Source · Select Committees · Public Accounts Committee
Recommendation 11
11
Acknowledged
Lack of transparency regarding tuition fee retention by lead providers in franchise arrangements.
Recommendation
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
Government Response 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.
Government Response
Acknowledged
HM Government
Acknowledged
1.2 The government agrees that greater transparency from lead providers on their franchised arrangements would help to provide greater assurance to government over the use of public money and would make more information available to students to support informed decision making. 1.3 The Department for Education (the department) has been clear that it is also expecting a sector-led response. On 24 July 2024, Universities UK (UUK) published governance framework for lead providers to support senior leaders in universities to spot and manage risk in franchised partnerships. The framework aims to support universities to improve governance of franchised provision, identify and reduce risk from the start to the end of a franchised partnership, and deliver value for money by being able to identify risk to public funds through stronger oversight. 1.4 The government agrees that there is a strong case for greater transparency over franchising arrangements. The government will ask the Office for Students (OfS) to consider requiring providers to publish details on the proportion of tuition fees they retain and for what purposes when the OfS next makes changes to ongoing conditions of registration.