UK government moves ahead with crackdown on rogue university franchises

Franchise providers with 300 or more students will soon fall under mandatory Office for Students (OfS) regulation and must meet the same standards as universities or lose access to student loan funding from 2028/29.

Franchising allows universities to subcontract teaching to other organisations – such as colleges or private training providers delivering specialist courses like health or business.

When done well, franchising can widen access, the government said in a statement, but added that “rapid growth and inconsistent oversight that this government inherited have left parts of the system open to abuse”.

The reforms were first announced in January, but the government is now pushing them forward, with education secretary Bridget Phillipson set to write to all providers to set out the changes and warn that poor-quality or exploitative arrangements must be “cleaned up or closed down.”

The regulations underpinning the franchising reforms will be laid out in parliament in spring 2026.

The government say the move will give students and taxpayers “greater confidence” in higher education as tough new reforms through its Plan for Change tighten controls on university franchising arrangements and make sure “public money is used as intended, shoring up the reputation of our world-class sector”.

“Too many rogue operators have treated students as a route to fast cash, not as people investing in their future. Those days are over. If you use public money, you will be held accountable and face proper scrutiny,” warned Phillipson.

Too many rogue operators have treated students as a route to fast cash, not as people investing in their future
_{^{Bridget Phillipson, UK education secretary}}

“Our higher education sector is one of Britain’s greatest strengths. Through our Plan for Change we are determined to protect its reputation, putting students first and making sure every pound from the public purse is well spent.”

The number of students at franchised providers has more than doubled in five years, with nearly 60% taught at providers not directly regulated by the OfS.

According to the government, students on franchised courses are more prone to dropping out and less likely to progress into work or further study. Completion rates sit at about three-quarters, compared to nearly nine in 10 elsewhere in the sector.

The government is looking for “clear signs of exploitation” which includes admitting students who are unlikely to succeed – for example, those with very poor English language skills or students who have low attendance rates and those who are using their place at the provider purely to access public money.   

Vivienne Stern, chief executive of Universities UK (UUK), commented on the announcement: “It is vital that franchise provision is underpinned by high and robust standards and we support this step, which will help to protect the higher education sector’s world-renowned reputation for quality.

“UUK’s members have been taking extensive actions to tighten controls, and we have long championed the introduction of measures requiring franchise partners to register with the OfS.”

The OfS is also tightening its regulatory regime for franchising, introducing tougher initial registration conditions on governance and the management of public money, publishing annual data on outcomes for franchised students, and consulting on new requirements for universities that oversee franchise partnerships.

OfS director of regulation, Philippa Pickford, said the government’s new measures will “help ensure students studying under subcontractual arrangements are getting a high quality higher education, as well as giving taxpayers confidence that public funding is being used appropriately”.

“We have been raising concerns about poor practices that have been exposed in some subcontractual arrangements for some time, and plan to announce a response to our own consultation on subcontractual arrangements in higher education in early 2026.

Responding to the government’s announcement, Geoffrey Clifton-Brown MP, chair of the Public Accounts Committee – the cross-party Commons committee that scrutinises public spending – welcomed the crackdown.

“We know from our own scrutiny that some lead providers retained between 12.5% and 30% of tuition fees received for courses at their franchised providers, with students not always aware of the arrangements that had been made. 

“Our findings on behalf of students were shocking – so we are very pleased that the minister has taken our report seriously, and put in place corrective action, to prevent students being ripped off by rogue operators in future.”

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