Lord in Waiting/Government Whip (Lord Katz) (Lab)

My Lords, this draft order was laid before the House on 2 February and is needed following the passage of the Senedd’s Tertiary Education and Research (Wales) Act 2022. The Act provides a new statutory framework for what is now known as tertiary education and research in Wales, which encompasses higher education, further education and training, apprenticeships, sixth forms, and adult community learning. The Act established the Commission for Tertiary Education and Research in Wales to regulate and fund the sector; I will refer to this body as the commission. The Act provides the commission and Welsh Ministers with powers to fund the tertiary education sector in Wales. It repeals corresponding functions that were previously in place, including powers in the Learning and Skills Act 2000. Various pieces of UK legislation therefore currently reflect the previous system, in which the Welsh Ministers regulated and funded the sector through powers that are now being repealed. The amendments in the order ensure that UK legislation is updated by making amendments that account for the changes introduced by the Senedd’s 2022 Act. It mainly does that by removing any references to the repealed powers and replacing them with references to the corresponding powers in the 2022 Act. These consequential amendments ensure that the legislation being amended will continue to operate in largely the same way as it does now, but with the commission integrated into the legislative framework. Article 2 of the order updates the list of exemptions in the Value Added Tax Act 1994. It ensures that education and vocational training provision funded through powers in the 2022 Act will be an exempt supply for the purpose of value added tax. The order also amends the Income Tax (Earnings and Pensions) Act 2003. This Act makes provision about the tax treatment derived from shares in research institution spin-out companies. Article 3 of this order ensures that the definition of “research institution” in that Act includes any university or other educational institution receiving funding under powers in the 2022 Act. Section 113 of the Higher Education and Research Act 2017 allows educational regulators across the UK to work jointly, where doing so would make delivery more efficient or effective. Article 4 of the order amends this provision to enable Welsh Ministers to exercise functions in the 2022 Act jointly with other public authorities, including the Office for Students and UK Research and Innovation. As noble Lords may be aware, some charities are exempt from registering with the Charity Commission. The compliance of these charities with the relevant laws is instead overseen by their principal regulator. Article 5 of the order amends the Charities Act 2011 (Principal Regulators of Exempt Charities) Regulations 2013, to designate the Commission for Tertiary Education and Research as the principal regulator for specific charities in Wales. This reflects the fact that the commission will now be responsible for regulating further education and training in Wales under the 2022 Act, whereas previously Welsh Ministers were responsible. Article 5 also ensures that existing restrictions on principal charity regulators relating to the onward sharing of HMRC information are applied to the commission. Article 6 of the order amends the Seafarers’ Wages Regulations 2024. The amendment ensures that the apprenticeship rate for seafarers can apply to those carrying out apprenticeships funded by the commission under powers in the 2022 Act. The amendments to UK legislation in this draft order fall outside the legislative competence of the Senedd, as they relate to reserved matters such as tax, charities and employment. Taken together, these amendments ensure that existing legislation will continue to operate as intended by taking account of the changes made by the 2022 Act. The order needs to be in force by 1 April, to coincide with the Welsh Government’s commencement plan for the 2022 Act. I welcome the continued implementation of the Senedd’s Tertiary Education and Research (Wales) Act and the positive impact that the commission is already making in Wales. This draft order will make the consequential amendments necessary to keep UK legislation up to date in light of the new legislative framework for tertiary education in Wales introduced by the 2022 Act. I beg to move.