Universities face ‘fair treatment’ requirement beyond consumer law under new OfS proposal

The OfS is introducing a new condition of registration (C5) (80 pages/798 KB) that will replace existing initial condition C1 on consumer protection and ongoing condition C3 student protection plans for new providers.

This new condition will require higher education institutions to provide students with clear, accessible information about any changes to their courses, as well as fair processes for refunds, compensation and complaints. The goal is to ensure that students receive high-quality education where they are treated fairly from the moment they receive an offer at an institution, during their studies and following completion of their studies where there is a relevant ongoing relationship with the institution – for example, an unresolved complaint.

Previously, providers had to take “due regard” to consumer law. However, under the new proposal providers will have a greater compliance obligation compared to that of consumer law. This shift is in response to feedback from students who have expressed a desire for greater transparency and honesty from their institutions.

Rhiannon Woodhouse, higher education and consumer law specialist at Pinsent Masons, said: “This could be seen as a positive, for instance, due to providing greater protection for students and a clearer approach for new providers as it focuses on the sector and sets clear rules. On the other hand, it may be considered negative, providing additional layers of regulation to comply with as providers will have to go above and beyond what other sectors do to ensure ‘fairness’ for their customers.”

One of the significant changes in the new regulatory framework is the removal of the requirement for higher education providers to have a student protection plan. Previously, these plans were designed to ensure that students could continue their studies and receive compensation if their course was discontinued or significantly changes. Under this proposal new providers would need to publish a suite of student-facing documents on their website which would collectively form its student protection plan, including contracts for higher education and ancillary services and complaints, refunds and other policies. The OfS believes that the new condition of registration will provide a more robust and comprehensive approach to student protection, making the separate student protection plans redundant.

Rami Labib, higher education regulatory expert at Pinsent Masons, said: “The removal of the student protection plan requirement is welcomed, as this was not fit for purpose. Plans were often not updated and did not address the key risks for students, such as course closure as and when they happened.”

The OfS aims to address growing financial pressures across the higher education sector through the new regulatory framework. However, the proposals will not apply to currently regulated providers. This means that different groups of students will experience varying levels of protections depending on when their provider was registered. However, the OfS is planning to conduct a future consultation to align treatment of students.