OfS reforms to conditions of registration
The Office for Students (OfS) recently announced reforms to its conditions of registration for higher education providers in England, following consultation earlier this year. New initial conditions of registration and new registration requirements have been introduced which broadly reflect the proposals on which the OfS consulted.
Background
The Office for Students (OfS) recently announced reforms to its conditions of registration for higher education providers in England, following consultation earlier this year. New initial conditions of registration and new registration requirements have been introduced which broadly reflect the proposals on which the OfS consulted.
The reforms aim to ensure that institutions can only register with the OfS if they treat their students fairly, have effective management and governance arrangements in place, appropriately manage public funds and ensure value for money for taxpayers.
These changes coincided with the OfS reopening applications for registration, degree awarding powers and university title on 28 August 2025, following a pause in new applications since December 2024.
What's new?
Treating students fairly
- A new initial condition of registration (Condition C5) has been introduced, replacing initial Condition C1 (Guidance of consumer protection law) and initial Condition C3 (student protection plan). Providers must, if registered, treat each student fairly in relation to any activities that are connected with the provision of higher education and/or ancillary services.
- Ongoing Condition C1 will continue to apply to registered providers, including those registered on the basis of initial Condition C5.
- Ongoing Condition C3 will not apply to providers registered after being assessed against Condition C5.
- Under Condition C5, the OfS will assess a provider's student terms and conditions and other relevant student-facing policy and process documents which are required to be published, once registered. Taken together, these documents will constitute the provider's student protection plan.
- Alongside Condition C5 is an extensive list of prohibited behaviours which could result in a provider failing to satisfy this condition to treat students fairly. These behaviours include a provider having an unclear refund and compensation policy and publishing fake reviews.
The new condition is informed by consumer protection law but the OfS is clear that fair treatment of students in Condition C5 is separate from the consumer law protections enjoyed by students. Accompanying guidance confirms that a provider may satisfy its legal obligations regarding consumer protection without satisfying the requirements of this condition and vice versa.
Effective governance
- Three new initial conditions of registration (Conditions E7, E8 and E9) have been introduced, replacing initial conditions E1 (public interest governance) and E2 (management and governance).
- Condition E7 requires a provider to submit a defined set of governing documents at registration which is more prescriptive than the previous guidance.
- Condition E7 also requires a provider to submit a clear and comprehensive five-year business plan, to demonstrate the provider’s understanding of the higher education sector, its strategic objectives, associated risks and how it intends to comply with ongoing conditions of registration. Accompanying guidance sets out at length the requirements the business plan must meet and mandatory items for inclusion. The OfS will also assess whether a provider can deliver its business plan in practice and may consider its track record of delivery. The OfS will consider a provider's capacity and resources, including financial recourses, to deliver the submitted plan.
- Condition E8 requires a provider to have in place, from the point of registration, comprehensive arrangements for detecting, preventing and stopping fraud and the inappropriate use of public funds.
- Condition E9 requires a provider to have defined "key individuals" (e.g. chair, accountable officer) who are fit and proper persons and have sufficient knowledge and expertise to enable the provider to comply with the OfS' ongoing conditions of registration and deliver in practice its business plan and its fraud and public money arrangements.
- Ongoing conditions of registration E1 and E2 will continue to apply to all registered providers and applicants as set out in the OfS' Regulatory Framework.
New registration requirements
- The OfS has implemented new requirements which apply to new applications which include enhanced submission requirements relating to financial information, such as detailed financial scenario planning, commentary and mitigation plans to enhance its understanding of how a provider would remain financially viable and sustainable, and audited statements and corporate structure diagrams to enhance its understanding of a provider’s governance and operational context.
The new initial conditions of registration and new registration requirements will not generally apply to any application for registration made before 28 August 2025.
For all providers seeking registration and particularly smaller providers, newer providers and providers under private ownership, careful review of these new conditions and registration requirements, and taking appropriate advice, is key. While the OfS has also reduced the time-limit for resubmission of a refused application from 18 months to 12 months (effective from 1 January 2026), a delay in registration may have significant consequential impacts for providers.
What's next?
The OfS aims to bring more efficiency to registrations with these reforms and ensure that new entrants can manage the increased risks faced by the sector, including increasing financial challenges.
The sector also awaits the Department of Education's decision following consultation on its proposal that franchise delivery partners with 300 or more students be registered with the OfS (for courses designated for student finance by the Student Loans Company). If adopted, that could be a major test for these efficiency reforms.
Likewise, the consultation for a new general ongoing condition of registration in relation to subcontracting closed on 1 October 2025. If enacted, the OfS proposal would, inter alia, ensure that providers with 100 or more students in sub-contractual arrangements have in place the required oversight and control mechanisms to effectively identify and address risks to students and taxpayers. The new condition would take effect from early 2026 and providers would be obliged to establish these mechanisms immediately. The OfS is seeing insufficient control of recruitment, admissions, student attendance and assessment in sub-contractual arrangements and its proposal seeks to address this issue.
There will continue to be increased regulatory focus on sub-contractual arrangements, including imposing additional requirements on providers where it considers such arrangements may be placing the interests of students or taxpayers at risk.
Providers with sub-contractual arrangements should act now, before these new regulations come into force, to review their governance and oversight of subcontracted provision and review their franchise agreements.
How we can help
The OfS held a briefing for unregistered providers who are seeking to register which is available here.
Our team of experts can help you with OfS registration, conditions of registration, governance and subcontract arrangements.