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Funding guidance for young people: sub-contracting controls

This document sets out the EFA compliance and control requirements and advice for institutions using third parties for EFA-funded provision.



The sub-contracting controls guide for 2016 to 2017 gives notice of 2 significant new restrictions. The first applies to maintained schools and academies that have whole programme sub-contracting arrangements (both local and at a distance) and the second applies to colleges sub-contracting provision wholly or substantially to a special school for provision for 19 to 25 HNS. Any institutions with sub-contracted provision are advised to ensure that they review the guidance and take the required actions.

A letter from Peter Lauener setting out the rationale, and underlining the importance of the change in respect of whole programme sub-contracting for academies and maintained schools is also available on this page.

Third party arrangements, often referred to as either sub-contracted or franchised provision, have created substantial financial and reputation issues for institutions in the past. Problems have been particularly significant where the sub-contracted service has taken place at a distance from the directly funded institution, in a different part of the country. Directly funded institutions include all institutions that are either directly funded by the EFA or are directly funded by local authorities using EFA funding that includes all maintained schools, academies, free schools, sixth-form and FE colleges and independent institutions.