New higher education franchising reforms aim to protect public money and student outcomes

The UK government has reportedly introduced stringent new reforms under its Plan for Change to address poor practices in university franchising and safeguard public money. Observers said the measures would tighten oversight of English university subcontracted courses, ensuring students receive high‑quality teaching while reinforcing public funding protection for UK higher education. Commentators noted that franchised providers enrolling more than 300 students must meet the registration requirement under the Office for Students (OfS) regulation 2025, and comply with standards similar to those of universities. From the academic year 2028–29, non‑compliance will result in exclusion from access to UK student loan funding—a move aimed at reducing student loan fraud in UK universities and restoring taxpayers’ confidence. Analysts added that this action responds to concerns about rogue higher‑education providers UK regulation, where rapid growth and weak oversight left parts of the system open to abuse.

Franchising allows universities to subcontract teaching to colleges or private training providers delivering courses such as health or business. When managed well, it can widen access; however, reports highlighted that rapid expansion and inconsistent monitoring created risks of exploitation. Students on franchised courses were said to be more likely to drop out and less likely to progress into work or further study. Completion rates were reported at around three‑quarters, compared with nearly nine in ten across the wider sector.

Education Secretary Bridget Phillipson was quoted as saying that too many operators had treated students as a route to fast cash rather than as individuals investing in their future. She emphasised that accountability would now be enforced, with public money subject to proper scrutiny. She added that the UK higher education sector remained one of Britain’s greatest assets, and that the reforms would protect its reputation by putting students first. Reports explained that the government’s consultation confirmed regulations would be laid before Parliament in spring 2026. These reforms were described as part of wider UK higher education franchising reforms, including tougher OfS registration conditions on governance, stronger system controls to prevent fraud, and cross‑government work led by the Public Sector Fraud Authority.

Sector leaders expressed support for the crackdown. Vivienne Stern MBE, Chief Executive of Universities UK, stated that franchise provision must be underpinned by robust standards and welcomed the requirement for franchise partners to register with the OfS. The Office for Students UK registration 2028 was also reported to be strengthening its regulatory regime, introducing tougher initial registration conditions on governance and management of public money, publishing annual data on franchised student outcomes, and consulting on new requirements for universities overseeing franchise partnerships.

Philippa Pickford, Director of Regulation at the OfS, explained that the announcement would help ensure students studying under subcontractual arrangements receive high‑quality education, while giving taxpayers confidence that public funding is used appropriately. She noted that the OfS had long raised concerns about poor practices in some subcontractual arrangements and would respond to its own consultation in early 2026.

Ministers were said to be preparing legislation to strengthen the OfS’s ability to act more quickly whenever there was a risk to quality or public money. This would mean that issues around franchised provision could be resolved more rapidly in future. Taken together, these reforms represent a decisive UK crackdown on rogue university franchises. They are intended to improve student outcomes, reduce fraud in student finance, and ensure that franchised providers meet appropriate governance standards. For students, the changes mean greater protection and clearer guidance on how to check if a UK university franchise is registered and apply for UK student loans only with regulated providers. For the sector, the reforms strengthen oversight and safeguard Britain’s reputation for world‑class higher education.

Editor’s note:

The proposed reforms signal a necessary reset, prioritising student outcomes and accountability to restore confidence. While franchised provision, when governed by robust standards, can broaden access, weak oversight poses a risk of harm. Therefore, increasing accountability is a prudent step, so long as it effectively safeguards legitimate students and discourages exploitative providers. For students, the message is straightforward. Before enrolling, check that the course and its delivery partner are properly registered, review published outcome data, and look for evidence of strong teaching, language support, attendance monitoring and fair complaints processes. If such information is missing or difficult to obtain, treat it as a warning sign. Funding decisions should be linked to transparent quality checks, not unexpected administrative issues. For universities and partners, expectations are rising. Due diligence, governance and data reporting must be consistent across all sites, with clear accountability for teaching quality and student support. Strong partnerships will invest in tutoring, employability and early interventions to prevent drop‑out; weaker ones will withdraw. Careful transition is essential so that improved standards do not unintentionally restrict access for disadvantaged groups.

Skoobuzz underlines that if implemented well, these changes can protect students and taxpayers while maintaining the UK’s reputation for quality. The real test will be delivery: transparent registration, timely enforcement, and targeted support where risks are greatest. If these elements align, franchised education can remain a route to opportunity rather than a loophole.

FAQs

1.What is a rogue university franchise in the UK?

A rogue university franchise is when a university subcontracts teaching to another provider, such as a college or private training centre, but the standards are poor. These providers may admit students with weak English or low attendance only to access public money, without giving proper teaching or support.

2.How does the UK government plan to regulate university franchises?

The government plans to tighten rules through its Plan for Change. Franchised providers with more than 300 students will have to register with the Office for Students (OfS) and meet the same standards as universities. Stronger checks on governance, teaching quality, and use of public money will also be introduced.

3.When will UK franchise providers have to register with the Office for Students?

From the academic year 2028–29, franchised providers with 300 or more students must register with the OfS. If they do not, they will lose access to UK student loan funding.

4.Why is the government cracking down on rogue university operators?

The crackdown is happening because poor practices have harmed students and wasted public money. Drop‑out rates are higher in franchised courses, and fraud in student finance costs taxpayers millions. The reforms aim to protect students, improve outcomes, and restore trust in the UK’s higher education system.

5.What happens if a franchised provider fails quality standards in the UK?

If a franchised provider fails to meet quality standards, the OfS can fine them, suspend their registration, or cut off access to student loans. This means only providers that deliver proper teaching and support will continue to operate.