My Lords, I will remind us of the background to these regulations and the circumstances leading to the introduction of student number controls. On 4 May 2020, my right honourable friend the Secretary of State for Education announced a package of stabilisation measures for the higher education sector in response to the Covid-19 pandemic. One such measure was the introduction of temporary student number controls.
As noble Lords may recall, following the onset of the pandemic, it was expected that fewer international students would travel to start their first year of study in England in the academic year 2020-21. This was in addition to an already known demographic low of 18 year-olds, and the risk of a high number of deferrals from domestic students. The real risk at the time was that our world-renowned higher education sector would have suffered a drop in fee income, which would have had significant financial implications for many providers.
Further, in the early part of this year, we became aware of aggressive recruitment practices being employed by some higher education providers, as they sought to make up the potential shortfall in student numbers and income by offering places to students to whom they would ordinarily not have made offers, for example, by making wholesale unconditional offers in March. While it is understandable that individual higher education providers would seek to ensure their own financial stability, this strategy could have had serious and detrimental consequences for the sector. It would have caused an uneven distribution of students, leaving some providers with even fewer students and income than they would have planned for, putting their financial sustainability at risk.
To counter this, higher education providers in England were allocated an individual student number control—a set number of students we believed constituted a fair maximum share of student recruitment for this academic year. To accompany this, we also made the Higher Education (Fee Limits and Student Support) (England) (Coronavirus) Regulations 2020. These regulations, which were the subject of rigorous debate in the House, provided that if providers exceeded their individual number, they would face a reduction in the maximum tuition fees they could charge for the academic year 2021-22. The purpose of this was to address the consequences of providers exceeding their allocated numbers, and thereby reducing the tuition fee income available to the sector as a whole, by reducing the sums available to the offending provider through the student finance system in the subsequent academic year.
Additionally, providers in the devolved Administrations which provided courses to English-domiciled loan-funded students were also allocated an individual student number control applicable to those students in the academic year 2020-21. In this case, the regulations provided that recruitment beyond this would result in a reduction in the maximum tuition fee loan available in the academic year 2021-22. The regulations—which we seek to revoke by the instrument we are debating today—set out in law what those reductions in the maximum tuition fee and tuition fee loan amounts would have been. These were short-term measures, to
be in place for one academic year only, and were a necessary targeted response to the unprecedented circumstances caused by the Covid-19 pandemic.
However, as noble Lords will be aware, there were unexpected issues with the A-level grading, resulting in the decision to use centre assessment grades, where those were higher than the calculated grades that were initially awarded, so as to avoid some students receiving grades that did not accurately reflect their performance. It then became clear that an unexpectedly high number of students had met the grades required to meet the conditions of the offer for their first choice place at university. This was in large part an issue of timing, with the move to centre assessment grades coming shortly after higher education providers had allocated the majority of their places. As a result, many providers were oversubscribed and would have been at risk of exceeding their student number control if they honoured these offers, through no fault of their own. We therefore announced our intention to remove the temporary student number controls for the coming academic year, a decision that was widely welcomed by the sector and Members across both Houses.
The introduction of these regulations, revoking the original regulations, means that the temporary number controls that were previously notified to providers will no longer apply, nor will the financial consequences of exceeding their student number controls, which would be unfair in these unique and unprecedented circumstances. I beg to move.
4.08 pm