Universities will face sanctions if not enough students go on to graduate-level jobs within 15 months, if too many drop out or fail to earn degrees, England’s higher education regulator has warned. The Office for Students published its new tests of “low quality” subjects that could see large fines or deregistration imposed on universities where fewer than 60% of graduates in a university’s subject area fail to find work, set up their own business or go on to further study after finishing their course, with allowances made for those with caring responsibilities or travelling. Sanctions could also be applied by the OfS against universities in England where more than one in five full-time undergraduates drop out, or where more than one in four of those who complete the course ultimately fail to gain a degree. The OfS said it would investigate subjects at colleges and universities that failed to meet any of the three thresholds, which come into force next week, and examine the reasons for the results. The regulator said that it “has the power to intervene and impose sanctions for a breach of its conditions of registration” in cases where it remained unhappy with an institution’s explanations. Susan Lapworth, the OfS’s chief regulator, said the new thresholds would not affect the majority of students but would be “a clear incentive for universities and colleges to take credible action to improve the outcomes of courses which may be a cause for concern”. “Too many students, often from disadvantaged backgrounds, are recruited on to courses with weak outcomes which do not improve their life chances. We can now intervene where outcomes for students are low, and where universities and colleges cannot credibly explain why,” Lapworth said. “We recognise that students choose higher education for a variety of reasons. Many are focused on improving their career prospects and it is right that we’re prepared to tackle courses with low numbers of students going into professional work.” But universities leaders argue that rates of graduate employment can be affected by economic forces beyond their control, while initial careers in subject areas such as creative arts were difficult to compare with subjects that have conventional career paths such as finance and accounting. A spokesperson for the Universities UK group said its members already used information about student outcomes and progression to tailor their courses, with the “vast majority” of graduates enjoying their student experience and meeting their personal goals. “However, the data is not perfect and can only ever capture aspects of student success. ‘Good’ outcomes need to be considered in the context of students’ aspirations and the circumstances of their studies. “This should include the wide range of benefits that students take from their university education, including meaningful and satisfying careers which have value far beyond income,” the UUK spokesperson said. Different thresholds will be applied for part-time or postgraduate courses or apprenticeships. Figures for 2020-21 published by the OfS showed that just over 3% of full-time undergraduates were studying at universities below the continuation measure, while 2.5% were on courses below the employment threshold. The figures suggest some universities will struggle to meet the thresholds: the University of Bedfordshire was well below the OfS benchmark of 80% of undergraduates not dropping out, although it met the degree completion and employment thresholds.