I. What is a Relevant Sub-contractual Arrangement?
A relevant sub-contractual arrangement exists when a registered provider partners with another entity to deliver higher education [HE] courses, and: Students hold contracts with the registered provider, But the provider delivers fifty percent or less of the course delivery hours. Courses falling under this definition are "relevant sub-contractual courses" and if there are a hundred plus full-time equivalent [FTE] students across them, new OfS regulatory conditions will apply.
II. Why It Matters: Recruitment, Risk & Regulation
The OfS is concerned about risks during recruitment and admissions under sub-contracting models. Interestingly, it proposes: Proactive compliance where there is a "material likelihood" of crossing the hundred plus full-time equivalent threshold, even before students are enrolled. Powers to intervene if arrangements pose risks to students or taxpayers. These rules would apply from a set point in the planning cycle, not just after courses begin. Existing qualifying arrangements will not be grandfathered in, they will fall under the new condition from day one of its implementation [expected 2026].
Exclusions, Expectations & Next Steps
Some arrangements are excluded, including those with: State-funded schools, further education/sixth form colleges, National Health Service providers, local authorities, or UK degree-awarding bodies; Courses delivered entirely outside the UK, or online courses for students living overseas. Still, other regulatory and legal duties [for example: quality, governance, consumer law] continue to apply. With the OfS expecting providers to act immediately, including setting up oversight mechanisms and data systems within four weeks of the condition coming into force. Early readiness will be critical.
OfS’s proposed compliance thresholds
I. What is a Relevant Sub-contractual Arrangement?
A relevant sub-contractual arrangement exists when a registered provider partners with another entity to deliver higher education [HE] courses, and: Students hold contracts with the registered provider, But the provider delivers fifty percent or less of the course delivery hours. Courses falling under this definition are "relevant sub-contractual courses" and if there are a hundred plus full-time equivalent [FTE] students across them, new OfS regulatory conditions will apply.
II. Why It Matters: Recruitment, Risk & Regulation
The OfS is concerned about risks during recruitment and admissions under sub-contracting models. Interestingly, it proposes: Proactive compliance where there is a "material likelihood" of crossing the hundred plus full-time equivalent threshold, even before students are enrolled. Powers to intervene if arrangements pose risks to students or taxpayers. These rules would apply from a set point in the planning cycle, not just after courses begin. Existing qualifying arrangements will not be grandfathered in, they will fall under the new condition from day one of its implementation [expected 2026].
Exclusions, Expectations & Next Steps
Some arrangements are excluded, including those with: State-funded schools, further education/sixth form colleges, National Health Service providers, local authorities, or UK degree-awarding bodies; Courses delivered entirely outside the UK, or online courses for students living overseas. Still, other regulatory and legal duties [for example: quality, governance, consumer law] continue to apply. With the OfS expecting providers to act immediately, including setting up oversight mechanisms and data systems within four weeks of the condition coming into force. Early readiness will be critical.
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