Source · National Audit Office

Regulating the financial sustainability of higher education providers in England

This report looks at the Office for Student’s responsibilities for financial regulation of higher education providers.

Published: 9 Mar 2022 Recommendations: 7 Type: Value for Money NAO confirmed: 7 Department: Department for Education
Dept: Department for Education Topics: Business and industryCommercial and financial managementEducation, training and skillsFinancial sustainabilityFurther and higher educationRegulation nao.org.uk →

Recommendations

7 items
7 accepted 5 implemented

Recommendation 1

Addressee: Department for Education · Source location: Page 13, paragraph 25, point a

The Department should:
a) review, improve and agree with the OfS the key performance measures and other indicators it uses to hold the OfS to account, to include measures
of the impact of the regulatory regime, rather than measures outside the OfS’s control;

Response position: Accepted

Delivery: Implemented · 03/2023 · Confirmed by NAO

Recommendation 2

Addressee: Department for Education · Source location: Page 13, paragraph 25, point b

b) make clear what tolerance the government has for provider failure, and the circumstances under which it would or would not intervene; and

Response position: Accepted

Delivery: Implemented · 02/2024 · Confirmed by NAO

Recommendation 3

Addressee: Department for Education · Source location: Page 13, paragraph 25, point c

c) together with the OfS, assess how redistribution of student numbers between providers, as a result of higher A-level grades awarded in 2020 and 2021,
has affected students’ experiences and providers’ finances, and draw on this to understand the likely consequences following release of A-level grades
awarded in 2022.

Response position: Accepted

Delivery: No longer relevant · N/A · Confirmed by NAO

Recommendation 4

Addressee: Office for Students · Source location: Page 13, paragraph 26, point d

The OfS should:
d) communicate more effectively with the sector to build trust in its approach as a regulator; improve providers’ understanding of its attitude to risk and how it defines risk-based, proportionate, regulation; and be more ready to share sector insights to improve efficiency and competitiveness in the sector;

Response position: Accepted

Delivery: Implemented · 01/2023 · Confirmed by NAO

Recommendation 5

Addressee: Office for Students · Source location: Page 13, paragraph 26, point e

e) set out how it will secure provider and stakeholder views of its work;

Response position: Accepted

Delivery: Implemented · 01/2023 · Confirmed by NAO

Recommendation 6

Addressee: Office for Students · Source location: Page 13, paragraph 26, point f

f) review, improve where necessary and then reauthorise student protection plans for all providers to ensure they remain adequate and can respond to new risks; and

Response position: Accepted

Delivery: No longer relevant · Confirmed by NAO

Recommendation 7

Addressee: Office for Students · Source location: Page 13, paragraph 26, point g

g) prioritise finalising its key performance indicator on how it assesses the value for money students see in their education and set out how its work will reverse students’ declining satisfaction rates.

Response position: Accepted

Delivery: Implemented · 09/2022 · Confirmed by NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.