Such sub-contractual partnerships 鈥� while presenting several benefits for students and higher education institutions (HEIs) alike 鈥� also present risks, according to an Office for Students (OfS) published on September 3.
These include staff incentivising recruiting and retaining students over the quality of courses and students with insufficient English skills being told these are enough to join a course and not being given the extra support they might need. There have even been reports of students paying for falsified English language tests.
A sub-contractual partnership is when a lead provider 鈥� for example, a university 鈥� uses a third-party provider to deliver all or part of a course on its behalf. Students pay their fees to the lead provider, which keeps a percentage and passes the rest on to the delivery partner.
There are many examples of these and very often, the arrangement means that low socio-economic background students who would never move to a new city to undertake a degree can seek a tertiary undergraduate or postgraduate degree through flexible and local provision.
Indeed, OfS provides interesting on typical student characteristics when studying at a sub-contracted partner. For example, almost 50% are aged 31 or over on entry, and 60% come from areas that are classified as in the top two ranks for multiple deprivation.
Examples of such sub-contractual models include agreements between and universities such as London Metropolitan University, Solent University and Ulster University; and which runs courses for St Mary’s University Twickenham and Bath Spa University.
While serving important and distinct cohorts of student learner, the report warned that “without appropriate oversight”, the “arms-length delivery” of such partnerships “presents significant risks to students, taxpayers and the higher education sector”.
It said these risks are worsened when:
- The lead provider has sub-contractual arrangements with multiple delivery partners.
- Such arrangements involve a large number (for example, more than 1,000) of the lead provider鈥檚 students.
- The students involved are a significant proportion of those the lead provider registers.
Such agreements are a rapidly growing area in the sector, with students taught in the programs doubling since 2019/20 to over 138,000 in 2022/23 鈥� representing over 5% of students in the sector, according to the report. And in some cases, lead providers now teach more students through sub-contractual partnerships that directly on their own campuses.
But “there is evidence that [it] is not always true for students in such arrangement” that they are “treated fairly, receive a high quality education and get the outcomes they deserve”, it added.
In line with the growing number of students taught in sub-contractual partnership courses, the UK‘s education watchdog the OfS is casting a beady eye over these deals. “This is to ensure that universities and colleges have robust governance and oversight of these arrangements, in the interests of ensuring positive outcomes for students and taxpayers, and the reputation of the higher education sector,” its report said.
“We invite leaders in universities and colleges that already have sub-contractual arrangements, or are considering entering them, to consider the suggestions in this brief on how to ensure effective governance and oversight. While universities and colleges must contact us if any material concerns arise with a sub-contractual partnership, we can also advise at an earlier stage, including before an arrangement is made.”
There are also serious risks to public money where these arrangements are not managed properly
David Smy, OfS
It continued: “Some of the more striking examples we have seen of such arrangements leading to strong positive outcomes include collaborations with performing arts and media colleges, and further education and sixth form colleges.”
“From our analysis…we can see that many benefits can be achieved through sub-contractual partnerships, for both students and higher education providers…But partnerships need robust management and oversight if they are to achieve these benefits, and deliver for students and taxpayers,” said David Smy, the OfS’s deputy director for enabling regulation at the OfS.
“In these financially challenging times for higher education providers, it鈥檚 more important than ever that they recognise that business models that rely heavily on sub-contractual partnerships carry additional risks, and these risks must be effectively managed.”
He continued: “There are also serious risks to public money where these arrangements are not managed properly. This can include universities and colleges receiving public funding for students who may not be genuinely studying on the course their tuition fees are funding, and students who may be receiving other payments they鈥檙e not entitled to. We continue to work closely with the Department for Education and the Student Loans Company to ensure public funding is protected.
鈥榃e hope this Insight brief will be a useful resource for universities and colleges that are, or are contemplating, working through sub-contractual partnerships, and a reminder of the importance of good management and effective governance. Lead universities should seriously consider whether they should offer courses in this way if they cannot manage partners and public money effectively while ensuring that courses are delivering positive outcomes for students.”
