Protecting students when providers are at risk of closing
Provider closure: Our role and regulatory expectations
Our powers do not enable us to intervene to prevent a provider from closing. Our focus is to work with providers to try to avoid disorderly closures and reduce the negative impact on students.
Through our conversations with universities and colleges, and the data we collect from them, we monitor the sector to identify where there may be financial risks that, without mitigation, could lead to closure.
When we receive information that a provider is at risk of closure we engage with its leaders to remain informed about the situation. We set out our expectations about student protection and may involve other stakeholders as needed.
Working with stakeholders
We have found that early intervention and working with stakeholders in a multi-agency group can help to facilitate a provider’s management of potential or actual closure and possibly avoid a disorderly closure.
We only involve other stakeholders when it is appropriate to do so. This is done following discussions with the provider at risk of closure and is based on our assessment of risk to students.
Stakeholders we work with could include:
- Relevant government departments, including UK Visas and Immigration for advice on how best to protect international students in relation to visa rules.
- The Office of the Independent Adjudicator for Higher Education, for advice on student communications, drawn from experience of handling complaints and engaging with providers that have avoided closure, and on refunds and compensation packages in the event of closure.
- The Student Loans Company, for advice on student finance implications when considering the arrangements that might need to be made so that students do not experience detriment in the event of closure.
- UK Research and Innovation, for advice on any reporting obligations providers may have to them. They may also be able to advise on student protection issues and options for postgraduate students to continue their research.
- Any providers that subcontract or validate the institution’s higher education provision or might provide alternative study options for affected students.
Student protection directions
If we consider a provider to be at risk of closure, we can impose a student protection direction. Please note, these are different to student protection plans, which providers need to complete when they register with us.
Student protection directions fall under condition C4, which allows us to require a provider to make and implement plans to protect its students if that becomes necessary.
We are able to use this power where there is a material risk that a provider will be unable to continue through the next 12 months.
Each student protection direction takes into account a provider’s circumstances. This includes how much planning and preparation it has already done.
Student protection directions could include requirements to:
- Produce a market exit plan, setting out measures to protect students and how they will be put into practice.
- Provide us with additional information, such as confirmation of current student numbers and course details.
- Map courses against those of other higher education providers to identify potential options for students to continue their studies.
- Ensure that arrangements are in place that enable students to access evidence of their academic achievement.
- Provide students with appropriate support to understand their options and make informed choices about their next steps.
- Offer, and enable students to apply for, refunds and compensation.
- Ensure robust arrangements to handle and respond to complaints from students.
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