Westminster Weekly - 7-14 July 2008

1. NUS President gives evidence to Universities Select Committee

NUS President Wes Streeting gave evidence to MPs on the implementation of the recommendations of Lord Leitch’s Review of Skills at the House of Commons on Wednesday 9 July.

Giving evidence with representatives from the TUC, NIACE and the Equality and Human Rights Commission, Wes Streeting stressed that more and more students were considering what their employability would be once they had finished their courses. He also went on to say that the Leitch Review had published the need to get people into education, but that there were problems with the implementation of this as they needed to consider the needs of a diverse group of learners. Adult learners needed more advice on careers and similar rather than just focusing these resources on young people, he warned.

Wes Streeting said the NUS supported the expansion of apprenticeships, but stressed the need to ensure learners accessed the most suitable courses rather than making up the numbers. He also expressed concern of the exemption of apprentices from the National Minimum Wage and hope the Low Pay Commission would recon With regards to the influence of Trade Unions the witness said employers had a stronger voice on these matters and that they would like to be more involved from the start of policy formation, he also said they had developed some good links with a few Sector Skills Councils.

Agreeing with the TUC, the NUs President warned that the influence of employers meant education considered more short-term priorities and that the NUS preferred lifelong learning and widening participation instead.

2. Universities' influence on economy grows

The Department for Innovation, Universities and Skills revealed on Thursday the growing role that universities play in the UK economy. In 2006-07 higher education institutions received £2.64 billion from business and community interaction, up seventeen percent on 2005-06. Collaborative research raised £670million of the total income.

Science and Innovation Minister, Ian Pearson, commented 'Universities are shifting up a gear when it comes to working with business and making an economic impact. In percentage growth terms, collaborative research with industry in the UK is growing at a faster rate than the Chinese economy. Over the next ten years the UK will increasingly compete with other countries in terms of the ability of our universities to work with business to provide a global edge. Companies large and small can improve their performance by drawing on the knowledge and skills within higher education. I want to see even more doing so in the future.'

The University and College Union warned that the figures should not be used by the government to suggest that a degree is the path to guaranteed job security or better pay. The figures revealed unemployment amongst graduates was slightly higher than the national average and graduate salaries were considerably lower than the national average.

UCU general secretary, Sally Hunt, said: ‘We sincerely hope that employment rates for graduates have not stalled at a time when the government is encouraging greater numbers of young people into higher education. The benefits of a university education are vast and should not be focused purely on any economic benefits. With the top-up fees review due next year, we hope the government will avoid making the kind of outlandish claims about graduate benefits that it did when arguing in favour of top-up fees. These figures show that students, or potential students, who believe a degree is a guaranteed passport to riches are in for a shock, especially with record levels of debt to contend with on graduation.’

3. Universities UK report assesses impact of demographic changes for universities

Universities UK published a report on Thursday 10 July outlining how universities should prepare themselves for a substantial shift in demographics in students over the next 20 years. The report states that the number of 18-20 year olds entering university education will fall sharply from its current figure of 70% each year until 2019. However, it is expected to begin rising again by 2027. Conversely, the number of mature students entering university, from which part-time undergraduates are mainly currently drawn, will experience modest growth over the same time period. This has significant ramification for universities. Universities UK therefore published this report to advise universities to consider the possible implications of the scenarios as part of their strategic planning processes, as they take action to maintain their current markets and develop new activities.

President of Universities UK, Professor Rick Trainor, stated: “Universities UK commissioned this report to help universities consider the potential impact of longer-term trends and prospective demographic changes in demand. It gives institutions advance notice of the challenges that lie ahead so that they are well placed to anticipate these changes. Universities will be best placed to meet these challenges if the sector remains lightly regulated and is free to respond flexibly to changing student markets.”

4. TUC claims 'LGBT equality education only way to stop homophobic bullying'

TUC General Secretary Brendan Barber last week called on the Government to include lesbian, gay, bisexual and trans (LGBT) equality education in the school curriculum. He claimed it was the only way to address homophobic bullying in schools. He made the appeal at the TUC's annual LGBT conference in London.

He said: 'While the UK's education system ought to be in the vanguard of the fight against homophobic discrimination, all too often it is in fact part of the problem. Whereas our schools and colleges have done much to counter racism and sexism, the same cannot be said when it comes to tackling homophobia. Despite some notable exceptions, too many educational establishments are breeding grounds for the worst kind of casual prejudice. A survey by Stonewall last year laid bare the huge scale of the problem. Indeed its shocking findings ought to act as a wake-up call to us all.'

5. House of Lords Economic Affairs Committee publishies report, 'Apprenticeship: A Key Route to Skill'

The House of Lords Economic Affairs Committee published its follow-up report to ‘Apprenticeship: A Key Route to Skill’ on Thursday 10 July, which was published in July 2007. The Committee broadly welcomes the Government's renewed commitment to improving apprenticeship provision since their report was published but call for the new National Apprenticeship Service to be directly responsible to a single government department and Government Minister.

Lord Vallance, Chairman of the Lords Economic Affairs Committee, said: ‘We are pleased the Government is now taking steps to improve apprenticeship provision in the UK. For too long apprenticeships have been undervalued and inadequately supported by Government and we hope this will now change. However we are disappointed that the new National Apprenticeship Service will not be directly accountable to a single Minister. We feel this is vital to ensure that the political will and pressure to make the scheme a success is maintained.’

6. Parliamentary Questions

Clelland - Concessionary bus fares

Mr. David Clelland (Tyne Bridge) (Lab): The concessionary fare scheme has been a tremendous success. It is popular and a credit to the Government, but does my hon. Friend recall the Prime Minister saying that he wanted to remove all barriers to people receiving training and acquiring skills? Will she encourage local authorities and other bodies to come together and extend concessionary fares to young people between the ages of 16 and 19 who are pursuing further education and training?

Ms Winterton: My hon. Friend makes a very good point. As he said, something like 11 million people nationwide will be eligible for concessionary fares as a result of the changes that came in on 1 April. He is right to say that local authorities, transport authorities and other organisations in some parts of the country have come together to look at the problems facing young people undertaking training; in some instances, I think they are looking at facilitating travel for young people doing the new diplomas. We have given local authorities freedom to deal with this matter at their own discretion, and I am sure that some of them will consider what my hon. Friend suggests to be a good way forward.

Ennis - Concessionary fares

Jeff Ennis (Barnsley, East and Mexborough) (Lab): Does the Minister recall the meeting that we had this morning with representatives of the Doncaster youth council? They raised the possibility of extending the scheme to students, especially those attending sixth-form colleges. Will she consider whether they might be included in the scheme in future?

Ms Winterton: Fortunately, I do remember the meeting that we had not five hours ago. My hon. Friend is right to say that Doncaster youth council was extremely keen to see the concessionary fares scheme extended to young people. As I explained to the council, extending the scheme nationwide to young people would have some severe financial implications, but as I said to my hon. Friend the Member for Tyne Bridge (Mr. Clelland), some local authorities are looking at extending it to young people, especially in areas where people want to get to school or training.

Griffiths - Student support

Q5. [217085] Nigel Griffiths (Edinburgh, South) (Lab): Does my right hon. and learned Friend feel some concern about the loss of bursaries and grants to low-income students, if the income of a new partner of their parent is taken into account? Will she condemn the impact of that on thousands of students in Scotland, as a result of Scottish National Administration policy?

Ms Harman: The leader of the Scots nats in Holyrood does not turn up much in this House, although he continues to be a Member and draw his salary. I had the opportunity to see him talking about this issue on television earlier this week. It is absolutely clear that he does not intend to keep his promises on student support, that he does not intend to keep his promises on police numbers and that he does not intend to keep his policies on reducing class sizes. So, scarcely a year after the election, why should anyone trust the SNP with any of its promises?

Davies, Q - Prisoners Attendance at Open University

Mr. Quentin Davies: To ask the Secretary of State for Justice how many prisoners (a) took and (b) passed degree courses at the Open University in 2006; and in which subjects. [216390]

Mr. Lammy: I have been asked to reply.

The information requested is not available by calendar year.

During academic year 2006-07 1,211 prisoners undertook studies towards an Open University degree, with 1,065 successfully completing the course module (or modules) they studied during that year. These figures exclude some learners who have been released since the end of the academic year. Of those undertaking studies, 393 studied Openings Courses. The 10 most popular course modules studied were:

- Social Science Level 1

- Openings: Understanding Society

- Openings: Understanding Management

- Openings: Open to Change

- Arts Level 1

- Openings Starting with Maths

- Open Mathematics Level 1

- Understanding Human Nutrition

- Openings: Understanding Health

- Using Mathematics

My Department funds a prisoner's Openings Course and/or a first course module through the Open University which may, but will not necessarily, lead into further study to degree level.

In the 2006-07 academic year, 21 Open University graduated in prison. The subjects in which degrees were awarded were:

- BA (Hons) Humanities

- BA (Hons) Business Studies

- Bachelor of Laws (Hons)

- BA/BSc (Hons) Social Sciences

- BA/BSc (Hons) Human Geography

- BA/BSc Open Degree

Davies, Q - Prisoners (Open University)

Mr. Quentin Davies: To ask the Secretary of State for Justice what facilities are available to prisoners to take Open University courses; and if he will make a statement. [216391]

Mr. Lammy: I have been asked to reply.

My Department makes financial provision available to prisoners to study Open University courses, where they do not have sufficient funds of their own and works in collaboration with the Open University and the Prison Service. My Department funds an Openings Course, and/or a first course for a prisoner accepted onto a programme of study leading to an undergraduate qualification, as well as meeting the ongoing additional tutorial costs the Open University incurs.

In addition to this financial contribution, the prison gives support through the Head of Learning and Skills to prisoners during their study, and the final decision about whether a prisoner is suitable to take a particular course rests with the Prison Governor in the light of security and public protection considerations. The LSC contracts with Offender Learning and Skills Service providers requires them to provide practical support and guidance, other than tuition, to prisoners studying for Open University courses.

Amess - Maldives (Chevening Scholarships Programme)

Mr. Amess: To ask the Secretary of State for Foreign and Commonwealth Affairs how many Chevening scholarships were awarded to citizens of the Maldives in each year since 1997, broken down by (a) sex and (b) age of recipient. [216261]

Mr. Jim Murphy: There has been one Chevening scholar from the Maldives each year since 1997-98, except 2004-05 when there were none, and 2002-03 and 2006-07 when there were two each year. The distribution of all Chevening scholarships is given in the Chevening Programme Annual Reports. The reports for the years from 1998-99 to 2005-06 are available at:

- http://www.chevening.com/about/reports/.

A breakdown by sex and age of recipient is not held centrally and to provide these details would incur a disproportionate cost.

Hague - Palestinian overseas students

Mr. Hague: To ask the Secretary of State for Foreign and Commonwealth Affairs what estimate he has made of the number of Palestinian students with places to study in the UK who have been unable to obtain permission to leave Gaza in the last 12 months; and if he will make a statement. [215287]

David Miliband: We are aware of nine students who have won places in British universities but can not leave Gaza due to exit permit problems. The Permanent Under-Secretary of the Foreign Commonwealth Office, Sir Peter Ricketts, raised this issue with the Israeli ambassador on 20 June and my hon. Friend the Minister for the Middle East (Dr. Howells) raised it with Israeli Diaspora Minister Isaac Herzog recently. As this issue also affects a number of other EU member states, we have also made representations jointly to the Israeli authorities through the European Commission.

Goldsworthy - Adult Education Funding

Julia Goldsworthy: To ask the Secretary of State for Innovation, Universities and Skills (1) how many publicly-funded adult education classes were provided in each year since 2001; [216947]

(2) how many adults participated in publicly-funded adult education classes in each year since 2001. [216948]

Bill Rammell [holding answer 7 July 2008]: Total Government investment in the post-16 further education system has increased by 52 per cent. in real terms from 1997 to 2007. Over the next three years, Government investment in adult learning will increase by 17 per cent. reaching £3.6 billion per year by 2010-11.

Our planned and continuing strategy is to realign funding from a high number of very short and low quality courses to qualifications such as Skills for Life, full level 2 and full level 3 that offer the greatest opportunity for adults to gain the skills for employability and further progression in learning. This includes a full range of first steps and progression programmes below level 2 progression programmes encouraging adults back into learning.

But we understand that as well as increasing skills, education is also about meeting the basic human desire for intellectual stimulation. That is why we have safeguarded £210 million each year through to 2010/11 to support informal adult learning. Through our recent consultation, we have led discussion on a new vision for informal adult learning for the 21st century.

The funding payable to a college or provider is based on the provision undertaken by individual learners, therefore information is collected at individual learner level. Information on the number of adult education courses offered by colleges/providers is not collected.

The following table sets out the total number of LSC-funded adult learners aged 19+ in England from 2003/04, the earliest year for which comparable data is available. The figures cover learners enrolled in further education, work-based learning, adult safeguarded learning (formerly adult and community learning) and Train to Gain provision.

Number of LSC funded learners aged 19 or over, 2003/04 to 2006/07

Academic year Number of LSC funded learners aged 19+

2003/04 4,587,390

2004/05 4,546,910

2005/06 3,886,040

2006/07 3,166,270

Note: Numbers have been rounded to the nearest 10. Source: Learning and Skills Council individualised learner record.

Williams, S - Higher Education Admissions

Stephen Williams: To ask the Secretary of State for Innovation, Universities and Skills (1) what information his Department holds on the number of 18-year-olds with (a) an academic and (b) a vocational Level 3 qualification who did not enter higher education by the age of 19 years who moved on to (i) jobs without training, (ii) jobs with training, (iii) jobs with apprenticeships, (iv) full-time education at Level 3 or below, (v) unemployment and (vi) economic inactivity in the latest period for which figures are available; [216927]

(2) what proportion of 18-year-olds with (a) academic and (b) vocational Level 3 qualifications entered (i) full-time higher education and (ii) part-time higher education by the age of 19 years in the latest period for which figures are available. [216928]

Bill Rammell: The proportion of maintained school pupils who gained one or more GCE A-levels in 2003/04, who entered a full-time higher education course at a UK higher education institution aged 18 in 2004/05 or aged 19 in 2005/06, was 73.9 per cent. The proportion who entered a part-time course was 1.6 per cent.

The proportion of maintained school pupils who took one or more VCE A-levels in 2003/04, who entered a full-time higher education course at a UK higher education institution aged 18 in 2004/05 or aged 19 in 2005/06, was 55.3 per cent. The proportion who entered a part-time course was 1.9 per cent.

Information on the employment status of those pupils with level 3 qualifications who do not go to higher education is not currently available.

Clappison - University Medical Schools

Mr. Clappison: To ask the Secretary of State for Innovation, Universities and Skills pursuant to the answer of 11 June 2008, Official Report, column 321W, on higher education: medicine, which university medical schools are participating in widening participation schemes; what financial provision has been extended to them by the Government in respect of such schemes; what criteria or guidance has been laid down by the Government for such schemes; and how many students entered foundation years prior to undertaking medical degrees as a result of such schemes in the latest period for which figures are available, broken down by university. [217156]

Bill Rammell: The Government are determined to widen participation so that everyone with the potential to benefit from higher education has the opportunity to do so. The main scheme for widening participation is Aimhigher which aims to raise the attainment levels of young people, their aspirations towards university and improve progression. Most activities are not subject-specific, although some activities are designed to raise awareness of and encourage progression to specific subjects such as medicine.

The total Aimhigher budget is £85 million in 2008-09. Guidance for Aimhigher Partnerships was published in February 2008 and is available on the Aimhigher website at:

- http://www.aimhigher.ac.uk/practitioner

Several medical schools run schemes to encourage applications from bright students from disadvantaged or non-traditional backgrounds. These are entirely a matter for the individual medical school-no specific Government funding or guidance is provided for these schemes, and data on admissions, including foundation years, is not collected centrally.

Cohen - Student Loans

Harry Cohen: To ask the Secretary of State for Innovation, Universities and Skills what the reasons are for using the retail price index to calculate interest due on student loans; and if he will consider the use of the consumer price index instead. [214778]

Bill Rammell: Parliament determined the interest rate to be paid on student loans. The principle is that borrowers should repay the same amount, in real terms, as they borrowed. To achieve this, the rate of interest is based upon the retail price index (RPI), although the precise method for determining the rate of interest varies depending on the type of loan.

The interest rate for older 'mortgage style' (MS) loans is determined in accordance with the Education (Student Loans) Regulations 1998 which prescribe the rate of interest to be equal to the RPI so long as that index is published. This basis for calculating the interest rate is also set out in the MS Loan Consumer Credit Act agreements, the key terms of which cannot be altered retrospectively.

From 1998/99, income contingent repayment (ICR) loans replaced MS loans for new borrowers. These are 'low interest loans' exempt under section 16(5) (b) of the Consumer Credit Act 1974. Borrowers only repay when they earn more than £15,000 a year, at an affordable rate of 9 per cent. of earnings above this threshold. Interest is calculated in accordance with the Education (Student Support) Regulations 2007, as amended, and is the lower of March's RPI or 1 per cent. above the highest of the base rates published by the banks listed in Regulation 4 of the Consumer Credit (Exempt Agreements) Order 1989.

Accordingly, there is potential for the interest rates for the two types of loans to differ but, to date, the RPI rate has consistently applied to both types of loans since their inception.

The Government have no plans to abandon the consistent use of RPI in calculating interest on student loans. There is no single measure of inflation that is appropriate for all purposes. RPI is an index that is still widely used as the basis for uprating a range of state benefits and entitlements. Over time, it is a measure of inflation which is fair, both to taxpayers, and to student loans borrowers. The cost of providing student loans is already heavily subsidised by the taxpayer, enabling the average interest rate on student loans, to date, to be below 3 per cent. per annum-significantly lower than for commercial loans.

Williams, S - Vocational Education Finance

Stephen Williams: To ask the Secretary of State for Innovation, Universities and Skills (1) what the planned level of expenditure on sector compacts for (a) engineering, (b) construction, (c) hospitality and (d) process manufacturing is for (i) 2008-09, (ii) 2009-10 and (iii) 2010-11; [216889]

(2) what the estimated level of planned expenditure on sector compacts for (a) engineering, (b) construction, (c) hospitality and (d) process manufacturing will be as a proportion of Train to Gain funding in (i) 2008-09, (ii) 2009-10 and (iii) 2010-11; [216890]

(3) what additional sector compacts he expects to be agreed in the next 12 months. [216891]

Mr. Lammy: Sector compacts are a 'something for something' deal between Government and employers to drive up the skills of the work force in each sector to ensure that our nation has the world class skills it needs to meet the challenges of the global economy. In return for some flexibility in, and enhancement to, the core Train to Gain offer, the employers in each sector commit to increasing their engagement with Train to Gain and their investment in the skills of their work force.

Of a total Train to Gain budget of approximately £2.5 billion over the three year period 2008-09 to 2010-11, the planned level of Train to Gain expenditure through compacts for:

- (i) Engineering (through the SEMTA compact) is £65 million, 2.6 per cent. of the total Train to Gain budget for the period to 2010-11;

- (ii) Construction (through the ConstructionSkills compact) is £133 million, 5.3 per cent. of the total Train to Gain budget;

- (iii) Hospitality (through the People 1st compact) is £112 million, 4.5 per cent. of the total Train to Gain budget;

- (iv) Process manufacturing (through the Proskills compact), is £62 million, 2.5 per cent. of the total Train to Gain budget.

We are now working to realise these compacts through Train to Gain; the profile of spend over the coming years will depend on the rate at which employers come forward to take up the enhanced offer we are making available in Train to Gain through compacts. The LSC are currently working with each SSC concerned to develop spend profiles, which may run beyond the period to 2010-11.

It is important to note that some of the commitments agreed in compacts, such as the cost of additional apprenticeship places, will not be funded through Train to Gain directly but will draw on other, existing budgets. Our aim is to agree compacts for every SSC sector that wants one, and who can deliver a significant increase in demand for skills from employers to ensure that we are addressing the nation's skills needs. We will also explore the potential for developing compacts with key partners around large cross-sector projects such as the London 2012 Olympics.