Moorhouse Consulting was commissioned by Universities UK (UUK) to assess the regulatory burden of registration with the Office for Students (OfS) for universities in England.
This research explored what the burden is, where it is most pronounced, and how this compares to regulatory burden in other sectors. A series of recommendations have been made on where regulation can be made more efficient and effective and where unnecessary burden can be reduced.
Report findings
Moorhouse engaged 62 UUK members in England in this research through a survey and interviews.
Moorhouse identified five key themes emerging from the research:
- Regulation in principle. University leaders agreed that regulation is necessary and highlighted positive elements of the regulatory approach. However, concerns were raised about some of the regulatory conditions where perceived cost outweighed benefit.
- Aligned and effective delivery of regulation. University leaders felt there was a lack of clarity on regulatory timelines, a lack of alignment between OfS and other higher education regulators and aspects of ineffective delivery of regulation.
- Resource and opportunity cost. Significant resource was required to understand and meet regulatory requirements as well as opportunity costs of the regulatory burden.
- Risk-based and nuanced regulation. There was a desire for a risk-based approach to regulation, which respondents felt was currently lacking. There were also concerns about a one-size-fits all approach to regulation which was perceived not to recognise the sector’s diversity.
- Sector-regulator relationship. There was a perceived absence of a constructive working relationship between OfS and the sector and a lack of meaningful consultation from OfS.
Based on the self-reported data provided, Moorhouse estimate that on average, a university has an FTE (full time equivalent) of 17.6 dedicated to regulatory compliance, although this does vary depending on size of university. Moorhouse estimate that this would be 128 FTE at Executive level, 638 FTE at Manager/Director Level and 1,289 at Officer/Coordinator level dedicated solely to regulatory compliance across all 116 UUK members in England.
Recommendations
Based on the findings and lessons learnt from comparisons with other sectors the report has five recommendations for a more efficient and effective regulatory approach:
- Initiate a relationship reset between the regulator and the sector which reviews the approach to communications between the OfS and the sector. This would provide universities with greater clarity on regulatory expectations and a mechanism for seeking clarifications.
- Establish a consistent approach to burden impact assessments which includes a process for assessing the burden of proposed changes. This would consider the potential benefits of proposals alongside any mitigation actions.
- Produce and communicate a clearer operational plan for regulatory delivery which sets out regulatory milestones and consultation timelines. This would provide universities with greater clarity of what is required of them and when, enabling them to proactively plan the resources to meet the requirements.
- Address the perceived lack of a risk-based approach to regulation. This requires further investigation to determine whether the risk-based regulatory requirements are not well understood by the sector or if the current approach does not adhere to the principles of being risk-based.
- Ensure the regulator has the capacity and expertise to regulate effectively. The OfS should take steps to reassure the sector, by demonstrating its capacity and expertise to regulate effectively. Where gaps in capacity and expertise are identified, steps should be taken to address these.
