Recommendation 4

HM Government · verbatim extract Accepted

PLANS ALREADY IN PLACE The Government recognises the concerns raised by representative bodies of smaller and specialist providers regarding the proportionality of regulatory costs. This issue was considered in the Independent Review of the Office for Students, led by Sir David Behan and published in July 2024. That review examined the efficiency of the regulator, including its fee model, and recommended that the regulatory approach should become more proportionate, focused and efficient, with a clearer focus on reducing unnecessary burden on providers while maintaining effective oversight. The Secretary of State accepted the findings of the Review and has been clear that reform of the regulatory system should prioritise financial sustainability, proportionality and a renewed focus on core regulatory functions. In line with this, the Government has already taken steps to review the structure of fees charged to providers. On 26 May 2026, the DfE launched a public consultation on the Office for Students’ fee charging model. This consultation explicitly seeks views on how the current fee structure can be reformed to improve proportionality and transparency, recognising the impact on different types and sizes of providers across the sector. This programme of work reflects that the Government has already recognised the importance of ensuring that regulatory costs are proportionate and appropriate. The outcome of the current consultation will inform future decisions on the Office for Students’ fee model. We will consider the Committee’s recommendation alongside the findings of the consultation before determining any further changes.