Higher Education and Research Bill — House of Lords, 2017-01-18
Topic: Education
James Younger (Conservative, Centre-right): My Lords, I have today sent a letter setting out some further detail following Monday’s debates, and attached a briefing note on the teaching excellence framework which I hope noble Lords have found helpful I am grateful for the thoughtful comments made in this prolonged debate on the teaching excellence framework, which is in the manifesto commitment. These comments go to the heart of what we are trying to achieve in incentivising high-quality teaching. I am pleased that there is no disagreement on the importance of high-quality teaching, and the importance of incentivising this. Many Peers have acknowledged this, and Governments from all sides have wanted it for many years. This is an important element of these reforms and this has been a key debate, so I hope that noble Lords will forgive me and that the House will bear with me if I speak at a reasonable length on the points raised A number of Peers raised a point on whether the TEF should be tested more and, in effect, go more slowly. This was raised by the noble Baroness, Lady Royall, the noble Lord, Lord Watson, and other noble Lords. In effect, the question related to a pilot scheme. I reassure noble Lords that the TEF has been, and will continue to be, developed iteratively. We have consulted more than once, and year 2, which we are currently in, is a trial year. Working groups, including those in the sector, are under way on the subject-level TEF. That was raised by the noble Viscount, Lord Hanworth, and I will say a little more about that later. Therefore, the sector has recognised this trialling aspect, and Maddalaine Ansell, the chief executive of University Alliance, has said: "We remain confident that we can work with government to shape the TEF so it works well as it develops" The noble Baroness, Lady O’Neill, commented on the detailed metrics. She also spoke about iterating and reviewing the metrics, and made some constructive comments. The TEF metrics will continue to evolve. I stress again that, where there is a good case to do so, we will add new metrics to future rounds. I have no doubt that I will also be saying a bit more about this later I want to respond quickly to the amendments on the TEF and immigration. This picks up a theme raised by the noble Baroness, Lady Garden, my noble friend Lord Jopling and the noble Baroness, Lady Royall. Following our useful debate last week, and as I set out in my subsequent letter, I confirm again that we have no plans to cap the number of genuine students who can come to the UK to study, nor to limit an institution’s ability to recruit genuine international students based on its TEF rating or any other basis. This applies to all institutions, not just to members of the Russell group The noble Lord, Lord Watson, raised the issue of international students, and I move on to the proposal to publish the number of international students. The TEF will be a world-leading assessment of the quality of teaching and student outcomes achieved by higher education providers. Students should have a better idea of what to expect from their studies here—better than anywhere else in the world. However, a dataset that simply links the TEF to international student numbers fails to recognise the much broader international student recruitment market place. I should add that all the relevant information requested by the noble Lord, Lord Stevenson, is in the public domain Moving on, I remind the Committee that the ability to raise fees according to inflation is not new. As the noble Lord, Lord Watson, said, it has been provided for since 2004. Indeed, as I think he said, the process was established under the then Labour Government and was routinely applied from 2007 to 2012. I reassure noble Lords that, as the Government set out in the White Paper, our expectation is that the value of fee limits accessible to those participating in the TEF will, at most, be in line with inflation As the Liberal Democrats will recall, the coalition Government used the legislation that had been put in place in 2004 by the Labour Government to increase tuition fees above inflation in 2012. We have no such plans to increase the value of fee limits above inflation. Increasing the upper or lower limits by more than inflation would, under the Bill as currently drafted, require regulations subject to the affirmative procedure, which requires the approval of Parliament. In the case of the higher amount, it would also require a special resolution. That is in line with the current legislative approach to raising fee caps I now turn to the link between the TEF and fees. Schedule 2 builds on well-established procedures in setting fee caps. Under the schedule, different fee limits will apply depending on whether a provider has an access and participation plan, and what TEF rating they have been awarded. Crucially therefore, this schedule will, for the very first time, link fees to the quality of teaching and thus increase value for students. This will recognise and reward excellence, and will drive up quality in the system. It will mean that only providers who demonstrate high-quality teaching will be able to access tuition fees up to an inflation-linked maximum fee The noble Lord, Lord Watson, said that since the increase in fees in 2012 there has been no increase in teaching quality. Therefore, this Government are, for the first time, putting in place real incentives, both reputational and financial, to drive up teaching quality. My noble friend Lord Willetts picked up on this theme. We believe that this is the right way forward. I have already mentioned the iterative aspect of this process The principle of linking funding to quality is familiar from the research excellence framework, which was introduced in the mid-1980s, and it has been an effective incentive. The REF has driven up the quality of our research, ensuring that we continue to be world leaders in global science. Tuition fees have been frozen since 2012 at £9,000 per year. This means that the fee has already fallen in value to £8,500 in real terms and, without the changes we propose, it will be worth only £8,000 by the end of this Parliament. Therefore, these changes are important if we want providers to continue to deliver high-quality teaching year after year As far back as 2009 the noble Lord, Lord Mandelson, said: "We … need to look in my view for ways of incentivising excellence in academic teaching" He went on: "We have to face up to the challenge of paying for excellence" I believe that the measures in Schedule 2 finally deliver that. The schedule allows a direct link between fees and the quality of teaching, with differentiated fees for different TEF ratings—a principle supported by the then BIS Select Committee and the wider sector—along with a clear framework of control for Parliament. This will ensure that well-performing providers are rewarded so that they can continue to invest in excellent teaching.