Lifelong Learning (Fee Limits) Regulations 2026

Earl of Effingham Excerpts

Wednesday 15th July 2026 Grand Committee

[Lord Mohammed of Tinsley (LD)]

My Lords, on these Benches we have also long supported the principle of lifelong learning. Because of the rapidly changing economy, where technology, artificial intelligence and the transition to a greener economy are reshaping jobs, people need the opportunity to retrain and upskill throughout their lives. Education should not be something that ends in your early 20s; it should be available for people whenever they need it. I say that as someone who went into higher education in their late 20s.

These regulations are important and part of implementing the lifelong learning entitlement by introducing a credit-based fee system for modular studies. Rather than relying solely on annual fee caps designed for traditional three-year degrees, providers will be able to charge fees proportionate to the number of credits studied. This is a sensible and necessary technical reform if modular learning is to work in practice.

However, as my Lib Dem colleague Ian Sollom argued in the House of Commons, changing the mechanism for charging fees is only one piece of the puzzle. If the Government genuinely want lifelong learning to succeed, they must also address the barriers that prevent adults from returning to education in the first place, because many adults are balancing work, caring responsibilities and the rising cost of living. Flexible courses alone will not encourage participation if learners cannot afford to take time away from work, arrange childcare and access maintenance support. The danger is that we create a system that is technically more flexible but remains financially out of reach for many of those who would benefit the most.

There are also legitimate concerns from universities and colleges about the implementation. Higher education institutions are already operating under severe financial pressure. They are being asked to redesign courses, develop modular provision and invest in new admin systems, while maintaining significant financial uncertainty. If the Government want us to embrace these reforms, they must ensure that the funding and regulatory framework give institutions the confidence to innovate rather than simply observe additional costs.

The Lib Dems believe that lifelong learning should also be driven by the needs of the learner and the employer together. Skills shortages continue across sectors, including engineering, construction, digital industries, health and education. The lifelong learning entitlement should help adults to access high-quality qualifications that respond to those workforce needs, while also giving individuals the freedom to pursue learning and personal development and career progression.

While we welcome the direction of travel represented by these regulations, they cannot be viewed in isolation. Success will depend on a wider package of student support, employer engagement, higher-quality careers advice and sustainable funding for universities and further education colleges. Therefore, I ask the Minister three simple questions. First, what assessment has been made of the likely impact of these regulations on participation by mature and disadvantaged learners? Secondly, what support will be available to help providers to implement modular delivery successfully? Finally, how will the Government ensure that the lifelong learning entitlement genuinely widens participation, rather than simply changing the way the fees are calculated?

As I said, the Lib Dems support the ambitions of making learning available throughout life, but ambitions must be matched by opportunity, affordability and proper investment. Only then will this important reform deliver what it promises.

[The Earl of Effingham (Con)]

My Lords, I thank the Minister for introducing these regulations. Lifelong access to high-quality education is a key component for a successful society. Access to resources that improve the skills and capabilities of the workforce goes hand in hand with a more dynamic economy and a more independent public. It provides individuals with the freedom to engage in subjects that are their passion and to strive for careers in the industries that they desire. This is largely the raison d’être of universities in our country. Undergraduate courses provide a leg-up into the workforce, while postgraduate and part-time courses allow for further specialisation and reorientation.

That is indeed a reasonable model, but while the structure of post-18 education is sound, His Majesty’s loyal Opposition believe that the incentives can be improved. Undergraduate course tuition fees are capped and thus allow for a broad uptake; conversely, modular and short courses are not. Therefore, there is a rational financial barrier to further higher education. Particularly in the current, fast-changing labour market, which will only accelerate, there is an eminently reasonable case for changing this current model. People will need to be able to retrain and reorient themselves, bolder and faster. Skilled education will become all the more important. That is why His Majesty’s loyal Opposition support these regulations.

The noble Baroness, Lady Wolf, played an integral part in the Augar review. The previous Conservative Government welcomed the recommendations of that independent review into post-18 education and funding and introduced the primary legislation that makes a lifelong learning entitlement possible. We are therefore grateful that the Government have now taken the steps to make this a reality.

Largely underpinning these regulations is the concept of proportionality. Using credits as the standard unit of learning time is the best way in which to achieve this uniformly. Limiting the number of credits that can be charged per course time and per activity is a start to ensuring that courses are rightly valued. But proportionality of credits does not necessarily equal proportionality of quality and we have many times highlighted the extent of less valuable courses currently within the market. This remains a concern.

It would be fair and reasonable to ask how the Government will ensure that the quality of education matches the cost of the degree past simply looking at credit numbers. This is of particular concern with part-time courses. Flexibility of education is of course a good thing, but it cannot be used to justify students enrolling in modular courses and not having face-to-face time with a teacher. How does the Minister propose to ensure that the highest possible in-person education is taking place face to face, involving engaging with each other and truly gaining from the experience?

In a similar line of thought to that of my noble friend Lord Johnson, we ask more generally what the feedback mechanisms are for this measure. How will its implementation and success be monitored both for providers and students, as referenced by the noble Lord, Lord Mohammed? It was surprising that the Minister in the other place did not answer this question. How will the providers who will naturally incur an administrative cost in implementing this new system be supported in the transition?

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[The Earl of Effingham (Con)]

My Lords, in summary, these regulations should be viewed as positive and we hope that they are effective.

[Baroness Smith of Malvern (Lab)]

My Lords, I genuinely thank all noble Lords for their contributions to this debate. It is always refreshing to debate something with people who were there at the beginning and who were part of the very important Augar review that led to this work in the first place. I appreciate the points made in the debate and I will endeavour to respond to them as well as possible.

Before turning to the specific questions, I will restate why these regulations matter. They are a critical and indispensable step in delivering the lifelong learning entitlement. To respond to some of the points made, that reform is not just about how we deliver modular courses, important though those will be as an opportunity, but how we will, for example, bring further and higher education closer together, open up more flexible and modular study, and give people a real choice in how and when they learn and make it easy for them to return to learning throughout their lives.

As we have said, these regulations set the tuition fee limits that apply to higher education courses and modules that are funded by the lifelong learning entitlement and that begin on or after 1 January 2027. They are not designed to overhaul the entire student finance system, in terms of some of the controversies that we have seen recently. They address a central weakness in that the current system is too rigid and too focused on traditional full-time study and it does not work well enough for adults who want to retrain or upskill across their working lives.

The noble Lord, Lord Johnson, is right that the test for this policy is whether or not this translates into greater participation and whether or not the flexibility enables there to be more opportunities for a wider range of people to upskill and return to learning, at different stages in their working lives. The AI example that the noble Lord used is interesting, and he has previously, and quite rightly, challenged us about the relationship between the growth and skills levy reforms—the apprenticeship levy, in essence—their links to the lifelong learning entitlement and how we ensure that employers have a role in developing the flexible courses that the LLE enables. A key part of our reform and the direction of travel for higher education is to emphasise its role in growth and the relationships it needs to build with employers, which is why they are an integral part of the HE learning and skills partnerships now.

However, this does not necessarily mean that the only way to be upskilled in AI, for example, would be through the LLE. It depends on how you want to learn. As part of our reform of the growth and skills levy, we have introduced short courses that can be funded through the levy for those who are employed, and AI is one of the first areas in which we have developed those. So it may be appropriate for employers to enable those in employment to take one of those short courses using the growth and skills levy. If you want to do something more fundamental, which requires a course of at least 30 credits, the lifelong learning entitlement would be more appropriate to use, so that you can go back to a broader higher education course.

On the point about scale, we have been careful to introduce the LLE incrementally, in a way that recognises some of the risks that we have seen in the higher education system recently of uncontrolled expansion and a failure to focus on the quality of what is being offered. That is why we have taken a relatively tightly controlled approach to the first providers of modular courses from January 2027. They will not simply, as I think was suggested, be more of the same but chunked up a bit. For example, the opportunity for further education to provide these courses and for students to be funded through the LLE is quite a significant change and an important development. But we are being careful about the way that we introduce these courses. We will want to expand this in the future, although I am not in a position to say when, at this point. Nevertheless, this is the start of something that will be more radical.

The noble Lord also raised the levels at which the LLE will fund. It is right that the LLE is currently focused on modular and flexible learning at levels 4 to 6, where the greatest need for retraining and upskilling has been identified. The postgraduate master’s loan and postgraduate doctoral loan remain available to help with course fees and living costs, and they provide flexibility to the student.