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Ministers have unveiled sweeping reforms aimed at tightening controls on rogue university course operators in England who exploit the student loan system through poor-quality teaching and fraudulent practices.
The Department for Education’s proposed measures will require course operators with more than 300 students to register with the Office for Students, subjecting them to rigorous quality standards or risk substantial fines and potential suspension. The move comes after a National Audit Office investigation revealed fraudulent providers cost taxpayers £2 million in 2022-23.
The current landscape shows more than half of 341 franchised institutions operating without registration. Student enrolment in franchised courses has witnessed a dramatic surge, climbing from 50,400 in 2018-19 to over 130,000 this academic year, driven partly by universities seeking additional revenue streams amidst financial pressures.
Education Secretary Bridget Phillipson emphasised the government’s commitment to protecting academic standards, stating the credibility of British universities hangs in the balance. The reform package arrives during a period of significant financial instability within the sector, with several institutions implementing voluntary severance schemes potentially affecting nearly 1,000 positions.
Recent data from the university admissions service Ucas has exposed concerning trends, with prestigious Russell Group universities experiencing sharp declines in international undergraduate admissions. Newcastle University and the University of Sheffield reported particularly steep drops of 26 per cent and 23 per cent respectively.
The government has acknowledged the sector’s financial challenges and plans to implement inflation-linked tuition fee increases from 2025-26, marking a significant shift in higher education funding policy. These measures reflect a broader strategy to stabilise the university sector while maintaining Britain’s reputation for academic excellence.
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