Higher Education and Research Bill (HC Bill 78)

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(b) a body to which the Secretary of State appoints members.

Removal of designation

5 (1) The Secretary of State may by notice remove a designation under this
Schedule.

(2) 5The notice must—

(a) include reasons for the Secretary of State’s decision, and

(b) specify the date on which the designation is removed.

(3) The Secretary of State may only remove the designation if—

(a) the Secretary of State is satisfied that removing the designation
10would be appropriate, or

(b) the designated body consents to the removal of the designation.

(4) Before removing the designation the Secretary of State must consult—

(a) the OfS,

(b) a number of registered higher education providers that, taken
15together, appear to the Secretary of State to comprise a broad range
of the different types of such providers,

(c) a number of persons that, taken together, appear to the Secretary of
State to represent, or promote the interests of, a broad range of
students on higher education courses provided in England by
20registered higher education providers,

(d) a number of persons that, taken together, appear to the Secretary of
State to represent, or promote the interests of, a broad range of
employers of graduates, and

(e) such other persons as the Secretary of State considers appropriate.

(5) 25In determining whether a designation under this Schedule should be
removed, the Secretary of State must have regard to any relevant
information that the OfS has provided to the Secretary of State.

(6) The Secretary of State must publish a notice under this paragraph.

Part 2 30Oversight by the OfS

Application

6 This Part applies if there is a body designated under this Schedule.

Oversight arrangements

7 The OfS must make arrangements for holding the designated body to
35account for the performance of its duty under section 59(1).

Annual report by the designated body

8 (1) As soon as possible after the end of each annual reporting period, the
designated body must prepare and send to the OfS a report about the
performance of its duty under section 59(1) during the period.

(2) 40“Annual reporting period”, in relation to a designated body, means—

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(a) the period of 12 months beginning with the effective date, and

(b) each successive period of 12 months.

Triennial report by the OfS

9 (1) As soon as possible after the end of each triennial reporting period, the OfS
5must prepare and send to the Secretary of State a triennial report about—

(a) how the designated body has performed its duty under section 59(1)
during the period,

(b) whether the designated body should continue to be designated
under Part 1 of this Schedule,

(c) 10the appropriateness of any fees charged by the designated body
under section 61, and

(d) any other matters that the OfS considers relevant.

(2) In preparing a triennial report, the OfS must have regard to any views
provided to the OfS by a person listed in sub-paragraph (3) about—

(a) 15the matters listed in sub-paragraph (1)(a) to (c), and

(b) what other matters, if any, should be dealt with in the report.

(3) Those persons are—

(a) registered higher education providers,

(b) persons representing, or promoting the interests of, students on
20higher education courses provided in England by registered higher
education providers,

(c) persons representing, or promoting the interests of, employers of
graduates, and

(d) such other persons as the OfS considers appropriate.

(4) 25“Triennial reporting period”, in relation to a designated body, means—

(a) the period of 3 years beginning with the effective date, and

(b) each successive period of 3 years.

Duty of the OfS to inform the Secretary of State about significant concerns

10 The OfS must inform the Secretary of State if it has significant concerns
30about—

(a) how the designated body is performing its duty under section 59(1),
or

(b) the continued suitability of the designated body to be designated
under this Schedule.

35Part 3 Interpretation

11 (1) In this Schedule—

  • “designated body” means a body for the time being designated under
    this Schedule;

  • 40“the effective date”, in relation to a designated body, has the meaning
    given in paragraph 3;

  • “graduate” has the same meaning as in section 59.

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(2) References in this Schedule to a body that is suitable to be designated under
this Schedule are to be read in accordance with paragraph 4.

Section 66

SCHEDULE 7 Costs recovery: procedure, appeals and recovery

5Introduction

1 This Schedule applies in relation to the imposition by the OfS of a
requirement to pay costs on the governing body of a provider under section
66.

Procedure

2 (1) 10The notice which the OfS gives the governing body under section 66(1) must
specify—

(a) the amount required to be paid, and

(b) the period within which payment is required to be made (which
must not be less than 28 days).

(2) 15The notice must also contain information as to—

(a) how payment may be made,

(b) rights of appeal,

(c) the period within which an appeal may be made, and

(d) the consequences of non-payment.

(3) 20The governing body may require the OfS to provide a detailed breakdown
of the amount specified in the notice.

(4) The requirement to pay the costs is suspended at any time when an appeal
could be brought in respect of the requirement to pay the costs or such an
appeal is pending.

(5)
25But that does not prevent the requirement to pay the costs taking effect if the
governing body notifies the OfS that it does not intend to appeal.

Appeals

3 (1) The governing body of a provider may appeal to the First-tier Tribunal
against—

(a) 30a decision under section 66 to require it to pay costs;

(b) a decision as to the amount of those costs.

(2) An appeal under this paragraph may be made on the grounds—

(a) that the decision was based on an error of fact;

(b) that the decision was wrong in law;

(c) 35that the decision was unreasonable.

(3) On an appeal under this paragraph the Tribunal may—

(a) withdraw the requirement to pay the costs;

(b) confirm that requirement;

(c) vary that requirement;

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(d) remit the decision whether to confirm the requirement to pay the
costs, or any matter relating to that decision, to the OfS.

Interest and recovery

4 (1) This paragraph applies if all or part of an amount of costs that a governing
5body is required to pay under section 66 is unpaid by the time when it is
required to be paid.

(2) The unpaid amount of the costs for the time being—

(a) carries interest at the rate for the time being specified in section 17 of
the Judgments Act 1838, and

(b) 10does not also carry interest as a judgment debt under that section.

(3) The total amount of interest imposed under sub-paragraph (2) must not
exceed the amount of the costs.

(4) The OfS may recover from the governing body, as a civil debt due to it, the
unpaid amount of the costs and any unpaid interest.

15Retention of sums received

5 (1) The OfS must pay the sums received by it by way of a requirement to pay
costs under section 66 to the Secretary of State except to the extent that the
Secretary of State, with the consent of the Treasury, directs otherwise.

(2) The OfS must pay the sums received by it by way of interest under
20paragraph 4 to the Secretary of State.

Section 83

SCHEDULE 8 Higher education corporations in England

Education Reform Act 1988

1 The Education Reform Act 1988 is amended as follows.

2 25In section 122 (orders incorporating higher education institutions
maintained by local authorities)—

(a) in the heading, after “local authorities” insert “in Wales”, and

(b) in subsection (1), after “local authority” insert “in Wales”.

3 Before section 122A insert—

122ZA 30 Orders for further education corporations in England to become
higher education corporations

(1) The Secretary of State may by order provide for a further education
corporation in England to become a higher education corporation.

(2) The first members of the higher education corporation are to be
35appointed by the governing body of the further education
corporation.

(3) On such date as may be specified in the order—

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(a) the corporation ceases to be a further education corporation
and becomes a higher education corporation, and

(b) any member of the further education corporation who is not
re-appointed by the governing body as a member of the
5higher education corporation ceases to hold office.”

4 In section 122A (orders transferring further education corporations to higher
education sector)—

(a) in the heading, after “further education corporations” insert “in
Wales”, and

(b) 10in subsection (1), after “further education corporation” insert “in
Wales”.

5 In section 123 (provisions supplementary to sections 121 and 122)—

(a) in the heading, for “and 122” substitute “to 122A”,

(b) in subsection (1), after “by virtue of section” insert “122ZA or”, and

(c) 15in subsections (3) and (4), after “higher education corporation” insert
“in Wales”.

6 Before section 124 insert—

123A Principal powers of a higher education corporation in England

(1) A higher education corporation in England has power—

(a) 20to provide higher education;

(b) to provide further education;

(c) to provide secondary education suitable to the requirements
of persons who have attained the age of 14 years;

(d) to provide education which is secondary education by virtue
25of section 2(2B) of the Education Act 1996 (definition of
secondary education);

(e) to participate in the provision of secondary education at a
school; and

(f) to carry out research and to publish the results of the research
30or any other material arising out of or connected with it in
such manner as the corporation think fit.

(2) A higher education corporation in England may not provide
education of a kind specified in subsection (1)(c) or (d) unless they
have consulted such local authorities as they consider appropriate.

123B 35Supplementary powers of a higher education corporation in England

(1) A higher education corporation in England has power to do
anything which appears to the corporation to be necessary or
expedient for the purpose of, or in connection with, the exercise of
any of their principal powers.

(2) 40The corporation’s “principal powers” are the powers conferred by
section 123A(1).”

7 In section 124 (powers of a higher education corporation)—

(a) in the heading, after “higher education corporation” insert “in
Wales”, and

(b) 45in subsections (1), (1A) and (2), after “higher education corporation”
insert “in Wales”.

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8 Before section 124A insert—

124ZA Instrument of government of higher education corporations in
England

(1) For each higher education corporation in England there is to be an
5instrument providing for the constitution of the corporation (to be
known as the instrument of government).

(2) A higher education corporation in England may vary, replace or
revoke the instrument of government.

(3) The corporation must not make changes to the instrument of
10government that (but for section 125A) would result in the
corporation ceasing to be a charity.

124ZB Proceedings etc. of higher education corporations in England

(1) The validity of any proceedings of a higher education corporation in
England, or of a committee of such a corporation, is not affected by—

(a) 15a vacancy among the members, or

(b) a defect in the appointment or nomination of a member.

(2) The application of the seal of a higher education corporation in
England must be authenticated by the signature of—

(a) the chair of the corporation or some other person authorised
20for that purpose by the corporation, and

(b) any other member of the corporation.

(3) A document purporting to be duly executed under the seal of a
higher education corporation in England or signed on the
corporation’s behalf—

(a) 25is to be received in evidence, and

(b) is to be taken to be executed or signed in that way, unless the
contrary is shown.

(4) The members for the time being of a higher education corporation in
England are to be known as the board of governors of the institution
30conducted by the corporation.”

9 In section 124A (constitution and conduct of higher education
corporations)—

(a) in the heading, for “corporations” substitute “higher education
corporations in Wales”, and

(b) 35in subsections (1), (2), (3)(a) (in each place), (4), (6), (7) and (8), after
“higher education corporation” insert “in Wales”.

10 In section 124B(2)(b) (accounts), at the beginning insert “in the case of a
higher education corporation in Wales,”.

11 In section 124C (initial and transitional arrangements)—

(a) 40in the heading, at the end insert “: Wales”,

(b) in subsection (1), after “a corporation” insert “in Wales”, and

(c) in subsection (3), after “higher education corporation” insert “in
Wales”.

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12 Before section 125 insert—

124E Articles of government: higher education corporations in England

(1) An institution conducted by a higher education corporation in
England is to be conducted in accordance with articles of
5government made by the corporation.

(2) The articles of government may make provision with respect to the
powers of the corporation under section 123B.

(3) A higher education corporation in England may vary, replace or
revoke the articles of government.

(4) 10The corporation must not make changes to the articles of
government that (but for section 125A) would result in the
corporation ceasing to be a charity.”

13 In section 125 (articles of government)—

(a) in the heading, at the end insert “: higher education corporations in
15Wales”,

(b) in subsection (1), after “higher education corporation” insert “in
Wales”, and

(c) in subsection (6)—

(i) after “higher education corporations” insert “in Wales”, and

(ii) 20after “higher education corporation” insert “in Wales”.

14 In section 125A (charitable status of a higher education corporation)—

(a) for “an English higher education corporation” substitute “a higher
education corporation in England”, and

(b) for “Welsh higher education corporation” substitute “higher
25education corporation in Wales”.

15 In section 127(1) (transfer of staff to higher education corporations), after
“higher education corporation” insert “established under section 121 or 122”.

16 Before section 128 insert—

127A Dissolution of higher education corporations in England

(1) 30If requested to do so by notice given by a higher education
corporation in England, the Secretary of State may make an order
providing for—

(a) the dissolution of the corporation, and

(b) the transfer of property, rights and liabilities of the
35corporation to—

(i) a person appearing to the Secretary of State to be
wholly or mainly engaged in the provision of
educational facilities or services of any description;

(ii) a body corporate established for purposes which
40include the provision of such facilities or services;

(iii) the Office for Students.

(2) An order under this section must not provide for transferring the
property, rights or liabilities of a higher education corporation in
England to a person or body without the consent of the person or
45body.

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(3) Subsection (4) applies where the recipient of a transfer under an
order under this section is not a charity established for charitable
purposes which are exclusively educational purposes.

(4) Any property transferred must be transferred on trust to be used for
5charitable purposes which are exclusively educational purposes.

(5) Before making an order under this section the Secretary of State must
consult the Office for Students.

(6) In this section “charitable purposes” has the meaning given by
section 11 of the Charities Act 2011.

(7) 10An order under this section may apply section 127 with such
modifications as the Secretary of State may consider necessary or
desirable.”

17 In section 128 (dissolution of higher education corporations)—

(a) in the heading, after “higher education corporations” insert “in
15Wales”, and

(b) in subsections (1)(a), (2) and (4), after “higher education corporation”
insert “in Wales”.

18 In section 129(5)(e) (designation of institutions), before “128” insert “127A
or”.

19 20In section 157(2)(a) (variation of trust deeds etc: institutions conducted by
higher education corporations), after “higher education corporation” insert
“in Wales”.

20 In section 161(1) (interpretation of Part 2)—

(a) after paragraph (b) insert—

(ba) 25“further education corporation in England” means a
further education corporation established to conduct
an institution whose activities are carried on, or
principally carried on, in England;

(bb) “further education corporation in Wales” means a
30further education corporation established to conduct
an institution whose activities are carried on, or
principally carried on, in Wales;”, and

(b) after paragraph (d) insert—

(e) “higher education corporation in England” means a
35higher education corporation established to conduct
an institution whose activities are carried on, or
principally carried on, in England;

(f) “higher education corporation in Wales” means a
higher education corporation established to conduct
40an institution whose activities are carried on, or
principally carried on, in Wales.”

21 In Schedule 7 (the higher education corporations)—

(a) for the heading substitute “Higher education corporations in Wales
established before the appointed day”, and

(b) 45in paragraph 1(1), (2) and (3)(a), after “higher education corporation”
insert “in Wales”.

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22 In Schedule 7A (instruments of government made by Privy Council), for the
heading substitute “Higher education corporations in Wales established on
or after the appointed day: instruments of government made by Privy
Council”.

5Further and Higher Education Act 1992

23 The Further and Higher Education Act 1992 is amended as follows.

24 In section 90(1) (interpretation of Act), in the definition of “higher education
corporation”, after “by virtue of section” insert “122ZA or”.

25 In section 91 (interpretation of Education Acts), in subsection (6)(b), for “by
10virtue of section 122A” substitute “by virtue of section 122ZA or 122A”.

Section 84

SCHEDULE 9 United Kingdom Research and Innovation

Status

1 (1) UKRI is not to be regarded—

(a) 15as the servant or agent of the Crown, or

(b) as enjoying any status, immunity or privilege of the Crown.

(2) UKRI’s property is not to be regarded—

(a) as the property of the Crown, or

(b) as property held on behalf of the Crown.

20Membership of UKRI

2 (1) UKRI is to consist of the following members appointed by the Secretary of
State—

(a) a chair (“the chair”),

(b) the Chief Executive Officer (“the CEO”),

(c) 25the Chief Finance Officer (“the CFO”), and

(d) at least nine and not more than twelve other members.

(2) In this Schedule, references to the “members of UKRI” are to the members
mentioned in sub-paragraph (1).

(3) The chair may not also be the CEO or the CFO.

(4) 30Before appointing the members mentioned in sub-paragraph (1)(b) to (d),
the Secretary of State must consult the chair.

(5) The Secretary of State must, in appointing the members of UKRI, have
regard to the desirability of the members (between them) having experience
of—

(a) 35research into science, technology, humanities and new ideas,

(b) the development and exploitation of science, technology, new ideas
and advancements in humanities, and

(c) industrial, commercial and financial matters and the practice of any
profession.

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Membership of the Councils

3 (1) Each Council is to consist of—

(a) an executive chair appointed by the Secretary of State (the “executive
chair”), and

(b) 5at least five and not more than nine other members (the “ordinary
Council members”).

(2) In this Schedule, a reference to the “Council members” is to the executive
chair and the ordinary Council members of each Council.

(3) The Secretary of State may appoint one of the ordinary Council members of
10each Council.

(4) The other ordinary Council members are to be appointed by UKRI after
consulting the executive chair.

(5) A majority of the ordinary Council members of a Council must be persons
who are neither members, nor employees, of UKRI.

15Terms of appointment and tenure

4 A person holds and vacates office as a member of UKRI or as a Council
member in accordance with the terms of his or her appointment.

5 (1) This paragraph applies to a person (a “Ministerial appointee”) appointed
as—

(a) 20a member of UKRI,

(b) an executive chair, or

(c) an ordinary Council member where the appointment was made by
the Secretary of State.

(2) The terms and conditions of a Ministerial appointee’s appointment are to be
25determined by the Secretary of State; but that is subject to the following
provisions of this Schedule.

(3) A Ministerial appointee may resign from office as a member of UKRI,
executive chair or an ordinary Council member by notifying the Secretary of
State.

(4) 30The Secretary of State may remove a Ministerial appointee from office on
any of the following grounds—

(a) absence from UKRI’s or the Council’s meetings, as the case may be,
for a continuous period of more than six months without UKRI’s or
the Council’s permission,

(b) 35inability or unfitness to carry out the functions of the office, or

(c) such other grounds as the Secretary of State considers appropriate.

6 (1) This paragraph applies to a person (an “UKRI appointee”) appointed as an
ordinary Council member where the appointment was made by UKRI.

(2) The terms and conditions of an UKRI appointee’s appointment are to be
40determined by UKRI; but that is subject to the following provisions of this
Schedule.

(3) An UKRI appointee may resign from office as an ordinary Council member
by notifying UKRI.