11
Recommendation
Twenty-Eighth Report - Student loans is…
Acknowledged
The C&AG’s report indicated that some lead providers retained between 12.5% and 30% of tuition fees received for courses at their franchised providers.25 DfE confirmed that the information is not in the public domain and that students are not always made aware of these arrangements. DfE told us that it …
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The C&AG’s report indicated that some lead providers retained between 12.5% and 30% of tuition fees received for courses at their franchised providers.25 DfE confirmed that the information is not in the public domain and that students are not always made aware of these arrangements. DfE told us that it is for the lead provider to agree the arrangement they want with their franchisee, but added that it is questionable for that not to be transparent and open. DfE assured us that it is currently considering what new transparency requirements could be introduced. DfE added that it is also considering the role of the OfS within this context.26
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Government response AI summary
The government acknowledges the need for greater transparency over franchising arrangements, notes a sector-led response by Universities UK, and will ask the Office for Students to consider requiring providers to publish details on the proportion of tuition fees they retain and for what purposes.
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HM Treasury
20
Conclusion
Twenty-Eighth Report - Student loans is…
Acknowledged
The value of detected fraud in 2022/23 involving franchised providers totalled £2.2 million, 53% of the total £4.1 million fraud SLC identified.49 In our July 2023report on tackling fraud and corruption across government, we concluded that tackling fraud cannot be left to counter-fraud technical experts.50 We asked DfE whether it …
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The value of detected fraud in 2022/23 involving franchised providers totalled £2.2 million, 53% of the total £4.1 million fraud SLC identified.49 In our July 2023report on tackling fraud and corruption across government, we concluded that tackling fraud cannot be left to counter-fraud technical experts.50 We asked DfE whether it is taking fraud and abuse of student funding sufficiently seriously. DfE assured us that it sees fraud as a collective, as well as an individual, responsibility.51 Both DfE and SLC also emphasised that organisational culture is important, beyond individual organisations’ rigidly defined responsibilities.52 OfS added that, within the constraints of its current powers, it has been working collaboratively with DfE and SLC. DfE said that it had been helpful to get a broader understanding of where risk sits in the system, both for DfE itself and to play back to the sector so the system has a shared view of the issues.53
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Government response AI summary
The government acknowledges the importance of addressing fraud and misuse of student funding and highlights existing collaborations and protocols between DfE, SLC, and OfS, including data sharing and incident response plans, while considering further improvements.
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HM Treasury
21
Conclusion
Twenty-Eighth Report - Student loans is…
Acknowledged
We asked why the value of detected fraud at franchised providers has increased almost sevenfold, from £329,831 in 2018/19 to £2,163,459 in 2022/23, when the number of 43 Universities UK (ISL0002) 44 Universities UK (ISL0002) 45 Qq 39–41, 74; C&AG’s Report, para 2.19 46 Q 74 47 Qq39, 41, 76 …
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We asked why the value of detected fraud at franchised providers has increased almost sevenfold, from £329,831 in 2018/19 to £2,163,459 in 2022/23, when the number of 43 Universities UK (ISL0002) 44 Universities UK (ISL0002) 45 Qq 39–41, 74; C&AG’s Report, para 2.19 46 Q 74 47 Qq39, 41, 76 48 Universities UK (ISL0002) 49 C&AG’s Report, para 2.3 50 Committee of Public Accounts, Tackling fraud and corruption against government, Sixty-Ninth Report of Session 2022–23, HC 1230, 8 September 2023 51 Qq10, 51, 65, 77 52 Qq12, 52 53 Qq54, 77 14 Student loans issued to those studying at franchised higher education providers students at these providers has not increased at the same rate.54 SLC told us that it shared our concern at what appears to be a disproportionate increase in the franchised element of individual-level fraud detected, but emphasised that this is driven by a small number of franchised providers.55 DfE accepted that some lead providers had not taken their responsibilities for governance and safeguards in their franchised provision as seriously as within their own institutions.56
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Government response AI summary
The government acknowledges the increase in detected fraud at franchised providers and highlights existing collaborations and protocols between DfE, SLC, and OfS, including data sharing and incident response plans, while considering further improvements.
Read full response →
HM Treasury