Commenting on the report, Alex Proudfoot, Chief Executive of Independent Higher Education (IHE), said:
“Students across the UK today are enrolled on degrees and other higher education programmes at more than 800 individual providers, but the scale and diversity of this provision is little understood, even inside the sector itself.
“Franchising is the delivery model of choice for many further education colleges and small independent providers who simply don't have the student numbers and resources necessary to maintain a full academic infrastructure of their own. Franchising allows them to focus on what they do best by prioritising teaching, student support and professional opportunities.
“We welcome the Committee's call for more transparency in relation to the fees retained by franchising providers, and the services that the students who will be repaying these fees for up to 40 years after graduation can access in return.
“The regulatory requirements in England are a poor fit for smaller franchised providers due to the cost and burden associated with the model of registration currently offered by the Office for Students. There is also a long queue to get through the registration door, and still not enough transparency about timescales or how and when decisions on applications are made.
“We have previously called for the introduction of a new registration category which would offer an affordable and proportionate process for providers to assure potential partners and students that they had undergone some basic regulatory due diligence. But before any additional requirements are introduced, the Government must ensure that these processes are properly resourced and as efficient as they can be.”