Prior to 1992, most universities acquired their powers to award degrees through the grant of a Royal Charter. Since 1992, the Further and Higher Education Act 1992 has provided for such powers to be granted by order of the Privy Council. The Act describes the role of the Privy Council in specifying the competence of an institution to award degrees, diplomas, certificates or other academic awards. Institutions so designated also have powers to grant honorary degrees.
Universities, and a small number of specialist institutions founded by Royal Charter, may award degrees of any type, for study at undergraduate or postgraduate (taught and research) level. Other institutions may be granted the power to award degrees in respect of taught programmes of study, or programmes of research. Research degree awarding powers are normally granted in conjunction with university title, but some specialist institutions also have their own research degree awarding powers. An institution with taught degree awarding powers may use the title ‘university college’.
Institutions without their own degree awarding powers usually prepare their students for degrees awarded by a university or university college under a licensing or validation arrangement.
Further education colleges normally offer higher education programmes designed and approved directly by a degree awarding institution, under a sub-contracting or franchise arrangement. They may also offer programmes leading to foundation degrees or higher national awards, which are qualifications of a national awarding body.
Under the Further Education and Training Act 2007, the Privy Council may grant foundation degree awarding powers to further education colleges in England and 
Wales, on the advice of the Quality Assurance Agency.
See also chapter 5 of Getting to Grips with Academic Standards, Quality and the Student Experience.