The OfS has responded to a Sunday Times investigation into subcontracted higher education provision.
Susan Lapworth, chief executive of the OfS, said:
'The public must have confidence that taxpayers’ money in the form of student loans is well spent – with genuine students attending high quality courses that lead to good outcomes. This must include basic expectations such as students attending regularly and being proficient in the English language.
'The type of sharp practices alleged by this investigation are entirely unacceptable. They represent shocking misuse of public funding and take advantage of genuine students who are not getting the education they deserve.
'Universities and colleges registered with the OfS must have robust management and governance arrangements to ensure they can prevent misuse of public funding. Where we are concerned this is not the case we can investigate and – where appropriate – take action. We have done so in relation to a number of universities that franchise their courses to delivery partners, substantially increasing our oversight. But, as we were clear in our evidence to the Public Accounts Committee, our powers in this area are limited.
'We can act only in relation to registered higher education providers. As things stand, franchised delivery providers are not required to register with the OfS. That’s why we welcome the government’s proposals to close this loophole by bringing many more of these providers under our regulatory remit.
'We also strongly support ministers’ plans for new legislation to give us the powers and resources we need to tackle fraud across the higher education sector. In the meantime, we will continue to work closely with the Department for Education and the Student Loans Company to address these important issues.
'We published an OfS Insight brief last autumn to highlight some of our concerns about franchising in higher education. Franchised courses can bring many benefits. But badly managed arrangements increase risks for students, taxpayers and the reputation of English higher education. Any university that franchises its courses remains responsible for the quality of those courses and must ensure public money is being properly spent.'