After regulation 7, insert—
DESIGNATION OF COURSES TAUGHT OR DELIVERED BY FRANCHISED PROVIDERS
Interpretation of Part 2A
(7A) In this Part—
“ calculation reference period ” means, in respect of a course, the academic year beginning 36 months before the first day of the implementation year;
“ designation period ” means, in respect of a course, the academic year beginning 12 months before the first day of the implementation year;
“ exempt franchised provider ” means an unregistered franchised provider which is—
a school, as defined by section 4 of the Education Act 1996 ;
an academy under section 1(10) of the Academies Act 2010 ;
an academy trust;
a federation or federated school, as defined by section 24 of the Education Act 2002 ;
an institution within the further education sector, as defined by section 91(3) of the Further and Higher Education Act 1992 ;
a local authority;
a mayoral combined authority, as defined by section 107A(8) of the Local Democracy, Economic Development and Construction Act 2009 ;
an integrated care board established under section 14Z25 of the National Health Service Act 2006 ;
an NHS trust established under section 25 of that Act;
an NHS foundation trust within the meaning of section 30 of that Act ;
a police and crime commissioner established under section 1 of the Police Reform and Social Responsibility Act 2011 ;
a government department; or
the armed forces;
“ implementation year ” means, in respect of a course, the academic year starting with 1st September and ending with 31st August, during which that course commences;
“ lead provider ” means the registered provider on whose behalf a franchised provider provides a course or part of a course.
Meaning of “franchised provider”, “franchised student”, “student population”, “unregistered franchised provider”, “below-threshold franchised provider” and “qualifying franchised provider”
(7B)
(1) In these Regulations, a provider is a “franchised provider” in respect of a course where—
(a) it delivers or teaches the course, or part of the course, to students who are registered at a registered provider in England, and
(b) it does so on behalf of that registered provider.
(2) A student is a “franchised student” where—
(a) they are registered to study a course with a registered provider in England, and
(b) more than 50% of the modules, credits, credit points or other unit of their course is, or may be, taught by—
(i) a franchised provider, including where the franchised provider contracts with other providers to teach or deliver the course on its behalf, or
(ii) multiple franchised providers, where the total percentage of the course which is taught or delivered by, or on behalf of, the franchised providers is more than 50%.
(3) For the purposes of paragraph (2)(b), the percentage of a course that is taught or delivered by a provider is calculated as follows—
where—
A is the total number of modules, credits, credit points or other unit of that course which may be taught or delivered by franchised providers to that student, and
B is the number of modules, credits, credit points or other unit which that student would be likely to obtain within the period ordinarily required to complete that course.
(4) For the purposes of this regulation, a provider is deemed to teach or deliver a course, or percentage of a course, where that provider carries out teaching or delivery itself or sub-contracts that teaching or delivery to another provider.
(5) In respect of a franchised provider, its “ student population ” means the total number of franchised students that the franchised provider teaches or delivers a course (or part of a course) to, as published by the OfS from time to time .
(6) A franchised provider’s student population includes students—
(a) who are studying—
(i) full-time courses;
(ii) part-time courses;
(iii) courses which are not eligible for financial support by way of grant or loan made by the Secretary of State;
(iv) publicly funded courses;
(v) courses delivered online;
(vi) for a level 4 or higher qualification;
(b) regardless of whether they fall within Schedule 1 of the Education (Fees and Awards) (England) Regulations 2007 .
(7) A franchised provider’s student population does not include students who are studying—
(a) a course as part of an apprenticeship;
(b) for modules or credits only.
(8) Where a franchised provider is a group undertaking in respect of another franchised provider, those franchised providers will be treated as one provider for the purposes of calculating the student population.
(9) A provider is an “unregistered franchised provider” in respect of a course, where it is—
(a) a franchised provider, and
(b) an unregistered provider.
(10) A provider is not an unregistered franchised provider in respect of a course if it is—
(a) a constituent college, where the university or institution of which the college is a constituent is itself a registered provider, or
(b) jointly owned by two or more institutions, where—
(i) those two institutions are themselves registered providers, and
(ii) in connection with that course a student may be eligible for a healthcare bursary.
(11) An unregistered franchised provider is a “below-threshold franchised provider” where—
(a) it is not an exempt franchised provider, and
(b) it has a student population of less than 300, determined in accordance with regulation 7D.
(12) The Secretary of State may vary the threshold specified at paragraph (11)(b), and must publish the updated threshold figure at gov.uk.
(13) A franchised provider is a “qualifying franchised provider” if it is—
(a) an exempt franchised provider,
(b) a below-threshold franchised provider, or
(c) a registered provider.
Restriction of designation of courses taught or delivered by franchised providers
(7C)
(1) This regulation applies to courses beginning on or after 1st September 2028.
(2) A course which is taught or delivered by a franchised provider, on behalf of a lead provider in England, will not be a designated course for the purposes of—
(a) regulation 5,
(b) regulation 139, or
(c) regulation 161,
unless that franchised provider is a qualifying franchised provider.
Determination of student population
(7D)
(1) In each designation period, the Secretary of State must determine the student population of any unregistered franchised provider which is not an exempt franchised provider.
(2) The unregistered franchised provider’s student population will be determined by reference to the student population data published by the OfS for the calculation reference period.
(3) Subject to paragraph (6), where the Secretary of State is unable to calculate an unregistered franchised provider’s student population for the calculation reference period, the unregistered franchised provider’s student population will be determined to be less than 300.
(4) Paragraph (5) applies where an unregistered franchised provider—
(a) has a student population of less than 300 for the calculation reference period, including where it does not have student population data for the calculation reference period, and
(b) intends to have a student population of 300 or more for the implementation year.
(5) That unregistered franchised provider must, as soon as reasonably practicable, notify the Secretary of State of—
(a) its intended student population for the implementation year, and
(b) whether it intends to become a registered provider for that implementation year.
(6) Following a notification under paragraph (5), the unregistered franchised provider’s student population will be determined to be at least 300.
Notice of status
(7E)
(1) Following a determination under regulation 7D, the Secretary of State must issue a notice (a “notice of status”) to the unregistered franchised provider.
(2) The notice of status must contain—
(a) confirmation that the franchised provider is not a registered provider or exempt franchised provider,
(b) the Secretary of State’s determination of the unregistered franchised provider’s student population,
(c) confirmation of whether the unregistered franchised provider is a below-threshold franchised provider, and
(d) the Secretary of State’s determination regarding whether any courses which are delivered or taught by the unregistered franchised provider during the implementation year will be designated for the purposes of section 22 of the 1998 Act.
Appeals against notices of status
(7F)
(1) This regulation applies where the Secretary of State has issued a notice of status under regulation 7E.
(2) The franchised provider may appeal this decision on the ground that—
(a) it reasonably believes that it is, or will be, an exempt franchised provider during the implementation year, or
(b) it reasonably believes that it will have a student population of less than 300 during the implementation year.
(3) An appeal under this regulation must be made to the Secretary of State in writing before the end of the period of one month beginning with the day on which the notice of status is issued.
Correction year
(7G)
(1) Paragraphs (2) and (3) apply where—
(a) the Secretary of State issued a notice of status which states that—
(i) the unregistered franchised provider was a below-threshold franchised provider,
(ii) a course which is taught or delivered by that unregistered franchised provider would be designated for student finance during the implementation year, and
(b) that unregistered franchised provider’s student population was 300 or more at any time between the beginning of the calculation reference period and the end of the implementation year.
(2) The Secretary of State may revoke the designation of any course which is taught or delivered by that unregistered franchised provider on behalf of any lead provider.
(3) That revocation will apply to all courses which commence at any time during the academic year immediately following the Secretary of State becoming aware of the provider’s breach of the student population threshold under regulation 7B(11)(b) (the “correction year”).
(4) The Secretary of State may disapply a revocation made under paragraph (2) where, having regard to all the circumstances, the Secretary of State considers it appropriate to do so.
(5) Before revoking the designation of any course under paragraph (2), the Secretary of State must issue a notice to the franchised provider (a “notice of a correction year”), which includes—
(a) confirmation that the Secretary of State intends to revoke the designation of the course, and
(b) the Secretary of State’s determination as to which academic year is to be the correction year.
Appeals against correction years
(7H)
(1) A franchised provider may appeal the application of a correction year, where, on the start date of any designated course during that implementation year, the franchised provider reasonably believed that it would have a student population of less than 300 for the implementation year.
(2) An appeal under this regulation must be made to the Secretary of State in writing before the end of the period of one month beginning with the day on which the notice of a correction year is issued.