News story

Action on providers – subcontracting compliance

Following our recent compliance work, we have written to non-compliant providers about their subcontracting arrangements 2016 to 2017.

Following our recent subcontracting compliance work, we have written to just under 300 colleges and training organisations where we were unable to find evidence that they had complied with all of the requirements that they needed to by the deadlines we gave in Update.

Our funding agreements and rules contain a number of subcontracting clauses that organisations we fund must comply with if they subcontract. The Skills Funding Letter 2016 to 2017 instructs that we take action against providers failing to provide clear and timely subcontracting information.

We have notified non-compliant providers that we are restricting their subcontracting arrangements for 2016 to 2017. This includes:

  • termination of existing subcontracts before 1 August 2016, ensuring that there is sufficient notice period to enable all existing learners to complete their programmes without interruption

  • that any new subcontracting arrangements are not entered into for delivery in 2016 to 2017

If the affected providers supply the information requested in the letter to their Central Delivery Service Adviser by 5:00pm on Friday 3 June, we will lift the subcontracting restriction.

If we do not receive the requested information by 5:00pm on Friday 3 June, we will maintain the subcontracting restriction for 2016 to 2017 and will publish a list of these providers on GOV.UK.

The list will remain valid for the entirety of the 2016 to 2017 funding year and will be available to the sector, so that prospective subcontractors know the lead providers who are unable to issue 2016 to 2017 subcontracts for delivery funded by us.

Providers with enquiries should liaise with their Central Delivery Service Adviser.