Termination of ESFA funding agreements

Guidance on the termination of ESFA funding agreements for providers, learners and employers.

Applies to England




This guidance is for providers, learners and employers affected when funding agreements, contracts and/or provider agreements for apprenticeships (all referred to hereafter as funding agreements) between the Education and Skills Funding Agency (ESFA) and providers are terminated.

This guidance relates only to apprenticeships and post-19 further education provision (including adult education budget (AEB), 16 to 18 traineeships and advanced learner loans) funded through ESFA. It does not apply to 16 to 19 funding or European Social Fund (ESF) provision. If a provider’s funding agreements include allocations for 16 to 19 or ESF funding and they are terminated, your ESF or territorial team account manager will provide guidance and support as appropriate.

Funding agreements can be terminated by either party for different reasons. For instance, providers may wish to stop delivering ESFA funded provision and request to terminate their agreements. In this instance, they should formally notify ESFA in writing, giving at least the notice period set out in their funding agreements.

Alternatively, circumstances may arise that require ESFA to terminate some, or all, of its agreements with a particular provider.

ESFA has established controls and processes in place to support learners, employers and providers affected when funding agreements are terminated. We aim to ensure that learners can continue with their apprenticeship or other training programme with as little disruption as possible, whilst ensuring appropriate use and protection of public funds.

Published 12 May 2021