OfS confirms new condition of registration for franchising

The English regulator has confirmed proposals to clamp down on poor-quality subcontractual arrangements.

The Office for Students (OfS) is introducing a new condition of registration for oversight of subcontracted provision, when a student is registered with a lead provider, but teaching is delivered elsewhere.

Amid a “rapid expansion” of these arrangements, and concerns around their outcomes for students, the regulations will force universities to publish how much they earn from franchise partnerships.

First proposed last year, the new condition, E10, will apply to any lead provider that has, or expects to have, 100 or more students registered on relevant subcontractual courses during a given academic year.

In a report, the regulator said that it had identified risks that can arise where a university subcontracts its courses without robust oversight of its partners – particularly around insufficient control of recruitment, admissions, student attendance and assessment in subcontractual arrangements.

“We are particularly concerned where these risks impact students traditionally less likely to succeed in higher education (for example, because of weak academic skills, lack of prior knowledge or limited understanding of the UK higher education system).”

Times Higher Education analysis has previously shown that some providers have recorded significant growth in franchised delivery in the past few years.

Statistics show students at franchises are much less likely to continue their courses into second year, complete their degrees, and achieve good outcomes after they graduate.

As part of the new condition, from the end of March lead providers will also be required to make clear their strategic rationale for engaging in subcontracted delivery, and identify and address risks to students and taxpayers.

Following its consultation, the OfS said most respondents supported the increased transparency of subcontractual arrangements.

However, some questioned whether it was fair to impose a sector-wide condition because of the actions of a relatively small number of “bad actors”.

Philippa Pickford, director of regulation at the OfS, said the regulator has been raising concerns about the “poor practices that have been exposed in some subcontractual arrangements for some time”.

“Our new ongoing condition of registration should give students, the public, and the sector confidence that we remain vigilant to the risks associated with subcontractual arrangements. 

“These new requirements…will help safeguard students’ experience and outcomes, while assuring taxpayers that public funding is being used appropriately.”

The government also recently announced plans to make franchise degree providers with more than 300 students register with the OfS.

Pickford said transparency around the proportion of tuition fees providers retain from these arrangements will help students make informed decisions about value for money.

patrick.jack@timeshighereducation.com