Following a significant increase in the number of students taught
through subcontractual partnerships in England, the Office for
Students (OfS) publishes an Insight brief today on the current
status of these arrangements, and what providers need to do to
ensure effective management and to protect public funding.
A subcontractual partnership is when one university or college
(known as the lead provider) allows another organisation to
deliver all or part of a higher education course on its behalf.
They are also sometimes referred to as franchised arrangements,
or franchise provision.
Since 2019-20, the number of students taught in subcontractual
partnerships has doubled to over 138,000 in 2022-23 – over 5 per
cent of students in the sector.
This Insight brief uses the data the OfS holds as England's
higher education regulator, including sector-level student characteristics
data and dashboards that show the size and shape of
provision in England, which have also been published
today.
It sets out the key risks in relation to subcontractual
partnerships, shares examples of practice or allegations that
raise concerns, and advises on the importance of effective
management and governance in maintaining a secure grip over
partnership activity. It explains how the OfS's regulatory
framework applies to subcontractual partnerships and how the OfS
can take regulatory action, and sets out some key considerations
for effective practice.
Examples of concerns reported to the OfS include cases
where:
- Staff managing partnerships at lead providers have been
incentivised to prioritise recruitment and retention of students
above course quality and holding the delivery partner to
account.
- Students with very weak English language skills have been
told these are sufficient to allow them to study on a course,
without the delivery partner putting in place the support they
need to succeed.
- Students have paid recruitment agents or other third parties
to falsify English language tests, to allow them to enter courses
without attaining the required standard of English.
David Smy, Deputy Director for Enabling Regulation at the OfS,
said:
‘From our analysis published today we can see that many benefits
can be achieved through subcontractual partnerships, for both
students and higher education providers. We know that students
who are disadvantaged or underrepresented in higher education are
generally more represented in these arrangements. Students are
more likely to be mature, from the most deprived areas of the UK,
or living locally to the higher education provider before
starting a course. Students are also more likely to be from a
minority ethnic background or from an area of England where fewer
young people go on to higher education. This shows the important
role these arrangements can play in reaching disadvantaged or
underrepresented students and offering an alternative route into
higher education.
‘But partnerships need robust management and oversight if they
are to achieve these benefits, and deliver for students and
taxpayers. In these financially challenging times for higher
education providers, it's more important than ever that they
recognise that business models that rely heavily on
subcontractual partnerships carry additional risks, and these
risks must be effectively managed.
‘It's vital that all students in these arrangements, whatever
their background, receive a high quality education and the
support they need to succeed. Their opportunities will not be
improved if they are recruited onto courses that are not well
delivered and lead to weaker student outcomes and a poor return
on their time and financial investment in their
education.
‘There are also serious risks to public money where these
arrangements are not managed properly. This can include
universities and colleges receiving public funding for students
who may not be genuinely studying on the course their tuition
fees are funding, and students who may be receiving other
payments they're not entitled to. We continue to work closely
with the Department for Education and the Student Loans Company
to ensure public funding is protected.
‘We hope this Insight brief will be a useful resource for
universities and colleges that are, or are contemplating, working
through subcontractual partnerships, and a reminder of the
importance of good management and effective governance. Lead
universities should seriously consider whether they should offer
courses in this way if they cannot manage partners and public
money effectively while ensuring that courses are delivering
positive outcomes for students.'
READ THE INSIGHT BRIEF HERE.
