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The report follows a call for information (CfI) launched in October 2013, aimed at gaining a better understanding of how recent changes to higher education funding and an increased emphasis on competition and choice were impacting the student experience.

The OFT's overall impression from the CfI is that the sector is working well for students. However, it has also identified some concerns, including:

• students not being given some key information, such as their teaching staff's experience or long-term employment prospects, to enable them to choose the most appropriate course and institution 
• some policies and practices by universities, such as changes to elements of the course and/or fees, or not providing all the relevant information about their course, that could put students at a disadvantage and might, in some cases, breach consumer protection legislation 
• while the complaints process has improved, it could be quicker and more accessible
• the sector's regulatory regime is overly complex and does not reflect the increased role of student choice and the wider range of higher education institutions. In particular, there are concerns about the existence of a 'level playing field', the role of self-regulation, and the lack of arrangements should a university or course close.

On the basis of these findings, the OFT recommends that its successor body, the Competition and Markets Authority (CMA), undertakes further work to assess the extent to which the practices identified may affect students, clarifies the responsibilities of universities under consumer protection law and identifies the best way to address these issues.

It also advises that the CMA should work with, and through, stakeholders to inform the design of a regulatory regime which can better contribute to maximising the potential benefits of choice and competition.

Vivienne Dews, OFT Chief Executive, said:

'Higher education plays a crucial role in our economy and society and offers students, both from the UK and abroad, the opportunity to transform their lives. Our call for information has, however, identified a number of issues which must be addressed if our universities are to deliver the best possible educational experience and the maximum benefit for the country'.

Alex Chisholm, Chief Executive of the CMA, said:

'We welcome this report by the OFT, which clearly illustrates the important challenges currently facing the sector. It is one of the CMA's key strategic priorities to ensure that, where there is competition in a market, it is working well, and we will look at the most appropriate ways to take forward these recommendations when we start work on 1 April'.

NOTES

1. You can see all updates on the case on the project webpage.
2. This report follows a call for information (CfI) launched in October 2013, in response to significant changes to higher education funding and an increased emphasis on competition and student choice. The OFT has sought to gain a better understanding of whether the new system is working well for students. 
3. The call for information focuses on England and does not include Scotland, Wales or Northern Ireland. Higher education policy is a devolved matter, with choice and competition being a more integral part of English higher education policies than in other parts of the UK. However, we expect that a number of our findings may be of interest across the UK.
4. For the purposes of this press notice, the OFT uses 'universities' to refer to any provider of undergraduate higher education courses.
5. Calls for information are carried out under section 5 of the Enterprise Act 2002 which allows the OFT to obtain information and conduct research.
6. On 1 April 2014, the Competition and Markets Authority will become the UK's lead competition and consumer body. The CMA will bring together the existing competition and certain consumer protection functions of the Office of Fair Trading and the responsibilities of the Competition Commission, as amended by the Enterprise and Regulatory Reform Act 2013.