Explanatory note

This Order is made under section 150(1)(a) and (b) and (2)(a) of the Government of Wales Act 2006 which, among other things, enables the Secretary of State to make provision to modify enactments in consequence of an Act of Senedd Cymru or any subordinate legislation made under such Acts.

The Tertiary Education and Research (Wales) Act 2022 (“2022 Act”) abolishes the Higher Education Funding Council for Wales (“HEFCW”) and creates the Commission for Tertiary Education and Research (“the Commission”). The 2022 Act also provides a new statutory framework for publicly funded tertiary education and research in Wales. This Order makes consequential amendments to reflect the provisions of the 2022 Act and the Tertiary Education and Research (Wales) Act 2022 (Commencement No. 4 and Transitory and Transitional Provisions) Order 2024 (“2024 Order”).

Article 2 amends Part II of Schedule 9 to the Value Added Tax Act 1994, which lists the exemptions that apply for the purposes of that Act. The amendments to item 5A of Group 6 in Part II of Schedule 9 are in consequence of the repeal, by the 2022 Act, of the Welsh Ministers’ funding powers in Part II of the Learning and Skills Act 2000 (“2000 Act”) and the coming into force of certain funding powers of the Commission and all of the Welsh Ministers’ funding powers in Part 3 of the 2022 Act. The National Assembly’s funding powers in Part II of the 2000 Act were transferred to the Welsh Ministers by paragraph 30(2)(c) of Schedule 11 to the Government of Wales Act 2006.

Article 3 amends the definition of “research institution” in section 457 of the Income Tax (Earnings and Pensions) Act 2003. The amendments are in consequence of the repeal, by the 2022 Act, of section 34 (provision of financial resources) of the 2000 Act and section 86 (qualifying activities and eligible institutions in relation to HEFCW funding) of the Education Act 2005; and the coming into force of certain funding powers of the Commission and all of the Welsh Ministers’ funding powers in Part 3 of the 2022 Act.

Article 4 amends section 113 of the Higher Education and Research Act 2017 which enables certain authorities to exercise their functions jointly where doing so would enable them to discharge their functions more efficiently or effectively. The authorities include the Welsh Ministers to the extent that they are exercising their functions under Part 2 of the 2000 Act. Article 4 amends section 113(3)(f) of the Higher Education and Research Act 2017 in consequence of the repeal, by the 2022 Act, of the Welsh Ministers’ functions under Part 2 of the 2000 Act and the coming into force of the Welsh Ministers functions in Part 3 of the 2022 Act.

Article 5(3) amends regulation 4 of the Charities Act 2011 (Principal Regulators of Exempt Charities) Regulations 2013 (“2013 Regulations”) to prescribe the Commission (referred to in this amendment as ‘CTER’ to avoid confusion with the Charity Commission) as the principal regulator of exempt charities in the further education sector in Wales. Sections 54 to 57 of the Charities Act 2011, as applied by section 58, regulate the disclosure of information by and to principal regulators. Specific rules apply under these provisions to the disclosure of Revenue and Customs information. A “responsible person” who discloses information contrary to those rules may be found guilty of an offence. Article 5(4) amends regulation 5(2) of the 2013 Regulations to specify the definition of “responsible person” which is to have effect for the purposes of section 57 of the Charities Act 2011 in relation to the Commission as principal regulator.

Article 6 amends regulation 16 of the Seafarers’ Wages Regulations 2024 which makes provision to determine whether the apprenticeship rate applies for the purposes of those regulations. Regulation 16(4)(b) defines “government arrangements” in Wales as including arrangements made by the Welsh Ministers under sections 31 to 33 of the 2000 Act. Article 6 amends the reference to sections 31 to 33 of the 2000 Act in consequence of the repeal of those provisions by the 2022 Act, the coming into force of certain functions of the Commission in Part 3 of that Act, and the modifications made to section 65 (administration of funds by the Commission) of the Further and Higher Education Act 1992 by article 18(1)(b) and (3) of the 2024 Order.

An impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.