Guidance

Funding higher risk organisations and subcontractors policy

What the Department for Education defines as a ‘high risk’ provider, the decision-making process and the possible actions it can take.

• From: Department for Education
• Published: 14 September 2020
• Last updated: 10 February 2026
  Show all updates

  1. 10 February 2026

     Updated the 'Ofsted assessments and safeguarding' section of the 'Funding higher risk organisations and subcontractors policy'.

  2. 9 January 2025

     The policy has been updated to expand the criteria for identifying high risk providers, and to clarify when the policy applies and the actions the Department for Education can take.

  3. 20 June 2022

     We have amended the references to ESFA and the Department to reflect organisational changes following the recent arm's length body review of ESFA.

  4. 14 September 2020

     First published.

Applies to England

Documents

Funding higher risk organisations and subcontractors policy

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Details

The policy applies to all public and private sector providers accessing post-16 funding streams.

It does not apply to:

• schools and academies (unless they hold a funding agreement for post-16 apprenticeship training and education services)
• training providers that only deliver Skills Bootcamps
• budgets associated with functions transferred from the Secretary of State for Education to local government institutions (known as devolution)