Higher Education Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Higher Education Bill

Higher Education Bill
Part 3 — Student fees in higher education
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Interpretation of Part 2
In this Part—
“award” means any degree, diploma, certificate or other academic award
or distinction;
“designated operator” has the meaning given by section 13(5)(b);
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“the effective date” has the meaning given by section 13(5)(a);
“governing body” has the meaning given by section 90(1) of the 1992 Act,
but subject to any provision made by virtue of section 90(2) of that Act;
“higher education corporation” has the meaning given by section 90(1) of
the 1992 Act;
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“interested parties”, in relation to a scheme for the review of qualifying
complaints provided or to be provided by a body corporate, means—
(a)
qualifying institutions in England or Wales (as the case may be),
and
(b)
persons selected by the body corporate from amongst those it
15
considers to represent the interests of students at qualifying
institutions in England or Wales (as the case may be);
“qualifying complaint” has the meaning given by section 12;
“qualifying institution” has the meaning given by section 11.
Part 3
20
Student fees in higher education
Introductory
21
Meaning of “plan” etc.
In this Part—
(a)
any reference to a plan is a reference to a plan complying with section
25
31, and
(b)
any reference to an English approved plan or a Welsh approved plan is
a reference to a plan approved under section 32 in relation to England,
or as the case may be, in relation to Wales.
Imposition of conditions as to fees
30
22
Power of Secretary of State to impose condition as to student fees, etc.
(1)
The power of the Secretary of State to impose conditions under section 68(1) of
the 1992 Act or section 7(1) of the 1994 Act in relation to grants paid to a
funding body includes power to impose a condition requiring that body to
impose a condition under section 23 in relation to any grants, loans or other
35
payments made by that body under section 65 of the 1992 Act, or (as the case
may be) section 5 of the 1994 Act, to the governing body of a relevant
institution.
(2)
In this section—

“funding body” means—
40
(a)
the Higher Education Funding Council for England, or
(b)
the Teacher Training Agency;

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“relevant institution” means an institution specified by the Secretary of
State in a condition under subsection (1), or an institution of a class so
specified.
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Condition that may be required to be imposed by English funding bodies
(1)
A condition under this section requires the governing body of the relevant
5
institution—
(a)
to secure that, in respect of any qualifying course, the qualifying fees in
respect of any academic year which begins during the grant period at a
time when an English approved plan is in force in relation to the
institution do not exceed such limit, not exceeding the higher amount,
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as is provided by the plan for that course and that academic year,
(b)
to secure that, in respect of any qualifying course, the qualifying fees in
respect of any academic year which begins during the grant period at a
time when no English approved plan is in force in relation to the
institution do not exceed the basic amount, and
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(c)
to comply with the general provisions of any English approved plan
that is in force in relation to the institution during any part of the grant
period during which it is in force.
(2)
For the purposes of subsection (1)—
(a)
an academic year which begins at the same time as the grant period is
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to be taken to begin during the grant period, and
(b)
an academic year which begins with the day on which an English
approved plan comes into force is to be taken to begin at a time when
the plan is in force.
(3)
A condition under this section must provide—
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(a)
in the event of a failure by the governing body to comply with the
requirement specified in subsection (1)(a)—
(i)
where the qualifying fees do not exceed the higher amount, for
the imposition by the funding body on the governing body of
any financial requirements required by a direction under
30
section 35(1)(a), and
(ii)
where the qualifying fees exceed that amount, for the
imposition by the funding body on the governing body of any
financial requirements required by a direction under section
35(1)(a) and of other financial requirements determined by the
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funding body in accordance with principles specified by the
Secretary of State in the condition under section 22,
(b)
in the event of a failure by the governing body to comply with the
requirement specified in subsection (1)(b), for the imposition by the
funding body on the governing body of financial requirements
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determined by the funding body in accordance with principles
specified by the Secretary of State in the condition under section 22, and
(c)
in the event of a failure by the governing body to comply with the
requirement specified in subsection (1)(c), for the imposition by the
funding body on the governing body of any financial requirements
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required by a direction under section 35(1)(a).
(4)
Any financial requirements imposed by virtue of subsection (3) must relate to
one or more of the following—

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(a)
the repayment, with or without interest, of the whole or any part of any
sums received by the governing body in respect of the grant, loan or
other payment in question,
(b)
the withdrawal or reduction of any amount that has been awarded but
not yet paid in respect of the grant, loan or other payment in question,
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or
(c)
the refusal to award (or to award to the extent expected) any other
grant, loan or other payment under section 65 of the 1992 Act or (as the
case may be) section 5 of the 1994 Act in respect of the grant period or
any subsequent period.
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(5)
Where—
(a)
a condition is imposed under this section in connection with any grants,
loans or other payments made to the governing body of a relevant
institution, and
(b)
those payments are to any extent made in respect of persons
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undertaking a course which is provided in whole or part by any other
institution,

then, for the purposes of this section, fees payable by such persons to the other
institution are to be regarded as fees payable by them to the relevant
institution.
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(6)
In this section—

“academic year”, in relation to a course, means an academic year
applicable to the course;

“the basic amount” means such amount as may be prescribed for the
purposes of this section as the basic amount;
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“funding body” has the same meaning as in section 22;

“the grant period” means the period in respect of which the grants, loans,
or other payments to which the relevant condition under section 22
relates are made;

“the higher amount” means such amount as may be prescribed for the
30
purposes of this section as the higher amount;

“prescribed” means prescribed by regulations made by the Secretary of
State;

“qualifying course” means a course of any description prescribed for the
purposes of this section;
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“qualifying fees”, in relation to a relevant institution, means the fees
payable to the institution by a qualifying person in connection with his
undertaking a qualifying course;

“qualifying person” means a person falling within any class of persons
prescribed for the purposes of this section;
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“relevant institution” has the same meaning as in section 22.
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Regulations under section 23(6) relating to basic or higher amount
(1)
The Secretary of State may not make the first regulations under subsection (6)
of section 23 prescribing the basic amount and the higher amount for the
purposes of that section unless a draft of the regulations has been laid before,
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and approved by a resolution of, each House of Parliament.
(2)
Where regulations under subsection (6) of section 23 have been made
prescribing the basic amount and the higher amount for the purposes of that

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section, no regulations under that subsection may be made increasing either of
those amounts unless—
(a)
the Secretary of State is satisfied that the increase is no greater than is
required to maintain the value of the amount in real terms, or
(b)
a draft of the regulations has been laid before, and approved by a
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resolution of, each House of Parliament.
(3)
For the purposes of subsection (2)(a) the Secretary of State is to have regard to
such index of prices as may be specified in, or determined in accordance with,
regulations made by him under this subsection.
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Power of National Assembly for Wales to impose conditions as to student
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fees, etc.
(1)
The power of the Assembly to impose conditions under section 68(1) of the
1992 Act or section 7(1) of the 1994 Act in relation to grants paid to the Higher
Education Funding Council for Wales includes power to impose a condition
requiring the Council to impose a condition under section 26 in relation to any
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grants, loans or other payments made by the Council under section 65 of the
1992 Act, or (as the case may be) section 5 of the 1994 Act, to the governing
body of a relevant institution.
(2)
In this section “relevant institution” means an institution specified by the
Assembly in a condition under subsection (1), or an institution of a class so
20
specified.
26
Condition that may be required to be imposed by Higher Education Funding
Council for Wales
(1)
A condition under this section requires the governing body of the relevant
institution—
25
(a)
to secure that, in respect of any qualifying course, the qualifying fees in
respect of any academic year which begins during the grant period at a
time when a Welsh approved plan is in force in relation to the
institution do not exceed such limit, not exceeding the higher amount,
as is provided by the plan for that course and that academic year,
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(b)
to secure that, in respect of any qualifying course, the qualifying fees in
respect of any academic year which begins during the grant period at a
time when no Welsh approved plan is in force in relation to the
institution do not exceed the basic amount, and
(c)
to comply with the general provisions of any Welsh approved plan that
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is in force in relation to the institution during any part of the grant
period during which it is in force.
(2)
For the purposes of subsection (1)—
(a)
an academic year which begins at the same time as the grant period is
to be taken to begin during the grant period, and
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(b)
an academic year which begins with the day on which a Welsh
approved plan comes into force is to be taken to begin at a time when
the plan is in force.
(3)
A condition under this section must provide, in the event of a failure of the
governing body to comply with any of the requirements specified in subsection
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(1), for the imposition by the Higher Education Funding Council for Wales on
the governing body of financial requirements determined by the Council in

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accordance with principles specified by the Assembly in the condition under
section 25.
(4)
Any financial requirements imposed by virtue of subsection (3) must relate to
one or more of the following—
(a)
the repayment, with or without interest, of the whole or any part of any
5
sums received by the governing body in respect of the grant, loan or
other payment in question,
(b)
the withdrawal or reduction of any amount that has been awarded but
not yet paid in respect of the grant, loan or other payment in question,
or
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(c)
the refusal to award (or to award to the extent expected) any other
grant, loan or other payment under section 65 of the 1992 Act or (as the
case may be) section 5 of the 1994 Act in respect of the grant period or
any subsequent period.
(5)
Where—
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(a)
a condition is imposed under this section in connection with any grants,
loans or other payments made to the governing body of a relevant
institution, and
(b)
those payments are to any extent made in respect of persons
undertaking a course which is provided in whole or part by any other
20
institution,

then, for the purposes of this section, fees payable by such persons to the other
institution are to be regarded as fees payable by them to the relevant
institution.
(6)
In this section—
25

“academic year”, in relation to a course, means an academic year
applicable to the course;

“the basic amount” means such amount as may be prescribed for the
purposes of this section as the basic amount;

“the grant period” means the period in respect of which the grants, loans,
30
or other payments to which the relevant condition under section 25
relates are made;

“the higher amount” means such amount as may be prescribed for the
purposes of this section as the higher amount;

“prescribed” means prescribed by regulations made by the Assembly;
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“qualifying course” means a course of any description prescribed for the
purposes of this section;

“qualifying fees”, in relation to a relevant institution, means the fees
payable to the institution by a qualifying person in connection with his
undertaking a qualifying course;
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“qualifying person” means a person falling within any class of persons
prescribed for the purposes of this section;

“relevant institution” has the same meaning as in section 25.
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Sections 22 to 26: supplementary provisions
(1)
No condition under section 23 or 26 applies in relation to any fees which are
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payable, in accordance with regulations under section 1 of the Education (Fees
and Awards) Act 1983 (c. 40) (fees at universities and further education
establishments) by students other than those falling within any class of persons

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prescribed by such regulations for the purposes of subsection (1) or (2) of that
section (persons connected with the United Kingdom, etc.).
(2)
The power to prescribe descriptions of course by virtue of the definition of
“qualifying course” in section 23(6) or 26(6) may not be exercised in such a way
as to discriminate—
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(a)
in relation to courses of initial teacher training, between different
courses on the basis of the subjects in which such training is given, and
(b)
in relation to other courses, between different courses at the same or a
comparable level on the basis of the areas of study or research to which
they relate.
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(3)
Nothing in the 1992 Act or the 1994 Act, so far as it imposes any prohibition or
other requirement in relation to the imposition of conditions by the Secretary
of State, the Assembly, the Higher Education Funding Council for England, the
Higher Education Funding Council for Wales or the Teacher Training Agency
applies to—
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(a)
any condition under section 22 imposed by the Secretary of State,
(b)
any condition under section 25 imposed by the Assembly, or
(c)
any condition under section 23 or 26 imposed by either of those
Councils or that Agency.
Plans authorising fees of more than basic amount
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Meaning of “the relevant authority”
(1)
In this Part “the relevant authority” means—
(a)
in relation to England, the Director (as defined by section 29(1)), and
(b)
in relation to Wales, such person as may be designated for the purposes
of this section by regulations made by the Assembly.
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(2)
The power conferred by subsection (1)(b) includes power to designate the
Higher Education Funding Council for Wales.
(3)
Regulations under subsection (1)(b) designating a person as the relevant
authority in relation to Wales may make such amendments of any enactment
(including any enactment contained in this Act) as appear to the Assembly to
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be necessary or expedient in connection with the designation of that person.
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Director of Fair Access to Higher Education
(1)
There is to be a Director of Fair Access to Higher Education (in this Part
referred to as “the Director”).
(2)
The Director is to be appointed by the Secretary of State.
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(3)
Schedule 5 makes further provision about the Director.
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General duties of relevant authority
(1)
The Director must—
(a)
perform his functions under this Part in such a way as to promote and
safeguard fair access to higher education, and
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(b)
in the performance of those functions, have regard to any guidance
given to him by the Secretary of State.

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(2)
The relevant authority in relation to Wales must, in the performance of the
functions that are conferred on it by this Part as the relevant authority, have
regard to any guidance given to it by the Assembly.
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Contents of plans
(1)
A plan under this section relating to an institution must, in relation to each
5
qualifying course in connection with which fees are to be payable to the
institution by qualifying persons, specify or provide for the determination of a
limit (not exceeding the higher amount) which those fees are not permitted to
exceed.
(2)
A plan under this section relating to any institution must also include such
10
provisions relating to—
(a)
the promotion of higher education, or
(b)
the promotion of equality of opportunity in connection with access to
higher education,

as are required by regulations to be included in the plan, and may also include
15
further provisions relating to either of those matters.
(3)
In this Part any reference to the “general provisions” of a plan under this
section is a reference to the provisions included in the plan by virtue of
subsection (2).
(4)
The general provisions that may be required by regulations made by virtue of
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subsection (2) include, in particular, provisions—
(a)
requiring the governing body to take, or secure the taking of, measures
to attract applications from prospective students who are members of
groups which, at the time when the plan is approved, are under-
represented in higher education,
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(b)
requiring the governing body to provide, or secure the provision of,
financial assistance to students,
(c)
requiring the governing body to make available to students and
prospective students information about financial assistance available to
students from any source,
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(d)
setting out objectives in relation to the matters mentioned in subsection
(2)(a) and (b),
(e)
relating to the monitoring by the governing body of—
(i)
its compliance with the provisions of the plan, and
(ii)
its progress in achieving any objectives set out in the plan by
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virtue of paragraph (d), and
(f)
requiring the provision of information to the relevant authority.
(5)
In this section—

“the higher amount” means—
(a)
in relation to England, the amount from time to time prescribed
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as the higher amount under section 23(6), and
(b)
in relation to Wales, the amount from time to time prescribed as
the higher amount under section 26(6);

“qualifying course” and “qualifying person”—
(a)
in relation to England, have the same meaning as in section 23,
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and
(b)
in relation to Wales, have the same meaning as in section 26;