Draft Lifelong Learning (Fee Limits) Regulations 2026 Debate

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Department: Department for Education
Ian Sollom Portrait Ian Sollom (St Neots and Mid Cambridgeshire) (LD)
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It is a pleasure to serve under your chairship, Mr Stringer. The Lib Dems have long supported the principle of a flexible credit-based system that lets people study in smaller chunks across their working lives, rather than in one fixed block at 18 years old. We are glad to see that direction reflected here today. I am afraid we cannot endorse the instrument, however, for reasons that I will put on the record.

The first reason is substantive. The instrument, and the package that it leads, relies entirely on a loan-based model to drive take-up among exactly the cohort it claims to serve—adults who are already in work, with mortgages, dependants and a shorter working life over which to repay any loan. A loan that looks like a reasonable proposition for an 18-year-old starting a three-year degree looks very different to a 45-year-old weighing up retraining against existing financial commitments.

When that issue was raised directly in the other place during the passage of the enabling legislation in 2023, the Government’s response was essentially to defer the question to the detail. The instrument is that detail, but the question has not really been answered. The Department’s 2021 pilot of loan-funded short courses, run jointly with the Office for Students, planned for more than 100 courses and 2,000 students, but only 17 courses launched and 125 students enrolled, of whom just 41 took out a loan. That direct, real-world test of the model that this instrument now extends across the entire post-18 system did not generate demand. Will the Minister tell us what assessment has been made of whether the LLE risks repeating that outcome at scale? Has a grant-based supplement, of the kind that the Liberal Democrats have proposed, been costed and considered?

The second reason is procedural. This instrument is subject to the affirmative procedure, but the two remaining SIs in the package—the student support regulations and the repayment regulations—will be laid under the negative procedure, meaning that they will become law without a vote and without the parliamentary scrutiny warranted by a package of this complexity and long-term consequence.

The student support and repayment arrangements are not peripheral details. They are the mechanisms that will determine whether the Government have addressed that loan-aversion issue, whether maintenance support is adequate and whether repayment terms are fair. What if the fee system fails to generate the take-up that the Government are predicting or hoping for? The review is not planned until 2031-32, five years after launch. I suggest that those two instruments should be upgraded to the affirmative procedure so that we can properly scrutinise what follows.

I have a number of more specific questions for the Minister. First, the instrument carries forward the £5,760 lower fee cap for foundation years in subjects such as humanities, business, law and social sciences. That cap was set in 2023 and is unchanged since. Every other major fee category in the instrument receives an uplift in the second tranche, from August 2027. The lower fee foundation year rate does not. For many people without a traditional academic pathway, foundation years are the entry point into higher education. That route runs disproportionally through colleges and lower-tariff institutions, serving the students whom the Government say they most want to reach. Can the Minister confirm that this is simply a continuation of the 2023 cap with no independent review for the instrument, and that, unlike every other fee category mentioned, it does not rise in August 2027?

If the policy rationale for that is to keep fees down to protect access, which is reasonable, is there any compensating mechanism—direct institutional funding, for example—to ensure that providers can keep delivering that provision as costs rise around a frozen fee? The risk is that we are quietly trusting institutions to absorb an indefinite real-terms cut in exactly the provision that is most likely to serve disadvantaged learners.

Regulation 9 requires providers to notify in advance the Secretary of State of the number of credits attached to a course year, and to repeat that notification whenever activities change mid-year. Has the Department made any assessment of the cumulative administrative burden that that will place on smaller providers and FE-based higher education providers, which, again, are precisely the institutions best placed to deliver the flexible, bite-sized provision that the LLE is meant to enable?

The two-tier higher and basic fee structure in the instrument imports the existing access and participation plan mechanism from full-time undergraduate study. APPs were not designed with part-time modular or older learners in mind. Has the Office for Students been asked to assess whether APP commitments, as currently framed, are fit for purpose in a credit-based lifelong learning context?

Regulation 19 ensures that courses designated for lifelong learning purposes are not treated as designated under the pre-existing Teaching and Higher Education Act 1998 regime. Can the Minister confirm that no student currently part way through a course will risk falling between those two designation regimes and losing eligibility for support as a result?

On a minor point that is still worth highlighting, the explanatory memorandum states that the per-credit rate is £81.58, but dividing the £9,790 headline figure by 120 credits gives a recurring decimal, meaning that, at the stated rounding, 120 credits produces £9,789.60, rather than £9,790.

Ian Sollom Portrait Ian Sollom
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Well, I am a mathematician by trade. It is a small point, but every fee limit in the system is derived from that per-credit calculation, so will the Minister confirm the correct rounding convention, and that the providers and the Student Loans Company are working from the same figure?

We support the direction of this reform, and will not stand in its way today, but the loan-only design and the inadequate scrutiny afforded to the two follow-on instruments are real concerns. I hope that the Minister will address them.