Universities could be fined for failing to deliver for students

University regulator Office for Students (OFS) has gained its final suite of powers today (1 August), which means it can fine universities that fail to deliver in the best interests of students.

Since launching in 2018, the OfS has highlighted and tackled the issues in the higher education sector, such as the rising proportions of Firsts awarded, levels of senior staff remuneration and increasing numbers of unconditional offers.

It now has statutory powers to impose financial penalties of up to £500,000 or two per cent of a university’s income from tuition fees and grants (whichever is highest) to ensure high standards and quality in higher education.

In addition to these powers, the OfS can already impose registration conditions on universities to ensure improvements are made in specific areas, such as eliminating gaps in access and attainment for disadvantaged groups. The regulator has already placed conditions on providers which they must meet, such as demanding greater evidence on the support, including financial support, they provide for disadvantaged students or requesting an action plan if student outcomes are poor.

Universities Minister Jo Johnson said: "Our vision for the OfS was for it to be a regulator with teeth and it has already made a significant impact on the sector. Now I expect it to use its full range of powers to ensure students up and down the country are at the heart of the system and receive value for money from our universities.

"For the thousands of young people collecting their A Level results this month and starting university in September, they can be confident that the OfS will be a champion for students which is able to take strong action.

"Our universities are world-leading and this reputation must be protected. I look forward to getting back to work to drive a focus on ensuring all students have a high-quality higher education which leads to a successful, fulfilling career."

From today, the regulator also has the power to refuse to renew a university’s plan for widening access and participation among disadvantaged groups, which providers are submitting to the OfS over the summer for implementation in 2020-21.

Universities that wish to charge higher tuition fees must have an ‘access and participation plan’ which sets out how they will improve equality of opportunity for underrepresented groups to succeed in higher education. If institutions don’t meet these requirements (set out) the OfS will intervene and take appropriate action.

Where the OfS finds universities are not working in students’ interests, it can take action by placing additional conditions on an institution’s registration, refuse its registration, and in the most serious cases, remove an institution’s powers to award degrees.