My Lords, on behalf of the noble Baroness, Lady Wolf, who is not well, I shall move this amendment and speak to this group. We wish her a speedy recovery. The Bill proposes to reverse the current legal position that prevents Ministers giving guidance and directions about particular courses of study. We have been told that the power is needed to resolve an existing legal lack of clarity about the Secretary of State’s power to communicate his—in this case—priorities. While the Government’s amendment means that the Secretary of State cannot now guide or direct the Office for Students to prevent the closure of existing courses or the creation of new ones, it will, nevertheless, still allow the Secretary of State to decide, in part, what subjects should be funded.
Although most funding for teaching will come from fees backed by student loans, direct funding from the Office for Students is essential to meet the additional costs of subjects that are expensive to teach; for example, chemistry and engineering, et cetera. The Bill would give the Secretary of State a new power to tell the Office for Students not to fund a particular subject if that subject cost more to teach than the maximum fee that the university was allowed to charge. This goes significantly beyond the current power to give general directions about ministerial priorities, which the Funding Council translates into allocations to universities.
With these proposed amendments, Ministers would still be able to give the Office for Students guidance and direction about their priorities for the funding available but the final decisions on funding for high-cost subjects would be taken by the Office for Students, as they are now by the Funding Council. I beg to move.