English Universities risk breaching competition laws over offer withdrawals

Ministers urge universities to remove oversubscription loopholes such as offer withdrawals following an increase in higher A-level grades.

After the rise in the number of students meeting their entrance criteria, universities have introduced over-subscription clauses that allow them to withdraw their offers. The University of Cambridge is one of the universities that introduced the clause in case of “circumstances outside the reasonable control of the university and/or your college”.

As a response to increased applications and a surge in students meeting their entry requirements, the University of Exeter had offered its medical students £10,000 to defer their place.

The Office for Students (OfS), the higher education regulator for England, and the Competition and Markets Authority prompted universities to remove oversubscription clauses in order to avoid facing possible punishments.

A potential breach in consumer law may prompt the OfS to investigate

–Office for Students

The OfS expressed its concerns regarding the issue, saying: “Our view is that providers should not use such clauses, as doing so would probably contravene consumer law.” 

“A potential breach in consumer law may prompt the OfS to investigate and, if appropriate, carry out enforcement action to address any failures to comply”, the OfS added.

The Competition and Market Authority (CMA) emphasized that universities would be obliged to provide a place if the student met the entry requirements as the offer and acceptance of a university place is a legally binding contract.

The Minister of State for Universities, Michelle Donelan, spoke to vice-chancellors regarding the importance of ensuring the fairness of university offers.

In a letter to all vice-chancellors, Donelan stated: “It is therefore disappointing that, during previous admissions cycles, there have been instances of providers introducing oversubscription conditions that permitted them to withdraw places where the number of students meeting offer conditions exceeded the number of places.”

Universities have stated that they had to withdraw offers or offer incentives for students to defer their place as a result of the unexpected consequences of the pandemic.