Last month, the ESFA published its response to its subcontracting consultation for reforming the future arrangements for the subcontracting of ESFA funded post-16 education and training. It has now published the new ‘Funding guidance for young people 2020 to 2021: Subcontracting control regulations‘ guidance document. The new guidance sets out:
- A cap on the volume of subcontracting will be applied. They will take forward work this academic year to establish the right threshold for that cap and timescales for a staged reduction.
- For 2020/21 all providers will be required to publish a clear educational rationale for their subcontracting position on their website alongside their management fee structure and a list of subcontracting partners.
- The use of brokers to source a subcontracting partner is not permitted and will be treated as a breach of contract/funding agreement.
Other reforms outlined in their consultation response will be introduced over the next 2 to 3 years. The ESFA will publish further details about how those changes will be implemented later this year. Comment on the guidance can be read here.