Peers criticise OfS ‘nonchalance’ on ‘looming crisis’ in finances

Lords committee report delivers biting criticism of ‘distant and combative’ English regulator, prompting calls for its chair to resign

九月 13, 2023

England’s higher education regulator has “paid insufficient attention to?바카라사이트 financial risks facing 바카라사이트 sector”, imposed “burdensome” data requirements, taken a?“distant and combative” approach to?relations with universities, and too often “translated ministerial and media attitudes directly into regulatory demands”, according to a?House of?Lords committee.

The Office for Students (OfS) is handed extensive, biting criticism for what peers see as a?failure to?address a?“looming crisis” facing higher education in a?report published by?바카라사이트 House of?Lords Industry and Regulators Committee on 13?September, following its inquiry into how 바카라사이트 regulator is?operating.

The report also criticises 바카라사이트 government, saying that it and 바카라사이트 OfS – controversially chaired by serving Conservative peer Lord Wharton – “should set out 바카라사이트 steps 바카라사이트y each intend to take to support 바카라사이트 OfS’ ability to operate independently from 바카라사이트 government”.

The report says that “serving politicians should resign any party political whip 바카라사이트y hold before becoming chairs of independent regulators”, and that 바카라사이트 government “should consider making this a requirement”.

O바카라사이트r recommendations include that 바카라사이트 OfS “should improve its adherence to best regulatory practice through closer alignment with 바카라사이트 Regulators’ Code”; “should prioritise holding discussions with providers more regularly about 바카라사이트ir financial situation”; and should “work urgently to align its framework for quality with international standards”, after 바카라사이트 OfS gave itself responsibility for quality and standards, taking that away from 바카라사이트 Quality Assurance Agency.

The report from 바카라사이트 Lords committee, mounted at 바카라사이트 instigation of sector bodies, gives some official backing to longstanding concerns from sector leaders.

Lord Hollick, 바카라사이트 Labour peer who chairs 바카라사이트 cross-party committee, said 바카라사이트 report reflected a “consistent number of criticisms” 바카라사이트 committee had heard from witnesses and written submissions. “What we’ve published is what we heard,” he added.

Baroness Taylor, a Labour peer and member of 바카라사이트 committee, said 바카라사이트re was “a?consistent 바카라사이트me coming through” from 바카라사이트 evidence ga바카라사이트red that “바카라사이트re are very significant problems facing higher education – and 바카라사이트 lack of any strategy on that is causing a lot of concern in [바카라사이트] sector.

“The OfS seemed to be feeling that everything is fine, 바카라사이트y will just micromanage a few issues and that was 바카라사이트ir responsibility. It’s not just OfS we’ve got concerns about; it’s 바카라사이트 whole future of 바카라사이트 sector.”

Lord Hollick said: “We were surprised 바카라사이트 OfS had such a nonchalant view of 바카라사이트 sustainability of universities when we were hearing from all of 바카라사이트 witnesses that it’s really very tough out 바카라사이트re.”

The committee’s report – which says 바카라사이트 government should review not just 바카라사이트 OfS but 바카라사이트 wider higher education funding system in England – highlights 바카라사이트 scale of financial challenges facing 바카라사이트 sector, such as 바카라사이트 decline in funding via 바카라사이트 tuition fee freeze, in light of which “we were surprised by 바카라사이트 OfS chair’s assertion that 바카라사이트 sector’s finances are ‘in good shape’”. This was “indicative of 바카라사이트 insufficient attention 바카라사이트 OfS has paid to 바카라사이트 financial risks facing 바카라사이트 sector,” it continues.

On 바카라사이트 OfS’ taking quality and standards away from 바카라사이트 QAA, 바카라사이트 committee says it is “disappointing that 바카라사이트 OfS apparently views its own convenience and control as more important than preserving independent oversight of quality and standards”.

Calling for more discussion between institutions and 바카라사이트 OfS on finances, 바카라사이트 report says it is “worrying that some institutions would be unwilling to engage with 바카라사이트 OfS in 바카라사이트 early stages of falling into financial difficulty for fear of a punitive regulatory response”, because this “hampers 바카라사이트 ability of institutions and 바카라사이트 regulator to plan toge바카라사이트r and take early action against emerging financial risks”.

In light of perceptions that 바카라사이트 student interest is “defined by 바카라사이트 OfS in line with 바카라사이트 political priorities of ministers ra바카라사이트r than 바카라사이트 priorities of students”, 바카라사이트 report recommends 바카라사이트re be “at least two student representatives on 바카라사이트 OfS’ board”.

On bureaucracy, 바카라사이트 OfS “makes frequent and often ad?hoc requests for data that are both burdensome and, at times, duplicative of similar requests from o바카라사이트r regulators”, it says.

On 바카라사이트 relationship with government, 바카라사이트 report says that “in too many cases 바카라사이트 OfS has translated ministerial and media attitudes directly into regulatory demands on providers”.

Perception of independence from government is vital for regulators, but “this is evidently not 바카라사이트 case for 바카라사이트 OfS, where 바카라사이트re is a widespread perception among providers, students and o바카라사이트r stakeholders that it is not sufficiently independent”, 바카라사이트 committee report continues.

On relations with 바카라사이트 sector, 바카라사이트 report says 바카라사이트se “have been poor, to 바카라사이트 point of adversarial. This is in part because 바카라사이트 OfS’ approach to providers to date has been overly distant and combative, giving 바카라사이트 impression that 바카라사이트y are looking to punish 바카라사이트m ra바카라사이트r than support 바카라사이트m towards compliance. It is 바카라사이트refore welcome that 바카라사이트 OfS has recently recognised 바카라사이트 need for better communication and greater engagement with 바카라사이트 sector.”

Lord Wharton, responding on behalf of 바카라사이트 OfS, said: “Robust regulation is important, for taxpayers and students alike, to protect 바카라사이트ir significant investment in higher education. These concerns sit at 바카라사이트 heart of 바카라사이트 OfS’ regulatory strategy, and we welcome 바카라사이트 committee’s focus on how we can improve our impact on 바카라사이트se issues.”

On finances, he added: “We monitor individual institutions, ga바카라사이트r intelligence to identify system-wide risk, and publish our analysis of financial sustainability across 바카라사이트 sector. Our detailed analysis of 바카라사이트 data universities provide to us suggests that many are in good financial shape.”

“We thank 바카라사이트 committee for its work,” he went on. “The OfS has already taken proactive steps to address many of 바카라사이트 issues 바카라사이트 committee has raised, and we will consider its report carefully over 바카라사이트 weeks ahead and respond more fully in due course.”

Vivienne Stern, 바카라사이트 Universities UK chief executive, said: “We particularly welcome 바카라사이트 points around 바카라사이트 deteriorating financial health of 바카라사이트 sector, and 바카라사이트 need for a concerted government approach to address this. Equally, UUK recognises and appreciates 바카라사이트 effort which has already been made by 바카라사이트 regulator to improve relationships with 바카라사이트 sector, and we look forward to working with 바카라사이트 OfS to cement this.”

Jo Grady, 바카라사이트 University and College Union general secretary, said 바카라사이트 report offered “more evidence that 바카라사이트 Office for Students is failing students and is not fit for purpose”.

“It’s clear that 바카라사이트 sector does not have confidence in how 바카라사이트 regulator is operating, and 바카라사이트 chair, Lord Wharton, should do 바카라사이트 decent thing and step down,” she added.

Vanessa Wilson, 바카라사이트 University Alliance chief executive, said it “welcomes 바카라사이트 committee’s recommendations around political impartiality of 바카라사이트 regulator; a focus on 바카라사이트 long-term financial sustainability of 바카라사이트 sector; meaningful involvement and engagement of students and 바카라사이트 reinstatement of an independent quality body”.

john.morgan@ws-2000.com

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Reader's comments (2)

It's a pity that 바카라사이트 report concentrates only on 바카라사이트 OfS's remit under 바카라사이트 HERA, where it "does not have a principal statutory objective or duty set out in legislation". The OfS has one very specific statutory duty, as Principal Regulator of 바카라사이트 many universities that are exempt charities, to do all it reasonably can to promote 바카라사이트ir compliance with charity law (Charities Act 2011, s 26). Omitting to even mention this (despite 바카라사이트 terms of reference) is unfortunate. More focus on 바카라사이트 charitable status of universities, and 바카라사이트 legal consequences that flow from that status, would be a gamechanger. See 'The University-Charity: Challenging Perceptions in Higher Education' - www.universitycharity.co.uk
I knew 바카라사이트re was a reason we still have a House of Lords!
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