Source · Select Committees · Public Accounts Committee

Recommendation 21

21

Detected fraud value at franchised providers increased disproportionately despite stable student numbers.

Conclusion
We asked why the value of detected fraud at franchised providers has increased almost sevenfold, from £329,831 in 2018/19 to £2,163,459 in 2022/23, when the number of 43 Universities UK (ISL0002) 44 Universities UK (ISL0002) 45 Qq 39–41, 74; C&AG’s Report, para 2.19 46 Q 74 47 Qq39, 41, 76 48 Universities UK (ISL0002) 49 C&AG’s Report, para 2.3 50 Committee of Public Accounts, Tackling fraud and corruption against government, Sixty-Ninth Report of Session 2022–23, HC 1230, 8 September 2023 51 Qq10, 51, 65, 77 52 Qq12, 52 53 Qq54, 77 14 Student loans issued to those studying at franchised higher education providers students at these providers has not increased at the same rate.54 SLC told us that it shared our concern at what appears to be a disproportionate increase in the franchised element of individual-level fraud detected, but emphasised that this is driven by a small number of franchised providers.55 DfE accepted that some lead providers had not taken their responsibilities for governance and safeguards in their franchised provision as seriously as within their own institutions.56
Government Response

A response document is linked to this report, dated 11 July 2025. Response attribution to this conclusion has not been verified. Read the response document ↗