Two parallel regulatory changes are set to reshape higher education partnerships (partnerships come in different forms and are managed differently. Our focus is on partnerships between regulated lead providers and their delivery or teaching providers, which can be OfS registered but may not be). The Department for Education (DfE) plans to require teaching providers with over 300 students to obtain Office for Students (OfS) registration to maintain access to student loans. Simultaneously, the OfS is introducing stricter registration conditions. While these changes appear to target new providers, they will significantly impact currently regulated providers who franchise or subcontract their courses.
Critical Timeline
- August 2025: OfS reopens new provider registration with new conditions
- 1st May 2026: Final deadline for franchise providers to submit OfS registration applications
- September 2027: DfE decides on which courses will be designated for student finance support
- September 2028: New students at unregistered teaching providers lose access to student finance
Five Essential Actions for Lead Providers
1. Identify Affected Partnerships
Conduct a thorough audit of your franchise teaching partners to determine which will require OfS registration. Remember:
- The 300-student threshold is a headcount and includes all students (publicly funded, self-funded, and international)
- Is set at teaching provider level and will include the number of students from all the partnership contracts agreed by the teaching provider, not just the numbers agreed with you
- Consider any exemptions that may apply
2. Assess your risk
If one or more of your teaching partners are not successful in their OfS registration, then you will be exposed to:
Financial Risks:
- Potential loss of sub-contractual fee income (currently 12.5-30% of tuition fees)
- Possible teach-out costs if teaching partners cease operations
- Impact on institutional financial planning from 2028/29
Strategic Risks:
- Effects on access and participation targets
- Impact on specialist teaching provision
- Consequences for regional outreach and community engagement
3. Review Compliance with Condition C5
As a lead provider, you’ll need to ensure your:
- Student contracts
- Course modification policies
- Complaints processes
- Refund and compensation policies
All meet the new “treating students fairly” requirements, as these will very likely apply to your franchise partnerships even if you’re already registered.
4. Support your Partner Registration
Develop a structured support program for franchise partners’ OfS applications:
- Begin preparation well before August 2025
- Consider collaborative approaches with other lead providers
- Share expertise and best practices in registration requirements
5. Strengthen Due Diligence
Review and enhance your partnership due diligence processes:
- Align with new condition E7 requirements
- Update governance checks
- Strengthen financial sustainability assessments
- Review legal compliance procedures
Looking Ahead
The window for action is relatively short – approximately 14 months to assess risks and implement changes. With 86 lead providers currently managing unregistered delivery partners affecting over 80,000 students, the sector-wide impact will be significant. Early preparation and proactive partnership management will be crucial for maintaining successful franchise relationships through this transition.
Take Action Now with AHEP Consulting
With just 14 months to assess risks and implement changes, the time to act is now. The sector-wide impact of these regulatory shifts will be significant, affecting over 80,000 students. Proactive partnership management is essential to maintaining successful franchise relationships through this transition.
AHEP Consulting can help you navigate these changes with expert guidance and tailored support. Get in touch today to ensure your institution is prepared. Contact us now to start the conversation: https://ahep.ac.uk/ahep-consulting/
