Source · Select Committees · Public Accounts Committee
Recommendation 21
21
As a condition of registration, the OfS requires each higher education provider to have in...
Conclusion
As a condition of registration, the OfS requires each higher education provider to have in place and publish a student protection plan setting out what it would do to safeguard students’ interests—such as by making arrangements for continuity of study— if it, as an institution, were in difficulty.40 The OfS reported in October 2019 that, when assessing applications for initial registration of providers, it had found student protection plans very variable in quality. Because it believed it was not in students’ interests to delay registration, it nonetheless approved a number of plans that were significantly below the standard it would expect. It identified weaknesses including providers being over- optimistic about the risks they faced, lack of detail about what specific actions providers would take, and weak refund and compensation policies. In the small number of cases where the OfS had required providers to undertake more detailed planning, it had found that existing student protection plans had been the starting point for discussion, rather than a set of actions that could be taken. We asked whether the OfS was now confident that student protection plans are fit for purpose and would adequately protect students. The OfS acknowledged that protections for students did still need further review and told us that it was committed to doing this over the course of the next 12 months as part of its next business plan.41
Government Response
Not Addressed
HM Government
Not Addressed
3.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2023 3.2 The OfS’s focus has been ensuring that protections are as robust as possible in those providers which might face financial distress. This reflects the OfS’s risk-based approach by ensuring that regulatory action is proportionate and targeted where it is most needed, while also ensuring there is not unnecessary burden on providers with robust financial health. For this reason, the OfS introduced a new ongoing registration condition on 1 April 2021 (Registration condition C4 of the regulatory framework for higher education in England). This substantially strengthened its ability to ensure the rigour of a provider’s plans to protect students against the risk of the provider ceasing to deliver higher education. 29 3.3 Registration condition C4 means that where the OfS reasonably considers that there is a material risk of such a market exit, it can put in place a Student Protection Direction, with which the provider must comply, setting out detailed and rigorous planning and measures to protect its student body. These go far beyond what would be covered in a student protection plan. 3.4 The OfS also intends to begin discussions with the sector about its regulatory approach to protecting the interests of students, with a view to updating and revising the requirements where appropriate.