.

These measures, together with the duty to co-operate on school admissions and the insistence on annual safeguarding checks, leave us with a sense of a Government who, ironically, trust school teachers and leaders less than their predecessors. Our programme of reform was built on the premise that school and trust leaders were the real experts and that the route to quality, innovation and better outcomes for children was to trust them and give them agency. I fear that the proposed measures in this Bill may constrain some of that.

Turning to skills, the King’s Speech also included the Skills England Bill, which commits, if I have understood it correctly, to replace IfATE with a new body, Skills England. Again, I ask the Minister: what problem are the Government trying to solve with this change? IfATE played a very important—and, we believe, effective—role in putting employers at the heart of skills development. I look forward to hearing in future debates more about how the Government expect their wider reforms of the apprenticeship levy to unfold.

Returning to schools, it will not surprise the Minister that we on this side of the House have real concerns about the proposals to require independent schools to charge VAT on their fees. I would be grateful if she could confirm whether her Government will guarantee funding for all the areas where she has committed to invest the proceeds of the VAT on independent schools, even if it is not raised in full. Also, have the Government analysed the impact on every region of the availability of places in state-funded schools for children with special educational needs and disabilities whose parents can no longer afford private education?

One thing has not changed by moving sides: I have run out of time. I tried in my speech to focus on the legislation that the new Government are bring forward, but there are so many things that I have not had time to cover, including important issues such as teacher recruitment and retention; children with special educational needs and disabilities; the proposed changes to Ofsted; the curriculum; the new Government’s commitment to our capital programmes—particularly for schools affected by RAAC and by the Caledonian Modular problems—the future of the lifelong learning entitlement; and university funding.

We know that many of these issues are interlocking. Changes to the curriculum have implications for inspection, assessment and exams, and changes to the inspection regime have implications for intervention in underperforming schools. So great care will be needed with implementation. That is where the House in general, and these Benches in particular, come in. We will be constructive and always aim to bring fair challenge based on evidence. I hope the Minister recognises the achievements of the last Government, particularly in the area of education, and sees the new Government’s role as one of evolution rather than revolution.