I thank my noble friend for raising significant points. Let me try to put his mind at rest. I hope he will accept that the whole thrust of the Bill is to create not just new territory for the way in which we deal with the provision of higher education in England but a set of new relationships, not the least of which is putting the student right at the core of higher education provision—perhaps doing so in a way which we have not seen before. That is to be applauded. The constitution and creation of the OfS develop a body which is not just a paper tiger. This body is given significant, meaningful and tangible powers in the Bill—powers that it will be required to deploy and use if difficult situations arise.
My noble friend posed the specific question of what will happen to students if a higher education institution goes bust. First, it is intended that the OfS will monitor the financial health of institutions and require student protection plans to be implemented if a provider is at risk of being unable to deliver a course. The OfS will not be operating in some silo or vacuum. It will actually be a hands-on and in-touch body, with its finger on the pulse to know what is happening. It will have an early indication if there are reasons for concern.
For example, if in the unlikely and very unhappy event that a higher education institution goes bust, existing students might be taught out for the remainder of their course or academic year, with provision to transfer to another institution having banked their existing credits. It would entirely depend on the terms of the student protection plan but that is indicative of how these plans have to be broad, far-reaching and flexible. The core of all this is that at the end of the day, they must provide that underpinning protection to which students are entitled.
It is currently the case with HEFCE that the Office of Students may be able to support an institution while it implements a student protection plan. It might, for example, reprofile loan repayments or provide short-term emergency support. This is very much a nuclear option because instances of a provider suddenly and without warning exiting the market completely are likely to remain extremely rare. We would expect student protection plans to be implemented as far as possible—for example, measures to financially compensate students—and the OfS to support students in transferring
to alternative institutions. There is a variety of solutions, remedies and initiatives which could be deployed, and it is very clear that the powers that will be available to the OfS will make such deployment perfectly practical, reasonable and manageable. I hope that reassures my noble friend on the issues which he raised.