The Prime Minister recently declared that Britain has ‘too much regulation and too many regulators’ before the shock announcement to abolish the world’s biggest quango, NHS England. Since December, the Government has been fighting a war against red tape, which it believes is hindering economic growth. University Alliance, and I suspect most of the higher education sector, has some sympathy with the PM on this – at least when it comes to higher education regulation. I cannot remember a meeting in the past several years when the burden of regulation was not brought up as a key source of the sector’s woes.
We need to be clear here that regulating higher education is important. The recent Sunday Times coverage alleging serious fraud in the higher education franchised provision system is testament to that, and it is right that the government and the regulator continue to act robustly. The question, then, is less whether higher education needs regulating at all, but rather whether the right regulators are regulating the right activity in the right way. It should be perfectly possible to have a tough regulator that prevents fraud and acts in the student interest while also reducing duplication in the system and focusing in on the areas of highest risk.
The sheer volume of external regulatory demand placed upon our sector goes well beyond the well-documented teething problems with our fledgling regulator, the Office for Students (OfS). To outside observer Alex Usher of Canada’s Higher Education Strategy Associates, it appears extreme:
‘Canada has no REF, no TEF, no KEF. We have nothing resembling the Office for Students. External quality assurance, where it exists, is so light touch as to be basically invisible. This does not stop us from having four or five universities in the Global top 100, eight in the top 200, and twenty or so in the top 500.’
The volume of regulatory requirements is even higher for vocationally oriented and professionally accredited provision, which is the lifeblood of Alliance universities. In addition to the OfS, courses which provide access to the so-called ‘regulated professions’ are also overseen by a wide range of Professional, Statutory and Regulatory Bodies (PSRBs), each with their own requirements. PSRBs have wide authority over course content, assessment, and quality assurance, with formal reaccreditation required every three to six years on average.
In some cases, particularly in the sphere of healthcare education, multiple PSRBs can have some degree of authority over a single course. For example, an undergraduate degree course in Occupational Therapy must meet the requirements of the OfS, the Health and Care Professions Council (HCPC) and the Royal College of Occupational Therapists (RCOT). Often, these different processes and requirements overlap and duplicate one another.
If this seems excessive, it is nothing compared to the requirements imposed upon degree apprenticeships. Not only are they regulated by the OfS and likely PSRBs given their vocational nature, but they are also subject to the fiendishly complex funding assurance review procedure of the Education and Skills Funding Agency (ESFA) as well as in-person Ofsted inspections at least every 5 to 6 years that can take up to a week. A recent UA report on healthcare apprenticeships found that this means they are more expensive to deliver than traditional degrees.
The problem of regulatory burden in higher education has been continually flagged by sector bodies and by the House of Lords Industry and Regulators Committee, which called for a Higher Education Data Reduction Taskforce. Despite this, the issue has been mostly ignored by policymakers, bar a few small initiatives. It does not feature in any of the Government’s higher education reform priorities, although the Education Secretary is asking universities to become more efficient and the OfS expects them to take ‘rapid and decisive action’ to avoid going bust.
With 72% of higher education providers facing potential deficit by 2025/26, it is a mystery why the higher education sector – an acknowledged engine of economic growth – appears to have been left out in the cold while this unexpected reprise of the bonfire of the quangos is being lit. To our knowledge, neither the PM nor the Chancellor have called on higher education sector regulators to demand a cut in the cost and burden of regulation as they have done for others.
Universities are rightfully subject to robust regulation, but the current regime is disproportionate, diverting dwindling resources away from teaching, student services and research. In the absence of more funding, cutting the cost and burden of regulation would go a long way. The establishment of Skills England, with its convening power and wide-angle, long-focus lens, should be used meaningfully to cut bureaucracy for degree apprenticeships while maintaining quality. Responsibility for monitoring the quality of degree apprenticeships should be given back to the OfS rather than Ofsted, and the ESFA audit process should be simplified. The OfS should also make a public commitment to cut the cost and burden of its regulation and work more closely with other sector regulators and PSRBs to avoid overlap and duplication.
At a time when the Chancellor has urged ‘every regulator, no matter what sector’ to enact a ‘cultural shift’ and tear down the regulatory barriers that are holding back growth, cutting the cost of regulation in higher education should be a top priority.