Higher Education and Research Bill
Lord Johnson of Marylebone ExcerptsTuesday 19th July 2016
(7 years, 9 months ago)
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The Minister for Universities and Science (Joseph Johnson)
This has been a terrific debate, in which there has been very strong consensus across the House that our universities rank among the very best in the world, our research base is a global envy and our higher education sector is generating the knowledge and skills that are fuelling our economy and providing the basis for our nation’s intellectual and cultural success.
However, there has also been an acknowledgment in all parts of the House that we can do better still. The world of higher education has changed fundamentally since the last major legislative reforms of 1992. With student number controls now lifted, we are in an era of mass higher education that is no longer limited to the academic elite within a small and primarily Government-funded set of institutions. The majority of funding for undergraduate courses now comes from the students themselves, via Government-backed loans.
The sector has long acknowledged that the current regulatory framework is simply not fit for purpose. We must do more to ensure that young people from all backgrounds are given the opportunity to fulfil their potential and the information they need to make good choices about where and what to study. The Bill provides stability and puts in place the robust regulatory framework that the sector itself agrees is needed. It joins up the very fragmented system of regulation across the current sector, giving us what will be a best-in-class regulatory framework.
Joseph Johnson
I will not give away for the moment, because I have a significant amount of material to get through in a very limited time.
The Bill creates a level playing field, making it easier for new high-quality providers to compete with established degree-awarding universities. This will drive up innovation, diversity, quality and capacity, ensuring we remain attractive internationally. It will give students better access to information, empowering them to make the best choices about where to study. It ensures incentives are in place for providers to focus on the quality of the teaching they offer to students.
This Government are committed to equality of opportunity for all. The Bill delivers on that commitment, with a renewed focus on access and participation for disadvantaged students. The new office for students will be required to consider equality of opportunity across the entire student lifecycle, and our reforms to the research landscape will deliver a system that is more agile, flexible and able to respond strategically to future challenges.
This afternoon, we have often heard concerns that now is not the time to proceed with the Bill and that we should press the pause button. That is wrong: the time is right to press ahead, and important sector representatives agree. As Maddalaine Ansell, the chief executive of University Alliance, put it in an article just the other day, the Higher Education and Research Bill
“is a raft that can take us to calmer waters”.
I urge Opposition Members to get on board.
The Bill delivers on pledges in the Conservative manifesto on which we were elected. It will provide stability for the sector, putting in place a robust regulatory framework. The sector has been calling for this legislation since the tuition fee changes were put in place during the last Parliament, and it welcomes the stability and certainty that the Bill will provide. As GuildHE, another representative body, has put it:
“Pausing on the Bill and risking further damage to our international reputation for quality through regulatory failure would be a mistake”.
Tristram Hunt
I am very grateful to the Minister for giving way, because I appreciate that it is so annoying when someone interrupts your lecture. As we know, this is a Brexit Government, and many of the leading Cabinet Ministers promised not only £350 million a week for the NHS, but security for all our science funding. Will the Minister at the Dispatch Box give assurances to Staffordshire University and Keele University in my constituency that all their science funding will be secure by Brexit?
Joseph Johnson
I encourage Opposition Members to be optimistic about our future as a global leader in higher education and science. The UK has been at the centre of scholarship and science for hundreds of years. Many universities were powerhouses of scholarship long before the European Union came into existence, and I am confident that they will continue to be so for years and years to come.
Our universities are world leading and, although it is too early to say what the new EU settlement will be for science, I am confident that we will continue to thrive following the referendum result. That is why I have been engaging closely with Commissioner Moedas in Brussels and many other people in Governments across Europe, including my Italian counterpart. I welcome their commitment to ensuring that we will not be discriminated against in the period we find ourselves in. I welcome this morning’s statement by the League of European Research Universities that British universities should not be viewed as a risk to research projects and that they will continue to be “indispensable collaborative partners” in the months and years ahead.
Turning to our rationale for opening the market in the Bill, it is generally accepted that competition between providers in any market incentivises them to raise their game and offers consumers a greater choice of more innovative and better quality products and services at lower cost. Higher education is no exception. As my hon. Friend the Member for Cannock Chase (Amanda Milling) said in her excellent remarks, there is certainly room for improvement. Students’ perception of value for money is continuing to fall. In the Higher Education Policy Institute student experience survey published last month, just 37% of student respondents felt that they received good value for money. That was down from 53% in 2012.
We need to address the fact that many students are starting to ask whether university is worth it. Many employers have similar questions when they look at the labour market mismatch in our economy. While employers are suffering skills shortages, especially in high-skilled STEM areas, at least 20% of graduates are in non-professional roles three and a half years after graduating. If the students who are paying for the system and the taxpayers who are underwriting it are not completely satisfied, the market needs help to adapt. This we will provide as a Government. Like my right hon. Friend the Member for Surrey Heath (Michael Gove), who made an outstanding speech, I make no apology for seeking to expand higher education provision and give students more choice and more opportunities at every stage of their lives.
Like my right hon. Friend the Member for Cities of London and Westminster (Mark Field), I welcome the contribution that alternative providers are making and that they will be able to make all the more easily in future. There is no longer a one-size-fits-all model of university education. Students have a sharper eye for value than ever before and they are calling out, as my hon. Friend the Member for Milton Keynes South (Iain Stewart) said, for pioneering institutions offering alternative educational models and an increased focus on skills that will prepare them for the future with the mindset and agility needed to fulfil roles that may not even yet exist. I welcome his engagement with the Milton Keynes institute of technology, which is a flagship for the challenger institutions that we want to come into the sector.
Critically, as other Members have stressed, it is vital that no institution is able to enter our system and access student finance without meeting the very high academic standards that we expect of the sector, as set out in the White Paper. On longevity, we expect institutions to meet the same financial sustainability rules that exist for incumbents. The Bill makes no changes to those demanding requirements. The reforms will, however, make it easier and quicker for new providers to enter the HE market. They will drive innovation, promote choice for students and increase opportunity, but they will also ensure that new providers can enter the market only when they demonstrate that they are able to deliver academic services of the quality that we expect.
The Bill reflects our determination to accelerate social mobility in this country through higher education. When we reformed the student finance system in 2011, some, including Labour Members, said participation would fall. In fact, the opposite has happened. We have a progressive student finance loan system that ensures that finance is no barrier to entry. It is working as a system. Young people from disadvantaged backgrounds are going to university at a record rate—it is up from 13.6% of the bottom quintile in 2009 to 18.5% in 2015. I am afraid Labour Members were wrong then and they are wrong now. Young people from disadvantaged backgrounds are 36% more likely to go to university than they were in 2009, but we can and must go further. Our new Prime Minister has rightly prioritised a country that works for everyone and not just the few.
Our reforms in the White Paper and the Bill support that ambition. The Bill introduces a statutory duty on the office for students to promote equality of opportunity across the whole higher education lifecycle for disadvantaged students, and not just at the point of access. That includes Oxbridge and other elite institutions, exactly as the right hon. Member for Tottenham (Mr Lammy) would want us to ensure. We will bring together the responsibilities of OFFA and HEFCE for widening access into the new office for students. As part of that body, the new director for fair access and participation will look beyond the point of access into higher education and across disadvantaged students’ entire time in higher education. We will also require higher education providers to publish application, offer and progression rates by gender, ethnicity and socio-economic background.
I welcome the cross-party support for our focus on teaching excellence. We are committed to introducing a teaching excellence framework in our manifesto because we want to drive up teaching standards throughout the sector. The Bill delivers on our pledge to drive up teaching quality and to provide students with robust, comparable information on where teaching is best in the system. It will rebalance the priority given to teaching and learning compared with research, and will mean that the funding of teaching is based on quality, not just quantity—a principle long and successfully established for the funding of research.
On the link between tuition fees and the teaching excellence framework, it is worth noting that the previous Labour Government raised tuition fees in line with inflation in every year from 2007 to 2010, regardless of teaching quality. We will allow fees to rise with inflation only for those institutions offering the highest-quality teaching. Maximum fee caps will be kept flat in real terms. We will allow them to increase only in line with inflation each year, as provided for by the Labour Government. Both Universities UK and GuildHE—expert sector groups—have made clear that allowing the value of fees to be maintained in real terms is essential if universities are to continue to deliver high-quality teaching.
Our reforms go well beyond education and also cover our research base. We have heard comments about our outstanding research base. Its strengths in adding to human knowledge and improving our lives are not in doubt. They will continue to be protected, but we have the opportunity to maximise the benefits of our investment through a strengthened strategic approach, removing the barriers to more inter- and multidisciplinary research, and ensuring that we capitalise on links between our research base and business. We have long recognised the contribution of science and research to our wellbeing and wider economy. Our reforms build on those strengths, placing research and development at the heart of a national industrial strategy.
We have heard many passionate voices from both sides of the House today. The House can unite in support of the excellence of our universities and our research, but the Government are not willing simply to celebrate the excellence already achieved—we want it to continue and to build on it further. Our reforms will create a level playing field for new providers and increase competition in the system. We will encourage innovation in the higher education sector, transform the sector’s ability to respond to economic demands and the rapidly changing graduate employment landscape, and ensure that we remain attractive internationally for decades to come. I commend the Bill to the House.
Question put, That the Bill be now read a Second time.
Oral Answers to Questions
Lord Johnson of Marylebone Excerpts(7 years, 10 months ago)
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Steve Brine (Winchester) (Con)
9. What steps he is taking to improve the quality of higher education.
The Minister for Universities and Science (Joseph Johnson)
The higher education and research White Paper, and now the Bill before Parliament, set out the steps that we are taking to raise the quality of higher education and to help ensure that all students get the teaching experience that they expect and the employment outcomes that they expect from their time at university.
Steve Brine
The University of Winchester is exceptionally strong in degree apprenticeships. It performs consistently well in student satisfaction surveys and regularly tops 90% in graduate prospects figures. Does the Minister agree that these are all key drivers for young people in deciding to make what is a significant investment in higher education, and that Winchester seems well placed for that?
Joseph Johnson
The University of Winchester is leading the way in degree apprenticeships, as in so many other areas. I was delighted, on Friday, to meet its excellent vice-chancellor, Professor Joy Carter, and I will meet her again shortly. Winchester is a good example of a university whose students have excellent satisfaction ratings and excellent employment outcomes, with 95% going on to employment, graduate employment or further study in a very short time.
Peter Kyle (Hove) (Lab)
The University of Sussex down in Brighton gets £9 million of funding from the European Union. The leave campaign was very clear that that funding would be replaced by British Government funding after Brexit. Will the Minister get to his feet and guarantee that that funding will continue? If not, will he bring his brother down to Brighton to explain directly to students why the door of education is going to be slammed in their faces?
Joseph Johnson
This Government, more than any other, understand the importance of science funding. That is why we have protected science spending until the end of the Parliament—a decade of real-terms protection. Our universities and institutes can continue today to apply for EU competitive funding streams under Horizon 2020, and I am sure they will continue to be successful in the future.[Official Report, 5 July 2016, Vol. 612, c. 4MC.]
Tom Elliott (Fermanagh and South Tyrone) (UUP)
I praise the Catapult programme run by the Department, but can the Minister give us any indication of the opportunities for it to be rolled out more widely and to be available to people in areas such as Northern Ireland?
Joseph Johnson
Certainly. In our manifesto we committed to rolling out our very successful catapult network, which provides shared facilities that companies, on their own, could not afford to construct. That enables our businesses to maximise the value of research coming out of our university system. In this Parliament, we have already delivered new catapults at Alderley Park in Cheshire and in Cambridge, with the precision medicine catapult. This is an expanding and very successful network, and it will continue to be so.
Mr Gordon Marsden (Blackpool South) (Lab)
The Minister’s higher education White Paper rightly bangs on about how important high-level skills are, but the imminent skills White Paper is not even part of his new Higher Education and Research Bill. With those who teach, manage and work in HE fearful of the consequences of Brexit, should he not be prioritising skills strategies for both our community-based and internationally focused universities and using FE colleges as key HE providers? Why is he instead gambling the bank on allowing unknown, brand-new providers to get degree-awarding powers from day one—probationary degrees from probationary providers—risking our universities’ brand reputation overseas, as well as jobs and productivity at home?
Joseph Johnson
I am working closely with my colleague the Skills Minister, whose forthcoming White Paper will have many of the answers to the questions the hon. Gentleman has posed. We are surprised by the tone of scepticism about the potential for new higher education providers to lift quality and enhance the range of high-quality higher education on offer in this country. I am afraid, though, that that is of a piece with the Labour party’s previous opposition to the conversion of polytechnics and to new universities in the 1960s.
Victoria Prentis (Banbury) (Con)
10. What steps he is taking to promote take-up of STEM subjects in higher education.
The Minister for Universities and Science (Joseph Johnson)
Thank you, Mr Speaker. The Government are fully committed to making the UK the best place in the world to do science. The number of full-time students accepted to study STEM subjects in England is up 17% since 2010. Initiatives such as the STEM ambassadors programme and the new Polar Explorer programme are providing inspiration for young people to consider STEM careers.
Victoria Prentis
To what extent can studio schools, such as the excellent Space Studio in Banbury and the new Bicester Technology Studio school, be used to promote the take-up of STEM subjects later in a student’s career, whether that is at university or as part of an apprenticeship?
Joseph Johnson
That is right: studio schools are pioneering a new and valuable approach to learning and are focusing on equipping students with a wide range of employability skills and academic qualifications. Schools such as the ones my hon. Friend mentioned in Banbury and the one in Bicester that will open in September give students the opportunity to work with specialist employers such as the UK and European space agencies and those in the fields of technology, sustainable construction, engineering and computing.
Sue Hayman (Workington) (Lab)
As vice-chair of the all-party parliamentary group on nuclear energy, I am extremely keen to get more women into the nuclear industry and into studying STEM subjects at school and university, because we cannot meet the skills shortage without attracting more women and girls into engineering. I was therefore really pleased to hear the Minister agree with my hon. Friend the Member for Stretford and Urmston (Kate Green) about the need to get in much earlier, at primary school level, if girls are going to take that subject right the way through to higher education. What specific action are the Government taking to achieve that aim, and how will they take into account the good work that we are already carrying out in west Cumbria?
Joseph Johnson
The Government continue to work with all partners to raise awareness and interest in STEM careers. Initiatives such as the Inspiring Science Capital Fund, a £30 million programme that we launched with the Wellcome Trust, STEM Ambassadors, which is a £5 million-a-year programme, the Polar Explorer programme I have already mentioned, and the industry-led Your Life campaign are providing inspiration for young people to consider STEM careers. I am pleased to say that over 50% of STEM undergraduates are now women.
Paul Blomfield (Sheffield Central) (Lab)
The Minister will know how important EU research funding is to our universities, particularly in relation to STEM subjects. He will also know that those leading the leave campaign promised that no sector would lose out as a result of Brexit. Forget about the next two years—if I could push him on his earlier answer, what will he be doing to ensure that UK Government funds replace European funding, pound for pound, in supporting research in our universities?
Joseph Johnson
We remain members of the European Union. Our institutions are fully able to apply for and win European competitive funding schemes, and they will continue to be able to do so until such time as we change the basis of our relationship with Horizon 2020.
Rebecca Pow (Taunton Deane) (Con)
Thank you for giving me two bites at the cherry, Mr Speaker.
I welcome the Government’s commitment to new universities coming forward, and I am working hard to further one in my Somerset constituency. Given recent developments regarding the EU, does the Minister agree that it is now even more essential that we enable universities to provide the skills needed to upgrade the workforce and maintain our position in the world?
The Minister for Universities and Science (Joseph Johnson)
Yes, indeed. The productivity challenge facing the country is grave, and our universities are a big part of the answer. New universities in higher education cold spots such as Somerset will be a big part of our solution to these challenges.
Kirsty Blackman (Aberdeen North) (SNP)
I understand that the UK Government have yet to confirm whether the allocation of the apprenticeship levy in Scotland will be based on the number of employers in Scotland, or the percentage of the levy paid in Scotland. Will the Minister provide that clarification today? If not, when will he?
Education, Skills and Training
Lord Johnson of Marylebone Excerpts(7 years, 11 months ago)
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The Minister for Universities and Science (Joseph Johnson)
As the hon. Member for Wallasey (Ms Eagle) said, the Secretary of State is not with us today because he is in Mumbai, where we would want him to be, attending the board meeting of Tata and fighting for the interests of the UK steel sector. He would want to be here to champion this Queen’s Speech and to expose some of the shortcomings in the arguments we have just heard. I will not dignify the suggestion that the quality of a Queen’s Speech can be measured by the number of Bills in it. We are an avowedly deregulatory Government, and we legislate only when it is strictly necessary. Even if it were a reasonable benchmark, it is worth noting that 21 Bills is more than the average of 18 Bills per Session that we have seen over the past decade—but we are not going to go there.
This Queen’s Speech puts opportunity and life chances through education at the top of the legislative agenda. It ensures that every child goes to an excellent school and that schools are funded fairly, wherever they are; delivers high-quality, employer-led apprenticeships that provide a clear route to employment for young people. The hon. Member for Wallasey talked about quality, and it is worth noting that all apprenticeships must be paid jobs, with substantial training lasting at least 12 months, that develop transferable skills and lead to full competence in an occupation. A high-quality university place should be put within reach of everyone with the potential to benefit. We have made huge progress since 2010, with 1.4 million more young people attending good or outstanding schools, 2.4 million apprenticeships created, and record application rates to university. This Queen’s Speech is the next step in our long-term plan for our economy.
Rushanara Ali (Bethnal Green and Bow) (Lab)
Can the Minister explain, then, why some young people who are going on apprenticeship programmes are not being paid, but are just paid their costs, amounting to about £100 a week? Is that genuine pay, in his view?
Joseph Johnson
As I said, we are committed to a high-quality, employer-led apprenticeship programme in which apprenticeships must be paid jobs with substantial training opportunities that will equip people to take on the full responsibilities in that particular occupation.
David Rutley (Macclesfield) (Con)
In Macclesfield we were very fortunate, only last year, to see AstraZeneca, a major employer, take on 30 apprenticeships in some of the most important areas of life sciences in our constituency. Does my hon. Friend agree that this approach, with colleges taking a keen interest in relevant local businesses, is the way to establish more apprenticeships and take this important initiative further forward?
Joseph Johnson
Indeed, I certainly agree. Employers are at the heart of the Government’s apprenticeship drive and are continuing to drive up quality by designing new apprenticeship standards that provide the skills that young people need. High-quality apprenticeships will be embedded further, with the future establishment of the institute for apprenticeships, and Ofsted will also ensure that providers continue to deliver the high-quality training expected.
Joseph Johnson
I am going to make some progress.
In her White Paper, “Educational excellence everywhere”, my right hon. Friend the Education Secretary sets out this Government’s plan to drive up educational standards in England. The Government’s goal is to achieve a school system where every school is an academy by 2022, so that excellent teachers have the freedom to give their pupils the best start in life.
My right hon. Friend has made it clear that we have listened and will not take blanket powers to force good schools in strong local authorities to become academies, but we will include provisions to convert schools in the lowest-performing areas and where local authorities are unable to guarantee their continued success. We will consult carefully on how those local authorities will be identified, and Parliament will have further opportunities to debate our proposals. That is the basis of the important proposed legislation that my right hon. Friend will present to Parliament.
Peter Kyle
As somebody who has been involved in setting up two academies and who remains chair of governors of one academy, I know full well that academy status can be a powerful tool for school improvement, but it is not the only tool. Interim executive boards, investment in teaching and a new curriculum are all other tools. Why is the Minister so obsessed with one tool at the expense of all the others?
Joseph Johnson
I point the hon. Gentleman to the White Paper, which has one chapter on structures, while all the others are on other relevant aspects of what makes for a great school, including teaching, management and governance.
Turning to our universities, in the last Parliament we put in place the essential funding reforms that have set university finances on a stable footing and enabled us to lift student number controls.
Wes Streeting (Ilford North) (Lab)
As well as increasing tuition fees, the Government propose to extend them to students of nursing, midwifery and allied health subjects. Given that this is the biggest shake-up in funding for those subjects since 1968, will the Minister give a commitment that those changes will be made in the higher education Bill, so that this House can have a full debate and vote on that specific measure?
Joseph Johnson
We are delighted that we are able to put nurse NHS bursaries on the same footing as measures that have enabled a widening of participation in higher education in recent years. It will enable us to address the shortages that have arisen in the nursing profession as a result of the current system. Our funding reforms have enabled us to lift the number controls that have been affecting the nursing profession. We committed in our manifesto to ensuring the continued success and stability of those reforms. We also committed to ensuring that universities deliver the best possible value for money to students, and we said that we would introduce a new framework of incentives to recognise universities offering the highest quality of teaching. The Higher Education and Research Bill, which was introduced in the Commons last week, will deliver on those and other manifesto commitments.
James Cartlidge
Until this month, Suffolk was one of the only counties in the country without an institution that could technically be described as a university. May I, therefore, offer the Minister my profound thanks, and that of my county, for giving permission for the creation of a brand new University of Suffolk? Will he congratulate all those who have worked for it and join me in wishing them well for the future?
Joseph Johnson
I happily join my hon. Friend in congratulating the new University of Suffolk. It is terrific that one of four counties in this country that did not have a full university now has one. There are three other counties and we hope to encourage new institutions of similar quality to the University of Suffolk to come to the higher education cold spots that we have inherited.
Jesse Norman
In that spirit, may I congratulate my hon. Friend on his great leadership on the new university project in Herefordshire, which is now under way? The aim is not only to transform higher education in my county and to create extraordinary economic potential, but to innovate across the country as a whole by tying together academic and vocational education, and by using resources to create greater employability. That is being done with the support of Warwick University and Olin College in America. Does my hon. Friend share my view that, in order to make that vision happen in cold spots, it is really important not just for central Government to give a lead, as he has done in the White Paper, but for local government grants, central Government guarantees and private money to come together as single whole?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order, I think we will have the Minister. Save your speech for later.
Joseph Johnson
We are delighted to support that great new venture—a new model in technology and engineering—in Herefordshire. It addresses several long-standing problems, including skills shortages in engineering. Herefordshire is an HE cold spot. We welcome the venture and its collaboration with world-leading institutions in the United States, such as Olin, and we want to see more such institutions. I applaud my hon. Friends the Members for Hereford and South Herefordshire (Jesse Norman) and for North Herefordshire (Bill Wiggin), who has left the Chamber, for their tireless work in championing the new institution.
England’s universities rank among the best in the world. They generate the knowledge, skills and attitudes that fuel our economy and sustain our open society. The world of higher education, however, has changed fundamentally since the last major legislative reforms of 1992 and our system needs to meet new challenges.
A rapid interest in jobs requiring higher-level skills has created a worldwide demand for more graduate employees and for greater diversity of higher education provision. Yet this country is still well below the OECD average for university attendance. We send proportionately fewer people to university to study at undergraduate level than our main competitors: first-time entrants in 2013 were just 48% in the UK versus 55% for the OECD average. We also lag behind when it comes to further study: first-time entry rates to masters courses are only 15% versus 20% for the OECD average.
We are also far from meeting our economy’s needs for graduate-level skills. Between now and 2022, more than half of job vacancies will be in occupations most likely to employ graduates. We have removed the cap on student numbers, but we need to remove barriers to entry for high-quality new entrants who will help to meet the demand for skilled graduates.
Neil Gray (Airdrie and Shotts) (SNP)
Given that the Minister has outlined the desperate need for skilled graduate employees, why are his Government so reticent to reintroduce the post-study work visa in Scotland?
Joseph Johnson
This country has a very successful international education exports sector. We have a global market share of more than 10%, which is holding. Our annual growth in international student numbers is between 3% and 4% a year. We are obviously attentive to the need to remain competitive, but we have a successful international education sector and we want to continue to support it by driving up the quality of the teaching and student experience on offer in all our universities.
Rebecca Pow
On the skills gap, the south-west is below the productivity levels. A university would make a really big difference in my constituency of Taunton Deane and in wider Somerset, because it would help skill-up those young people whom I fear we are losing to other places such as Hereford.
Joseph Johnson
I completely agree with my hon. Friend. Universities are a great driver of regional and local economic growth. A recent London School of Economics study demonstrates the strong correlation between opening new universities and significantly increased economic growth. The LSE academics estimate that doubling the number of universities in a region is associated with more than 4% higher future GDP growth per capita.
Stephen Timms
It was our understanding that the Government were going to publish a skills White Paper, but that appears to have been downgraded to a skills plan in the documentation related to the Queen’s Speech. Has that change been made, and if so, why?
Joseph Johnson
The right hon. Gentleman should wait a little bit longer to see the full fruits of the work of the Skills Minister, my hon. Friend the Member for Grantham and Stamford (Nick Boles), and colleagues in the Department for Education led by the expert panel that is chaired by Lord Sainsbury.
To return to the question of why our higher education system needs to meet new challenges, the system needs to be more innovative to meet the diverse needs of learners of all ages and employers of all sizes. As promised in our manifesto, we will promote more flexible learning with the provision of, for example, two-year degrees and degree apprenticeships. We need the system to deliver better outcomes for those who go through it and for the taxpayers who underwrite it. While employers suffer skills shortages, especially in highly skilled STEM areas, at least 20% of graduates wind up in non-professional roles three and a half years after graduating. This graduate labour market mismatch is a waste of their potential and a brake on our economic productivity.
Jo Churchill (Bury St Edmunds) (Con)
Does my hon. Friend agree that it is also important to use our local enterprise partnerships to invigorate places where those needs exist and work out how we can meet them? My hon. Friend the Member for South Suffolk (James Cartlidge) has mentioned the new University of Suffolk campus, and West Suffolk College, in my constituency, has just received an £8 million stimulus from our New Anglia local enterprise partnership.
Joseph Johnson
We certainly agree with all that. Universities are at the heart of many of the most successful LEPs, and we want their good work to stimulate economic growth and relevant provision of higher education by universities in their local areas. That is why at the heart of the Bill are powers to make it easier for high-quality new universities and challenger institutions to enter the sector and award degrees, to drive up quality and to give applicants more choice about where and how to study.
Some say, “Close the door to new universities. Put the cap back on student numbers. Restrict the benefits of higher education to a narrow elite.” The same arguments have been made at every period of university expansion. In the 1820s, University College London and King’s were dismissed as “cockney” universities. Today, they are globally renowned. Those arguments were heard when the civic colleges in Manchester, Birmingham, Liverpool, Leeds, Sheffield and Bristol became red-brick universities before the first world war, and when the Conservative Government of John Major took through Parliament the 1992 legislation that created a wave of new universities from the polytechnics.
Joseph Johnson
In a minute. We need more universities again today. Universities are great engines of social mobility and formidable drivers of regional economic growth. That is why I was so pleased to welcome the announcement of the new University of Suffolk, and it is why I am so supportive of the Hereford plans. Those are just two good examples of the challenger institutions that we have in mind to open up the sector to new, high-quality entrants.
We welcome support for our proposals from sensible figures, such as Lord Mandelson—now chancellor of Manchester Metropolitan, which is one of those institutions that gained university status, thanks to a Conservative Government, in 1992—who have recognised the essential contribution that a wide range of institutions can make to our economic success and to social mobility.
Ms Eagle
Thank goodness for that. Just to make it clear to the hon. Gentleman, Labour Members do not object to expanding the university sector. We do have questions, and rightly, about the speed with which that will be done, how probationary status will work and what kind of gamble that will represent. We will go on asking those questions, but the hon. Gentleman should not set up a straw man or woman and accuse us of being against expansion. We are not, but it has to be of high quality.
Joseph Johnson
I am delighted that the shadow Secretary of State is supportive of new entrants and new challenger institutions. They are exactly what the sector needs, and I am glad that we have established the important point of principle that the Labour party is supportive of new entrants into the sector and believes in competition. That is a good thing, and I am delighted to hear it.
Richard Fuller (Bedford) (Con)
I caution my hon. Friend the Minister not to be so quick to assume that the Opposition will be as supportive as they say they are. We should take a lesson from the experience of the Labour party when it came to introducing competition with free schools. We faced extensive opposition from Labour councils at local level and from vested interests. Although they spoke sweet words about improving quality, they hated the competition that delivered choice to parents and that will, in this case, deliver choice to students.
Joseph Johnson
I hope that my hon. Friend will be proved wrong, but I suspect that he may be proved right during proceedings on the Bill, as we discover the Labour party’s true colours and the reality of its desire to see competition injected into the sector, which I somewhat doubt.
The former Business Secretary is right. The Higher Education and Research Bill, which we introduced last week, represents an ambitious agenda for social mobility. Some, including Labour Members, said when we reformed student finance in 2011 that participation would fall. In fact, the opposite has happened. We have a progressive student loans system that ensures that finance is no barrier to entry, and it is working. Students from disadvantaged backgrounds are going to university at a record rate—up from 13.6% in 2009 to 18.5% in 2015. Labour Members were wrong then and they are wrong now. Individuals from disadvantaged backgrounds are 36% more likely to go to university than they were in 2009. If the hon. Member for Wallasey wants to come in on that point, I will happily take an intervention. No? Okay. We are not complacent. The Prime Minister has set us the rightly challenging goal of doubling the participation rate for the most disadvantaged students by 2020.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Has the Minister seen the figures from the Sutton Trust that show that only 3% of disadvantaged young people go to the most selective third of universities, compared with 21% from the richest neighbourhoods? Is he proud of that record?
Joseph Johnson
Yes, indeed. That is why I have just written to the director of fair access, Les Ebdon, giving him all the political cover that he needs to drive further progress in widening participation at the most selective institutions.
We are strengthening the system of access agreements. They will now cover both access and participation, so that students receive the support that they need right the way through their courses, not just at the point of entry. We will give the new director of fair access and participation, who will be part of the new office for students, a greater set of sanctions to help to ensure that universities deliver the agreements they have made with him.
Some students face additional barriers to accessing higher education because their religious beliefs mean they are unable to take on interest-bearing loans. That is why, subject to Parliament, we will be the first Government to introduce an alternative student finance product that will support those students into higher education. That, combined with other measures, will help us to meet our goal of increasing the number of people from black and minority ethnic backgrounds—one third of whom are Muslim—who go to university. We are committed to an increase of 20% in the number of BME students by 2020.
Stella Creasy (Walthamstow) (Lab/Co-op)
The Minister will know that I have been writing to his Department since 2010 about sharia-compliant loans. The thing that is missing for students, who are absolutely put off by the failure to provide this product, is a timetable for making such loans available. He has committed to legislation, but will he now set out a timetable for when, if the legislation is enacted, students in communities such as mine in Walthamstow will be able to access these products?
Joseph Johnson
I congratulate the hon. Lady on her contribution to the campaign for this important alternative finance product. The coalition Government were the first to consult on the potential demand for such a product. We have a legislative vehicle with which to introduce it, and we are moving at full speed. The sooner Labour Members let this Bill through the Houses of Parliament, the sooner we will be able to crack on and deliver the alternative finance product that they want to see.
In the reforms we are already making to part-time and postgraduate study, we are sending a clear message to people that it is never too late to learn. The Government are transforming the funding landscape for part-time and postgraduate study. We are, for the first time, introducing maintenance loans for part-time undergraduate students, in addition to the tuition fee loans that were made available in the previous Parliament. We continue to reverse Labour’s restriction on studying for a second degree, so that people can get a student loan to take a second part-time degree in a STEM subject. For the first time, we are introducing student finance for postgraduate study, where people from disadvantaged backgrounds are even more under-represented than at undergraduate level. This one nation Conservative Government are giving people the opportunities they need to gain new skills at every stage of their lives.
Mr David Burrowes (Enfield, Southgate) (Con)
I welcome the Minister’s support for the idea that it is never too late to learn. For some refugees, coming to this country will be their first chance to learn. Will the Minister outline the Government’s commitment to supporting their integration, not least in terms of English language courses, which are a crucial component of their learning?
Joseph Johnson
We are committed to supporting refugees as they enter the higher education system, and we will look closely at whether there are any gaps in their support with respect to English language provision.
To turn to the Opposition amendment, we have been able to take steps to widen participation in higher education only because of the difficult decisions we have made as a Government to ensure that our universities are sustainably financed. [Interruption.] They are. Total funding for the sector has increased from £22 billion in 2009-10 to £28 billion in 2014-15, and is forecast to reach £31 billion by 2017-18. The OECD has said that our approach means that we are one of the few countries in the world to have found a sustainable approach to financing a modern system of higher education.
Our economy needs a world-class higher education system, and we cannot allow a situation to arise in which our universities are once again underfunded. The £9,000 tuition fee introduced in 2012 has already fallen in value to £8,500 in real terms. If we leave it unchanged, it will be worth £8,000 by the end of this Parliament. We want to ensure that our universities have the funding they need and that every student receives a high-quality experience during their time in higher education.
I am not the first Minister to note the variability of teaching quality, or indeed the imbalance between teaching and research in our higher education system. Labour Ministers in many Governments have made exactly the same point, but a Conservative Government will actually do something about it. We want to shine a spotlight on good practice, to give applicants more information about the type of teaching and graduate outcomes they can expect, and to raise the status of excellent university teaching. That is why we are implementing our manifesto commitment to introduce a teaching excellence framework to drive up the quality of teaching and spread best practice across our system.
In relation to the Opposition amendment, it is worth noting the irony that it was a Labour Government under Tony Blair who, in 2004, sensibly put in place the new legal powers that have allowed Governments to maintain university fees in line with inflation. For the 2017-18 academic year, I can confirm that the rate of inflation applying to maximum fees for institutions demonstrating high-quality teaching is 2.8%. The measure of inflation we are using is RPIX, as set out in regulations which, again, were introduced by Labour in 2006. The Labour party may have changed its views on that entire era and may no longer support the policy it introduced, but the Conservatives will refuse to allow students’ learning to suffer.
As Universities UK and GuildHE have made clear in statements ahead of today’s debate, allowing the value of maximum fees permitted by legislation to be maintained in real terms is essential if universities are to continue to be able to deliver high-quality teaching.
James Cartlidge
My hon. Friend is making a very credible case. Does he agree that if we do not fund better degrees and the growth of higher education through the current system, the only alternative will be to do so through taxation—or borrowing—levied across the whole populace, including those who do not necessarily benefit from higher education?
Joseph Johnson
My hon. Friend makes the point perfectly. It is hard to improve on the way he put it. The alternative to what we are doing would be to place a greater burden on general taxpayers whose lifetime earnings will be lower than those of people who have benefited from a university education. In the case of women, graduates’ lifetime earnings will be £250,000 higher than those of non-graduates, and in the case of men, graduates’ lifetime earnings will be £100,000 higher than those of non-graduates.
Jim McMahon
I was beginning to get a complex, having been trying to grab the Minister’s attention for some time. It is interesting that the Minister accepts that there is a need to keep in line with the increasing costs in the university sector, but does not accept that the same is true for further education or for our school system.
Joseph Johnson
Our FE budget has been protected at the £4,000 level, and we continue to prioritise apprenticeships. That is one of the most important Government policies, and we are fully committed to achieving our 3 million high-quality apprenticeships over the course of this Parliament.
Several hon. Members rose—
Joseph Johnson
I will make a bit of progress, if I may.
Universities UK and GuildHE are clear in their support for our intention to link access to the limited inflationary uplift to an assessment of quality, which is a principle we have long accepted for the funding of research in our universities. It was a Conservative Government who brought in the first research assessment exercise in 1986, and there is no doubt that our rigorous system of only funding excellence has driven up the quality of our research over the past three decades. Let us take a look at the statistics. The UK has recently overtaken the US to rank first among comparable nations for our field-weighted citations impact. With just 0.9% of the world’s population and 3.2% of its research and development expenditure, the UK accounts for 16% of the most highly cited articles. Now is the time to extend that principle and link funding to the quality of teaching —as assessed by the teaching excellent framework, not just student numbers—as we have long and successfully done in research.
Ben Howlett
There were two very interesting omissions in the speech of the hon. Member for Wallasey (Ms Eagle). There was not one mention of what students want, which is higher quality teaching. The other huge omission was the fact that if teaching quality decreases, the fees of course decrease as well, which gives all universities a massive carrot to improve the quality of their teaching.
Joseph Johnson
My hon. Friend is quite right. We are putting in place the reputational and financial incentives to drive and spread best practice throughout this sector, and the teaching excellence framework will be an important part of our doing so.
The inflationary uplift we are allowing to universities that demonstrate high-quality teaching is a £12 billion investment in the skills base of this country over the next decade. It is now for the Opposition to explain how they would make up for such a significant shortfall in university funding. To do so would either mean cutting resources from our universities, risking the sustainability of our world-class sector and leading to the reintroduction of aspiration-limiting student number controls, or the classic Labour response to any policy challenge—[Interruption]—we are already hearing it articulated: of more spending, more taxes, more borrowing and more debt. Labour Members might well heed the words of Ed Balls, who recently told Times Higher Education that Labour
“clearly didn’t find a sustainable way forward for the financing of higher education”.
He described that failure in the run-up to the last general election as
“a bit of a blot on Labour’s copybook”.
Indeed, it is, and the shame is that they clearly still have not learned the lesson
We are fulfilling our manifesto commitment to ensure the continuing success and stability of our reforms, balancing the interests of taxpayers and students. We have struck the right balance: numbers of disadvantaged students are at record levels; university funding is up; and research funding is protected. This is a one nation Queen’s Speech, from a one nation Government. Through our proposals, we are extending the benefits of a great education to school pupils and students across the country, and we must never let the Labour party put that at risk.
Several hon. Members rose—
Oral Answers to Questions
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James Morris (Halesowen and Rowley Regis) (Con)
T10. There are 850,000 dementia sufferers in the UK, and that number is set to double over the next few years. What is the Minister doing to encourage British scientists to be as innovative as possible in delivering on improved care for those suffering from dementia?
The Minister for Universities and Science (Joseph Johnson)
We took the decision to protect the science budget, enabling us to invest and put the UK at the front of tackling diseases such as dementia. In addition, a Government investment of £150 million has been announced by the Prime Minister to establish a dementia research institute. I am pleased to confirm that two leading charities, the Alzheimer’s Society and Alzheimer’s Research UK, have now pledged a further £100 million towards the project. The Medical Research Council will be looking for an inspirational director to lead the institute and bring together the collective experience that exists in the UK and worldwide.
Margaret Greenwood (Wirral West) (Lab)
T2. Guidance issued by the Government on 8 February on the use of Government-funded research for lobbying caused great concern in the field of higher education and indeed among academics in my constituency of Wirral West. Can the Minister confirm that all grants given out under the remit of the Department for Business, Innovation and Skills will be exempt from the anti-lobbying clause? Will he also confirm that he is seeking a similar exemption for research grants given out by other Government Departments and agencies?
Joseph Johnson
Yes, there has been concern from academic communities and I can confirm that all grants issued by the Higher Education Funding Council for England and the academies will not be covered by that clause.
Kelly Tolhurst (Rochester and Strood) (Con)
T7. I am proud that, of the south-east’s 348,000 apprenticeships, Rochester and Strood has provided 7,410, the fourth largest number. I am also grateful to companies such as BAE Systems that makes an annual commitment to 12 higher level apprenticeships in my area. How can the Secretary of State provide further support to my constituency’s small and medium-sized businesses to offer more local people the opportunity of a quality apprenticeship?
Andrea Jenkyns (Morley and Outwood) (Con)
I am a champion of the Sutton Trust and the inquiry by the all-party parliamentary group on social mobility into access into leading professions. What is the Department doing to support our leading professions to work with schools and universities to build up the schools base, so that more young people from disadvantaged backgrounds can access our top professions?
Joseph Johnson
We have established the Careers & Enterprise Company to make sure that all young people know about the opportunities available to them through our higher education reforms. We are also giving students more information than ever before about their course choice, and we have introduced degree apprenticeships as a new route into the professions. We want to see universities playing their part too, which is why I have asked the director of fair access to continue to focus on access to the professions in his work with universities.
Liz McInnes (Heywood and Middleton) (Lab)
T5. A total of 11,000 BHS employees face an uncertain future over not just their jobs, but their pensions. Where will the Secretary of State place responsibility for filling the pension fund black hole? Will it be with the taxpayer or with the owners of the company, who paid themselves more than £400 million in dividends while the pension fund was driven into the ground?
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Paul Blomfield (Sheffield Central) (Lab)
13. What plans his Department has for the form of the consultation on its decision to close its office in St Paul’s Place, Sheffield.
The Minister for Universities and Science (Joseph Johnson)
The Department for Business, Innovation and Skills is consulting for 90 days with staff and trade unions, including on firm proposals to move policy directorate roles to London, potentially resulting in the closure of the Sheffield office. BIS is also consulting on how it can avoid making redundancies, and no decisions will be taken before the end of the consultation on 2 May.
Paul Blomfield
I thank the Minister for confirming that no decision will be taken on the closure of the office before the end of the 90-day consultation. The chief executive of Sheffield Council has written to the permanent secretary to point out that moving 247 jobs from Sheffield to London will add around £2.5 million to the annual operating costs of the Department, and he has offered to work with him to consider alternatives. Will the Department take up that offer before a final decision is made?
Joseph Johnson
The Department is in consultation with staff, trade unions and local authorities. The savings from those changes will result in £350 million across the spending review period, or 30% to 40% of such budgets. That important saving comes from the consolidation of 80 sites in seven centres of excellence.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
T5. In February, the Cabinet Office announced its intention to insert a new clause into grant agreements for charities. Many universities, including my local University of the West of Scotland, are worried that that will prevent them from being able to advise Government, Parliament and political parties. Will the Minister confirm whether universities will be exempt from any new clause, and if so, what form the exemption might take?
The Minister for Universities and Science (Joseph Johnson)
We are discussing with Cabinet colleagues exactly how we might treat universities with respect to that proposal.
Andrew Griffiths (Burton) (Con)
The Secretary of State will know that the beer and pub industry in the west midlands employs 86,000 people in 5,000 pubs, has 124 breweries and contributes £1.3 billion in tax. Given his support for the brewing industry when he was in the Treasury, when he led the call for the duty cut, will he outline what his Department is doing to support the beer and pub industry—and will he pick up the phone to the Chancellor and ask him for another cut?
Owen Thompson (Midlothian) (SNP)
A recent report from PricewaterhouseCoopers highlighted innovation as a key driver of growth across the global economy. It also found that UK companies were less innovative and less focused on innovation as a driver for growth than the global average. With UK gross domestic product growth revised down by OECD and the IMF, is it not time that the Minister paid greater attention to supporting innovation in our economy?
Joseph Johnson
Since 2010, the UK has risen from 14th to second place in the global innovation index, behind only Switzerland. We continue to support innovation in this country through Innovate UK and our expanding Catapult network.
Kit Malthouse (North West Hampshire) (Con)
The most promising sector in the British economy at the moment is life sciences, yet historically start-ups in this sector have had difficulty attracting venture capital. Will the Minister update us on progress he is making on getting this vital resource into this vital sector?
David Simpson (Upper Bann) (DUP)
Further to an earlier question, the Minister will know that we have many young entrepreneurs with innovative ideas in our universities throughout the United Kingdom. What more can the Government do to encourage them to stay in this country and produce their goods?
Joseph Johnson
We continue to support innovation all over the country. Scotland is doing particularly well at present, with an 11% share of Innovate UK’s budget. Its population and GDP shares are both 8%, so it is punching above its weight, and I hope it will continue to do so.
Michael Ellis (Northampton North) (Con)
What is my hon. Friend doing to deal with the appalling anti-Semitism at the Oxford University Labour club? We are now also hearing about an anti-Semitic play being performed at York University. Those are both appalling examples of disgraceful, blatant and rabid anti-Semitism.
Joseph Johnson
I have, of course discussed the matter with the Vice-Chancellor of Oxford University, and also with the chief executive of the Higher Education Funding Council for England. Anti-Semitism has no place in our universities, or anywhere else in our society. Last November, we asked Universities UK to lead a review of harassment and hate crime in higher education; the Union of Jewish Students is represented on that body. We expect university leaders to deal with anti-Semitism without hesitation, taking disciplinary action and involving the police whenever that is necessary.
Conor McGinn (St Helens North) (Lab)
In this glorious week of the Cheltenham festival and St Patrick’s Day, will the Secretary of State join me in paying tribute to the Irish business community in Britain, and to all who work to promote trade between our two countries? Will he also acknowledge, and pay tribute to, the fact that the relationship has been cultivated within the European Union—and long may that continue?
Mr Alan Mak (Havant) (Con)
Havant is a national centre for aerospace and engineering excellence. Will the Minister join me in congratulating everyone involved in the ExoMars space programme?
Joseph Johnson
I certainly will. The UK space industry is indeed booming, with average growth rates of 8% over the past eight years. The ExoMars rover has been built in Stevenage, and I look forward to seeing the results from the Mars methane sniffer once it has completed its seven-month journey to Mars. I would like to tell the House that this morning I received an update from the UK Space Agency to say that a signal has now been received at mission control, so we can safely say that the launch has been a success.
Oral Answers to Questions
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Matt Warman (Boston and Skegness) (Con)
11. What steps he is taking to increase the participation rate in STEM subjects in higher education.
The Minister for Universities and Science (Joseph Johnson)
Record numbers of students secured places on science, technology, engineering and maths courses this year at our universities, and thanks to the decision we have taken to end student number controls, there is no longer any cap on the number of people wishing to study STEM subjects. The number of full-time students accepted to study STEM subjects in England is up 17% since 2010.
Stephen Metcalfe
Will my hon. Friend join me in celebrating the work and role science and discovery centres play in inspiring young scientists and engineers? Will he tell the House what plans he has to improve their reach, raise awareness of their existence and support their important work?
Joseph Johnson
I certainly will. Our science centres do a fantastic job engaging with over 20 million people each year. That complements the work we are doing to boost STEM subjects in schools. Last week I was delighted to announce a £30 million Inspiring Science capital fund in partnership with the Wellcome Trust. It will allow science centres to make big investments in cutting edge exhibitions and education spaces, and reach all sorts of people who think science is not for them.
Matt Warman
Many small businesses in my constituency need STEM graduates. What are the Government doing to connect them with small businesses, and to encourage them to start their own businesses as well?
Joseph Johnson
The Government’s productivity plan set out their agenda for even greater collaboration between universities and business, and we are supporting degree apprenticeships, the first of which were in STEM occupations, such as aerospace and automotive engineering. Small businesses are essential to this agenda. In 2015, the National Centre for Universities and Business reported that 60% of work placements for students on STEM courses were in small businesses.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Not content with cutting social security support for disabled people, including those in work, the Government have moved on to cuts to the disabled student’s allowance. What is the estimate of the reduction in the number of disabled students doing STEM subjects and the impact on the disability employment gap as a result of that?
Joseph Johnson
The disabled student’s allowance continues to exist, and is available to all students who need it. Universities must step up to their obligations under the Equality Act 2010 to make their learning environments fit for disabled students, and that will continue to be the case.
Yvonne Fovargue (Makerfield) (Lab)
The Migration Advisory Committee recently proposed that employers pay an annual charge of £1,000 for every skilled worker brought into the UK from outside Europe. Given that recent figures show a 40,000 annual shortfall in STEM skilled workers, has the Minister considered what effect the proposal would have on the science community and high-tech businesses?
Joseph Johnson
We are, of course, considering the Migration Advisory Council’s recommendations, and will come forward shortly with our response, but through our tier 1 exceptional talent visa, we provide many opportunities to highly talented scientists to work in the UK and contribute to our economy.
Carol Monaghan (Glasgow North West) (SNP)
7. What discussions he has had with the Scottish Government on implementation of the apprenticeship levy.
Student Maintenance Grants
Lord Johnson of Marylebone Excerpts(8 years, 3 months ago)
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The Minister for Universities and Science (Joseph Johnson)
I welcome the opportunity to explain, I hope briefly, why it would be a mistake to vote for the Opposition motions that attempt to annul the statutory instrument agreed by the Delegated Legislation Committee last Thursday. The instrument delivers the Government’s policy of offering increased financial support for living costs for new students in the 2016-17 academic year in the form of loans rather than grants. The policy is part of the Government’s plan to ensure that our world-class higher education sector remains sustainably financed and open to more students from all backgrounds. The Government are extending the benefits of higher education to more people than ever before. We have lifted the artificial cap on student numbers, allowing record numbers to secure places last year.
A higher education sector that is not properly and sustainably funded cannot deliver the life-changing education that students expect.
Joseph Johnson
I will when I finish my introductory remarks.
In the context of fiscal restraint, ensuring that we have a sustainable model for our higher education system is crucial. In this respect, the measure builds on successive reforms since 2010 which have delivered a higher education system that safeguards social mobility and delivers for students and taxpayers. Indeed, the OECD has commended the reforms in aggregate for the sensible balance they strike between the interests of taxpayers and students. Its director of higher education has said that England is
“one of the very few countries that has figured out a sustainable approach to higher education financing.”
Very recently, on a trip to London, he added that England
“has made a wise choice. It works for individuals, it works for government.”
Joseph Johnson
I am grateful to the right hon. Gentleman for making that point. If he reads page 35 of the Conservative party manifesto, he will see a clear commitment to continuing the funding reforms that I have just described and ensuring a fair balance between the interests of taxpayers and students. There are also many other references in the Conservative manifesto to the need to achieve budget deficit savings.
Let me start by beginning to address the questions about the scrutiny of the regulations that were raised by the hon. Member for Blackpool South (Mr Marsden). The regulations were not sneaked in, as he suggested. In fact, the policy was first announced in principle in the 2015 summer Budget, nearly six months ago. It was in fact included in the Chancellor’s summer Budget speech, one of the most closely scrutinised events in the parliamentary calendar. The decision finally to proceed was made as part of the spending review in November 2015 and the instrument was laid before the House on 2 December. A comprehensive 80-page equality analysis was published the next day, in line with an earlier commitment I made voluntarily to the House. I shall say more about that later.
The regulations were made under powers granted to the Secretary of State by the previous Labour Government, under the Teaching and Higher Education Act 1998. Rather than using some obscure and arcane procedure, as hon. Members have suggested, we are following the very parliamentary processes that the previous Labour Government created for this purpose. Labour asked for a debate on the regulations on 9 December and the Government tabled a motion that appeared on the Order Paper on 5 January, referring the regulations to a Delegated Legislation Committee. Labour did not object, and the regulations went to such a Committee on 14 January. To put it simply, the processes were put in place by Labour when they were last in government and they did not object on 5 January, when they had the chance. I now welcome the opportunity to debate the issue further in this Opposition day debate and I note that the other place will also have a chance to consider the instrument following the tabling of a motion by the noble Lord Stevenson of Balmacara on 13 January.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
I have been contacted by a large number of people, including students from Walbottle Campus, Gosforth Academy and Newcastle and Northumbria Universities. They would like to know from the Minister when they will have the opportunity to feed into the public consultation on this issue.
Joseph Johnson
The House debated the matter in the Delegated Legislation Committee. There was a thorough 80-page equality analysis. The Department for Business, Innovation and Skills maintains an ongoing and regular dialogue with all stakeholders on matters relating to higher education.
We welcome the scrutiny, because this Government are rightly proud of our record on higher education. Since 2010 we have delivered a bold reform of higher education, putting in place a funding model that has ensured that our universities are properly funded and properly able to deliver world-class, life-changing education. At a time of significant fiscal consolidation, total income for the higher education sector has risen in real terms; it has increased from £24 billion in 2012-13 to £26 billion in 2013-14 and is forecast to rise to £31 billion by 2017-18.
Let us not forget the difficult fiscal context in which this has been achieved. Against the background of a record budget deficit, providing universities with that level of financial security could only be achieved by asking students to meet a greater part of the cost of their education, paid not upfront but out of their future earnings. That recognises the principle that if someone benefits from higher education and secures higher lifetime earnings than taxpayers who do not go to university, they should contribute to the cost of their education.
Rushanara Ali
The Minister is aware that students from disadvantaged backgrounds are already less likely to go to university; those from more advantaged backgrounds are two and a half times more likely to do so. This change will make that much worse. Will the Minister please face up to the facts and do something to respond to this question? If his Government are serious about social mobility, these cuts would not be made and he should be honest about that.
Joseph Johnson
This Government are committed to social mobility and we are delighted that we now have more students from disadvantaged backgrounds going into higher education than ever before, at a record level of 18.5%. Those from a disadvantaged background are now 36% more likely to go to university than when we took office in 2010. The Prime Minister has committed to doubling the proportion of students from disadvantaged backgrounds in our universities from 2009 levels by 2020, and we are going to be doing everything in our power to ensure that happens.
It is this sustainable model of funding that has allowed more people to benefit from higher education, which in turn promotes social mobility. Removing the cap on student numbers has allowed more people to benefit from higher education than ever before. We are now in a position in which almost 50% of young people are likely to undertake some form of higher education during their lifetime. This would simply not have been possible in an unsustainably funded higher education system.
Peter Kyle (Hove) (Lab)
Brighton and Hove City Council has set up a fairness commission to make sure that it delivers fairness and social mobility in its public policy making. With 3,700 students out of 10,000 at Sussex University and 6,700 out of 16,000 at Brighton University on maintenance grants, has not their job just got an awful lot more difficult because of the Government’s policy?
Joseph Johnson
The hon. Gentleman can tell his constituents that university and going into higher education remain transformational experiences, especially for people from disadvantaged backgrounds. They are likely on average to go on to earn £100,000 more over their lifetimes as a result. Owing to the instrument that we are debating today, they will have access to more financial support while they are at university than ever before.
Let us acknowledge the success of these reforms. As a consequence, we today have a higher education system with record numbers going to university, record numbers of disadvantaged students, the highest ever rates of black and minority ethnic participation, and more women in higher education than ever before. The principles underpinning these reforms flow from a clear manifesto commitment to
“control spending, eliminate the deficit, and start to run a surplus.”
I have already referred to the other commitments in the manifesto, on page 35, relating specifically to higher education funding.
Those Opposition Members who oppose our policy and want to reintroduce more direct taxpayer support must think about whether they would also have to reintroduce the student number controls we abolished and prevent thousands of young people from attending university.
Neil Coyle
The point I want to make is that applications to the most selective universities from students from the lowest income households has fallen since 2010, from 16.2% in 2010 to 15.3% in 2014. What impact, in terms of the number dropping further, will this policy have?
Joseph Johnson
We want people from disadvantaged backgrounds to go to the very best universities in this country in as high a proportion as possible. We want to see that increase, which is why we asked in our guidance letters to the director of the Office for Fair Access that he pay particular attention to institutions that are not pulling their weight in getting people in from disadvantaged backgrounds. We will continue that in our next letter to the director of the OFA.
Rebecca Harris (Castle Point) (Con)
On paying for university, does the Minister agree that it is difficult for me to explain to residents in my constituency on low or moderately low incomes who have not had the benefit of a university education that the alternative is for them to pay more in their taxes for people who will have the opportunity to earn considerably more in their lifetimes?
Joseph Johnson
I thank my hon. Friend for her intervention, and that is precisely the point: it is unfair on people who do not go to university to pay for the educations of those who in their lifetimes will go on to earn considerably more. On average, men who go to university will earn £170,000 more in their working lifetimes than someone with two A-levels who does not go to university, and women who go to university will earn £250,000 more over their working lifetimes. It is entirely fair that we ensure that they contribute towards the cost of their higher education.
Let me turn now to specific changes to student finance for the coming academic year. We should first note that the instrument delivers more money for students from some of the most disadvantaged backgrounds. Evidence suggests students are primarily concerned about the level of maintenance support they receive while studying. They understand that student loans are not like commercial debt, in that they are progressive and only repaid in line with future incomes.
As a result of these regulations, an eligible student whose family income is £25,000 or less and who is living away from home and studying outside London will qualify for up to 10.3% more living-costs support in 2016-17 than they would under current arrangements, which is an additional £766 of support. Those who vote for the motion to annul this instrument will be denying poorer students this extra cash.
Studies show that graduates will, on average, earn £100,000 more than non-graduates over their lifetime. BIS research suggests that this premium could be as high as £250,000 for female graduates compared with those who hold two A-levels or fewer. This is our progressive A-level system and our progressive repayment system in action, and those who do not benefit from increased earnings as a result of undertaking higher education will not pay any more as a result of this policy.
The system we have put in place ensures that higher education is open to everyone with the potential to benefit from it, irrespective of background. Opposition scaremongering only risks deterring students from attending university. While the data available so far on this application cycle are provisional, early data from UCAS indicate applications in 2016-17 are broadly in line with last year. The BIS-funded student finance tour sends out recent graduates to schools to bust the myths about student finance. Let us not undo the good work they do in undertaking this tour; they are passionate advocates of the benefits of university, and speculating and scaremongering about the effects of this instrument will undermine their good work.
Patrick Grady (Glasgow North) (SNP)
More than 45,000 students from England each year choose to study elsewhere in the UK, including at Glasgow University in my constituency. How does scrapping maintenance grants incentivise them to travel further from their home to get the benefit of education at universities outside England?
Joseph Johnson
We are making a record amount of financial support available to those students—more than has been provided by any previous Government. That will enable them to travel further away from home than they have in the past.
Let me turn to the significant savings achieved by these changes. The switch from maintenance grants to loans will, in a steady state, save around £2.5 billion per year from the fiscal deficit—not the £1.5 billion mentioned. We acknowledge that a proportion of the loans will not be repaid. This is a conscious decision to invest in the skills base of our country, and protect those who go on to lower-paying graduate jobs. We forecast that the long-term annual economic savings will be around £800 million per year.
Mr Geoffrey Robinson
The Minister said earlier that this is a deficit-reducing policy and we take that, and of course I entirely agree with all the points that have been made on the grounds of social mobility and denial of educational opportunity that this policy implies, but is not the point the Minister really has to answer that 45% of his loan books at the moment have been declared delinquent for one reason or another? How much of this so-called saving does he think he is going to get back? Is he not really just pretending he is making this saving, while in fact building up unfunded liabilities?
Joseph Johnson
There is an immediate grant saving of £2.5 billion, which comes directly off the budget deficit. As I just mentioned, there is of course the prospect down the line of some loans not being repaid, as a result of a conscious decision by the Government to invest in the skills base of the country and to allow people to pursue incomes that do not enable them to pay off the full value of the loan. The economic value of the savings, as I just said, is £800 million a year in a steady state.
I challenge the Opposition to explain how they would fund their alternatives. I note that the Labour party has in the past year put forward competing higher education funding policies, although they share one significant feature: their huge cost to the taxpayer. Labour’s leader, the right hon. Member for Islington North (Jeremy Corbyn), said in July that fees should be removed completely, with grants retained in full. The policy was costed by Labour itself at £10 billion. Such policies move us backward. They are unsustainable and, at a conservative estimate, would add more than £40 billion to the deficit over a five-year Parliament. We should be clear about what the results would be: more reckless borrowing, more taxes on hard-working people, and the reintroduction, inevitably, of student number controls. We have lifted student number controls and we will not allow the Labour party to reimpose a cap on young people’s aspirations.
I will deal with the risks associated with this policy as set out in the equality analysis, but let me first quickly respond to the false accusation that we refused to publish the assessment until prompted to do so by the National Union of Students. That is simply not true. Every year, when the Education (Student Support) Regulations 2011 are amended, an equality analysis covering the changes is published on gov.uk. This is standard practice. On 14 September, in a written response to a parliamentary question asked by my hon. Friend the Member for Totnes (Dr Wollaston), I said:
“The Government expects to lay amendments to the Education (Student Support) Regulations 2011 later this year and publish an Equality Analysis when the Regulations are laid. The Equality Analysis will include an assessment of potential impacts of the changes.”
Only on 22 September 2015, more than a week after that answer was given, did the NUS give notice that it would seek legally to challenge our policy. There has been no evasiveness in the presentation of the policy or its potential impacts.
I will deal now with some of the issues identified in the equality analysis and how they will be mitigated. Let it be remembered that similar issues were identified as a result of the 2012 reforms, but did not crystallise. Indeed, we now have a world-class higher education system, with record numbers of disadvantaged students in higher education, the highest rates of BME participation in higher education and more women in higher education than ever before. Our impact assessment explains that the risks will be mitigated by at least three factors, including the 10.3% increase in the maximum loan for living costs, the repayment protection for low-earning students and the high average returns on higher education.
More funding is also being provided through access agreements: in 2016-17, £745 million is expected to be spent by universities through access agreements, up from £404 million in 2009-10. That is money that makes a real difference to disadvantaged students, and we will of course monitor the progress of the policy through the data available from the Higher Education Statistics Authority and the Student Loans Company.
Rachael Maskell (York Central) (Lab/Co-op)
At the University of York, 40% of students get a maintenance grant. What assessment has been made of the impact on universities of not attracting students because they simply cannot afford to attend?
Joseph Johnson
As I have already said, we are making a record amount of financial support available to students, and students from the poorest backgrounds will benefit from a 10.3% increase in financial support. They will have more cash in their pockets than ever before.
I hope that I have been able to clarify some of the misconceptions about our policy, the steps we are taking to increase living costs support and the process surrounding it. I will finish by directing Labour Members’ attention to the interview with Ed Balls in Times Higher Education this week, which should be of interest to them. He said that the
“blot on Labour’s copybook”
was that
“we clearly didn’t find a sustainable way forward for the financing of higher education”.
He went on to say:
“If they”—
the electorate—
“think you’ve got the answers for the future, they’ll support you”.
We have a plan for the future. In a time of fiscal restraint, we are taking action to ensure that university finances are sustainable, so that more people than ever before can benefit from higher education.
Several hon. Members rose—
Paul Blomfield (Sheffield Central) (Lab)
I have the privilege to represent more students than any other Member of the House. I am pleased to have the chance to raise their concerns, and more importantly, the concerns of those who hope to take their place in the future but will, I fear, be deterred from doing so by the Government’s proposals. Such a decision is one of huge significance for 500,000 students.
It is a major reversal of Government policy, and it is being taken without any mandate. The Minister for Universities and Science tried to bluster his way out of that by referring to page 35 of the Conservative manifesto. I challenge his colleague, the Minister for Skills, to read out the precise section of the manifesto that gives the Government the mandate to remove maintenance grants from the poorest students. I will happily give way now if the Minister for Universities and Science wishes to read it out.
Paul Blomfield
I urge Conservative Members to think carefully about the policy. [Interruption.] Their party—it is a shame none of them is listening—has consistently supported maintenance grants. In November 2009, the then Conservative shadow Minister told the House that it
“is students from the poorest backgrounds who are most desperate when they cannot get their maintenance grant”.—[Official Report, 3 November 2009; Vol. 498, c. 737.]
When we debated the Government’s changes to student funding in November 2010, a Conservative Minister said:
“Our proposals…help to encourage people from poorer backgrounds…because of the higher education maintenance grant… That crucial commitment…is one of the reasons we commend these proposals to the House.”—[Official Report, 3 November 2010; Vol. 517, c. 940.]
Reflecting on their approach, in September 2012 a Conservative Minister said:
“The maintenance grant and support for bursaries are going up. That is why we…have record rates of application to university”.—[Official Report, 11 September 2012; Vol. 550, c. 216.]
In opposition and in government, Conservative shadow Ministers and Ministers have rightly made the case for maintenance grants year after year.
That was, however, suddenly thrown into reverse by the Chancellor in the July Budget, without any proper consideration of its impact. Such a consideration is important because we are talking about the poorest students. We still have not seen the original assessment behind the July decision, but even the massaged assessment that the Government were prepared to publish in November, four months after the decision was made, is extremely worrying.
Conservative Members should pay heed to it, because it is the Government’s own assessment. On participation by low-income households, it warns of the evidence from past reforms on which the Government are relying that
“there are limits to its direct applicability”.
On gender, it expects a “decrease in female participation”. On age, it says that there is a
“risk for the participation of older students”.
On ethnicity, it says that there is a
“risk to the participation of students from ethnic minority backgrounds”.
On religion, it talks about
“a decline in the participation of some Muslim students”.
That is the real impact on real people.
That impact has been confirmed by those affected. A survey of students in receipt of maintenance grants found that 35% said that, because of their circumstances, they would not have gone to university without a grant. A new survey by Populus says that 40% of parents from low-income households believe their children will be discouraged from going to university without a grant. Evidence from the Institute of Education shows that for every £l,000 increase in the grant, there is a 4% increase in participation from lower-income families. No doubt the reverse is true, so with the level of cuts being made, there will be a significant decrease on the basis of that assessment.
The irony is that the Government have set ambitious objectives for widening participation. The problem is that this policy will prevent that. I urge Conservative Members to vote with us to annul it.
Oral Answers to Questions
Lord Johnson of Marylebone Excerpts(8 years, 6 months ago)
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Bob Blackman (Harrow East) (Con)
7. What estimate he has made of the number of students from India applying to study in the UK in each of the past three years.
The Minister for Universities and Science (Joseph Johnson)
While overall international student numbers are up year on year, there were 16,000 Indian students in 2015—a decline of 13% over the past three years. However, it is worth stressing that India remains our second largest such market.
Bob Blackman
The fact is that the numbers of students choosing to come here has declined by 53% in the past four years. There is clear concern that we need to do something about this so that Britain, rather than the United States or elsewhere, becomes the choice for Indians to study. What measures can my hon. Friend take on visas, changing times for study and the ability of students to work here?
Joseph Johnson
It is important that we clear up misperceptions in the Indian market about the openness of our offer. We are open to international students. There is no cap on the number of international students who can come and study here, or on the number who can come and stay here after they finish studying, provided that they get a graduate job. We want to make more Indian students feel welcome here, and that is what we will be doing during the visit of Prime Minister Modi later this week.
Fiona Mactaggart (Slough) (Lab)
The Minister says that we want to make more Indian students feel welcome here, but it is clear from the figures that they feel much more welcome in America, Canada and Australia—our competitor countries. Will this not have a substantial impact on Britain’s trade relations with India and other countries such as Pakistan where the figures have fallen, and what is he going to do about it?
Joseph Johnson
Overall international student numbers are up year on year. We have a competitive offer for international students. We have a world-class higher education sector, with 38 out of the world’s top 100 universities. It is not surprising that international students from all over the world want to come and study at our great universities.
Tristram Hunt (Stoke-on-Trent Central) (Lab)
I alert the House to my interest in the register. When is the Minister’s Department going to show some leadership and get the Home Office to take students out of the migration figures? This Government are undermining the global reach of our universities, and America, Canada and Australia are benefiting.
Joseph Johnson
We have a competitive offer, as underlined by the fact that international student numbers are up by 3% to 4% year on year. We work closely together to ensure that our international offer is competitive. It remains competitive and will continue to be so. There is no cap on the number of international students coming to this country and no limit to the number who can go on to work in graduate jobs with a sponsored employer.
Andrew Griffiths (Burton) (Con)
8. What assessment he has made of the effectiveness of steps taken by UK Trade & Investment to encourage British exports.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
T6. In his Green Paper, the Minister says that he wants to improve access to higher education for the most disadvantaged students. Will he match that rhetoric with action and protect the student opportunity fund, which does so much to support young people from across the country in realising their full potential?
The Minister for Universities and Science (Joseph Johnson)
Yes, indeed. In the Green Paper, we set out various proposals on which we want to consult with the sector. I have also announced the creation of a social mobility taskforce, which is to report back to me by Christmas with proposals on how to meet the Prime Minister’s ambitious target of doubling the proportion of people from disadvantaged backgrounds who attend university by 2020.
Marcus Fysh (Yeovil) (Con)
T7. The Government are making large infrastructure investments in my area, through projects such as the dualling of the A303 and Hinkley Point. I am trying to encourage large-scale inward investment. How can my hon. Friend help us to build on local skills and research and development?
Mr David Lammy (Tottenham) (Lab)
I welcome the decision the Department has made on name-blind applications to university, but the Minister will know that this does little to deal with prejudices of class and race. Postcode, school and being first in the family to go to university are just as important. What progress is being made on contextual data?
Joseph Johnson
It is a priority for the Government to increase the proportion of disadvantaged people going to university. We have brought forward proposals for UCAS to look at, so that for the 2017 admission cycle, we can introduce name-blind applications—an important step to ensuring that application and admission to university is on the basis of merit.
Several hon. Members rose—
Stewart Malcolm McDonald (Glasgow South) (SNP)
In the Scottish Government’s programme earlier this year, the First Minister announced three new innovation centres for Scotland across Europe, one of which will be based here, in the great European capital city of London. How do the Government plan to support that centre, to ensure that Scottish businesses compete on the world stage?
Joseph Johnson
We continue to support innovation across the UK. I was pleased to be in Glasgow 10 days ago, laying the turf for a new innovation centre, the Imaging Centre of Excellence, in the University of Glasgow. Scotland punches above its weight with regard to research funding—it has an 11% share of it, whereas it has an 8% share of the population—and I hope it continues to do so.
Oral Answers to Questions
Lord Johnson of Marylebone Excerpts(8 years, 7 months ago)
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Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
11. What recent estimate he has made of the value of UK membership of the EU to businesses and universities.
The Minister for Universities and Science (Joseph Johnson)
Our world-class universities, with their close links to business, are at the heart of the global knowledge economy. They will benefit from the reforms we want to see in place across the European Union. As the Minister for Small Business, Industry and Enterprise just said, the EU is our biggest market. Reform and growth on the European continent is good for British business, and it is good for our globally networked universities.
Gerald Jones
Universities UK recently highlighted the risk to potential funding and collaboration if Britain withdraws from the UK. That applies to my own constituency as well. Does the Minister agree with that, and does he support Universities UK and its campaign?
Joseph Johnson
I discuss these issues regularly with Universities UK, which recognises that reform across the European Union will support growth and competitiveness. In turn, that will help the links that our great universities have with business.
Philip Davies (Shipley) (Con)
Will the Minister confirm that last year our trade deficit with the European Union was £62 billion, and that it is therefore nonsensical for anybody to argue that we will see the end of free trade with the EU if we were ever to leave it? When he has confirmed that, perhaps he can set out what on earth we get for our £18 billion membership fee every year.
Joseph Johnson
We want to see the completion of the single market so that British businesses can compete more effectively across promising sectors of the European single market. We have a strong export sector and we want to break down further barriers that prevent our businesses from fulfilling their potential in that market.
Liam Byrne (Birmingham, Hodge Hill) (Lab)
May I stiffen the Minister’s answers? The truth is that British universities win more research grants from the European Research Council than any other country in Europe. Well over £1 billion flowed in last year from Europe into the British science base, which is more than any other country received. The European Union and our membership of it is mission critical to our success and the future of our high-tech, high-productivity industries. Over the months to come, will the Minister join me in helping to ensure that British universities are at the forefront of leading the campaign for this country to stay in the European Union?
Joseph Johnson
British universities and British science punch well above their weight around the world, and they secured 16% of the last batch of grant money from the European Union. That is because we have a competitive, world-class research base, and we are the Government who are supporting it and providing a stable climate for business and universities to invest in research and science. The Labour party would jeopardise that with its new economic policies, which would destabilise our business climate.
Jason McCartney (Colne Valley) (Con)
13. What recent support he has provided to small businesses in West Yorkshire.
Kirsten Oswald (East Renfrewshire) (SNP)
15. What representations he has received from the further and higher education sectors on the number of students from abroad studying in the UK.
The Minister for Universities and Science (Joseph Johnson)
We have built a world-class university system in the United Kingdom. According to data published today following a survey, we have 10 of the world’s top 50 universities and four of the world’s top 10, and we warmly welcome the growing number of international students who choose to study at them. As I made clear in my first speech in my current role at the Going Global conference, there is no cap on the number of genuine international students who can come to study in the UK. However, it is right that we continue to seek to drive out abuse, and to tackle it wherever it exists in our system.
Kirsten Oswald
What economic assessment has the Minister made of the impact on the Scottish economy and the Scottish further education sector of the tier 4 regulations?
Joseph Johnson
International students who come to this country bring significant benefits to our higher education system, which is why there is no cap on international student numbers and the Government have no intention of introducing one. Our further education system also benefits significantly from the 19,000 or so international FE students in this country.
Philip Davies (Shipley) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Minister for Universities and Science (Joseph Johnson)
Yes, I do agree. Science and innovation are among the UK’s greatest strengths, and the example my hon. Friend gives—I believe he is referring to the drug discovery firm Summit plc—is a good example of the way public investment in R and D crowds in additional private investment. Every £1 the public invests in R and D crowds in an additional £1.36 of investment on average.
Alison Thewliss (Glasgow Central) (SNP)
T4. Scottish Renewables announced yesterday that the sudden early withdrawal of the renewables obligation has already hit investment in projects, deeply concerning the sector. What assessment has the Minister made of the further impact the Government’s stance could have on the future viability of institutions such as the Green Investment Bank and the innovation they fund?
Oral Answers to Questions
Lord Johnson of Marylebone Excerpts(8 years, 10 months ago)
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The Minister for Universities and Science (Joseph Johnson)
In the previous Parliament the Government demonstrated our commitment to science by protecting the science budget, even as we were forced to make discretionary savings of £98 billion elsewhere. Over the next five years, as we saw in our manifesto, our commitment to science will run through it like the words in a stick of rock. We have reaffirmed our commitment to investing £1.1 billion of science capital, rising every year until 2021, including £2.9 billion on grand challenges.
Antoinette Sandbach
Thornton science facility was handed by Shell to Chester University, which is attended by many of my constituents. With large, high-skill employers such as Airbus, Bentley and others in the north-west, what more can my hon. Friend do to link employers to educational institutions and encourage the uptake of STEM— science, technology, engineering and maths—subjects?
Joseph Johnson
I agree with my hon. Friend that Thornton science park deserves national recognition as an exciting regional centre for innovation, enterprise and higher education. I also welcome the strong leadership from the University of Chester in drawing together an impressive range of partners from business and academia. We need to see more such collaboration between universities and business all over the country.
Daniel Zeichner (Cambridge) (Lab)
Does the Minister appreciate that many of our great scientists at places such as the Babraham Institute and the Laboratory of Molecular Biology in Cambridge are civil servants and stuck on the civil service pay freeze, and are being offered much better terms abroad? Will we compete? It is time to do so.
Joseph Johnson
All parts of the public sector have been obliged to contribute to the national savings effort undertaken in recent years, but I would note to the hon. Gentleman that research councils have been exempted from those constraints and, as a consequence, have been able to compete around the world in attracting the best scientists to this country. They are doing so extremely effectively.
Liam Byrne (Birmingham, Hodge Hill) (Lab)
Our universities are critical to the strength of our science base, but following the tripling of tuition fees in the last Parliament, four out of five students no longer think that their courses are value for money. The Minister’s predecessor said that he saw no case for raising tuition fees in this Parliament. What does the Minister think? Will tuition fees go up in this Parliament? A simple yes or no will do.
Joseph Johnson
Due to the financial situation we inherited, we are of course forced to review all BIS spend—as all Departments are reviewing their spend. As our manifesto made clear, the Government are committed to continuing to ensure that we have a stable and sustainable funding regime for our universities and higher education institutions. They are secure and financially stable, and we will continue to ensure a fair balance of interests between taxpayers and students.
Wes Streeting (Ilford North) (Lab)
Having failed to rule out a hike in university tuition fees during this Parliament, can the Minister rule out at least that there will be no changes either to tuition fee levels or the terms of repayment on student loans for existing students and graduates? Yes or no?
The Minister for Universities and Science (Joseph Johnson)
The hon. Gentleman has previous experience as president of the National Union of Students, so it is valuable to us to have him here. He will know that the OECD has praised the UK as being one of the only countries in the world to have come up with a sustainable way of funding higher education, and this Government have every intention of continuing to ensure that our higher education system is funded successfully and sustainably over the years ahead.
Amanda Milling (Cannock Chase) (Con)
T10. Small businesses are a substantial part of the local economy of my constituency. I was pleased to welcome the news that, since launch, 22 people have already taken up start-up loans worth nearly £140,000 to start new businesses in Cannock Chase. However, relatively speaking, this is low. What steps are the Government taking to encourage more people to take advantage of this scheme in areas such as my constituency?