As part of the subcontracting reforms, the ESFA has developed an externally assured subcontracting standard which will replace the existing subcontracting audit process from 2022 to 2023. The subcontracting standard document sets out the requirements for all providers who subcontract £100,000 or more of their delivery, across all ESFA funding streams.
This article highlights that a new rule about providers needing to gain permission before charging subcontracting management fees above 20% was published in the document and then subsequently the ESFA claimed this was an error and would be corrected.