Guidance

Oversight of independent training providers: operational guidance

Updated 8 May 2026

Applies to England

Who this guidance is for

This guidance applies to the full range of independent training providers (ITPs) including:

• independent learning providers (ILPs)
• higher education providers (HEPs)
• specialist post-16 institutions (SPIs)
• employer providers (EPs)

If guidance differs for any specific provider type, this is indicated.

This is essential reading for:

• governing boards
• directors
• trustees
• senior leaders

• practitioners who are responsible for:

  • governance
  • quality assurance
  • performance
  • financial oversight
  • the effective use of public funds

It is also relevant to:

• stakeholders such as employers, strategic authorities, local skills bodies, and sector representative organisations involved in shaping, commissioning or monitoring skills provision
• new organisations seeking to enter the provider sector, who must understand the requirements for financial sustainability, compliance and quality under the updated oversight and intervention framework

This guidance does not apply to provision commissioned or funded by devolved authorities. 

Overview

This guidance provides:

• an overview of the post-16 skills system, recent policy changes, and the essential role of independent training providers (ITPs) within the further education (FE) sector
• the routes, requirements, and expectations of organisations wanting to enter the ITP sector across different funding streams
• the operational standards and oversight arrangements that providers must meet when delivering education and training funded by the Department for Education (DfE)
• the processes and responsibilities relating to voluntary or enforced market exit, including protections for learners and employers
• links to services, resources, and contacts that can support compliance, delivery, and engagement with DfE
• details about how to raise a concern about DfE

Terminology

• ‘contract’ means all contracts, funding agreements and facilities, including associated contractual documents
• ‘we’, ‘Department for Education’ or ‘DfE’, should be understood to mean officials in DfE and ministers acting collectively
• independent learning providers (ILPs), higher education providers (HEP), specialist post-16 institutions (SPIs) and employer providers (EP) are collectively referred to as ‘independent training providers (ITPs)’ throughout this document, unless otherwise specified

Context

ITPs (providers) remain a central part of England’s post-16 skills system, delivering:

• apprenticeships
• technical education
• 16 to 19 study programmes
• special educational provision for students with special educational needs
• adult education

ITPs directly support labour market needs and national productivity.

The Post-16 education and skills white paper published in October 2025 places the skills system at the heart of government’s plans to deliver its missions, ensuring that high quality technical education is aligned to economic priorities.

ITPs support employers and help learners to:

• access work-based training
• develop new ideas
• gain qualifications to secure a skilled job, a good salary and to build a good life

The SEND reform proposal ‘putting children and young people first’ recognises special post-16 institutions as having a vital role within the SEND system, providing for those with the most complex needs.

Every child thriving and achieving, published in February 2026, sets out the government’s ambition for every child to do well at school and transition into appropriate post-16 education and training.

In 2025, the government announced it would establish regional improvement teams (RITs) to improve performance of the post‑16 system in England. These teams work with strategic authorities and local authorities to set priorities for improving outcomes and provider performance within their region, based on:

• the local skills improvement plan
• analysis of the area’s performance

As part of their role, RITs oversee independent training providers, colleges, local authorities and SPIs so they can consider how all types of provision, including provision for learners with high needs, contribute to an area’s post-16 education and skills requirements.

RITs assess how well providers respond to local skills priorities and work with them to strengthen:

• governance
• curriculum quality
• safeguarding
• employer engagement

Ofsted’s education inspection framework, in use from November 2025, sets out a consistent and rigorous approach to assessing the quality, leadership, safeguarding and effectiveness of FE and skills provision. It sets clear expectations for the quality and impact of delivery and applies across:

• 16 to 19 study programmes
• apprenticeships
• adult learning

This guidance explains:

• what these changes mean for provider
• how government will oversee the sector within the new FE inspection framework
• expectations of strong governance, financial resilience, high quality teaching and training, and effective protection of learners

Oversight approach

Strong management and leadership are essential for improving performance. We expect providers to take ownership of their continuous improvement by:

• collaborating with others and sharing best practice
• making full use of available guidance and sector intelligence

Our expectation is that providers proactively identify risks and take action to address them, including seeking our support and advice where needed. Providers should respond proactively to issues and improvement areas. These issues may be identified by:

• internal systems within the provider
• tools and information we provide
• DfE assurance or compliance reviews we undertake
• external regulators such as Ofsted

Where necessary, we will request further information or assurance to confirm that issues are being adequately addressed. If we are not assured, we will take appropriate contractual action.

Key changes since 2019

Since the operational guidance published in 2019,we have:

• explained the role of regional improvement teams (RITs)
• clarified arrangements for the oversight of SPIs
• set out our approach to managing provider market entry
• set out where we will act on quality intervention, including contractual action triggers following the introduction of Ofsted’s latest inspection framework

Review and updates

This guidance is regularly reviewed. Updates will be communicated to the sector. Providers should ensure they refer to the current published version.

Market entry 

In the context of sustained financial constraints and increasing pressure on system resources, new FE providers entering the sector must be clearly justified.

While new organisations can strengthen capacity where there is evidenced need, it is essential that any prospective provider demonstrates:

• robust financial health
• strong governance
• the ability to deliver compliant, high-quality provision from the outset

Market entry is focused on providers who can:

• meet gaps in local skills needs to help learners secure employment
• support delivery of new targeted sector products and provision focused on young people, including reducing those who are NEET or supporting progression to higher level learning
• improve outcomes for those who have special educational needs

All prospective providers must also demonstrate full compliance with statutory, regulatory and funding requirements.

Providers entering the market will be allocated a point of contact once delivery commences.

Once a provider starts delivery, expectations and arrangements for risk-based oversight will be clarified to help:

• ensure quality
• reduce non-compliance
• strengthen overall performance

Providers who seek to enter the 16 to 19 funded sector through acquisition, or any other route without explicit agreement from DfE in advance, will be deemed non-compliant market entry. DfE reserves its right to end such contracts.

Specialist post-16 provision

Local authorities may place young people with special educational needs (SEN) and disabilities (SEND) in specialist post-16 institutions if they have complex needs. These placements will generally follow a statutory education, health and care (EHC) assessment and be accompanied by a statutory EHC plan (made under the Children and Families Act 2014).

Placements can be funded solely by the local authority from their high needs budget. Specialist post-16 institutions (SPIs) can also receive some of their funding directly from DfE. New providers seeking to contract directly with DfE to deliver placements to high needs students, including those with an EHC plan, should refer to the high needs due diligence process for securing grant funding. The application process to become a directly-funded SPI is open annually and is triggered by local authorities’ completion of their High needs place change notification return in December each year.

Workplace learning

Apprenticeships

The apprenticeship provider and assessment register (APAR) is a record of organisations that are eligible to receive government funding to train apprentices and have been approved to deliver specific apprenticeship standards. Once an organisation is on the APAR, it will be eligible to receive government funding to train apprentices.

Being on the APAR does not mean your organisation is recommended by DfE, so it cannot use its branding.

By applying to join the APAR, an organisation is agreeing to:

• provide a quality apprenticeship as described by Skills England
• the conditions of acceptance for the APAR

Apply to the APAR as an apprenticeship training provider provides more details.

Apprenticeship units

Apprenticeship units are short, flexible training courses designed to help employers upskill their workforce in areas where there are critical skill shortages. Employed learners aged 19 and over can study a unit if their employer has identified that they need to increase skills quickly to respond to:

• emerging skills gaps within the employer and local area
• changing job roles
• support business growth and productivity

Apprenticeship units are built from relevant knowledge and skills in existing employer-led occupational standards to ensure relevant high-quality, targeted training.

Each unit is short, with the length of training ranging between 30 and 140 hours delivered over a period of 1 to 16 weeks. This enables employers to have maximum flexibility to select a unit that meets their specific skill need and to deliver the training in a way that fits around their business.

Employers in England with these skills gaps will be able to access high quality training providers to deliver apprenticeship units. You can access this information at find apprenticeship training courses.

Delivery of apprenticeship units is initially limited to existing apprenticeship providers who deliver the standards or sector subject areas (tier 2) in the areas from which the units are drawn. Providers that meet the apprenticeship unit eligibility criteria will be contacted directly by DfE to confirm their intention to deliver.

Providers will be: 

• already on APAR and actively delivering apprenticeships  
• not have any indicator rated as ‘at risk’ on the apprenticeship accountability framework 
• free from contractual funding restrictions

Adult skills fund

The Department for Work and Pensions (DWP) periodically runs procurement exercises for adult skills funding. There are currently no opportunities, but when there are, they will be advertised through the adult skills and learning dynamic purchasing system. 

As devolution continues, we expect to scale back contracting by central government. DfE is trialling increasing responsibility and capability at local authority level to commission locally, as local authorities have a better understanding of skills needs in their areas.

There may also be opportunities to secure funding in areas that are formally devolved by getting in touch with the relevant strategic authority.

Advanced Learner Loans

Advanced Learner Loans (ALL) provide non-means-tested financial support to help individuals aged 19 and over undertake designated technical and general qualifications at levels 3 to 6.

The process for requesting an advanced learner loan facility and loan bursary for the first time is outlined in annex 6 of the advanced learner loans funding and performance management rules.

Dance and Drama Awards (DaDA)

The Dance and Drama Awards (DaDA) scheme offers an income-assessed contribution to tuition fees and living costs for eligible students at private dance and drama institutions in England.

DfE allocates funding annually (via a contract) to institutions that are part of the scheme. Institutions assess which students are eligible to receive support and how much funding they are entitled to, based on their household income.

Eligible DaDA institutions must meet DfE requirements including:

• Trinity College London validation
• strong quality and financial indicators

The process for market exit is currently via a procurement process (approved supplier application process) which takes place every 3 years. The most recent round concluded in Summer 2025 for entrants for the academic years 2026 to 2029. 

Operational delivery

This section covers:

• the operational requirements providers must meet when delivering education and training funded by DfE
• how DfE oversees delivery through risk-based contract management, assurance activity and quality and financial monitoring

• providers’ responsibilities for:

  • data accuracy
  • compliance with funding rules
  • effective governance
  • management of subcontracting
  • organisational changes

These requirements are designed to:

• maintain high-quality provision
• safeguard learners and employers
• ensure public funds are used properly and deliver value for money

Contract management

Contract managers act on behalf of DfE to ensure the effective use of public funds and help providers deliver positive outcomes for learners.

Contracts and related funding documents set out providers’ obligations, available remedies and the actions DfE may take where these obligations are not met.

DfE contract managers may engage with providers periodically to review:

• contribution to national and local priorities
• performance
• compliance

They may seek assurance that audit, funding rules, awarding organisation and contract requirements are being met. But contract managers do not act as auditors.

For complex cases, multiple DfE teams may be involved. The contract manager will remain the main point of contact.

Risk-based contract management

DfE applies a risk-based approach to contract management to focus resources where financial health, performance or other indicators suggest a risk of provider failure, or where a large volume of priority provision may be affected.

Our assessments use defined triggers supported by data, alongside intelligence from day-to-day engagement with providers. Areas of concern may change over time, but initially include:

• financial concerns
• quality concerns
• assurance and compliance concerns 
• safeguarding

Formal action

Where DfE has concerns about a provider’s ability to meet the services set out in the contract, or where a breach of contract has occurred, we may take formal action. These actions can range from requests for additional information such as in-year financial data, management accounts or rolling cashflow forecasts through to termination of the contract.

Where it is necessary to improve performance, safeguard learners and employers, or protect public funds, DfE may apply sanctions, which can include:

• recovery of funds
• restrictions on new learner recruitment
• restrictions on contract value increases
• withholding of payments

Sanctions are normally lifted once the required conditions have been met and any breaches have been remedied.

Where non-compliance constitutes a minor breach, providers will usually be given the opportunity to put matters right. If the breach cannot be remedied, or the provider does not resolve it within a reasonable contractual timeframe, DfE may escalate its action.

Where a breach is considered material and is incapable of remedy, DfE will normally terminate the contract.

Quality provision

High quality skills provision is essential to ensuring that learners receive effective training which supports national efforts to upskill the workforce and meet economic and employer needs.

Ofsted is the single national inspectorate for FE and skills providers, ensuring a consistent and rigorous approach to evaluating training quality across the sector. Ofsted’s further education and skills inspection: toolkit, operating guides and information is a central hub for all documentation relating to FE and skills inspections. These documents superseded the former FE and skills inspection handbook in November 2025.

Inspections provide an independent assessment of:

• curriculum quality,
• teaching and training
• leadership and governance
• learner outcomes
• compliance with statutory and contractual obligations

Inspection outcomes inform decisions on whether contractual, intervention, or other regulatory action is required. As the sector adapts to the new Ofsted Inspection Framework, we remain committed to securing high quality‑ provision across England and will act decisively where there are serious concerns.

Where providers do not meet Ofsted’s expected standards, DfE may take contractual action as defined within contracts. These actions protect learners, uphold the integrity of the skills system, and ensure that public funds are directed only to provision that delivers the expected quality and outcomes. 

If a provider receives a ‘not met’ judgement for safeguarding, or an ‘urgent improvement’ judgement for any provider level or provision‑type evaluation area, DfE will consider the provision to be at risk and will assess whether contractual action is required.

If a provider has one or more ‘needs attention’ judgements, we will evaluate each case according to its individual circumstances and take a proportionate approach, particularly during the first 12 months of transition. We remain committed to supporting providers while maintaining our focus on quality and learner outcomes.

Following inspection, account managers may initiate a management conversation to better understand the reasons for the judgements and may request supporting evidence. You may be asked to develop and implement an improvement plan, or other proportionate contractual controls if appropriate. If a provider remains in this category over time without demonstrable improvement, more stringent intervention may be considered.

If we are considering contractual action, including sanctions or termination of the contract, we will always notify providers in advance. Providers will be given the opportunity to make representations, which will be taken into account before any decision is confirmed.

Ofsted’s  FE and skills inspection guidance and resources brings together the documents that underpin inspection activity. including:

• inspector training materials
• guidance on deferrals and pausing
• equality and diversity duties
• the inspector–provider code of conduct
• safeguarding policy
• practical information for providers preparing for inspection

Ofsted social care common inspection framework (SPIs only)

In addition to inspections of education and training, Ofsted also inspect residential provision under the social care common inspection framework. This is of relevance to specialist post-16 institutions with residential provision.  

Apprenticeship accountability framework

The apprenticeship accountability framework (AAF) is a quality assurance system that brings together key indicators to assess the performance of providers delivering apprenticeship training and safeguard the apprentice experience. It enables providers and DfE to:

• review delivery regularly
• identify risks and areas for improvement
• take proactive steps to strengthen the quality and success of their programmes

By setting clear, policy-led indicators and thresholds, the framework supports structured conversations between DfE and providers, helping ensure high quality provision and improved outcomes for apprentices.

Apprenticeship training providers are expected to routinely review and evaluate the quality and effectiveness of their apprenticeship programmes, using the framework’s indicators and thresholds to monitor performance and identify emerging issues. Providers must ensure apprentices receive consistently high-quality training, take timely action to improve their provision, and maintain strong alignment with the updated Ofsted expectations and judgement structures introduced in November 2025. They are also expected to protect the apprentice experience, improve achievement outcomes, and ensure their programmes continue to meet employer and workforce needs.

To help providers monitor their performance against the AAF, the online analytical tool, the FE provider dashboard consolidates key published data on learner outcomes into a single, accessible platform to support accountability. The dashboard sits inside the view my education data (VYED) platform, which hosts several analytical dashboards and reports. Users with a DfE Sign in account can log in and access the dashboard.

The dashboard helps providers:

• monitor their performance against the AAF
• quickly view trends
• compare learner and provision mix with other organisations
• understand their performance at both individual provider level and across group
• improve decision-making

Other provision: performance thresholds

For 16 to 19 Advanced Learner Loans (ALL) and adult skills fund (ASF) provision, DfE does not operate fixed performance thresholds equivalent to those used in the apprenticeship funding model. However, we retain broad contractual discretion to intervene where quality, delivery or compliance presents a risk to learners or public funds.

Contractual action may be taken where there are concerns, including from:

• Ofsted outcomes
• significantly low or declining achievement or retention
• high withdrawal patterns
• significant differences between planned and actual guided learning hours (GLH)
• evidence of under-delivery against contracted values

While the triggers differ from the apprenticeship accountability framework and funding agreement, the same principles apply. Intervention will be proportionate, risk-based and focused on addressing weaknesses in provision at the earliest opportunity.

Financial health (excludes HEP)

It is a contractual requirement that independent learning providers, employer providers and dance and drama colleges receiving awards are assessed as having satisfactory financial health based on DfE methodology. Failure to meet this requirement is a material breach of contract normally leading to market exit.

The Financial handbook for independent training providers supports ITPs by providing a framework for financial management and governance. It sets out a series of requirements and recommendations for ITPs dependent on the level of funding received directly from DfE.  It also acts as a source of advice and good practice.

The handbook covers areas such as:

• independent governance oversight
• the submission of annual accounts
• risk management
• assurance

Adherence to the handbook is a condition of funding as set out in contracts for service.

The handbook should be read alongside this operational guidance to give providers a full understanding of their responsibilities and how DfE will oversee and support them to deliver. Annex A of the handbook lists the type of ITPs in scope.

Compliance and assurance regime

Assurance checks that providers:

• comply with contractual and funding rule requirements
• submit accurate data, including through the Individualised Learner Record (ILR)
• claim funding correctly

DfE assurance work on post‑16 funding provides further information.

Our assurance regime uses a range of activities to check that providers comply with funding rules, contract conditions and financial requirements. These activities include:

• random and risk-based funding assurance reviews
• post‑16 monitoring
• new provider control assessments
• targeted or thematic funding reviews
• financial health checks, including in-year monitoring

Annual assurance programme

Each year we carry out a programme of assurance activity, including random and risk-based funding audits. We also monitor providers with outlier learner data or financial patterns and target higher-risk funding streams.

Data monitoring

We monitor data, including:

• ILR data
• the earnings adjustment statement (EAS)
• funding claims
• Student Loans Company (SLC) data

This enables us to:

• ensure funding is claimed correctly and used for its intended purpose
• support the operation of post‑16 funding systems
• inform assurance, audit, payment and reconciliation processes

Our aim is to ensure that every pound spent has maximum impact for learners.

We therefore:

• help providers comply with financial and funding requirements
• monitor and investigate potential misuse of funds
• recover misused funds
• take appropriate action

Data accuracy and reliability for funding claims

It is important that DfE and our stakeholders, such as Ofsted, have confidence in the data submitted to us. We expect providers to properly and accurately maintain ILR data and other learner documents and evidence, as required by contract and funding rules.

Changes to the ILR, including learner withdrawals and breaks-in-learning must be recorded promptly and accurately, so that provider ILR data accurately reflects the providers’ learner population at any point in time. Changes made to ILR data may have implications for funding reconciliation. Therefore providers must ensure that their data is correct before close of R14 ILR data return.

The funding rules data monitoring process above provides DfE with a view on the accuracy of data submitted.

We also expect providers to use the tools we publish to regularly review their own data for accuracy. The tools are the:

• funding information system (FIS)
• provider data self-assessment toolkit (PDSAT)
• post 16 monitoring reports dashboard in view your education data

To help providers, we have also:

• built the analyse FE data tool
• introduced a live validation service
• improved internal monitoring on collection services
• improved the ILR supporting guidance

If we believe data has been submitted late or inaccurately, we will request evidence or require corrections. This typically follows the R06 or R10 ILR returns.

Failure to respond is a breach and may result in action under the terms of the contract.

SPIs should refer to the SPI revenue allocation guide for 16 to 19 and high‑needs (Element 2) and note the in‑year R06 and R14 accuracy checks.

Subcontracting

Providers must understand the rules on subcontracting to ensure that, where a third party is used for any aspect of delivery or programme administration, they have read and understood the requirements for each funding stream they deliver. Non‑compliance may result in funding clawback and breach of contract.

Where a provider subcontracts, it is a contractual requirement that accurate and timely subcontractor declarations are submitted. Failure to do so may lead to sanctions and, in some cases, termination of contracts.

Providers of DfE-funded post-16 education and training who subcontract £100,000 or more of their delivery across all DfE funding streams must obtain an independent accountant’s report demonstrating compliance with DfE’s subcontracting standards. Providers must follow the subcontracting assurance arrangements in these standards for all post-16 providers. 

Complaints procedure

Providers funded by DfE must meet the requirements set out in their contracts.

This includes that providers must:

• have an accessible, published complaints procedure
• investigate complaints promptly and fairly, keeping clear records
• offer an internal escalation or appeal stage
• cooperate with DfE if a complaint is escalated
• report suspected fraud or financial irregularity to DfE immediately, in line with contractual obligations

Complaints about post-16 education and training provision funded by DfE contains details on how the public can complain about a training provider, and when complaints can be escalated to DfE.

Organisational changes

Providers must notify DfE of any changes to their organisation described in this section. If necessary, providers must also update their:

• website
• Charity Commission details
• Companies House entry

Any change in provider name, ownership, or control, requires prior written notice in accordance with the contract. 

Unless exceptions apply, as described in the relevant contract notice:

• change of ownership or control, requires at least 12 weeks’ notice
• change of name requires at least 1 months’ notice

We reserve our right to take action under the relevant contract notice following a change of ownership or control.

If a provider wants to request the transfer of its contract to a new legal entity or organisation, the provider should notify us as early as possible. This change will be treated as a new market entry, and the market entry guidance will apply in these circumstances

Investigations

If information received by DfE indicates suspected fraud, or that a provider has breached the funding rules, an investigation may be launched by DfE Counter Fraud and Investigations (CFI) team. The decision to launch an investigation is not taken lightly and a rigorous governance process is followed to ensure consistency.

A CFI investigation officer is assigned to an investigation. Their work may include (but not be limited to):

• following up with whistle-blowers or complainants
• gathering and analysing information
• interviewing provider staff
• reviewing feedback and information obtained from affected apprentices or learners
• reviewing feedback and information obtained from employers or other interested parties

If an investigation’s findings indicate evidence of fraud or irregularity, DfE will take steps to:

• recover funds
• take contractual action
• initiate other appropriate and proportionate enforcement actions or sanctions

Market exit

Contracts can be terminated by either party for different reasons. For instance, providers may wish to stop delivering DfE-funded provision and request to terminate their contracts.

Alternatively, circumstances may arise that require DfE to terminate some, or all, of its contract with a provider.

Your contract with DfE sets out the expectations and obligations that apply when a termination occurs.

Providers must comply with all contractual requirements specified in the relevant clauses of their contracts, including those relating to termination and exit arrangements at the point of expiry. Providers must support an orderly transition during market exit.

Providers are expected to:

• work cooperatively with DfE
• attend any required exit meetings
• provide the data and information requested
• take all reasonable steps to maintain continuity for learners and employers.

Providers should continue delivery during the notice period, where possible, and minimise disruption so learners and apprentices can transfer or complete their programmes.

DfE manages the termination process, providing support to employers and learners where needed. To ensure a controlled exit, DfE may communicate with key stakeholders, such as local authorities, Ofsted and SLC.

Termination of contracts contains guidance for providers, learners, and employers on the processes and expectations when contracts are terminated. This guidance should be used alongside provider contracts and the associated funding rules.

Help and support

Support and information

Providers should use DfE’s customer help portal for:

• funding and data queries
• issues regarding access to providers’ DfE contracts on manage your education and skills funding (MYESF)

The DfE contract manager will refer a provider back to the enquiries service if this is the most appropriate way to resolve a query.

The enquiry service can help with:

• data queries including support with ILR completion and error resolution, funding reports and submission of grant funding claims
• system access issues
• funding rules queries including bursary and high needs funding
• Learning Aims Reference Service
• freedom of information requests
• allocations, payments, remittance advice and reconciliation
• raising a complaint against DfE

For queries relating to the apprenticeship service or apprenticeship funding rules, providers should contact apprenticeship service support.

For any other issues, contact your DfE contract manager, either directly or through DfE’s customer help portal.

Providers are responsible for ensuring that any information submitted as part of a query is protected in compliance with the Data Protection Act.

Raising a complaint against DfE

The DfE provides a formal process for raising concerns about its services including those related to apprenticeship funding, compliance, or the oversight of independent training providers (ITPs).

As set out in the DfE’s complaints procedure, individuals making complaints are encouraged to provide clear detail about:

• the nature of the issue
• what outcome they are seeking
• any relevant correspondence or evidence that will support an effective review of the concern

Complaints submitted to DfE are allocated to an appropriate staff member for investigation. Complainants will be contacted if more information is needed. The procedure also outlines what to do if the complainant remains dissatisfied, including routes for further escalation.