My Lords, I say at the outset that I am pleased to return to the Higher Education and Research Bill, which has been strengthened in this House by the attention and expertise shown by noble Lords.
I turn first to Amendments 1A, 1B, 1C and 1D. There has been much debate and discussion in your Lordships’ House about the importance of continuing to protect both institutional autonomy and use of the term “university”. In particular, the noble Lords, Lord Stevenson and Lord Kerslake, and the noble Baronesses, Lady Wolf, Lady Brown and Lady Garden, spoke eloquently at the Bill’s Committee stage about the importance of ensuring that there is proper protection in place. As a result, your Lordships agreed Amendment 1. We agree with many of the sentiments behind that amendment. To continue to protect institutional autonomy, we responded with a significant package of amendments at Lords Report stage designed to provide robust and meaningful protection of this important principle, so vital to the success of our higher education sector. Today, the Government propose further amendments in lieu of Amendment 1 to continue to protect the value and reputation of university title. I am pleased to report that these amendments were agreed yesterday in the other place.
Our amendments in lieu ensure that before permitting the use of university title, the Office for Students must have regard to factors in guidance given by the Secretary of State. Further to that, before giving the guidance, the Secretary of State must consult bodies that represent higher education providers and students, and any other appropriate person. This will ensure that the guidance is correctly focused. I reassure noble Lords that this consultation will be full and broad. It will reference processes and practice overseas—for example, in Australia—and provide an opportunity to look at a broad range of factors to consider before granting university title. This may include factors such as: track record in excellent teaching; sustained scholarship; cohesive academic communities; interdisciplinary approaches; supportive learning infrastructures; dissemination of knowledge; the public-facing role of universities; academic freedom and freedom of speech; and wider support for students and pastoral care.
These factors chime with the comments on the definition of a university made by my honourable friend the Minister in the other place. He has said previously that,
“in a limited sense a university can be described as predominantly a degree-level provider with awarding powers. If we want a broader definition, we can say that a university is also expected to be an institution that brings together a body of scholars to form a cohesive and self-critical academic community to provide excellent learning opportunities for people”,
the majority of whom are studying to degree level or above. He said also that:
“We expect teaching at such an institution to be informed by a combination of research, scholarship and professional practice. To distinguish it from what we conventionally understand a school’s role to be, we can say that a university is a place where students are developing higher analytical capacities: critical thinking, curiosity about the world and higher levels of abstract capacity in their analysis”.—[Official Report, 26/4/17; col. 1159.]
Further, the strength of the university sector is based on its diversity and we should continue to recognise that a one-size-fits-all approach is not in the interests of students or wider society. In particular, for example, small and specialist providers that support the creative arts, theology and agriculture have allowed more students with highly specialised career aims the opportunity to study at a university. As we said in our White Paper and throughout the passage of the Bill, the diversity of the sector and opportunities for students have grown as a result of the important changes introduced by the Labour Government in 2004; namely, the lifting of the requirement for universities to have students in five subject areas and award research degrees. We would not expect to go back on the specific changes that the party opposite made.
I thank noble Lords again for their constructive engagement and consideration of the teaching excellence framework. In particular, I pay tribute to the noble Lords, Lord Kerslake and Lord Blunkett, for the time and energy that they have personally put into this issue. We all agree that students deserve high-quality teaching and need access to clear and comparable information as they make one of the most important decisions of their lives so far.
The crux of our debate has always focused on the operation of the TEF. A TEF that has no reputational or financial incentives would not focus university attention
on teaching or help students to make better choices. That is why we are proposing to remove the two amendments that this House previously voted in, which would render the TEF unworkable. Nevertheless, it was clear from our previous debate that noble Lords remained concerned about the operation of the TEF and the link between the TEF and fees. The Government have listened to and reflected on the concerns raised in this House. I am delighted to be able to put before the House a set of amendments which, I believe, directly address the most fundamental concerns raised during our previous debates.
I am pleased to endorse Amendment 23C in lieu of Lords Amendment 23, which requires the Secretary of State to commission an independent review of the TEF within one year of the TEF clause commencing. Crucially, the amendment requires the Secretary of State to lay this report before Parliament. This will ensure greater parliamentary accountability for the framework as it moves forward. The report itself must cover many of the aspects that have concerned Members of this House and the other place, including: whether the metrics used are fit for use in the TEF; whether the names of the ratings are appropriate for use in the TEF; the impact of the TEF on the ability of providers to carry out their research and teaching and other functions; and an assessment of whether the scheme is, all things considered, in the public interest.
I am happy to repeat the commitment made in the other place that the Secretary of State will take account of the review and, if he or she considers it appropriate, will provide guidance to the OfS accordingly, including on any changes to the scheme that the review suggests are needed, whether this be in relation to the metrics or any of the other items that the review will look at.
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We have also heard concerns about the impact of the link between the TEF and fees. We recognise the important role of Parliament in setting fee caps. That is why I am also pleased to seek the House’s support for our Amendments 12A, 12B, 12F and 12G, which amend the parliamentary procedure required to alter fee limit amounts to ensure that any regulations that raised fees would be subject, as a minimum, to the affirmative procedure. This provides a greater level of parliamentary oversight than the legislation currently in place. Furthermore, these amendments demonstrate our commitment to a considered rollout of differentiated fees.
Amendments 12C and 12D in lieu will delay the link between differentiated TEF ratings and tuition fee caps so that this will not be introduced for over three years, with the first year of differentiated fees as a result of TEF ratings being no earlier than the academic year beginning in the autumn of 2020. I should like to clarify that point as I know that it is slightly complex. Until August 2020, there will be no differentiation of fee uplift based on performance in the TEF—in other words, a provider’s fee cap will not differ according to the different ratings they might be awarded. These amendments mean that, until that point, all English providers participating in the TEF will receive the full inflationary uplift regardless of their rating. As before, it will be up to the devolved
Administrations to determine whether they are content for their institutions to participate in the TEF and what impact participation might have on their fees. In practice, that means that differentiated fees will not be introduced until after the independent review has reported to the Secretary of State and Parliament.
I would like to reassure this House today by repeating the commitment made yesterday in the other place by the Minister for Universities that the ratings awarded this year will not be used to determine differentiated fees unless a provider actively chooses not to re-enter the TEF after the independent review. Therefore, this year’s ratings will count towards differentiated fees only if, after the review, a provider does not ask for a fresh assessment before their next one is due—an opportunity that will be open to all participants.
Before moving to our other amendments, I reiterate to the House that we remain committed to ensuring that the TEF will evolve to assess the quality of teaching at subject level, as well as at institutional level. I know that many noble Lords feel very strongly, as we do, that the move to subject level needs to happen as soon as possible. However, we recognise that subject-level assessments are more challenging, and that is why the Government have previously announced an extension to the rollout of subject-level TEF, with an additional year of piloting. This follows the best practice demonstrated in the research excellence framework and means that the first subject-level assessments will not take place until spring 2020. I beg to move.