The coming academic year (2025-26) is the first in which classroom-based foundation year (FY) fees will be capped at a level below the higher level fee cap.
For many who have experienced or supported foundation year tuition this is a retreat from a proven method for supporting people who have been failed by compulsory schooling in continuing their education. Critics would point to a few years of sustained growth, particularly in franchised provision, that is of more questionable quality and benefit.
Foundation years are an anomaly in that they sit neither at level three (alongside other pre-university qualifications like A levels or the Access to HE Diploma [AHED]) or level four (alongside higher national diplomas, and the first years of both undergraduate degrees and higher technical qualifications). As such, they will face the worst of both worlds: level 3 funding (for classroom-based provision) covered by level 4 repayment rules and level 4 regulatory interventions.
Why cut?
In a ministerial statement that, in a dazzling display of self-awareness, actually used the phrase “fix the foundations” twice, the Secretary of State set a fee limit of £5,760 (the maximum current cost of an AHED, though in practice fees are nearer £4,000) as a maximum for “classroom-based” (non-STEM) foundation years on 4 November 2024.
There’s a paragraph on the ostensible reasoning for this that is worth bearing in mind:
The government recognises the importance of foundation years for promoting access to higher education, but they can be delivered more efficiently in classroom-based subjects, at a lower cost to students.
This sounds more like an access-focused intervention rather than an attempt to cut provision, although it is rather divorced from the cost of provision. This is despite a 2023 report from IFF Research which noted that, based on the available data and on a series of interviews:
the cost of delivering FY and the first year of a UG degree in the same subject area was found to be broadly similar
Indeed, there were suggestions that FYs may actually work out more expensive, given the need for more contact time and the tendency towards smaller classes. We should leave aside for the moment the great difficulties we have in understanding the cost of higher education provision more generally, and note that the evidence base for this particular decision is weak. And there is, to be clear, a huge absence of meaningful data about FYs more generally – something DfE itself attempted (after a fashion) to remedy with an ad hoc data release in October of 2023.
Review of routes
If you were wondering where the impetus for this policy intervention originally came from, you have to look back to Philip Augar’s review of post-18 fees and funding back in 2019:
We recommend that student finance is no longer offered for foundation years, unless agreed with the OfS in exceptional cases.
In broad-brush terms, his argument was that foundation years did a similar job to some level 3 qualifications (specifically the Access to HE Diplomas) at greater cost: he characterised this as “enticing” underqualified students onto expensive four year degrees that may not be in their best interests.
It was one of many largely arbitrary (and mercifully forgotten) Augar recommendations on higher education funding, to the credit of the previous government it was very much more aligned to addressing the value offered to students. As Michelle Donelan said in 2022:
We also know that there are some people who need a second chance, an opportunity to get into higher education through a less conventional route. Often this route is through foundation years, but we think it is unfair that some of those who take advantage of this transformational opportunity have to pay over the odds. So we are reducing the fee limit for foundation years to make them more accessible and more affordable for those who need a second chance.
Quantity and quality
Okay. So, ignoring Augar, there’s never been an agenda to cancel or limit the availability of foundation years. The cuts are based (albeit on some quite shaky data) on reducing costs for students while maintaining affordability for providers.
There is, however, widely reckoned to be a quality issue with some FYs offered via franchise or partnership arrangement – something which DfE did not appear to have considered in collecting data or commissioning reports.
With the 2025 recruitment cycle mostly over, we now have the ability to assess how the sector has responded to these interventions via the Unistats dataset.
As I never tire of telling people, Unistats is not perfect but it is useful. The big headline story we’ve tracked in recent years is a reduction in the number of undergraduate courses on offer overall – down 6 per cent between 2023 and 2024, and down a further 3 per cent between 2024 and 2025.
Foundation supply
But underneath this we lost one in ten courses with compulsory foundation years (courses that must start with a foundation year) between 2023 and 2024, and a further five percent between 2024 and 2025. The latter year also saw nearly 6 per cent of optional foundation years (courses that can include a foundation year if required) disappear.
What about franchise provision? Using a unistats proxy (does the registered UKPRN match the display UKPRN, or is there an additional UKPRN for a different teaching location) it appears that the number of franchised compulsory foundation years grew from 90 in 2023 to 107 in 2024. This trend reversed between 2024 and 2025 (with numbers falling back below 80), but the number of optional franchised foundation years fell off a cliff after 2023: from 53 in 2023 to just 12 in 2024, and 13 in 2025.
At a (top level) subject area the dominance of social sciences and business foundation years has declined a little – engineering foundation years have always been popular and have broadly persisted over the three years in question (and are the most popular by far at Russell Group providers). Among franchised provision business and management still dominates, but the last three years has seen a rise in the number of creative and engineering foundation years offered (largely with specialised providers as franchisers).
Policy outcomes and policy intentions
So, it all depends on how you take the impetus of the government’s change in foundation year policy. If it was a measure to reduce overall the number of classroom (non-STEM) foundation years it has had some questionable success, likewise if you believe it was a policy designed to limit the spread of franchised foundation year degrees.
It is possible that it has driven savings within universities – allowing foundation years to be run more cheaply. This might explain things like the paradoxical rise in franchised foundation years in creative arts alongside a drop in non-franchised provision – smaller and less historically encumbered (and potentially lower quality) providers may be better at running these foundation years at a lower overall cost.
Here’s who is offering these courses – and what they are.
This defaults to FY provision in 2025 but is – with a bit of effort, a fascinating tool for looking over the complete three years of courses advertised to undergraduates.
As usual, we are hugely short of data – the fact that unistats (of all things) offers the best lens on what is happening suggests that there’s nobody in DfE with an eye on what is going on.
But rumours of the demise of the classroom based foundation year, or even the franchise model in providing this, are likely to be overstated. It remains to be seen, by whatever measure, whether the cut-price offer is as good.
