Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Deferred
Significant growth in student numbers at franchised providers concentrated in few institutions.
Conclusion
Between 2018/19 and 2021/22 the number of franchised providers increased 6%, but the number of students attending them more than doubled from 50,440 (2.5% of all students) to 108,600 (4.7% of all students). Some 63,680 (59%) of the 108,600 students enrolled on business and management-related courses. The increase in students was concentrated across a few providers - eight of the 114 lead providers increased their student numbers by more than 1,500, making them responsible for 91% of the four-year growth. As a result, in 2021/22, these eight providers were responsible for 58% of all students at franchised providers.32 28 Q49 29 Office of the Independent Adjudicator for Higher Education (ISL0003) 30 Committee of Public Accounts, Financial sustainability of the higher education sector in England, Eighth Report of Session 2022–23, HC 257, 15 June 2022 31 Qq42–44 32 C&AG’s Report, para 1.6 and Figure 2 12 Student loans issued to those studying at franchised higher education providers 2 Preventing and detecting fraud and abuse Oversight of franchised providers
Government Response Summary
The government is proposing to consult on proposals to strengthen oversight of partnership delivery in higher education, working closely with the OfS, and will set out these proposals by January 2025. They will also develop options for legislative change, if required, for a more robust model for protecting public money.
Government Response
Deferred
HM Government
Deferred
3.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2025 3.2 Higher education is of fundamental importance to the education system. British higher education providers are amongst the most highly regarded in the world, supporting learners to achieve their potential, providing excellent opportunities and driving economic growth. 3.3 The government is committed to protecting the use of public funds in higher education. The Department for Education (the department) recognises the need to strengthen the higher education regulatory regime so there is greater oversight of franchised providers. 3.4 The government is proposing to consult on proposals to strengthen oversight of partnership delivery in higher education, working closely with the OfS, and will set out these proposals by January 2025. 3.5 In the longer term, the department is clear that work needs to be done towards a more robust model for protecting public money. The department’s view is that this is likely to involve a more substantial role for the OfS than at present. The department will be developing options for legislative change, if required.