Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Deferred
Numerous franchised providers operate unregistered, including some previously denied OfS registration.
Recommendation
There is no statutory or regulatory obligation on franchised providers to register directly with OfS. The lead provider retains responsibility for a franchised provider’s compliance with academic quality, financial sustainability, governance and accountability standards. In 2021/22, 229 (65%) of the 355 franchised providers were not registered with OfS. However, there were instances where OfS had not approved providers’ applications to become registered, but those providers subsequently went on to provide courses, as unregistered providers, through franchise arrangements.38 OfS confirmed that it had refused registration to around 20 providers, of which it could identify two now operating as franchise providers. Other franchised providers had started to seek registration but withdrew before OfS had reached a decision on their registration.39 OfS added that it is ‘very interested’ in internal management and governance controls within lead providers, particularly where delivery providers are not registered, and that it recognised it could strengthen regulatory requirements.40
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.