OfS publishes proposals for tighter control of subcontractual arrangements in higher education

The Office for Students (OfS) is proposing new requirements that would come into effect for an institution that has, or expects to have, 100 or more students registered on courses delivered through subcontractual arrangements in a given academic year.

A subcontractual arrangement is where one university or college (known as a lead provider) allows another organisation to deliver all or part of a higher education course on its behalf (known as a delivery provider). Following a rapid expansion of subcontracted courses in recent years, the OfS is concerned that this activity is generating significant risks for students and taxpayers.

In many cases, these concerns have arisen where a lead provider does not have sufficient control of recruitment of students who are less likely to have access to independent guidance to inform their higher education choices. The OfS has also identified more serious concerns indicating that student loan funding may be being claimed inappropriately for some subcontracted courses.

To address the risk of poor practice in this part of the sector, and to increase transparency about subcontractual delivery, the OfS is proposing a new general ongoing condition of registration, the requirements of which would 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.

The overarching obligation for lead providers would be to ensure that risks to students and taxpayers arising from its relevant subcontractual arrangements are effectively identified and addressed.

This includes, but is not limited to, maintaining, and operating in accordance with, a single comprehensive source of information explaining policies and procedure relating to the oversight of its subcontractual arrangements.

The OfS is also proposing that lead providers should be required to publish information about the proportion of student tuition fees they retain from these arrangements, and about their strategic rationale for engaging in franchised delivery.

Chief executive of the OfS, Susan Lapworth, said:

‘We’ve been warning of the significant risks associated with subcontractual partnerships for some time. Yet we’re still receiving intelligence suggesting that some of these courses are not being properly managed by the lead university.

‘We’ve also seen evidence of vulnerable students being recruited to courses and encouraged to apply for student loans, without having any realistic prospect of meaningful engagement with their course or benefiting from higher education. It's essential that we take action now to protect students and taxpayers from poor practice in this part of the sector.

‘Today's proposals would require universities to tighten control over their delivery partners – taking a proactive approach to address the risks inherent in subcontracting. We also want institutions to be more transparent about the nature of these relationships and the financial benefits that flow to each partner.

‘High quality and well-managed subcontractual partnerships can offer real benefits to students. This is particularly true where they enable access to specialist courses that would not be possible in a traditional university setting. We know that many universities already have appropriate measures in place to ensure these courses meet the needs and expectations of students. Our proposals would codify this existing work and make sure all lead providers consistently deliver the high standards needed to protect students and public money.

‘We’re seeking views on our proposals from students, institutions and others with an interest in protecting public funding and promoting quality in higher education. We’re particularly interested in hearing from students, staff, academics, and leaders of higher education providers engaged in subcontractual partnerships, or those planning new arrangements in the future.’

Notes

1. The Office for Students is the independent regulator for higher education in England. We have been consulting on a new strategy for 2025-2030 which seeks to ensure that students from all backgrounds benefit from high quality higher education, delivered by a diverse, sustainable sector that continues to improve.
2. The OfS is proposing to implement today’s proposals from January 2026, subject to decisions following the consultation. For any lead provider not in an exempted category, the provisions would take effect and apply automatically when the provider has, or intends to have, a total of 100 students studying through subcontractual arrangements at any point in an academic year. A lead provider would come into scope of the condition if it increased student numbers beyond that threshold at any point in the future. The proposed exempted categories include arrangements where the partner provider falls under one of the following (or, where there are multiple partner providers, each of the partner providers falls under one of the following):
   1. is a state-funded school, a further education corporation, a sixth form college corporation, a designated institution, a provider of National Health Service services (including an NHS trust as defined in section 25 of the National Health Service Act 2006), a local authority, or a police and crime commissioner;  
   2. holds an authorisation given by or under an Act of Parliament or Royal Charter to grant taught awards or research awards;  
3. The proposals would not apply to courses delivered through transnational education (TNE).
4. The proposals would also allow the OfS to pull an individual provider into scope of condition where, in our view, there is a material risk to the student or taxpayer interest.
5. You can respond to the consultation by filling out the online form.