House of Commons · Written Ministerial Statement
Protecting Public Money in Higher Education
25 March 2025 · Department for Education
Proposed by Bridget Phillipson Lab Houghton and Sunderland South
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The government is investigating and taking action to prevent abuses of public money in higher education.
- A consultation on regulatory scrutiny for larger education providers and legislation to enhance the Office for Students' authority are planned.
- The Department intends to ban domestic agents from recruiting UK students to prevent misuse of the student finance system.
Issue summary
The statement addresses the issue of abuse of public money within the UK's franchised higher education system.
Action requested
The government is taking immediate action to investigate and prevent abuses, including a consultation on regulatory scrutiny for larger providers and legislation to strengthen the Office for Students' powers. The Department also plans to ban domestic agents from recruiting UK students and will work with the Public Sector Fraud Authority to tackle exploitation of the student finance system.
Key facts
- Franchising grew significantly under the previous government but lacked proper oversight.
- Concerns were raised in 2023 and 2024 about abuse, unethical behaviour and fraud in franchised higher education.
- Romanian students receiving UK student funding are disproportionately affected by organised exploitation.
- A consultation on franchised higher education was launched in January to impose new controls.
- Legislation will be brought forward at the next available opportunity to give the Office for Students stronger powers.