Franchising in Higher Education Consultation: Government Response

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.