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As we have been stating for years and as the Milburn report reiterated, there is not much good to say about the ailing Connexions service. The careers service in our schools has let down young people badly and contributed to a curtailment of social mobility.

The bottom line is that good information is vital to improving university access. Young people need proper support at every stage, from choosing appropriate A-levels to understanding student finance. I do not want to generalise, but a substantial cultural change is necessary in our schools if more bright young people from disadvantaged backgrounds are to apply to top universities in the Russell group, for example.

An interesting report on applications and admissions for the Department for Business, Innovation and Skills, also by the Sutton Trust, highlights the problem. It found that students from FE colleges were the least likely to apply to top universities. There is clearly scope for further investigation of the reasons why students from FE colleges do not apply to top universities in the quantities that might be expected. My party would tackle part of the widening participation agenda by redirecting funding towards a substantially enhanced independent careers service in every secondary school and college. However, teachers must also encourage pupils with ability to apply to our best universities and not simply to assume that the best universities are for the privileged or wealthy. They are not, and I am totally convinced that they do not want to be.

Mr. Andrew Smith: I am grateful to the hon. Gentleman, who is being generous in giving way. I agree strongly with the point that he just made about the need for a culture shift and raised aspirations in secondary schools-and, indeed, in primary schools-so that a far wider range of children can reach the highest level. Does he agree that the efforts being made by Oxford colleges, as well as other universities, to reach out into poorer communities, including mentoring by students, can be an important force in creating such a culture shift?

Mr. Wilson: The right hon. Gentleman is absolutely correct. When I visited Cambridge, I saw a number of outreach programmes. I was extremely impressed by that university's mentoring programmes and the work it is doing to attract more young people from disadvantaged backgrounds. The work being done in that respect at Oxford, Cambridge and other Russell group universities is first-class.

Mr. Mark Field (Cities of London and Westminster) (Con): Does my hon. Friend also recognise that mentoring has been around for some considerable time during the 25 years since I went up to Oxford? I went to the same school as the right hon. Member for Oxford, East (Mr. Smith). He, of course, was the black sheep of the family, having gone to grammar school and ending up a Labour Member of Parliament. However, the serious point is that we were lucky to have been at a state school with a tradition of sending a number of boys to Oxford every year. Twenty-five years on, the number is considerably larger than when we were there.


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Oxford and Cambridge college tutors-not all, but many-have made a substantial commitment going back some decades to reach out as far as they can, but is not the real issue schools' aspiration, as my hon. Friend says, to ensure from the age of 14, 15 or 16 that the brightest children from deprived households see any university, let alone Oxbridge, as an option for them?

Mr. Wilson: My hon. Friend makes a good point, and I agree wholeheartedly. As I have suggested, I do not believe that the real problem lies with tutors or the outreach work done by Oxford and Cambridge. They are trying very hard indeed to attract large numbers of disadvantaged people through a series of programmes. Unfortunately, that is not being reflected by activities in some schools, such as those of the careers service. It is also partly to do with the fact that some teachers might have fewer aspirations for young people than those young people have for themselves. Good advice would certainly not go amiss within such schools.

Mr. Willis: The hon. Gentleman is being incredibly generous in giving way. That is what is good about debates such as this.

In the spirit of the debate, may I say that when we talk about higher education, we always go on about Oxbridge and the Russell group, but the reality is that not enough young people from lower socio-economic groups aspire to go to any university at all? That is the challenge. Does the hon. Gentleman agree that although we concentrate on a small group of elite universities that, as we found when we investigated, are doing a strong job of trying to get young people in-I do not blame those universities-the challenge is getting youngsters to stay on at school after 16 and aspire to go to any university? That is why the FE sector delivering HE is crucial as part of that journey.

Mr. Wilson: The Chairman of the Select Committee speaks with great knowledge and passion. I will come to exactly that point in a few minutes, but I must make some progress now. I have been speaking for 25 minutes and I know that other Members want to speak, so I would like to keep interventions down to a manageable level.

The review can play a major role in ensuring that all able students-irrespective of background, postcode or father's profession-can attend university, including the very best university if that is their wish.

We cannot discuss widening participation without mentioning the importance of part-time learners, who represent a significant proportion of the student body and have always been somewhat disadvantaged within the system. Again, the review is a perfect opportunity to put right some of the wrongs that they have suffered. I think that we would all agree that the artificial barrier between full-time and part-time students is unacceptable in a modern, diverse and accessible higher education system. Staffordshire university's vice-chancellor, Christine King, has undertaken useful work on the matter, and I hope that it will be taken into account during the coming months as the review progresses.

In light of the changing student demographic, the review should also consider the higher education taught in further education colleges. The benefits of such provision include local access, wider participation and affordability. What is most important is enabling people to access
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education in a way and at a pace that are right for them. That means more HE taught in further education colleges and more part-time, distance and modular learning.

For that reason, as the Minister will be aware, I have long advocated that the UK take note of the US community college model of higher education. Such colleges provide access to higher learning for millions of students and, a bit like the UK's further education sector, have a higher proportion of entrants from lower socio-economic groups.

Although I do not wish to use my time today to plug the American education system, several things of relevance to the review are worth noting. First, the US system is based on credit, enabling people to drop in and out of study as their lives dictate. The career ladder is rightly viewed as a career lattice, and students can accumulate credit until they are ready and able to transfer to a traditional university to complete their degree. I do not see why a progressive sector such as the UK's should not have comparable flexibility. I acknowledge that the Government have moved in that direction by broadening foundation degrees, but much more could be done.

The second factor that impresses me is how networks of colleges pool their resources as part of articulation agreements. Some embryonic examples of that model can be found in the UK, such as the Staffordshire university regional federation-a collection of FE colleges affiliated to Staffordshire university. If we are to make tough decisions about the sector's financial future, sharing backroom expenses could be one way to cut wasteful administrative costs.

The third point about community colleges is their engagement and integration with local businesses. The model has proved so successful that funding is usually in thirds: one third from the Government or state, one third from the individual and one third from local business. The emphasis on localised provision to meet local business needs has helped to differentiate community colleges from traditional US universities. The range of work-based learning provision covers courses such as soft skills, customised job training, short intensive courses and training for local businesses.

According to the Association of Colleges, one third of higher education places in colleges are often for adults seeking professional qualifications, with their fees being paid by the employer. The higher education review should look to expand such provision and examine closely what is happening in the US.

I believe, however, that true business collaboration will occur only when investing businesses have more say in the course material within institutions. In recent months, business in this country has justifiably criticised the quality of the school leavers that our schools are turning out, but it also needs to start putting more effort into supporting further and higher education so that the skills it needs are provided locally.

As well as debating the contentious topic of the future level of fees, the review will, I understand, consider the whole financial package on offer to students. That package is confusing to young people at school, as I think the Youth Council found in a report published earlier this year. The current system of local bursaries, grants, loans and other financial assistance such as private sector input is confusing. That is particularly unhelpful to those disadvantaged groups that rely more on such financial assistance. I hope that the review makes recommendations that would simplify the system
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for users. It may well be worth considering the merits of a national bursary system, for example.

In coming to informed conclusions about the student finance mix, the review should consider all potential options. That should of course include the call from the NUS for a graduate tax. Clearly, there are issues with that, as the cost of pump-priming such a solution may be well beyond anything the country can afford in the current circumstances, but it is essential that the review considers all possible solutions for student financing.

I intended to round off my remarks with a few comments on employability, but I am conscious that a number of hon. Members want to speak. I shall simply say that it is important for organisations with an interest in this issue to make their feelings clear during the coming months if they want to have a chance to influence the review. Such windows do not open for long, and for the first time in years the sector has a genuine opportunity to make real changes that will benefit the country both socially and economically.

I hope that by securing the debate and advancing my views constructively, a dialogue has been started that will result in a secure and, indeed, prosperous future for higher education in this country.

Mr. Joe Benton (in the Chair): Before I call the next speaker, may I point out that I propose to commence the winding-up speeches at 10.30? I call Mark Williams.

10.3 am

Mark Williams (Ceredigion) (LD): It is a pleasure to serve under your chairmanship, Mr. Benton. I pay tribute to the hon. Member for Reading, East (Mr. Wilson) for securing this important debate. I feel slightly like a Welsh interloper in an English debate, but I hope that as I speak it will become apparent why some of the issues raised by the hon. Gentleman are directly relevant to my constituents.

I represent two universities in Ceredigion, at Aberystwyth and Lampeter. Lampeter has now merged with Trinity College, Carmarthen. The universities are a source of great pride to us and provide significant employment in the county. Approximately 18,000 students are enrolled at our two universities and, as the hon. Gentleman described, those students play a huge role in the local economy. The university of Lampeter has had a tough time in the last year or so with the merger. There has been a great deal of pain; there have been job losses. However, the merger was essential and I think that the worst is now over. The new vice-chancellor has a great vision for the way forward.

There is hope. We have moved forward, thanks to the support given by the Higher Education Funding Council for Wales and the Assembly Government. I will not stray into devolved matters, but I would like to place on the record our appreciation for that support. Higher education in Wales is rightly devolved. The Minister for Children, Education, Lifelong Learning and Skills, Jane Hutt, is talking to the Select Committee on Welsh Affairs this morning and the Minister present for this debate will come to see us on Thursday.

Last week, Jane Hutt made a statement about higher education in Wales. The point that I want to make is that decisions here and the review that we have been hearing about have a direct impact on the Welsh higher education sector as well.


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Let me give some context for the higher education sector in Wales and its importance to the Welsh economy. Its annual turnover is £1.1 billion and it brings a further £1.1 billion into the Welsh economy. The sector provides 33,000 jobs directly or indirectly to Wales, and 640,000 jobs in the UK as a whole. It is fair to say that Wales punches above its weight in the higher education sector. If anything, the sector is more important to the Welsh economy than it is to the English, because it involves a larger proportion of gross domestic product. The Assembly Government have placed renewed emphasis on growing the knowledge economy. Higher education is one of our best sectors and we need to use that to our advantage.

Cross-border implications are of fundamental importance and need to be considered when policies are proposed, not least because Wales has the highest proportion of students coming from outside the country of any nation in the UK. We are having the review of fees. Such reviews and reviews of other higher education structures can have significant effect on how Welsh universities operate and their capacity to attract students. We need to keep the official lines of contact between the Minister's Department and his counterparts in Cardiff Bay. That issue was raised in one of our previous Select Committee reports. I am referring to the extent of that collaboration and the extent to which there is knowledge in the Minister's Department of a separate structure in Wales. I would be grateful if he outlined the extent to which that dialogue is ongoing.

I am a member of the Welsh Affairs Committee, and when we produced a report on cross-border higher education we identified a number of areas for improvement. The most stark was the £60 million funding gap between Wales and England. The hon. Member for Stroud (Mr. Drew) alluded to the funding differential between institutions in England. There is a real funding gap between Wales and England. I would be grateful if the Minister at least acknowledged that divide, as it has a huge effect on us, not least because Wales has a strong record of attracting students from overseas to our colleges. We also noted the importance of further education and the need for learners in some instances to cross the border. Again, that requires close collaboration between the Governments in Westminster and Cardiff.

We have heard about the importance of part-time study. In a refreshing speech, the hon. Member for Reading, East alluded to the importance of part-time education, including part-time degrees. Lampeter in my constituency has been at the forefront of developing models for part-time learning. Some 40 per cent. of the students in Wales are studying part time. At Lampeter, 6,400 of the 7,800 students are part time-a huge proportion. Again, Liberal Democrat Members want to break down the divide in that respect.

The higher education sector in Wales is an important driver of Welsh language provision. There are plans for a federal college to be established in 2010. That will make a major contribution to the development of the Welsh language at a higher level, and it is being supported at the universities of Bangor and Aberystwyth. We have made great strides in improving knowledge of the Welsh language through primary education, but there is a
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need to expand the knowledge of advanced and technical Welsh, and the higher education sector is starting to meet that need.

I am conscious of the time, but I want to touch on one other important matter affecting Welsh institutions. Concern has been expressed in Wales about the Secretary of State's apparent intention to concentrate research funding on a few elite universities that can demonstrate world-class capability. I stand to be corrected if that is not the case, but it is the perception of what he has spoken about. Currently, of the £2.8 billion distributed by Research Councils UK, Wales receives about 3 per cent. This is one of the rare areas where I would be pleased to see the Barnett formula applied. We have high-quality institutions that will continue to attract research funding, no matter what the situation, but I hope that we are not moving to artificial control of the supply of research funding to certain favoured universities and departments, which could have a real and detrimental effect. What did the Secretary of State mean? Can the Minister assure me that if quality bids are made, they will not be prejudiced if they are not deemed by the Secretary of State to be from world-class departments?

Research funding is hugely important. One case study is the Institute of Biological, Environmental and Rural Sciences, near Aberystwyth. It has received significant funding from the Biotechnology and Biological Sciences Research Council, which supports the institute.

David Taylor: Wales has some exceptional universities. My youngest daughter did her first degree at Aberystwyth and was very happy with that institution-the hon. Gentleman's own university. On finance, and research finance in particular, surely the generous Barnett formula allows sufficient latitude to provide the extra funding needed by the universities to which he refers. We in the east midlands, with a population of 4.25 million compared with 3 million in Wales, have substantially lower public expenditure per capita than that which the Barnett formula allows for Wales. There is scope in it for the funding; the hon. Gentleman does not need extra resources.

Mark Williams: I thank the hon. Gentleman for that observation. I know that he knows my area well, but I question the extent to which that latitude is there. That has not been the reality for research work in my constituency.

The work of IBERS would be considered world class, perhaps more so, as a result of the merger between Aberystwyth university and the Institute of Grassland and Environmental Research, but there is a danger that other growing and improving departments could miss out on funding that would enable them to increase their reputation. An element of competition is essential in research funding, but any perception that funding was sewn up for a favoured few would significantly damage our research base.

One recommendation in the Select Committee report was


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