Modular provision and the lifelong learning entitlement

The introduction of the LLE as the primary source of student finance for higher education students will have some implications for how the OfS regulates.

The provision of full courses will remain the same as under the previous system, and our regulatory approach will continue as usual. We anticipate that the LLE will lead to an expansion of modular provision, and we have therefore considered our regulatory approach to this.

How we will regulate providers offering modules

As a risk-based regulator, we monitor the sector and focus our activities where we see risks to the student experience and outcomes. This also aims to safeguard public funding.

Registered providers must meet the OfS’s established quality conditions, whether they are providing full courses or modules. This means that providers must ensure that:

• courses or modules have content that is up‑to‑date, provide an appropriate level of academic challenge, are coherent, effectively delivered, and support students to develop relevant skills (Condition B1)
• students have access to the resources and support needed to succeed (Condition B2)
• assessment is effective and enables students to demonstrate achievement (Condition B4).

All registered providers, including those delivering modules, will need to make sure that they meet these requirements. Compliance with these conditions is assessed when a provider registers with the OfS, after which quality is monitored through our risk‑based approach. As a result, providers that are already registered will not need to undergo a separate quality assessment specifically for their LLE‑funded modules at the point they start delivering.

The LLE will offer eligible students access to loan funding for modular study for the first time. We expect this may lead to an increase in modular learning pathways (whether LLE fundable or not) at OfS-registered providers in response to increased demand. Given that this will be a change in how higher education is delivered, we expect modular delivery to be a particular focus of our monitoring activity.

Our monitoring is likely to include:

• working with the designated data body, the DfE, and the Student Loans Company (SLC) to identify data that will tell us about students studying LLE-funded modules at OfS registered institutions
• actively monitoring a range of indicators, such as SLC data (including growth in student numbers, withdrawal rates), recruitment of students with no or very low entry qualifications, and any relevant incoming regulatory intelligence such as reportable events and notifications
• engaging with providers or investigating concerns, particularly through regulatory intelligence such as notifications, where appropriate.

Where risks increase, we may increase our monitoring in line with our current approach – for example, if modular provision increases more quickly than expected, or if student numbers rise sharply in a short period of time.

The one key difference to our regulation will be in how we measure positive outcomes from modules. Our current condition B3 uses indicators that can’t be applied to the study of modules and we will be developing new indicators. Read more about our plans for future outcomes measures for modules.

Registering with the OfS

Any institution looking to offer LLE-funded provision will need to be registered with the OfS.

There are two registration categories (Approved and Approved (fee cap)), and providers in either category can offer LLE-funded modules. It is for individual providers to determine which category is suitable for them.

We have no plans to introduce any new categories of registration at this time. 

To support providers in preparing for registration, the government will extend current Advanced Learner Loan (ALL) funding until the end of summer 2030. Providers offering Level 4, 5 or 6 courses under ALL funding will need to apply to register with the OfS if they want their students to be able to access student finance for designated courses once ALL funding ends in 2030. 

To access LLE funding for modular provision, providers must also have approval from DfE to offer modules in eligible subjects and qualifications. This is separate from and in addition to registration with the OfS.

Conditions of registration for further education colleges

We’re proposing to disapply some of the OfS conditions of registration that apply to providers of higher education that are also providers in the statutory further education sector. Our aim is to remove duplication of regulation for further education colleges in areas where the Department of Education is already managing risks.

This change would apply to colleges that are already on the OfS Register as well as to those applying to enter the regulated higher education sector in England.

The majority of the proposals apply only to further education colleges that do not hold degree awarding powers (DAPs) or are not applying for DAPs. Providers with DAPs are responsible for awarding qualifications that are of significant value to students, employers and the wider higher education sector. We think it is important to retain a fuller set of conditions of registration for these providers.

This consultation is now closed and we will publish a summary of responses and next steps in early summer.