Recommendation 12

We challenged DfE whether this level of deduction from tuition fees was acceptable. DfE emphasised that the fee taken by the lead provider should represent the value added by that lead provider.27 While noting that there is a range, OfS described some of the tuition fee amounts retained by lead providers as “quite shocking”. It told us it is concerned about quality since, if the lead provider is taking percentage from tuition fees, and the delivery 16 Q49 17 Q29 18 Universities UK (ISL0002) 19 Office of the Independent Adjudicator for Higher Education (ISL0003) 20 C&AG’s Report, para 1.17 21 Q34 22 Qq30, 36 23 Q34, Universities UK (ISL0002) 24 Q36 25 C&AG’s Report, para 1.7, second bullet 26 Qq48–50 27 Q47 Student loans issued to those studying at franchised higher education providers 11 provider is generating a profit or surplus, this reduces the amount spent on students.28 The Office of the Independent Adjudicator told us, in written evidence, that it has seen instances where students are not clear that the provider they are studying at, and the awarding organisation, differ. It had also seen that students and sometimes providers are not always clear what access they have to their lead provider’s students’ union and support.29 Providers’ financial sustainability