University Funding Bill 2017

A BILL TO encourage universities to prioritise the employment of its graduates.

BE IT ENACTED by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Lords, and Commons, in this present Parliament assembled, and by the authority of the same, as follows –

Section 1: Definitions

1. A graduate is a person who has completed the requirements of an academic degree at an educational institution.
2. An educational institution is defined under section 28 of the Further and Higher Education Act 1992.
3. Any reference to the higher education funding councils are to the Higher Education Funding Council of England, and the Higher Education Funding Council of Wales.
4. Earnings refers to employment income, or income earned through business activities in a given year.

Section 2: Regulations

1. The higher education funding councils are required to maintain databases listing all graduates of each educational institution in England and Wales.

2. The higher education funding councils are required to allocate funding to an educational institution as a percentage of the aggregated earnings of all graduates of that educational institution.

   a. This funding allocation and its criteria is supplementary to existing funding criteria, and is required to comprise at least twenty per cent of the total government funding to each higher education funding council.

   b. This percentage of aggregated earnings is to be determined by the higher education funding councils with the view to maximise incentives for universities to prioritise the employment of its graduates, and is to be a flat rate across all educational institutions.

   c. Earnings for any individual graduate is to be determined from information received by HMRC.

Section 3: Extent, commencement and short title

1. This Act extends to England and Wales.
2. This Act commences on the day on which it is passed.
3. This Act may be cited as the University Funding Act 2017.

This bill was submitted by the Rt Hon. Lord Edmund of Maldon on behalf of the Conservative Party.

This reading will end on 13 January 2017.