Tougher standards will apply to 'alternative' UK higher education from next academic year

From academic year 2015/16, these providers will be required to submit more information about their provision to students, performance information and drop-out rates to the government. They will also be required to submit data on their students' background and achievements to the Higher Education Statistics Authority, regardless of size, universities minister Greg Clark announced.

A formal right of access to providers' premises and records as a condition of designation will also be introduced, as well as caps on student numbers and expansion at poorly-performing institutions, the government said. It is also consulting on new measures that will require legislation, including minimum English language standards for students and giving prospective students more information about providers and courses.

"In recent years, alternative providers have played a significant role to widen access to higher education. Some have added to our excellent reputation and enjoy extremely high student satisfaction. However, we are not prepared to let the actions of a small minority tarnish the reputation of all private providers," said Clark.

"[These] measures are another important step to ensure that the world class reputation of the UK's higher education system is preserved and strengthened. Our commitment to ensure quality and value for money for government, the taxpayer and the students is unwavering. We expect all providers to adhere to these measures or risk losing their status," he said.

In January, the Department for Business, Innovation and Skills (BIS) announced that it would introduce tougher quality standards for alternative providers which more closely reflected the requirements placed on universities which receive direct state funding. These include an annual 're-designation' requirement, referring to the mechanism through which BIS authorises courses to be eligible for student loans and grants; as well as a strengthened quality assurance process as part of the re-designation application.

The number of these alternative higher education providers, ranging from private companies to charitable institutions, has risen rapidly to around 140 institutions since higher education reforms were introduced in 2011. These providers do not receive direct state funding in the same way as universities, but do access public funding through student loans which are used to pay their fees. In a recent report on alternative providers, the House of Commons Public Accounts Committee (PAC) found that the number of students claiming support for courses offered by alternative providers rose from 7,000 to 53,000 between 2010/11 and 2013/14, while the Student Loans Company (SLC) paid out £1.27 billion in financial support to these students over the same period.

The government is now consulting on three further proposals, building on those already announced in January. These are the introduction of a minimum English language requirement, to ensure that students studying for qualifications at alternative providers have sufficient language skills to succeed at their course; an extension of the same 'Key Information Set' requirements governing information which must be provided to student by universities to alternative providers; and how best to use student number controls to monitor provider performance.

The changes will be overseen by BIS in conjunction with the SLC, Higher Education Funding Council for England (HEFCE) and the Quality Assurance Agency.

In a critical report published at the end of last month, the PAC said that BIS had allowed "rapid expansion" of alternative higher education provision without sufficient oversight, despite warnings from HEFCE and the University and College Union about the potential for abuse of the student loans system. In addition, it was slow to react when evidence of problems began to emerge in some institutions. The PAC found that £3.84m in loans and grants was given to ineligible EU students as a result of failings by BIS, and it was not clear how much of this money would ultimately be recovered.

Universities and higher education expert Nicola Hart of Pinsent Masons, the law firm behind Out-Law.com, said previously that although the government's announcements appeared "quite severe compared to when the system was introduced with minimal regulation and accountability", the changes were "in the interests of the UK higher education sector as a whole" - including the interests of high quality alternative providers.

"Higher education is one of the things the UK is internationally renowned for and the government should be paying attention to how its regulatory framework impacts on reputation and quality issues," she said in early February.