OfS moves to tighten oversight of subcontracted HE courses

The Office for Students (OfS) has proposed new rules to tighten oversight of subcontracted course delivery in higher education, warning of risks to students and misuse of public funds.

The draft requirements would apply to any university or college with 100 or more students enrolled on courses taught by a third party under subcontractual arrangements in a given academic year.

A subcontractual arrangement involves a lead provider allowing another organisation to deliver all or part of a course on its behalf. The OfS said such arrangements have expanded rapidly, prompting concerns about insufficient oversight and the recruitment of vulnerable students.

The higher education regulator said it continues to receive evidence that some lead providers lack control over student recruitment, resulting in students being encouraged to apply for loans despite little chance of academic success or engagement with their course.

It also highlighted concerns that student loan funding may be being claimed inappropriately.

Under the proposals, lead providers would be required to identify and manage risks to students and taxpayers arising from subcontractual delivery. Institutions would need to maintain a single source of information outlining how they oversee such arrangements.

They would also have to publish details on how tuition fees are shared between partners and explain their rationale for engaging in subcontracted teaching.

Susan Lapworth, OfS chief executive, 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.

“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.”

She added: “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.”

The OfS is consulting on the proposed new condition of registration and is seeking responses from students, staff and institutions involved in subcontracted provision. The consultation is open until 23 September 2025.