The education minister has warned universities they must take responsibility for the governance of providers they work with under franchise arrangements. 

Bridget Phillipson  on 9 December reminding them of the regulator’s requirement to have “adequate and effective” management arrangements for all aspects of their operations.

In the letter, Phillipson says this applies not only to the courses institutions are delivering directly, but also to those that are delivered under subcontracted arrangements. 

The government has pledged to crack down on fraud within the franchise sector after it emerged that students at some providers were taking out government-backed loans without attending or completing their courses. 

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The Department for Education confirmed on 8 December that franchise providers with over 300 students will be required to register with the Office for Students (OfS) from 2028-29, meaning they will be subject to greater regulatory oversight.  

Phillipson also reminded universities of the requirement of signatories of the Fair Admissions Code of Practice to ensure that their franchised providers and any contracted partners, including agents, operate in accordance with the code.

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The code states that an applicant’s potential to complete a course successfully must be an essential criterion for entry on to a course. It was also updated in October to include a duty on signatories to protect public money and prevent fraud. 

“Together, we must end the poor practices of the past and ensure that access to public funding reflects a sustained commitment to quality, accountability, and protecting of public money,” Phillipson writes. 

She warned that the government would take further action if needed, “including through stronger powers for OfS and tougher minimum standards for access to student finance”. 

The government has also responded to the education committee’s report into further education and skills, rejecting the recommendation that levy funding be restored for level 7 apprenticeships for all ages in certain disciplines. 

Earlier this year, the government axed the funding of these higher-level courses through the apprenticeship levy for anyone over the age of 21. 

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In its response, the government said it “wants to ensure that public funding is prioritised towards those at the start of their working lives, rather than those already in work”.

It added that Skills England “did not find a strong enough economic rationale to exempt a small group of level 7 apprenticeship standards from defunding”. 

“The government encourages employers to invest in upskilling their staff aged over 22 to this level where this is beneficial for them and their staff.”

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Responding to other recommendations in the report, policymakers said plans for an independent review of Skills England to take place within two years were already in place. 

The government rejected the recommendation that Ucas be expanded to offer a single source of information for all routes, including academic and vocational pathways. 

It said that while Ucas helps students “understand the breadth of higher education pathways available, apprenticeships operate on a fundamentally different model and timeline from academic pathways”. 

“They are employer-led programmes, and recruitment is driven by business needs rather than academic cycles,” it said, adding that Ucas is an independent charity and not government controlled. 

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helen.packer@timeshighereducation.com