PLANS ALREADY IN PLACE The Government recognises the Committee’s concern that risks to a provider’s financial position should be identified at an early stage, and that there should be appropriate arrangements in place to manage such risks in order to protect students and the public interest. While the Office for Students is responsible for monitoring the financial sustainability of registered providers and taking regulatory action where appropriate, we work closely with the Office for Students to support risk identification and management. As part of its role, the Office for Students undertakes ongoing risk assessment and engagement with providers, including where there are indicators of financial concern. We support the principle that the regulator should take a proactive and risk-based approach to identifying and addressing emerging risks and escalating these where appropriate. Of course, as stated previously, Government intervention is not the default response to providers facing financial difficulties: our approach is to allow orderly market exit where appropriate. Providers are responsible for managing their finances and ensuring their business models provide long-term sustainability. We will work with the Office for Students, providers and others, where necessary, where particular risks to students and taxpayers are identified. Nevertheless, the Office for Students, with the support of the Government, has already refocussed on the financial sustainability of the sector and has bolstered its approach to monitoring and engaging with providers where there are risks and concerns. We continue to work closely with the OfS to consider how the system can be further strengthened. The Office for Students has been considering potential levers for earlier intervention with higher education providers, which are deliverable within the existing regulatory framework and designed to reduce financial risks in the sector. This earlier intervention activity will complement the work the Office for Students already leads with providers facing acute financial risk and will also broaden its targeted engagement with providers to focus on those facing more medium-term financial risk. Targeted engagement with this group of providers will consider financial sustainability as part of wider management and governance discussions