OfS consults on proposals to change how it regulates FE colleges in England

In its consultation published on 2 December 2025, the OfS proposes to disapply five of its initial conditions of registration and four general ongoing conditions of registration for FE colleges on the basis that these are areas where the DfE already has robust oversight in place.

Two of the changes (relating to the initial and ongoing condition on access and participation statements) would apply to all FE colleges. The other 7 proposed changes would apply only to FE colleges that do not hold, or are not applying for, degree awarding powers (DAPs).

The consultation closes on 10 February 2026.

Which conditions of registration are affected?

Condition A2 - access and participation statement

This is an initial and ongoing condition, so applies to FE colleges applying for OfS registration and all those who are registered. It requires a provider to publish an access and participation statement setting out its commitment to support access and participation in higher education by students from disadvantaged backgrounds and underrepresented groups and to update and re-publish the statement on an annual basis.

The OfS is proposing to disapply this condition in relation to all FE colleges who are registered or apply to be so. This is on the basis it considers it may duplicate the DfE requirement for FE colleges to submit and publish annual accountability statements that address how the college will meet the Local Needs Duty and to set objectives accordingly.

Condition D – financial viability and sustainability

This is an initial and ongoing condition which requires a provider to be financially viable and financially sustainable and have the necessary financial resources to provide and fully deliver the higher education courses it has advertised and has contracted to deliver. It must also have the necessary financial resources to continue to comply with all conditions of its registration.

Although FE colleges are not required to submit financial information to the OfS via the annual financial return in the same way as other registered providers – instead submitting financial information to the DfE, which the OfS can access – the OfS believes the regulation of financial viability and sustainability can be simplified further. This is due to the insolvency regime which provides a statutory framework for managing financial failure in colleges.

The proposal is therefore to disapply condition D, but only for FE colleges without DAPs. The OfS believes that the position is different for providers with DAPs as they award degrees directly and operate with greater autonomy, which means it is important for the OfS to maintain greater oversight of their financial viability and sustainability, and retain the ability to intervene directly where appropriate.

If a registered FE college applies for DAPs where it does not currently have them, or is unregistered and applies for registration and to have DAPs, condition D will then apply.

Initial conditions E7 (governing documents and business plans), E8 (fraud and inappropriate use of public funds) and E9 (individuals)

Condition E7 requires the provider to have:

• a set of governing documents which will enable effective governance of the provider; and

• a business plan which meets relevant requirements, covers the provider’s planned activities over a five-year period and the ability to deliver the business plan in practice.

Condition E8 requires the provider to have:

• in place comprehensive arrangements in relation to the higher education it plans to provide that could reasonably be considered as being adequate and effective for the purposes of detecting, preventing and stopping any form of conduct that could potentially amount to a relevant fraud offence, or the inappropriate use of relevant public funds; and

• a satisfactory track record in relation to receiving and/or accessing public funds.

Condition E9 requires the provider to have:

• key individuals who have sufficient knowledge and expertise to facilitate the provider to comply with the ongoing conditions of registration and to deliver the provider’s business plan and fraud and public money arrangements; and

• relevant individuals who are fit and proper persons for the purpose of ensuring that the provider is suitable to access and receive public funds, that public trust and confidence in the higher education sector is maintained and that the provider is suitable to protect the interests of students.

The proposal is that these 3 ongoing conditions are disapplied for colleges applying for registration but only for those who are not seeking DAPs. This is on the basis that the OfS believes that the DfE already regulates these providers through a robust framework which includes statutory intervention powers (including being able to remove and/or appoint members to the governing body and give directions as to the exercise of its powers and performance of its duties), governance requirements under the Further and Higher Education Act 1992, and expectations set out in the managing public money framework. Given this level of oversight the OfS believes that it is proportionate to disapply the conditions as it will generally avoid duplication.

Ongoing conditions E1 (public interest governance) and E2 (management and governance)

Condition E1 states that the provider’s governing documents must uphold the public interest governance principles that are applicable to the provider.

Condition E2 is that the provider must have in place adequate and effective management and governance arrangements to:

• operate in accordance with its governing documents;

• deliver the public interest governance principles that are applicable to it;

• provide and fully deliver the higher education courses advertised; and

• continue to comply with all conditions of registration.

The proposal here is that both of these ongoing conditions will be disapplied for all registered FE colleges without DAPs, for the same reasons as those set out above in relation to conditions E7, E8 and E9.

Timings

As mentioned, consultation closes on 10 February 2026 and the OfS aims to publish its decisions about whether to adopt these proposals, with or without amendment, in early Summer 2026. It intends to implement the proposals at the same time as the decisions are published.

Where FE colleges are currently in the application process or apply to register with the OfS while the consultation is open, the OfS will engage with them on a case-by-case basis to discuss the assessment of their applications, including whether to defer the assessment of the conditions subject to consultation until the outcome of the consultation is known.