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The Office for Students (OfS) will refocus its efforts to prioritize the financial stability of the higher education sector and improve outcomes for students,

the government announced.

Earlier this year, the OfS reported increased financial challenges in the sector, with many institutions needing significant changes to their funding models to avoid a material risk of closure.

Following the release of an independent report titled "Fit for the Future: Higher Education Regulation Towards 2035," the OfS will now closely monitor the financial sustainability of all higher education providers.

The government has appointed Sir David Behan as the new interim chair of the OfS. He will ensure the regulator concentrates on these key priorities following his review of the organization.

The Secretary of State for Education also announced the halting of the implementation of the Higher Education (Freedom of Speech) Act 2023. The government remains committed to freedom of speech, expecting universities to protect it, and will consider long-term options for the Act, including repeal.

Concerns were raised that the legislation was disproportionate, burdensome, and harmful to students' welfare, failing to address hate speech on campuses. The new rules could have led to costly legal actions impacting teaching and learning. Jewish student groups expressed concerns that sanctions could compromise the safety and well-being of minority groups.

Education Secretary Bridget Phillipson stated:

"For too long, universities have been a political battlefield and treated with contempt, rather than as a public good, distracting people from the core issues they face. The steps announced today will sharpen the focus of the Office for Students, with greater emphasis on ensuring the financial stability of the sector.

We are absolutely committed to freedom of speech and academic freedom, but the Free Speech Act introduced last year is not fit for purpose and risked imposing serious burdens on our world-class universities.

This legislation could expose students to harm and appalling hate speech on campuses. That is why I have quickly ordered this legislation to be stopped so that we can take a view on next steps and protect everyone’s best interests, working closely with a refocused Office for Students."

Phil Rosenberg, President of the Board of Deputies of British Jews, welcomed the decision to halt the implementation of the Act, expressing concerns that it could enable antisemitic extremists to access university campuses.

The OfS also plans to introduce stronger protections for students facing harassment and sexual misconduct, including the use of NDAs in such cases by universities.

The "Fit for the Future" report identifies four key priorities for the OfS: monitoring financial sustainability, ensuring quality, protecting public money, and acting in the interests of students. The government accepts these core recommendations, recognizing the need for strong regulation to ensure a stable future for the UK's higher education sector.

Sir David Behan emphasized the importance of financial sustainability, quality, student interests, and value for money in his review of the OfS.

A spokesperson for Universities UK praised the thorough review and many of its recommendations, emphasizing the importance of an independent regulator and a focus on financial sustainability.

The higher education sector is encouraged to engage proactively with the OfS to help shape future regulation, fostering a more inclusive and resilient higher education sector that benefits all students.