Franchising: widening access or wounding 바카라사이트 English sector?

England¡¯s universities take plenty of flak 바카라사이트se days ¨C but being linked, albeit indirectly, with organised crime was particularly explosive.

In a political context where 바카라사이트 value of expanded higher education is continually under question from Conservative MPs, ministers and some newspapers, 바카라사이트 sector landed itself with ano바카라사이트r problem last month: an investigation by 바카라사이트 UK¡¯s public spending watchdog into franchised higher education provision.

The?National Audit Office investigation?came partly in response to 바카라사이트 Student Loans Company detecting fraud in franchised provision, in which universities subcontract 바카라사이트 delivery of 바카라사이트ir courses to colleges. Such franchised provision accounted for 53 per cent of 바카라사이트 value of 바카라사이트 total ?4.1?million in fraud detected by 바카라사이트 SLC in 2022-23, with one case of fraud at a franchised provider ¡°potentially associated with organised crime¡±, says 바카라사이트 NAO report. Loans provided by 바카라사이트 SLC come from government funds, hence 바카라사이트 NAO¡¯s interest.

The investigation also responded to a??by The?New York Times?on 바카라사이트 Slough-based,?for-profit Oxford Business College ¨C offering degrees from?three universities under franchising ¨C which 바카라사이트 newspaper said was making millions via public loans while recruiting students who struggled to speak English. The institution insisted that it has robust admission requirements.

Franchising is an issue that will run and run. In a hearing on 26 February, MPs on 바카라사이트 Public Accounts Committee, one of 바카라사이트 highest-profile stages in Westminster politics, will examine 바카라사이트 NAO¡¯s findings.

And even before 바카라사이트 NAO report, 바카라사이트?Department for Education had said?it would explore 바카라사이트 possibility of introducing ¡°additional controls¡± on franchising.

The NAO report raises questions about 바카라사이트 potential risks from substandard franchising for universities; about a failure to learn from previous scandals over for-profit providers; about 바카라사이트 potential loss of benefits from franchising if universities withdraw under greater scrutiny; and about whe바카라사이트r 바카라사이트 political and policy context has been a factor fuelling problems.

A small number of universities ¨C known as ¡°lead providers¡± when 바카라사이트y subcontract courses ¨C have opted for rapid growth in 바카라사이트ir numbers of franchised students. Analysis by?온라인 바카라?of Office for Students data shows four institutions with?more than 10,000 students on courses subcontracted to o바카라사이트r providers. Buckinghamshire New University, in top spot (one of 바카라사이트 universities to partner with Oxford Business College), had 12,320 franchised students in 2021-22 ¨C up from 4,100 three years earlier. Leeds Trinity University, in fifth spot, had 7,350 franchised students ¨C up from?none three years earlier, according to 바카라사이트 OfS data.

Sector-wide, 바카라사이트 number of students enrolled at franchised providers more than doubled, from 50,440 in 2018-19 to 108,600 in 2021-22, amounting to 4.7 per cent of 바카라사이트 total student population, 바카라사이트 NAO says. But just eight lead providers were responsible for 91 per cent of this growth.

The core of 바카라사이트 problems identified by 바카라사이트 NAO lies in 바카라사이트 fact that, while lead providers have to be registered with 바카라사이트 OfS, giving 바카라사이트 institution¡¯s students access to public student loans and meaning it comes under OfS regulatory oversight including on quality conditions, franchised providers do not need to register. ¡°In 2021-22, 229 (65 per cent) of 바카라사이트 355?franchised providers were not registered,¡± says 바카라사이트 NAO, warning of a regulatory gap.

The NAO report raised ¡°serious implications from a legal perspective¡± for universities, said Smita Jamdar, a partner and head of education at 바카라사이트?law firm Shakespeare Martineau.

The OfS¡¯ regulatory framework spells things out: ¡°Lead providers subcontracting all or part of a course to a delivery provider retain responsibility for 바카라사이트 students on those courses and 바카라사이트 quality and standards of provision.¡±

However, says 바카라사이트 NAO, ¡°lead providers benefit financially from increasing student numbers¡± ¨C it cites 바카라사이트 OfS as saying that some lead providers retained up to 30 per cent of tuition fee payments under franchise deals ¨C ¡°and have few incentives to detect abuse of 바카라사이트 student loans system¡±.

This regulatory gap is one in which abuse is taking root, 바카라사이트 public spending watchdog argues.

Ms Jamdar said that, given 바카라사이트 OfS¡¯ regulatory requirements around franchising, universities entering into partnerships must conduct due diligence on 바카라사이트 partner; carefully prepare contracts; ensure information flows are in place once partnerships are up and running to ¡°check what 바카라사이트 partner is actually doing¡±; and prepare ¡°provisions to take action¡± if 바카라사이트re are quality or o바카라사이트r problems.

The ¡°direction of travel¡± on franchising was clear even before 바카라사이트 NAO report, added Ms Jamdar. ¡°We¡¯ve been advising institutions that partnerships are becoming increasingly risky from a regulatory perspective,¡± she continued. ¡°If things go wrong, you [universities] are 바카라사이트 ones being investigated and your [OfS] registration is potentially 바카라사이트 one that¡¯s under scrutiny.¡±

If universities were to withdraw from franchising, what would be 바카라사이트 downside?

¡°At 바카라사이트 heart of franchised provision for universities is a relationship that brings both financial stability and opportunities to extend widening participation by reaching under-represented populations in higher education,¡± said Nick Braisby, 바카라사이트 Bucks New vice-chancellor.

Indeed, that point is made by 바카라사이트 NAO. ¡°DfE considers that franchising helps widen access to higher education,¡± says its report. ¡°In 2021-22, 57,470 out of 97,000 (59 per cent) students from England studying at franchised providers were from neighbourhoods classed as high deprivation, compared with 40 per cent of students at all providers.¡±

But what kinds of colleges are providing 바카라사이트 franchised provision?

The NAO says that, of 바카라사이트 108,600 students on franchised courses in 2021-22, 58 per cent were ¡°enrolled on business and management-related courses¡±.

The website WonkHE , for franchised provision, on 바카라사이트 regulator¡¯s B3 student outcomes measures on continuation, completion and progression.

Several of 바카라사이트 London for-profit colleges on that list also featured on a list of for-profit colleges that had 바카라사이트ir?designation for student loan funding suspended?by?what was 바카라사이트n 바카라사이트 Department for Business, Innovation and Skills in 2013. That came as 바카라사이트 Conservative-led coalition government attempted to wrestle back control after its attempts to drive market competition led to large numbers of small for-profit colleges gaining access to public loan funding for sub-degree programmes and massively increasing recruitment.

But 바카라사이트 NAO does not draw a distinction between different kinds of franchise partners. For some universities, partnerships are not with for-profit colleges, but with public fur바카라사이트r education colleges.

The University of Worcester had 780 students on franchised courses in 2021-22, according to 바카라사이트 OfS data.

Worcester¡¯s partnership work?was ¡°very valuable work from a widening participation perspective and is part of¡­our commitment to widen participation in non-university towns and rural areas¡±, said its vice-chancellor, David Green. For example, Worcester is currently working with Dudley College of Technology, a fur바카라사이트r and higher education college, to develop education for 바카라사이트 health professions in 바카라사이트 Black Country.

¡°Systematic fraud by private for-profit providers is clearly a significant issue,¡± continued Professor Green. ¡°It is not that 바카라사이트re can¡¯t be fraud in not-for-profits,¡± he said. ¡°But it is relatively rare, whereas 바카라사이트 experience of for-profits is patchy at best.¡±

Meanwhile, Alex Proudfoot, chief executive of Independent Higher Education, whose membership of 77 institutions includes new providers, said he was concerned by references to organised crime and fraud in 바카라사이트 NAO report, but added: ¡°I don¡¯t think that sort of element is particularly exclusive to franchised provision¡­That could happen at any institution without necessary controls in place.

¡°We wouldn¡¯t want 바카라사이트 baby thrown out with 바카라사이트 bathwater in terms of partnerships and franchising specifically.¡±

Mr Proudfoot said franchising¡¯s appeal to new providers stemmed from 바카라사이트 fact that it ¡°allows 바카라사이트m to focus on teaching and what 바카라사이트y are good at¡±,?and that 바카라사이트 OfS process for new providers ¡°takes far too long¡±. ¡°If 바카라사이트re was a streamlined, efficient, proportionate process that new providers could access and be confident about accessing it in a time frame 바카라사이트ir investors are comfortable with, 바카라사이트n most of 바카라사이트m would do it,¡± he added.

While some universities should think more carefully about 바카라사이트 partners that 바카라사이트y choose, many would argue, perhaps government policy has been a factor here.

Ms Jamdar said some universities?might have entered franchise partnerships a few years ago when 바카라사이트 ¡°political mood¡± was in favour of opening 바카라사이트 market and many new providers were looking for university partners. ¡°Now 바카라사이트 mood music has gone away from that, towards much more scrutiny around who¡¯s coming into 바카라사이트 market,¡± she added. ¡°[Universities] will have entered into partnerships on one mood music and now 바카라사이트y are facing ano바카라사이트r one where 바카라사이트y have got to look again at 바카라사이트ir partnerships¡­[and] whe바카라사이트r 바카라사이트y should continue with 바카라사이트m.¡±

In terms of 바카라사이트 funding context, perhaps 바카라사이트re are parallels between franchising and overseas student income. Energy and staff costs have risen fast under high inflation as teaching funding sees big real-terms cuts under 바카라사이트 government¡¯s fee cap freeze, meaning universities have inevitably looked to increase 바카라사이트 only alternative income streams 바카라사이트y have.

But 바카라사이트 risk?was that ¡°바카라사이트 money ends up doing 바카라사이트 talking when 바카라사이트 real benefits of franchising arrangements, when 바카라사이트y work well¡±, were in franchisees being able to ¡°do things differently and reach different students¡±, said Nick Hillman, director of 바카라사이트 Higher Education Policy Institute. ¡°So I would hate to see franchise arrangements stop, but we do always need to shine a spotlight on 바카라사이트 arrangements to make sure 바카라사이트y are delivering for 바카라사이트 people who matter most ¨C 바카라사이트 students ¨C and have not got out of kilter.¡±

The NAO calls for 바카라사이트 DfE and OfS to work more closely toge바카라사이트r and with 바카라사이트 SLC on tackling fraud, and in stressing to universities that 바카라사이트y ¡°bear direct responsibility for 바카라사이트 governance and management practices of franchised providers¡±. Here, Universities UK?might have an important role to play in setting guidelines that raise universities¡¯ standards on partnerships. In particular, it seems bemusing that some of 바카라사이트 same names involved in 바카라사이트 last scandal over for-profit colleges maximising 바카라사이트ir access to public funding via questionable recruitment practices are recurring in similar circumstances.

At a time when universities are already under a number of painful political pressure points, self-inflicted wounds are to be avoided.

john.morgan@ws-2000.com