My Lords, I draw attention to my registered interests. I am very pleased indeed to be able to lead this debate, and thank all those who are about to contribute. Across different political complexions and none, we should be able to find the kind of agreement that I hope will carry us forward for the future.
We have a choice: we can either wallow in nostalgia, meddle, or really look to a future that will be very different—a future of rapid change, where artificial intelligence and robotics will replace so many of the current employment opportunities, but will open up new opportunities for people who have the skills and adaptability to be able to take advantage of the future.
We used to talk about the knowledge economy; I do not hear it mentioned very often these days. There seems to be a view that we have too many students at universities, and too many universities putting on courses that are irrelevant. I am afraid that this view is completely outdated, and totally, utterly wrong.
This morning, the Chancellor of the Exchequer was parading his commitment, quite rightly, to the idea of productivity and growth, but the scientists, the high-level technicians, the research for the future are possible only if we have investment in our higher education system and we value and hold it dear. Innovation, knowledge transfer and the entrepreneurial skills of the future will come from people having their minds opened and their aspirations met. I am a living example of it. I went to evening class and day release to experience the value of further education, which I continue to value dearly. Being able to go to university immediately post the 1963 report of Lord Lionel Robbins transformed the life chances of literally millions of people. That understanding came on the back of what Harold Wilson used to call the “white heat of technology”—whatever happened to that?—and has been crucial to the well-being of the United Kingdom.
There are problems and challenges for our higher education system. It is going to have to adapt to changes in artificial intelligence and in the way we teach and learn, and to a very difficult financial climate. University income has dropped by around a fifth over the past five or six years. Fee levels have not increased, Brexit has affected income from European partnership arrangements, which thankfully are now being restored under Horizon—I will come to the way in which people see the contribution of overseas students in a moment—and it is a much more arid prospect for the future.
However, in Careers Week and on World Book Day, it is important to take a look at what is happening to the young people of today and to reflect on the young people of my era. According to the Labour Force Survey published two weeks ago, 850,000 young people between the ages of 16 and 25 are not in education, training or employment. In other words, they are either working in the sub-economy or doing absolutely nothing. Some 200,000 of them are alleged to be unable to work because of ill health, including mental ill health. Finding a holistic approach to giving opportunity to the young people of the future becomes even more imperative if they are not simply to languish and deteriorate in every possible way.
My Lords, of the three key words in the very thought-provoking Motion before us, and following the provoking and thought-provoking speech we have just heard from the noble Lord, I intend to home in on productivity linked to how degree apprenticeships can fit into getting us a more productive country. It is one of the great mysteries of the age, at least to me, why in productivity we are such laggards. We all know the unsatisfactory trends that we have, but answers there are relatively few, despite an avalanche of words from multiple think tanks. Heaven only knows, we have enough think tanks in this country now, yet we still seek an answer as to why our productivity lags.
The ingredients in all this must include a bit more than just a lack of private and public capital invested and skills developed to explain away the faltering footprint of our national productivity. For sure, many universities do a good bit towards helping productivity; we even have the British Academy weighing in now with its thoughts. But even if some do not seem to be at the peak of productivity, quite a few universities do not seem to be good at managing their own affairs; hence we have at the moment a growing number of universities, unfortunately and sadly, reporting gravity-defying deficits and growing redundancies, sometimes with the closure of valuable units. Something is not quite right in the way that universities are running themselves.
Degree apprenticeships could do very much to help. They are making good progress. They were a great idea when first mooted, but they are not in the numbers necessary to correct the balance between traditional universities and higher education. There is of course that vocational tinge to it all. I do not say that everyone goes to university to follow a particular career or develop a vocation, but it is important that young people are taught to think. None the less, why has there been such slow development of degree apprenticeships?
Some people think that the very term “apprenticeship” is off-putting—that it gives the wrong image or perception. Maybe cultural conservatism is also there in our universities. Certainly, some schools do not think that an apprenticeship is quite what their brightest and best should be doing. I think that is wrong. Families also sometimes think the same for their own: that the brightest and best should not be going to apprenticeships. Maybe there is a poor selling of that concept, yet degree apprenticeships can be deeply satisfying for individuals and can greatly help productivity.
My Lords, as my noble friend Lord Blunkett said in his excellent speech, higher education has been one of the UK’s most successful sectors and we must do all we can to sustain this success. Our universities have a well-earned international reputation, which we must not sacrifice because of underfunding. Our target must be nothing short of excellence, so that the great contribution they make to our national economy and to their local communities continues.
In the last decade, we have witnessed so many aspects of public life in this country threatened by lack of resources and failures in government policy, so I say to the Minister: please do not let this happen to higher education. I include in HE not just universities but FE colleges, which are so often neglected but provide much needed vocational and technical degrees and diplomas close to their students’ homes and workplaces. I hope that the Minister will not forget them when she responds to this debate.
I start with funding. I do not think the fees charged to undergraduates can be ratcheted up again to reflect inflation, because the debt that graduates face is already high and some will take a lifetime to pay it off. While high fees have not been a disincentive so far for most students, they have for some, notably part-time mature students. Instead, government grants to universities to support their teaching and various innovations in their economic contribution should be restored.
It was a mistake to move entirely to a fee-based system of financial support. UUK is right to ask for direct support from government and for strategic funding. The Government need to have the means to incentivise activities in universities which will support economic development in the regions where they are located. This will provide additional funding for knowledge exchange schemes, bringing together HE, businesses and non-commercial partners. More grant aid where possible, and matching funding from commerce and industry for start-ups and spin-offs, would be welcome.
My Lords, I thank the noble Lord, Lord Blunkett, for initiating this debate and for his wise and challenging words. I cannot think of a time or an issue on education where I disagreed with him. I am delighted to highlight the contribution of higher education to our national well-being and our national pride.
Higher education plays a critical part in the economy as well as in education. The media sadly seems to prefer tales of dissent—impoverished and bullied students, and overworked and underpaid staff—to tales of success and new thinking. We must never allow negative messages to shout down the immense success of the sector in which we all have confidence. Of course, we regret the issues highlighted by the noble Lord, Lord Patten.
Our universities continue to feature among the best in the world. For a small island, that is no mean achievement. It is in part because we have had very many centuries of encouraging and supporting education. We have historically valued higher education and need to continue to do so. In many towns and cities, universities and further and higher education colleges—as the noble Baroness, Lady Blackstone, said, we must never forget the colleges—are major employers. They generate millions of pounds in research and knowledge exchange and their community engagement involves staff and students volunteering in support of local projects. At Edinburgh University, for instance, its community grants scheme gives £618,000 worth of support to more than 220 community projects and its 9,200 academics generated a massive £3.2 billion impact from research and knowledge exchange activities. Many other universities can boast of similar activities and benefits to their local communities.
The Civic University Commission, led by the wonderful Lord Kerslake, claimed that when the first civic universities were set up at the end of the 19th century it was clear that, as well as aiming to rival the two ancient universities in the depth and quality of their learning, they also had specifically local concerns. They had a sense of the places in which they were located, as well as limitless intellectual ambition. That must not be lost in red tape and administrative bureaucracy.
My Lords, I congratulate the noble Lord, Lord Blunkett, on securing this important debate, at a time when the university sector is under enormous pressure. He has rightly drawn our attention to the role of universities in growth, productivity and levelling up. This reflects the increasing tendency, at all levels of education, to discuss what we do in terms of the economy.
Universities have always been about training people for jobs, long before growth was seen as a central concern of Governments. Universities are indeed central to growth, productivity and levelling up. Without them, we would not have the levels of innovation and wealth that we do, or the genuinely improved opportunities—although they are not as great as they might be—for our young people.
I will use my short time in this debate to utter some words of warning and concern about our enthusiastic embrace of universities as engines of growth. There is a real danger, not just in this country but throughout the world, that a simplified understanding of this relationship and of what it means for government policy is a genuine threat to university excellence. It leads Governments down a path which does not deliver what they hope it will and leads to some reactions that we might wish to avoid.
Especially once the wonderful years straight after the Second World War came to an end and productivity suddenly started to be problematic—rather than something that just seemed to be happening and growing right, left and centre—Governments, intellectuals, academics and politicians cast around for some way of turbocharging growth. All over the world, they came to the conclusion that education was the answer—the more people we educated for longer and the more graduates we had, the more the economy would grow. It is true, I repeat, that without a highly qualified and well-educated population you cannot have a modern and innovative economy. But what has also happened is that we have all been rather disappointed: all over the world, there has been a huge increase and expansion in graduate numbers, but somehow growth has remained anaemic and productivity is not going in the directions we want.
12:23 pm
Lord Howarth of Newport (Lab) [V]
My Lords, Britain’s universities remain a jewel in our crown. It is enormously to the credit of academics that it is so, considering the headwinds against which they are struggling. They have been casualties of the Government’s chronic mismanagement of the economy, as well as their peculiar unwillingness to invest in education. When you have such precious assets as 25 universities in the world’s top 200, you should treasure them. When your universities are essential for imparting the intellectual skills needed in the workforce of the future, you should invest in them without being paralysed by arbitrary fiscal rules.
Improving skills is one of the Government’s levelling-up missions, yet higher education is only a shadowy presence in the policy. That is bizarre. Universities are major economic presences in their communities and regions. They are important sources of employment. They are partners for business in teaching, research and innovation. They are routes for social mobility and cultural beacons. Without their existence, the plight of post-industrial areas would have been even worse. We cannot claim that universities are the solution to Britain’s productivity problem—productivity remains stubbornly poor—but the productivity challenge is multifaceted, and improving skills is only one part of what is needed.
The Government think they can get away with making students shoulder too much of the cost of the university system. They shifted the weighting of funding substantially from taxpayer-funded grants provided by funding bodies to tuition fees to be repaid by students via the loan system. Then, in 2017, they froze tuition fees for domestic students, which accounted for half the funding of universities, at £9,250. They are still frozen at that level, albeit that since then universities have faced large rises in energy costs, borrowing costs and general inflation. In 2022 the NAO found that the proportion of HE providers with an in-year deficit had increased from 5% in 2015-16 to 32% in 2019-20. The IFS has reported that spending on teaching resources per student was 18% lower in 2022-23 than in 2012-13. We are in an unsustainable situation whereby the level of fees is insufficient to fund tuition in many disciplines, yet it is seen as a poor and even unaffordable deal for many home students.
The unpredictability of the student loan system is a worry for students and for observers of the national finances alike. We know that a significant proportion of loans will not be repaid. Meanwhile, many graduates are experiencing hardship, having subsidised courses other than their own and now, with the interest rate as high as 7%, effectively paying high marginal tax rates over longer periods. I hear increasingly of clever young people who ought to have a university education saying to themselves that the financial implications mean it is not worth while. If the Government are looking for a reasonable concession to the junior doctors and a way to recruit more nurses, they could consider a scheme of loan forgiveness.
My Lords, I congratulate the noble Lord, Lord Blunkett, on initiating this debate. Finding myself standing opposite him in the Chamber responding to a debate that he has initiated reminds me of when I was his shadow in another place years ago. It reminds me in particular of an incident when, as I spoke, I could see the then Secretary of State looking increasingly uncomfortable and challenged. I thought, “My points must be getting through”—until I realised that what had actually happened was that his guide dog had been sick on the Floor of the Chamber of the House of Commons, which he kindly pointed out was the guide dog’s assessment of the points I was making as shadow Secretary of State. So I hope to manage a little better this time.
It was an excellent intervention with which the noble Lord began. He was bringing all of us, from all sides of the House, to recognise the qualities and strengths of our higher education system. It is not perfect, it faces real challenges and there are areas where it is underperforming, but the system as a whole is a good one. I am a bit uncomfortable when it is always praised in terms of “four of the top 10 universities” or “25 in the top 200”. That way of assessing the quality of our higher education system does not reflect the truth that it is a very diverse system. There is no one way of being a good university. Of course, those globally respected, research-leading universities at the top of the league tables are excellent, but there are other ways of being excellent. You can be an excellent vocational university, focusing on skills requirements in your area. You can be a university that is excellent in teaching, focusing on teaching rather than research, as the tech initiative of my successor, the noble Lord, Lord Johnson, brought out. We must celebrate the strengths of a range of universities doing different things, and I hope that the Minister in her remarks at the end will make that point.
The system also needs greater diversity, and we have already heard about degree apprenticeships, which are a very welcome addition to the range of higher education provision. My noble friend Lord Patten asked about their growth. The truth is that they are funded—nothing comes for free—to the tune of almost £30,000 out of the apprenticeship levy. They are reported to be taking approximately 20% of the apprenticeship levy and, in turn, Ministers report that the apprenticeship levy is 99% spent. It would be very interesting to hear from the Minister, if degree apprenticeships are to expand, how this growth will be funded and whether it will mean, if it remains a charge on the apprenticeship levy, that other forms of apprenticeship, often more focused on young people, suffer by comparison. While they are an excellent initiative, there is some uncomfortable evidence that, for any given discipline and compared with conventional university courses, degree apprenticeships appear to be more socially selective, less likely to take people from deprived backgrounds and less likely to take young people—more than half of those on degree apprenticeships are over 30. What more we can do to extend access to degree apprenticeships is something on which I think we would like to hear more from the Minister.
My Lords, it is a pleasure to follow the noble Lord, Lord Willetts, and two former Secretaries of State for Education. For my part, as an employer, I will focus on higher education and productivity, which of course is a two-way street.
It is no coincidence that the UK’s flatlining productivity since 2008 comes at a time when we have seen the education budget fall in real terms per pupil over the past 15 years. Low economic growth reduces our ability to invest in the education and training of our future workforce. This vicious cycle has brought us to the point where we now spend more annually on debt interest payments than on our entire education budget. Strangely, the Chancellor did not flag this up in yesterday’s Budget Statement.
I speak today from the perspective of an entrepreneur rather than an educator or Minister. I was an employer for 30 years, and many of our best long-term hires came from graduate trainee schemes, both here in the UK as well as in Asia and the US. I now back and advise early-stage businesses and, for many, the biggest single hurdle to growth is the supply of talent in this country, particularly graduates. This is not so much about the calibre of graduates as about the supply of work-ready graduates with relevant degrees, as there is a damaging mismatch between skills and vacancies.
We have large swathes of graduates in jobs not requiring a degree. The IFS reports that, outside London, this number has risen to 42%, up from 31% back in 1993. That is a red flag for productivity. Graduate vacancies are now falling, as is the wage premium, as students rack up a cumulative debt of £200 billion, the majority of which the Government admit will never be repaid.
For the two-thirds of graduates across the UK who go on to high-skilled employment, their median salary is reported to be £11,000 higher than that of non-graduates—but that average is much lower due to the skewing effect of very highly paid professions. To achieve that differential, graduates will have devoted three to four years to further education on little or no pay and racked up an average debt of £45,000 each—as will the other third who, despite graduating, never secure high-skilled jobs.
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I remind the House and perhaps the world outside which might be listening that there are not vast numbers of young people going to university who should be doing something else. It is Careers Week, and people should get the right information, advice and guidance on what is best for them. For some, it will be to go straight from college or school into the world of work. For some, it will be taking a BTEC national diploma or a T-level and moving into work. For others, it will be an apprenticeship, if they can get through the hoops that are put in their way, particularly for those with low-level qualifications at the age of 16. However, for many, it will be exploring their future by going into higher education. Many of those 850,000 young people should be encouraged to raise their aspirations and expectations to be able to take on that challenge. Nothing is more galling than people who benefited from higher education and expect their children to go to university telling other people that it is not for them. We have to renew our commitment to the aspiration that drove me on. I have no idea now how because the careers advice I received was zilch. The report I got from the school for the blind I left was appalling, and the expectation of the world around me was that I was going to be a lathe operator or a piano tuner, both of which are very highly rated and important tasks, although lathe operation has suffered over the years from numerical control. The world moves on, and we should move with it.
Some 750,000 jobs are created through higher education in this country. Many of them are crucial to the levelling-up process, as it is now called, in terms of giving youngsters in the most deprived areas of the country the belief that they can do something different from their parents and grandparents. It is about breaking intergenerational disadvantage, which is why I commend my noble friend Lady Armstrong on drawing attention in her debate later today to the fact that areas of the country that previously benefited from traditional industries now suffer from the worst-quality education in the country and the worst expectation of what people there will do. It is not surprising that more people go to Oxford and Cambridge from London and the south-east because the education system in London and the south-east is, sadly, still much better than it is in the Midlands and the north. It is not surprising that when we tell people that university education might be too much for them or inappropriate for them, they might believe us.
We need a menu that enables young people to make the right choice, but that allows people who may have experienced the world of work and decided that change is an imperative driver for them to come back into higher education through lifelong learning, to re-educate themselves and be able to take on new challenges. Lifelong learning should be at the root of what we are doing, saying and investing in in relation to education.
I want to address a negative before coming to the positives. The negative has been the suggestion that somehow attracting overseas students to universities in this country is squeezing out domestic applications. Applications through UCAS from English students dropped this year by 1%. That is not surprising when people are told, despite the fact that they might face unemployment, that university is not for them. The noble Baroness, Lady Falkner, who chairs the Equalities and Human Rights Commission, raised a Question in this House about inequalities arising from overseas students coming to this country in large numbers. The Minister was honest, as she always is, and brave enough to say that there is no evidence whatever of that happening—and, of course, it is not. The number of overseas students, who now include EU students, has actually dropped, marginally. As university income has fallen and the challenges of research funding have grown, it is not surprising that universities have sought to attract overseas students to allow cross-subsidisation into crucial research, which we applaud all the time, such as into better vaccines and engineering for the future things that will transform our country, including on net zero. Yet in the next breath we condemn the idea of going out there and attracting students.
The Chancellor of the Exchequer said yesterday:
“Outside the US, we have the most respected universities”—[Official Report, Commons, 6/3/24; col. 843.]
in the world. They are respected by the rest of the world but not enough by people in this country. It is bizarre to hear the Chancellor applauding our universities and then hear his colleagues going around rubbishing them. It is absurd that you can put out through the Sunday Times, a highly respected historic investigatory newspaper, the notion that students from abroad were squeezing out domestic students and their applications, and for a presenter on GB News, Katherine Forster, to say that it made her blood boil. She is a really good example of why we need more people in higher education—they might actually be able to evaluate facts and make a critical thinking exercise on what they read or, in the case of GB News, what they see in their own programmes. They might, seriously, be able to lift their horizons of what we need to do for the future.
At my own university is the University of Sheffield Advanced Manufacturing Research Centre and its work on small modular reactors and the energy needs of the future. It has not just pure science and engineering but the social science and humanities which we will need for the creative economy of the future, which so many universities are applying themselves to. Universities bring a massive input to local economies, as anchor institutions and the real levelling up, with £272 million going into Sheffield Central alone. Why? It is because we have two universities. The average across each constituency in the UK is £58 million, which is still an enormous contribution to the well-being of local people and our future.
What do we need to do? Universities need to be rigorous in their quality and aspiration. Linking up further education and higher education is a no-brainer. Ensuring that we take overseas students out of the migration statistics is a no-brainer, as it would stop silly arguments. We should ensure that we can reshape our longitudinal studies to get a real understanding of what students from higher education are actually doing in local communities, whether they are part-time or self-employed. Let us have a commission on the funding of higher education for the future—that has lost its way at the moment. Above all, we should ensure that quality research, world-class teaching and the importance of valuing our universities are put front and centre. Stop knocking what is such a valuable asset to our country; let us invest in a world of tomorrow.
One example to illustrate this is of a young friend who started off in a school which was in measures and got into a sixth form later on. She came from a home that had never sent anyone to university before and where they are very proud of her. She told me that, despite getting the grades predicted and a place thereby in that excellent university, the University of Nottingham, she had decided that she was going to reject it. I asked why, slightly surprised, because the school had wanted her to do this. She said, “I don’t want to do that freshers week and have all that piling up of debt. I want to do something, so I want to go into a degree apprenticeship”. She has done that and gone into a big corporation, where she is very well treated and monitored. She is moving around its departments and, in the meantime, doing an excellent course of study with the partner university to that corporation.
That is certainly a choice which more people should be encouraged to take and are not being encouraged to take at the moment. We need more action on that front. Not only that, but this girl is now earning north of £20,000 per year. She has no debt whatever and is paying no fees. She can have a nice time and, by living at home, can make a contribution to the bank of mum and dad from the money that she is earning, rather than asking mum and dad for money. That might be a particular case, but I was very impressed with what she said and how she said it.
I hope very much that my noble friend—perhaps in her closing remarks, or if not then in a letter later—will explain what more the Government think they can do to promote degree apprenticeships.
There also needs to be a more strategic approach to lifelong learning, with government funding to support part-time short courses, backed by public and private sector employers, as a route to bedding in improved contributions to greater productivity by universities. There is a need, in a rapidly changing economic climate, including with the spread of AI, for graduates to update their skills and knowledge throughout their working lives. There is good evidence that having a degree helps graduates to be more productive, but there is still more to be done to enhance lifelong improvements in their productivity.
Universities can make a substantial difference to the well-being of their local and regional communities. Again, this can be enhanced by kick-start funding from government to tackle low levels of innovation and applied research in the local economy. Do the Government accept the UUK recommendation that university enterprise zones in specific geographical areas, working to increase growth and innovation locally, should be expanded to all universities? If they do, what are they doing about it? I ask the same question about enterprise and opportunity hubs, which UUK also advocates on a national basis so that all universities and colleges can reach out to places which have been left behind.
These examples are ways of enhancing the fundamental role of universities in national growth and productivity. Many of them also relate indirectly to levelling up by helping reduce the divide between prosperous and disadvantaged communities. There will be many young people and adults in the poorest areas of the UK with the potential to benefit from higher education who never make it. The disastrous decision to close all schools for such a long time during the Covid epidemic will increase these numbers. It is incumbent on higher education to reach out to schools and FE colleges to promote more access to university courses. There should also be government funding allocated to universities, for example, for running remedial courses for new entrants needing such help. If levelling up is to become a reality, the number of mature students who missed out as school leavers must be restored.
I end by asking the Government not to neglect the humanities and social sciences by attaching too much priority to STEM subjects. Teaching and research in the humanities and social sciences is also vital in a knowledge economy.
Universities and colleges up and down the country offer opportunities for learning and working. Those in disadvantaged parts of the UK are prime sources of levelling up. Universities such as Lincoln and Lancaster have vastly increased the status of parts of the country not well served by wealth.
We know that the creative industries make a major contribution to our finances. Creativity is vital to society. The University of the Arts London, with its six component colleges, for instance, has over 22,000 students from 130 countries. It is not only a source of world-beating research, but a place where true international relations flourish. Another such place is Goodenough College in London, an educational charity that provides residential accommodation for talented British and international postgraduates and their families studying in London. It runs a programme of intellectual, cultural and social activities that aims to provide students with an international network and a global outlook—a true example of global Britain.
Adult learning in wonderful institutions such as Birkbeck and the Open University support lifelong learning, which is particularly vital for those who have never found inspiration at school but have the intellect and motivation to study for their own benefit and the benefit of society. We know that adult education is beset by lack of funding. Part-time learning misses out on grants and even loans. The lifelong learning entitlement may go some way to remedying this, but it is by no means certain that adults will wish to take on debt in order to study. Can the Minister say whether there is any evidence that adults are being enticed back into study by the entitlement?
There has been a sharp decline in part-time higher education in recent years. This is exacerbated by regional disparities. Numbers have fallen much faster in the north-east than in London, for instance. There should be much better incentives for those in low-participation areas. The Universities UK report Jobs of the Future found that more than 11 million extra graduates will be needed in the future to fill jobs in computing, engineering, teaching and health. Universities are evolving to meet such a challenging demand, but it is a challenge.
However, we must not assume that university is right for everyone. Students whose talents and interests lie in practical achievements should not be pressured by schools and parents into university when apprenticeships and vocational and professional qualifications may suit them better. Schools still do not brief their pupils on non-university routes. This is partly because they are still measured on GCSEs, A-levels and university entrance. But talented young people can feel adrift at university if that is not where their motivation lies.
As the noble Lord, Lord Blunkett, said, we must never suggest that universities are only for certain people. It takes courage to be the first in your family to go to university and we should be proud of the young people from disadvantaged backgrounds who choose university as a route out of underachievement and into opportunities for studying, socialising and learning, which will lead them to good jobs. Universities do so much to raise the status of their towns and cities, and to bring investment, enterprise and employment. We must take note of all they do and support their endeavours.
All over the world, as the university sector gets larger and larger, resource per student tends to go down, and there are also some really concerning results: degrees become barriers to entry and you cannot get a job that you used to be able to get without a degree unless you have one. We should be very aware of this danger because it is starting to have a real impact on the way that Governments deal with the university sector in ways that threaten its ability to deliver the innovation and the type of education that we all value.
Australia, for example, having failed with one set of very complicated differential fees, is now about to introduce another set, which will apparently be based on the future contributions to the economy of different degrees—so this is not just a British disease. It has been true here, in the United States and elsewhere that we have focused more and more on whether individuals earn a lot from a particular degree. This is being hard-baked into our regulatory and accountability regime. We should take a deep breath and ask whether this is sensible, any more than it was sensible to believe that you would guarantee an uptick in economic growth simply by increasing the number of students.
Individual salaries depend on a very large number of things. They depend, for example, on whether you go into an occupation like nursing, where your wage is set not by a market but by a Government. They depend on which institution you went to and on the sort of occupation you go into. They also depend—this comes to levelling up—on where you are. You will not earn as much if you study in the north-east and stay there as if you study in the south-east and stay there—although actually you might be as well off, given house prices. But as a tool for steering, regulating and changing the higher education system, the way we have doubled down on the idea that we must look at whether a degree delivers growth—and that, if it does, it will deliver salaries—is very concerning. As well as celebrating the role of universities, I hope we will pay careful attention to some of the unfortunate consequences of focusing too much on growth.
The frantic recruitment of international students has been the consequence of freezing tuition fees for domestic students. Although there is great merit in our universities attracting outstanding students from around the world, it is a different matter when they are driven by fiscal pressure to resort to flogging degrees to foreign students, charging shamelessly high fees and, in some instances, debasing academic standards through dubious agency and franchising arrangements. With the changes to the visa rules for dependants this January, the Home Office has made it harder for them to attract international students, and numbers are already tumbling.
Not all the woes of our universities have been visited on them by the Government; some are self-inflicted. Most worrying is the tendency to suppress freedom of speech, and the witch hunts against academics who hold views on, for example, gender issues or the history of empire that are considered by other academics to be heretical. Such attitudes and behaviours are contrary to the proper idea of a university, and feeble academic leadership should not allow them to prevail. Universities should rise higher than the street fascists. If a university is not a place where students and scholars are confident to explore and put forward ideas that may be unfashionable or unpopular, it is not only liberal education that is at risk but liberal society and liberal politics. It also weakens the willingness of the taxpayer to invest in such institutions and the economic and social benefits that they can confer.
Finally, as time is tight, I will just comment on the—as always—interesting observations from the noble Baroness, Lady Wolf. There is not simply a utilitarian defence of higher education. Again, it was the noble Lord, Lord Blunkett, as Secretary of State, who commissioned an excellent research exercise on the wider benefits of learning that is still yielding findings and results to this day. When we at the Resolution Foundation—one of those think tanks—recently did work on mental ill-health among young people and economic inactivity, we found that young people who had been to university were still quite likely to suffer mental ill-health. However, it looked as if having been to university made them more resilient. They were more likely still to be in work even while suffering episodes of mental ill-health than people who had not had that opportunity. So there are wider benefits of higher education that extend beyond those that are subject to immediate economic calculation and this debate is an opportunity to repeat the point.
These numbers are symptomatic of an economy failing to keep pace with the major and, some would say, unsustainable expansion in the number of graduates over the past 30 years. Put bluntly, we do not create enough high-skilled jobs. Given this context, universities should focus much more on preparing their students for the workplace and not just on graduation. Too many graduates leave university with no clear idea of what they want to do, with the result that many stray into a series of short-term jobs that fit poorly with their skills and character.
So what can be done to address this fundamental mismatch? I have just three quickfire observations on which I would welcome the Minister’s response. First, I advocate that one-third of an undergraduate’s curriculum should be devoted to their future employment prospects, developing life skills that apply to the workplace, receiving comprehensive careers advice and gaining hands-on, relevant work experience.
Secondly, we need radically to reduce the number of students taking degree courses with poor outcomes, lack of academic rigour, high dropout rates and poor employment prospects. We need to be more discriminating.
Finally—this is a problem of both supply and demand—we need much greater involvement from employers, both public sector and private sector, in helping educate students about professional life as well as scaling up graduate traineeships and internships.
This country has an extraordinary array of young talent, but it needs much more specific advice, training and guidance if we are to turn our students into engaged, happy, well-paid and, above all, productive workers.