Franchising in Higher Education Consultation: Government Response

Tuesday 9th December 2025 Written Statements

[The Parliamentary Under-Secretary of State for Education (Josh MacAlister)]

Today I am announcing the publication of the Government response https://www.gov.uk/government/consultations/franchising-in-higher-education to the consultation on franchising in higher education, as announced in the “Post-16 Education and Skills White Paper”. This response sets out the steps we will take to lock in stronger long-term oversight of provision and ensure accountability where it matters most.

Alongside this, the Secretary of State has written to all registered providers https://www.gov.uk/government/publications/letter-to-higher-education-providers-9-december-2025 to reaffirm the shared responsibility for protecting public money from exploitation and asking them to assure themselves that practices are being managed appropriately within their institution and within organisations delivering on their behalf.

There has been a significant expansion in franchised provision in higher education since 2019. The Higher Education and Research Act 2017 and other regulatory changes created the conditions for this expansion. Between 2018-19 and 2022-23, the number of franchised students more than doubled, from 50,430 to 135,850, representing 5.7% of all students in the higher education sector. A majority—62%—of franchised students study business and management. This expansion has given rise to concerns regarding quality, governance and the integrity of higher education provision, and recent reports from the National Audit Office and the Public Accounts Committee have highlighted serious issues, including poor-quality provision and the misuse of public funds.

Students invest heavily in their future and deserve world-class teaching, robust support and genuine value for money. Taxpayers expect absolute assurance that public funds are safeguarded against fraud and deliberate misuse. We will deliver that assurance.

We are tightening the regulatory net. Any franchised provider with 300 or more students will now be subject to direct regulation by the Office for Students as a condition for access to student loan funding. This requirement will be brought in for academic year 2028-29, with the first decisions on designation being made in September 2027.

The requirement on unregistered franchised providers with 300 or more students to register with the OfS will not apply to franchised providers in the following categories: state-funded schools, the statutory further education sector—further education corporations, sixth-form colleges corporations and designated institutions—providers of National Health Service services, including an NHS trust as defined in section 25 of the National Health Service Act 2006, police and crime commissioners, local authorities, Government Departments, the armed forces and mayoral combined authorities.

This latest action forms part of a comprehensive strategy to stamp out malpractice and raise standards. It builds on recommendations from the National Audit Office and the Public Accounts Committee and complements cross-Government action to prevent fraud and misuse of public funds.

As set out in the written statement in March, the Public Sector Fraud Authority is taking action to ensure cross-Government data sharing is in place to detect and to stamp out fraudulent behaviour where bad actors are targeting several sources of Government funding. These measures will be further enabled by the Public Authorities (Fraud, Error and Recovery) Bill, which has now completed its passage through both Houses of Parliament and will give Government the powers required to act quickly and decisively.

The Office for Students has already introduced a new initial registration condition requiring providers to have robust and comprehensive arrangements in place to prevent, detect and address fraud and the inappropriate use of public funds. If they have previously received public funds, providers must also demonstrate a track record of managing public money responsibly before gaining registration.

The OfS has also published student outcomes data for all sub-contractual partnerships, which underlines the responsibility lead providers have to ensure that where franchising occurs it is in students’ interest. It has consulted on additional proposals for the oversight of all sub-contractual arrangements in English higher education, and I look forward to the outcome of that consultation early next year.

As set out in the “Post-16 Education and Skills White Paper”, we will be taking legislative powers at the next available opportunity to further strengthen the OfS powers to intervene decisively to tackle poor-quality provision and prevent abuse of public money at registered providers as well as safeguard against provision with poor outcomes for students. This will ensure there is tighter oversight for all franchise arrangements and all other third-party relationships in future, as well as a higher bar for their market entry and expansion.

We want to ensure that higher education continues to be a source of opportunity, excellence and national pride. It should support learners to succeed, drive economic growth and deliver this Government’s mission to break down barriers to opportunity. This Government are taking the action needed to end the poor practice of the past and ensure that access to public funding is earned through quality and strong governance.

A copy of the Government response will be deposited in the Libraries of both Houses.

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