Tag: statutory

  • Parliament has debated a statutory duty of care again

    Parliament has debated a statutory duty of care again

    There has been a new parliamentary debate on a statutory duty of care for universities, which returned to Westminster Hall following a similar debate in 2023.

    I had trouble finding some of the background material – it’s perhaps unfortunate that the Nottingham Trent webpage that was hosting all of the outputs and guidance notionally attached to the Higher Education Student Support Champion and the Department for Education’s Higher education mental health implementation taskforce now redirects to a picture and bio of new Trent VC Dave Petley.

    It’s not at all clear why things like the guidance on Compassionate Communications or the National review of higher education student suicide deaths are, as a result, scattered across the internet, but there is almost certainly a metaphor in there somewhere.

    Uncertainty

    Opening the debate, Labour’s James Naish (Rushcliffe) argued that the current legal framework leaves “too much uncertainty for students and institutions alike”, noting a rise in students disclosing mental health conditions and confusion over what students can and can’t expect.

    The law develops only after harm has occurred through costly and traumatic litigation brought by those least able to bear that burden.

    Naish noted that a 2023 survey by the suicide prevention charity CALM found just 12 per cent of students believe their university handles mental health well, and referenced a British Medical Association survey of medical students published shortly before Christmas that called for a statutory duty, specifically citing concerns about sexism and sexual violence towards medical students.

    Contributors shared harrowing constituency cases throughout the debate. Labour’s Llinos Medi (Ynys Môn) recounted the death of Mared Foulkes, a pharmacy student who died by suicide after receiving incorrect exam results from Cardiff University. Medi described the current situation as:

    A postcode lottery in terms of quality and accessibility of mental health care.

    Labour’s Lizzi Collinge (Morecambe and Lunesdale) described how Oskar, a student at Sheffield Hallam living with a brain injury, attempted suicide but his parents were never informed despite giving explicit consent for contact. Chadwick said the university later argued that this consent applied only to physical injuries, not to an attempt to take his own life. He proposed a practical safeguard:

    Every student to nominate a trusted point of contact when they enrol, to be used in the event of a serious concern.”

    Chadwick also highlighted data from the government’s National Review of higher education student suicide deaths, noting that reports were submitted for only 62 per cent of serious incidents, families were not involved in three quarters of investigations, and in 71 per cent of reports it was unclear whether there had been senior sign-off.

    The DUP’s Jim Shannon (Strangford) highlighted that around 30 per cent of Northern Ireland students study on the UK mainland, making the issue directly pertinent to families in his constituency. He cited statistics on the prevalence of anxiety and mental health issues among young people in Northern Ireland and stressed:

    Independence is not the same as isolation.

    He called for discussions between the minister and the devolved administrations to work collectively across the United Kingdom.

    Labour’s Warinder Juss (Wolverhampton West), a former personal injury solicitor, provided legal analysis, describing it as “quite shocking” that common law does not impose a duty of care on universities when such duties exist:

    In prisons, hospitals, primary, secondary schools and colleges of further education… for doctor to patient, solicitor to client, manufacturer to consumer, and one road user to another.

    She walked through the Abrahart v University of Bristol case in detail, and noted that had a duty of care existed:

    There would have been a breach of that duty, and the university would consequently have been negligent.

    A statutory duty, she argued, would “define expectations, embed accountability and promote prevention” while bringing UK law into line with the United States and Australia. She also pushed back on the idea that relying on the Equality Act is sufficient, noting that while some cases involve a history of engagement and diagnosis:

    In many other cases, it could be something that the student suddenly finds himself in this situation.

    Students without a formal disability diagnosis would fall through the gaps.

    Labour’s Rachel Maskell (York Central) broadened the debate to include the intersection of pressures students face, and emphasised that students who struggle academically must always have “a second chance”.

    Labour’s Tom Hayes (Bournemouth East) raised implementation questions, noting that any statutory duty would need clarity on what it means in a higher education context and must intersect with existing safeguarding responsibilities, health and safety law and equality legislation. He also asked:

    Who would monitor and regulate compliance? Would it fall under Ofsted? Would it fall under the Office for Students, the DfE, or a new regulatory body?

    Labour’s Mary Kelly Foy (City of Durham) highlighted the particular vulnerability of care-experienced and estranged students, citing a Unite Foundation report that “well over a quarter” face financial concerns that “directly damage their mental health”. She noted the scale of the increase in students disclosing mental health conditions since 2011, and argued that a statutory duty need not mean in loco parentis monitoring:

    A professional standard of care providing the same level of protection that we would expect from an employer or a healthcare provider.”

    A statutory duty would also provide clarity on data sharing to empower pastoral teams to involve emergency contacts without fearing that they are breaching GDPR – an issue raised repeatedly throughout the debate as universities have used data protection as a reason not to contact families. But Foy cautioned that concerns raised by the University and College Union must be addressed:

    Simply imposing a duty of care on universities won’t work if already overstretched staff and underfunded pastoral teams are simply expected to pick up the pieces.”

    Labour’s Kerry McCarthy (Bristol East) raised the question of whether a statutory duty of care is the mechanism needed to bring smaller and less prominent higher education providers on board, or whether there might be another way to ensure consistency across the sector.

    The Liberal Democrat spokesperson argued that the voluntary university mental health charter – to which just over 100 of 165 universities have signed up – must become more than an aspiration:

    A voluntary aspiration must evolve to a rigorous accountability mechanism… with clear standards, regular independent assessment and consequences for non-compliance.

    Conservative shadow spokesperson Nick Timothy (West Suffolk) acknowledged that while their party’s position on a statutory duty is not yet fully established, “we certainly need to do a lot better than we’re doing right now.” He also bolted on a bunch of stuff about freedom of speech.

    The response

    Responding for the government, Skills Minister Josh McAlister began by acknowledging “the profound pain” felt by families who have lost loved ones and paying tribute to the Abraharts’ “tireless work” and the families from the LEARN Network “who continue to work alongside us to drive change.” He was unequivocal that change was needed:

    This government believes that change in this regard is needed.

    He then outlined recent government actions, including publication of the National Review of higher education student suicides, the extension of the Higher Education Mental Health Implementation Taskforce with updated terms of reference published in December 2025, and the appointment of Steve West to replace Edward Peck Higher Education Student Support Champion. He emphasised that the taskforce’s priorities include:

    Exploring the most effective mechanisms for holding the sector to account.

    On NHS capacity, McAlister noted the government is “recruiting eight and a half thousand additional NHS mental health staff by the end of this Parliament” and said the taskforce would shortly publish a report showcasing five successful higher education and NHS partnerships. He urged universities not already in such partnerships:

    …to study these models and explore how they can forge an approach that works for their local context.

    Perhaps inevitably, McAlister stopped short of committing to a statutory duty of care. He repeated the argument that universities already have a general duty of care under common law to deliver educational and pastoral services “to the standard of an ordinarily competent institution” and are expected to act reasonably. He also pointed to existing protections under the Equality Act 2010, which requires reasonable adjustments for disabled students including those with mental health conditions, and said:

    Where a severe or urgent condition is apparent, reasonable adjustments should be made without waiting for a formal diagnosis or medical evidence.

    On why the government was not introducing a statutory duty, McAlister raised concerns about unintended consequences:

    It is not just a question of drafting. It would require defining a minimum legal standard for universities, which risks becoming a ceiling rather than a floor.

    …and warned that a statutory duty:

    …could drive providers towards defensive compliance and litigation instead of focusing on what really matters, spotting problems early, making timely adjustments and learning from serious incidents.

    He also noted that:

    Almost all students are adults. Introducing a special statutory duty for them could be disproportionate when the evidence shows that students in higher education have a lower suicide rate than others in the same age in the general population.

    McAlister was quick to add this was “not in any way to minimise the problem at universities” but to “highlight the need for a proportionate response that strikes the right balance.”

    His conclusion offered continued engagement but no commitment to legislate:

    We will continue to monitor the evidence, listen deeply to bereaved families and hold providers to account. But right now, the fastest and most effective route to support safer campuses is for universities to embed the recommendations from the National Review and best practice identified through the task force’s outputs.

    Round in circles

    McAlister’s rejection of a statutory duty rested on three key arguments – that adequate legal protections already exist, that a statutory duty risks becoming “a ceiling rather than a floor,” and that students have a lower suicide rate than their peers in the general population. But is he right?

    McAlister’s assertion that universities already have a general duty of care under common law to deliver services “to the standard of an ordinarily competent institution” has been repeated by successive ministers since 2023, but its legal basis is questionable.

    The source has been traced to an AMOSSHE policy breakfast blog published in 2015 – since deleted from its original website. When tested in court in Abrahart v University of Bristol, the judge found no relevant common law duty existed.

    In Feder and McCamish v The Royal Welsh College of Music and Drama, the court found a limited duty only because the institution failed to follow its own voluntary procedures – it explicitly did not recognise any general duty to protect student welfare.

    Freedom of Information requests seeking the legal authority for the government’s position have been refused under legal professional privilege. The government has never identified a court, judge, or case supporting its assertion. As one legal analysis noted, the government’s response “has no legal weight” – a view shared by the defendant’s own barrister in the Royal Welsh case.

    McAlister warned that a statutory duty would drive “defensive compliance and litigation” rather than genuine care. But the behaviours critics fear – defensive reliance on process, fragmentation of responsibility, procedural rigidity, retrospective rather than proactive responses – are arguably already characteristic of the current voluntary system.

    Universities operate through dense policy layers designed to manage liability rather than responsibility. The absence of clear accountability has not produced proactive care – it has produced risk management in which no one is clearly responsible when foreseeable harm occurs.

    Bob Abrahart’s analogy with seatbelt legislation is fascinating – before the law changed, critics warned compulsory seatbelts would encourage passive compliance rather than active judgment. What actually happened was that the law reset baseline expectations, and culture followed. A statutory duty would not prevent universities exceeding minimum standards – it would ensure none falls below them.

    You could make a raft of similar arguments, by the way, about harassment and sexual misconduct. But just yesterday in the House of Lords skills minister Jacqui Smith pointed to “unacceptable levels of sexual harassment and abuse of girls within our schools and universities,” and pointed to the recently introduced Office for Students regulatory requirements on harassment and sexual misconduct as steps towards creating safer campus environments and improving institutional accountability.

    Why are regulatory requirements the answer on that issue, but a danger on this?

    McAlister also noted that students have a lower suicide rate than others of the same age, suggesting a statutory duty would be “disproportionate.” But for many, the framing is misleading.

    University students are not representative of their age group – they have passed academic and financial thresholds to reach higher education, and many with acute mental health challenges never arrive or leave when unwell. A lower rate among a pre-selected, relatively advantaged population is expected – that it is not dramatically lower should concern, not reassure.

    Universities are supposed to be semi-protected environments with pastoral care, support services, and trained staff. If the benchmark is whether students are safer inside higher education than outside it, the answer is far from clear. The reality of 160 deaths per year – more than three every week – hardly supports complacency.

    Aggregate rates also conceal inequalities – male students die at more than twice the rate of female students, first-year undergraduates face significantly higher risk, and part-time students have higher rates than full-time peers.

    Wait and see

    The most prominent commitment Halfon made – that all universities would sign up to the mental health charter by September 2024 – was not achieved. Membership increased to 113 universities, covering approximately 90 per cent of students, but fell short of universal coverage.

    More significantly, sign-up does not equal meaningful engagement – as of May 2025, only 17 institutions had actually been awarded charter status, and most of those achieved only “award with conditions.” The gap between signing up and embedding its principles illustrates a recurring pattern – outputs were produced, but outcomes remain elusive.

    The National review of higher education student suicides was delivered – conducted by NCISH and published in May 2025. There is as yet no sign that engagement with its recommendations for universities will be even monitored, let alone action taken.

    The Compassionate Communication Statement that Halfon promised was published and shared with the sector by December 2024, but adoption remains voluntary. There is no requirement for universities to follow it, and no sign even of monitoring that it’s been considered let alone implemented.

    Plenty of SUs I’ve spoken to tell me that a) it’s never been considered formally inside their committee structures, and even where it has b) there’s been little on monitoring adoption across a university’s diverse departments. There has also c) been a sense in some universities that it doesn’t apply in some scenarios – like when a student is accused of an assessment offence, or being chased for tuition fee payments.

    A Competency framework for non-specialist staff was published in February 2025, but it too is merely “advisory” – taskforce members raised concerns that because training is not mandatory, many staff groups may simply “opt out.”

    Other commitments have stalled or failed entirely. Information sharing between schools and universities to identify at-risk students before arrival remains, in the taskforce’s own words, “a complex and time-consuming task.” UCAS has expressed “limited appetite” for changes to the reference process, and proposed “wellbeing passports” face significant cost and viability barriers.

    Student analytics and early warning systems have not been rolled out – taskforce minutes show “major obstacles remain” and many providers feel they are “too far away” from implementation.

    Guidance on restricting access to means of suicide was published in September 2024, but the national review found this was “rarely addressed” in university incident reports, with only one out of eight relevant reports recommending any action.

    There’s also lots in the minutes on whether, how, if and so on there should be engagement with or compliance from FE providers, small and specialist, franchised and so on. Years abroad, placements and so on, not to much.

    Crucially, the regulatory threat that underpinned Halfon’s approach has not materialised. He warned that if the sector response was unsatisfactory, he would ask the Office for Students to introduce a new registration condition on mental health. How would DfE even know?

    What could be done?

    As to how any duty might actually work, it’s not as if there aren’t some interesting examples that deserve further interrogation.

    Sweden treats students as equivalent to employees for the purposes of workplace safety law. The Work Environment Act 1977 explicitly extends its protections to “persons undergoing education or training,” so university students are covered by the same statutory framework that protects workers.

    The Higher Education Ordinance then reinforces this by requiring institutions to provide students with access to healthcare – “particularly preventive healthcare that aims to support students’ physical and mental health” – and a “good environment in which to study.”

    What makes the Swedish system particularly robust is its enforcement through student representation. Student unions appoint studerandeskyddsombud (student safety representatives) who have formal statutory rights to participate in work environment activities.

    These reps sit on safety committees alongside staff, participate in inspections of teaching premises, and can raise concerns about both physical and psychosocial study environments directly with university leadership. Universities have to provide training on work environment legislation, and the Swedish Work Environment Authority supervises compliance and can intervene against institutions.

    Responsibility for the work environment lies with the institution and ultimately with the management – but students have formal standing to identify problems and demand action.

    Meanwhile Australia embeds student wellbeing within a regulatory framework with real consequences. Domain 2 of the Higher Education Standards Framework includes a dedicated section on “Wellbeing and Safety,” requiring providers to promote a safe environment, provide timely advice on support services, and ensure services reflect student needs including mental health and wellbeing.

    The Tertiary Education Quality and Standards Agency (TEQSA) has statutory powers to register providers, assess compliance, and take enforcement action. All providers must be registered, and registration must be renewed at least every seven years. Meeting wellbeing and safety standards is not optional – it is a condition of being permitted to operate.

    Both models offer lessons. Sweden demonstrates that students can be brought within existing workplace safety legislation without creating unworkable burdens – the framework already exists for employees, and extending it to students is a matter of legal definition. Australia demonstrates that wellbeing requirements can be embedded in registration conditions enforced by an education regulator with powers to sanction non-compliance.

    England already has the Office for Students as a sector regulator with power to impose registration conditions. The question ministers have repeatedly declined to answer is why wellbeing and safety in the learning environment should not be among them.

    Both Sweden and Australia show this is not novel or untested – it is just how other comparable jurisdictions protect their students. Surely a Tertiary Professional Standard can’t be beyond the sector to meet?

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  • Do states have ‘statutory right’ to Education Department data and guidance?

    Do states have ‘statutory right’ to Education Department data and guidance?

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    States suing the U.S. Department of Education over its mass layoffs claim the reduction in force is impacting the agency’s legally required functions, including research and grant distribution. But in documents submitted to the U.S. Supreme Court on Monday, the Education Department said states “have no statutory right to any particular level of government data or guidance.”

    The department is pushing the high court to let its massive RIF go through after being paused by both a federal district judge and the 1st U.S. Circuit Court of Appeals. In court documents, the agency said “it can carry out its statutorily mandated functions with a pared-down staff and that many discretionary functions are better left to the States.”

    Its request to carry through on the RIFs comes even as the agency notified “all impacted employees” on administrative leave in a June 6 email obtained by K-12 Dive that it is “actively assessing how to reintegrate you back to the office in the most seamless way possible” to comply with the court orders. 

    On June 16 — the same day as the agency’s latest Supreme Court filing —  it also emailed RIFed staff for information to help the department in “understanding potential reentry timelines and identifying any accommodations that may be needed.” 

    However, several of the more than 1,300 department employees put on administrative leave in March told K-12 Dive last week that they do not think the agency intends to actually bring them back. This is despite many of the employees having worked on legally required tasks the department has lagged on or trimmed down since the layoffs, as well as the department’s efforts to seemingly comply with the court orders. 

    “While they’re saying we’re coming back, they’re also still appealing the [RIF] process,” said one Education Department employee who is on administrative leave because of the RIF. “It feels like they’re slow-walking it.” 

    Employees ‘in limbo’ as department lags on statutory tasks

    The department is still paying all these employees’ salaries — amounting to millions of dollars — only for them to sit tight. 

    According to an email from American Federation of Government Employees Local 252, the union representing a majority of the laid-off employees, the Education Department is spending at least $7 million in taxpayer dollars per month to workers on leave.

    That amount is, in fact, only for 833 of the 962 laid-off Education Department workers that the union represents and whom it was able to reach for its analysis. Thus, much more than $7 million is actually being spent per month to keep the more than 1,300 laid-off employees on payroll. 

    Since March, the department has spent approximately $21.5 million on just those 833 employees, according to data provided by AFGE Local 252.

    While the Education Department emailed laid-off employees multiple times in the past month to gather information for “reintegration and space planning efforts” on government IDs, retirement plans and devices, among other things, several employees called this a superficial effort to comply with court orders. 

    In the meantime, employees are free to apply to other jobs, start their own organizations, and go on vacation if they so choose, according to employees K-12 Dive spoke with as well as an AFGE Local 252 spokesperson. 

    “We feel like we’re in limbo,” said an employee who has been on administrative leave since March. “They haven’t talked to us.” 

    This employee and the others who spoke to K-12 Dive asked to remain anonymous for fear that identification could negatively affect their employment status or severance terms.

    Condition of Education report falls behind

    This employee would have been working at the National Center for Education Statistics on data related to the Condition of Education Report, which is required by law — and for which the department missed its June 1 deadline “for the first time ever,” according to Sen. Patty Murray, D-Wash. 

    After leaving just a handful of employees in NCES, the department has so far released only a webpage titled “Learn About the New Condition of Education 2025: Part I,” which includes significantly less information than in previous years.

    “Now all we have is a bare-bones ‘highlight’ document with no explanation to Congress or to the public,” Murray said in a June 5 Senate Health, Education, Labor and Pensions Committee hearing. “And that is really unacceptable — students, families, teachers all deserve to see a full report.” 

    In 2024, the report was a 44-page document including new analysis, comparisons with past years, and graphs to visualize the data. It included over 20 indicators grouped by topics from pre-kindergarten through secondary and postsecondary education, labor force outcomes and international comparisons. Individual indicators ranged from school safety issues like active shooter incidents to recovery from the coronavirus pandemic. 
      
    This year, the department said it would be “updating indicators on a rolling basis” due to its “emphasis on timeliness” and would determine “which indicators matter the most.” More than two weeks after its missed June 1 deadline, however, the report still only includes a highlights page with five indicators linking to data tables, many of which had already been released. 

    Meanwhile, Democratic lawmakers have also expressed concerns that the department lagged on its statutory responsibilities to disburse key federal funds, including for Title I-A — which they said took three times as long to distribute than under the last administration. The delay in funding distribution gave states and districts less time to plan for helping underserved students, including those experiencing homelessness, lawmakers said.

    The U.S. Department of Education did not respond to K-12 Dive’s requests for comment on its missed June 1 deadline for the report or on how it will increase government efficiency and cut costs while spending millions on salaries for employees who are not working. 

    Sen. Patty Murray speaks into a microphone

    Senate Appropriations Committee ranking member Sen. Patty Murray, D-Wash., questions McMahon during a hearing about the proposed 15% cut to the Education Department’s budget on Capitol Hill June 3, 2025, in Washington, D.C. The budget was consistent with President Trump’s executive order to wind down the Education Department.

    Chip Somodevilla/Getty Images via Getty Images

     

    Department says RIF impacts are “speculative”

    However, in its Supreme Court filing on Monday, the department dismissed as “speculative allegations” states’ complaints of disruptions to services as a result of the RIFs.

    The states, in their filing last week seeking to block the RIFs, said that “collection of accurate and reliable data is necessary for numerous statutory functions within the Department that greatly affect the States.” 

    The department relies on this data “to allocate billions of dollars in educational funds among the States under Title I of the Elementary and Secondary Education Act,” the states said in their June 13 response to the administration’s plea to the Supreme Court to let its RIFs take effect. The department has given “no explanation of how such allocation can occur without the collection and analysis of underlying data, or of how the data can be collected or analyzed without staff,” their filing said.

    In its Monday response, the department maintained that it is not required by law to maintain “a particular quality of audit.” The states arguing to maintain the department’s previous staffing levels are trying to “micromanage government staffing based on speculation that the putative quality of statutorily mandated services will decline,” the agency said.

    However, when pressed by Sen. Murray in a budget hearing earlier this month, Education Secretary Linda McMahon said “no” analysis was conducted about how the firings would impact the agency’s functions or how it would continue its statutorily required responsibilities without much of its staff. The department did read “training manuals and things of that nature” prior to the layoffs, she said, and had conversations with “the department.” 

    But several laid-off staffers told K-12 Dive that they were never spoken to about how their responsibilities would continue to be fulfilled after their departure. 

    “They don’t understand what they’ve cut,” an employee said.

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  • OfS insight on institutional closure lacks a firm statutory foundation

    OfS insight on institutional closure lacks a firm statutory foundation

    The Office for Students’ (OfS) insight briefing “Protecting the interests of students when universities and colleges close” is as much a timely reminder of where the law falls short when providers are at risk of closure as it is a briefing on how to protect the student interest under the current policy framework.

    As we set out in our Connect more report which explored, among other things, the legal framework for institutional insolvency, market exit and/or merger, the role of OfS in any institution at risk situation is already unhelpfully ambiguous. Its concern may be the student interest, but it is not empowered to prevent institutional closure (even if, as is often likely to be the case, the student interest would be best served by completing the course they registered for at the institution they enrolled in) – or even to impose order on a disorderly market exit.

    In the absence of express powers or an insolvency or special administration regime for higher education, OfS’ role becomes one of a point person, facilitating conversations with other agencies and stakeholders, but with no powers itself to prevent a disorderly closure. The tone of the briefing is collaborative and collegiate but, in a world where students are no better protected than any other unsecured creditor if a provider becomes insolvent, it’s doubtful that, under the law as it currently stands, the interests of students will be protected to the degree to which OfS desires.

    While OfS may be primarily concerned with protecting students’ interests, the trustees of those providers that are constituted as charities have a statutory duty to act in the best interests of the charity and to pursue their charity’s purposes. This duty will, of course, encompass the needs of present students but will also encompass past students, future students, research activities and much more besides. While no one would disagree with the general sentiment that “throughout the process [of institutional closure] the interests of students, and their options for continued study, must be kept in mind” – and the briefing does offer lots of useful ideas for how to ensure sufficient attention is given to the many types of students who will be affected – the elevation of student interest to a pre-eminent concern is not what the law generally, nor what OfS’ statutory duties currently require.

    University executive teams and boards may wish, therefore, to read OfS guidance in light of these realities, and be aware of the limits of what is realistically possible or likely to occur in giving consideration to the sort of scenario planning and preparation OfS advocates in the briefing.

    A herd of elephants

    OfS’ recommendations about the need to have suitably durable and maintained student records and to have entered into binding contracts with validating and subcontracting partners that contain clauses that deal realistically with the end of the relationship and contain adequate data sharing agreements clauses are all well made.

    But once things actually start to get tricky in real life there is a level of reliance on transparency, for example, in sharing information both with OfS but also with other organisations such as funding or regulatory bodies, or government departments, or even other institutions who might be prevailed upon to welcome displaced students. In the absence of a systematised notification process, any ambiguity about whose role it is to liaise with the various potentially affected stakeholders or the timing of any such communication has high potential to create problems. There are obvious issues raised by disclosing or revealing another institution’s “at risk” status, some of which may have the effect of accelerating the very process everyone is seeking to avoid.

    If OfS considers a registered institution is at risk of closure, it can impose a student protection direction under condition C4 of the conditions of registration. The briefing provides a helpful reminder of what a student protection direction might include and encourages regular thought about these issues to avoid the need for a provider to “improvise at speed and under stress if an institutional closure becomes possible.” That sounds very laudable at first glance, but it confuses the regulatory obligation with the real-world outcome. A provider at risk of closure may well come under pressure from OfS to produce a market exit plan and to map courses at a time when university teams have the least bandwidth to undertake such tasks. In any case, it is highly doubtful whether an insolvency practitioner would be bound by such planning in the event that a provider goes into an insolvency process.

    In scenario planning, OfS moots the idea that higher education providers might consider setting up “agreements in principle” with other institutions “to take on relevant students if one or the other closes” or even “possibly multiple agreements, for different courses and subjects.” It is surprising not to see competition law mentioned in this context. The higher education sector contains a broad range of institution types, with varied teaching and delivery methods, attracting students with different needs and expectations as regards learning and study.

    This means that in practice the providers that pair up to take on one another’s students in the event of institutional failure will need to be similar types of provider – precisely those that are in competition for students in the first place. As Kate Newman has argued in an article on the impact of competition law on higher education collaboration, it would be helpful if OfS and the Competition and Markets Authority could jointly consider these kinds of circumstances for the sector as a whole rather than providers having to navigate this complex legal territory on an individual basis.

    We’re also concerned that any such “agreement in principle” will not be legally binding and will have been reached at a single point in time, when conditions may be quite different to the time when the institutions seek to rely on them. There is a very real risk that unless these agreements are refreshed annually (a time consuming and potentially collusive activity) they will turn out to be like the original student protection plans in being not terribly helpful.

    A sector like no other

    In issuing its briefing OfS argues that “this sort of risk and contingency planning is normal in other regulated sectors,” citing the examples of customer supply contingency plans for energy suppliers and the need for banks to have recovery and resolution plans. However, both of these sectors have highly developed insolvency regimes. Drafting recovery and resolution plans is much easier to achieve when there is a viable insolvency process in place. Both the energy and banking sectors have special administration processes in place and there has been much recent press coverage on the water sector special administration process, in light of Thames Water’s difficulties.

    OfS encourages institutions to undertake extensive course mapping. However, given the scale of the financial pressures facing the sector, it’s doubtful how valuable such course mapping is likely to be where potential recipient institutions are perhaps equally likely to be at risk of closure. To be fair to OfS, the briefing stresses that mapping is particularly relevant for those institutions that offer specialist provision.

    And here, of course, lies the essential problem. As OfS states: “We have drawn on our experience of managing two relevant cases at small and specialist higher education providers during the past year, and of instances where there was a serious risk of a closure which did not materialise.” The counterfactual – closure of a large and generalist provider which does materialise – remains the biggest elephant in the room. While OfS’ openness in sharing its insights is to be welcomed, it does nothing to diminish the need for urgent structural change.

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