Source · Select Committees · Public Accounts Committee
Recommendation 23
23
We asked the OfS how it made sure that providers had the relevant preparations in...
Conclusion
We asked the OfS how it made sure that providers had the relevant preparations in place to access support in the event that their financial sustainability was under threat, since some risks could materialise quite quickly. It described a process of escalating requirements, starting with discussions with the provider when the OfS first had concerns, rather than something that is suddenly triggered. It explained that, as the situation got more serious, the OfS’s expectations would increase and it would ask the provider to put plans in place if they were not already there. The OfS told us that, at the point where the OfS issued a direction, the provider would “just have to do it”.43 40 Qq 50–51; C&AG’s Report, para 4.2 41 Q 82; C&AG’s Report, paras 4.3–4.4 42 Q 65; Office for Students Regulatory notice 6: Condition C4: Student protection directions; C&AG’s Report, para 4.5 43 Qq 66–67 Financial sustainability of the higher education sector in England 15 Student satisfaction
Government Response
Not Addressed
HM Government
Not Addressed
3: PAC conclusion: Protection for student, in the event of providers facing financial distress, are not strong enough. 3: PAC recommendation: The OfS should prioritise ensuring that all providers’ published student protection plans are fit for purpose and sufficiently clear for students to make confident, well-informed decisions about the protections universities are promising them. 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. 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.