Baroness Warwick of Undercliffe (Lab)

My Lords, I am grateful to my noble friend Lady Morgan for securing this debate. Her presentation was a tour de force. Having spent much of my career in higher education, I will make three points specifically about that. First, this is one system, not two. The Government’s ambition that two-thirds of young people reach higher-level learning by 25 is the right one. Today, the figure is around half. That gap will not be closed by either colleges or universities alone. We often frame the choice as university or skills, academic or vocational. That is a false choice—Dearing said so in 1997, Augur said so 20 years later, my noble friend Lady Morgan said it today and I am happy to repeat it. Universities should be progression partners for FE and apprenticeships. The sector itself has taken action. Last autumn, Universities UK and the Association of Colleges published a joint strategy for colleges and universities to collaborate rather than compete. London South Bank’s group structure carries learners from entry-level, technical training and T-levels through to degree level. In Greater Manchester, universities and colleges align provision, avoid duplication and plan against regional need. This matters most to the young people at risk of becoming NEET, who face several barriers at once and whom no institution can help alone. Secondly, funding should follow the student and should not fall in real terms. I welcome fee caps rising with inflation, and I hope that automatic indexation is honoured in legislation. This is not a subsidy to institutions; it is a guarantee that a student starting in 2030 is not taught on less than a student starting today. This is the hardest graduate market in over a decade, yet the most recent Graduate Outcomes data shows that 88% of graduates are in work or further study 15 months on, and around three-quarters of those work in high-skilled jobs. Our nurses, teachers, engineers, paramedics and social workers all hold degrees. Thirdly, universities make a substantial contribution to local communities and those from disadvantaged backgrounds, which deserves to be recognised. Across the UK, they generate £265 billion in economic impact annually, support around 768,000 jobs and play a central role in attracting investment, fostering innovation and helping businesses grow. The Atom Valley innovation district in Rochdale has established a centre of expertise in advanced materials and sustainability—CEAMS—jointly delivered by Rochdale Development Agency and the University of Manchester. It is ensuring that businesses with strong potential can access the tools and support needed to grow. Universities should connect skills to employers and regional economies. We need strong colleges, strong universities and strong partnerships between them. This is an ambition worthy of our support. As the Prime Minister writes his 10-year plan, will the Minister ensure that higher education is treated as part of the answer on opportunity, not as a competitor?