I am grateful to noble Lords for their contributions this afternoon. In the time available, I shall seek to deal with the many issues that have been outlined.
I say to the noble Baroness, Lady Garden, in relation to capacity for teaching, a £10 million capital fund was made available, recognising the issues that she outlined with physical capacity. The Office for Students oversees that funding, and universities are allowed to ask for additional funding. A number of noble Lords referred to the costs of teaching. Additional teaching grants have been given to subjects that are high cost, such as medicine, nursing and STEM subjects. However, it is important to note that a record number of disadvantaged 18 year-olds, at 23.1%, have gone to university this year. We pay tribute to their hard work.
In answer to the noble Lord, Lord Loomba, we are regularly in touch with the devolved Administrations. As the matters are devolved, there are still some funding arrangements and number controls separate to the student number caps in these regulations which are relevant in that regard. In relation to exams next year, on 12 October we announced that there would be a three-week delay. Next month, we anticipate further guidance and information on contingency plans in relation to next year’s exams, should there be a wave of the virus. We regularly discuss matters with the devolved Administrations.
On the points raised by about finance, particularly by my noble friend Lord Forsyth—I pay tribute to his work on the Economic Affairs Committee—we must remember that universities are autonomous institutions; they are not like schools. Fees are a contractual arrangement between an institution and students—but, of course, the Office for Students is there as a regulator. My noble friend will be aware that only high-earning borrowers repay all the interest on their loan. The majority of borrowers do not fully pay back their loans, with borrowing written off at the end of their loan term. That means that reducing the interest rates would in practice benefit only higher earners and reduce the progressive nature of the student loan system.
On the point raised by the noble Baroness, Lady Garden, we want to see an increasing number of students going to university and taking advantage of that offer when it is appropriate for them. I am pleased to say that we have the admissions data for this year and more than 371,000 English-domiciled students have taken up a place at university.
Once again, I am sad to say, I have to disagree with the noble Baroness, Lady Bennett. Universities have a variety of structures: many of them, as noble Lords will be aware, are charitable in their foundation and
have great endowments, and they award degrees and have degree-making powers. Many universities do collaborate, and that is not just something we see with the Russell group. There are many regional collaborations between universities, and many of them are involved very closely with LEPs and institutes of technology and are playing their wider part in the system. Of course, at the moment—this perhaps goes without saying, but I do want to say it—they are at the front line of trying to find a Covid vaccine for us, and they deserve our support.
This is the first time that I have had the pleasure of hearing the noble Baroness, Lady Fox, address your Lordships’ House, to which I welcome her. As we know from schools, there is no replacement for the face-to-face nature of teaching, and I commend the work of the University of Buckingham, which is one of our private universities. In answer to the question raised by the noble Lord, Lord Storey, I say yes: any other institutions in the higher education sector that were regulated by the Office for Students, including private providers, were subject to the cap. The noble Baroness is right that the blended offer is the best offer, and we commend that best practice to other institutions.
On the question from the noble Lord, Lord Liddle, unfortunately we cannot provide guarantees and certainties in any area of life at the moment, but we did bring forward millions of pounds of tuition fees to help the cash-flow situation of universities. We do not know what position we are currently in formally. Obviously, we know the admissions data for English-domiciled students, but, as noble Lords will be aware, many international students start their courses in January, so we do not know the full position of universities’ finances. Along with the Office for Students, we are monitoring this, and there has been the offer of restructuring—thankfully, at the moment, no institution has come forward needing that support. As part of the wider post-18 education review, the Government are carefully examining the Augar report and its recommendations. We are considering our response to that along with the spending review, and the upcoming further education White Paper will be part of our response to that. Hopefully, this will give some certainty to providers and students.
Regarding the behaviour that we saw earlier in the year from some institutions, it is important to remember that one of the fundamental concerns of government was that this was not in the best interest of students, who, at that point in time, were put under pressure to accept an unconditional offer, which perhaps might not have been the one they wanted. We wanted to guard against that.
On the mental health and welfare of students, which many noble Lords have mentioned, the Minister for Universities in the other place, Michelle Donelan, has written to universities outlining their responsibilities in relation to the mental health and welfare of students, particularly those who are self-isolating. There has been £256 million of funding for this academic year in relation to students’ mental health.
Of course there are no maintenance grants anymore, but there is a comprehensive system of maintenance loans, and, as I say, the figures for disadvantaged students
going to university mean that we have not seen a drop-off in the numbers of people going to university from those backgrounds, which is of course very important.
Finally, I turn to the comments of the noble Lord, Lord Bassam. Yes, there will have to be particular arrangements in relation to Christmas, but, as I say, we do not know the situation in relation to overseas students. We are in dialogue with the devolved Administrations on the various matters, and we commend all the work that universities have been doing in order to make the offer. Many universities and students have shown enormous resilience. Obviously, this current situation is not ideal for them to study in, but, unfortunately, every sector in our society has been drastically affected by the pandemic, and we are doing what we can to support the sector, offering advice, guidance and restructuring, should any institution need that, as I have said. Therefore, it is right that we take this action to revoke the fee limit regulations in relation to student numbers. I commend these regulations to your Lordships.