Background

This guidance contains information foron providershow to get Education and localSkills authoritiesFunding onAgency (ESFA) funding for education and training for students aged 16 to 19 and for high-needshigh needs learners aged up to 25 with an education,education health and care (EHC) plan.

Organisations wishing to tender for funding to deliver education and training for adults shouldwere visitpreviously findrequired ato tenderapply to searchbe on the register of training organisations. This has now been decommissioned and all future opportunities to apply for currentfunding opportunities.will be communicated via GOV.UK.

Training organisations wishingwanting to offer apprenticeships are required to apply to join the apprenticeshipthe providerregister andof assessmentapprenticeship registertraining (APAR)providers.

BecomingHow ato newget providerESFA funding for funded post-16 education and training

There are a number of ways to enter this market,market dependent on the type of institution and the type of provision proposed.

It is a legislative presumption under section 6a of the Education and Inspections Act 20062011 thatall new schools should be opened as academies. This is known as the free school presumption route. You can apply to open different types of academy,academy including:

• academies
• free schools – applications to open a free school
• university technical colleges (UTCs)
• studio – applications to open a UTC schools

Some of the processes for establishing these types of institution are subject to fixed application windows.

EstablishingPeriodic atendering furtheropportunities

Gaps educationin (FE)provision

Under orEU sixth-formprocurement college

Aslaw, specifiedwe indo sectionnot 33Calways ofhave to tender for the Furtherdelivery of education and Highertraining Educationopportunities Actfor 1992,this anyage persongroup. However, when we do fund a new provider or bodynew canprovision requestthere thatis thean Secretaryexpectation ofprocesses Stateand establish,procedures byare order,fair and transparent.

Therefore, we use a newmix sixth-formof collegelocal corporation.negotiation and tendering appropriate to the circumstances in each case.

TheIn legalsupport powerof local authorities’ statutory duty to establishsecure andprovision incorporatein FEan corporationsarea, sitswe withwill theconsider Secretarytheir ofrequests Stateto throughfill thea Furthergap andin Higherprovision. EducationWhere Actevidenced 1992.

Furthergaps informationcannot aboutbe thefilled processthrough cannegotiation with good existing providers they may be foundput inout the Associationto oftender Colleges’through dissolution,open mergercompetition and establishmentadvertised ofthrough FEESFA’s corporationsUpdate guidance.and on Contracts Finder.

Expanding

Local authorities may submit a schoolcase orregarding academya bygap addingin provision at any point in the year. Cases should be made using a sixthstandard form

template:

A Market maintainedentry schoollocal canauthority gogaps throughapplication thetemplate statutory (ODT, prescribed46.5 alterationsKB)

We processwill ifapply itstandard wishescriteria to changeensure the agegap rangeis ofwell itsevidenced schoolprior to addsecuring additional places.

Replacement provision

We may seek to replace provision lost through a sixthmarket form.failure Foror moreforced information,exit referby togovernment theintervention guidanceor on makinga significantvoluntary changesexit (‘prescribedcreated alterations’)by toa maintainedprovider’s schools.own business decision.

TheSubject Secretaryto ofcircumstances Statewe retainsmay responsibilitynegotiate forwith decisionslocal toproviders makeabout significantreplacing changesprovision. toWhere academies.replacement Ifprovision cannot be secured through an academyappropriate wishesexisting toprovider(s) changeit itswill agenormally rangebe put out to addtender athrough sixthopen form,competition itand shouldadvertised submitthrough aESFA’s significant-changeUpdate applicationand toon contracts finder.

Where the Departmentneed to secure alternative provision for Educationexisting (DfEstudents is urgent, ESFA). Applicationsmay elect to addmake sixth-forma provisionsingle musttender evidenceaward ain clearline needwith its internal scheme of delegation.

New high-quality provision

We want to ensure opportunities for additionaldeveloping post-16new placesoutstanding inprovision theare localalways area.available.

ReferESFA towill thefund guidancenew on makingprovision significantwhere changesit adds value and is a high quality addition to anthe existing academy foroffer morefor information.

Deliveringyoung high-needspeople. To this end, we are open to discussions about new provision for studentsyoung people aged 16 to 25

19 with independent learning providers without an ESFA contract for delivery to 16 to 19s currently holding (or receive in the course of the year) an Ofsted rating of grade 1 outstanding for overall effectiveness.

The dueWe diligencewill process foronly specialsupport post-16new providersprovision isas thepart meansof bythis whichprocess. DfEThe assuresneed itselffor thatthis institutionsprovision commissionedmust also be evidenced by local authoritiesauthorities. forWe 10will ornot moreconsider high-needsapproaches placesseeking areto suitablemove tosub-contracted receiveprovision publicto fundinga fromdirectly DfEfunded forcontract.

Understanding the deliverydifference between types of high-needsinstitution

Types provision.of schools

Information is available about submitting:

Meeting

• applications gapsto inopen 16a free school
• applications to 19open educationa provision

UTC

LocalThere authorities’are dutiesalso includea securingnumber sufficientof suitableother ways organisations interested in delivering education and training provisioncan forenter allthe youngeducation peopleand training market.

Establishing a further education or sixth-form college

As specified in theirSection area33C whoof arethe overFurther compulsoryand schoolHigher ageEducation butAct under1992, 19any person or agedbody 19can torequest 25that withSecretary anof EHCState plan.establish, Toby fulfilorder, thisa duty,new theysixth-form needcollege corporation:

The legal power to haveestablish aand strategicincorporate overviewFE ofcorporations thesits provisionwith availablethe inSecretary theirof areaState andthrough tothe identifyFurther and resolveHigher gapsEducation inAct provision.1992.

StatutoryFurther guidanceinformation outliningabout athe localprocess authority’scan dutiesbe infound relationwithin to the participationdocument dissolution, merger and establishment of youngFE peoplecorporations, in education,the employmentsection ‘The merger consultation process for Type A and trainingType isB available.mergers’, available from the Association of Colleges.

Expanding a school or academy by adding a sixth-form

LocalA authoritiesmaintained mustschool attemptcan apply to meetits thelocal gapauthority inif provisionit throughwishes to extend the existingage providerrange infrastructure.of Onceits allschool localto solutionsadd havea beensixth-form. exhausted,For theymore mayinformation, submitsee athe caseguidance regardingabout changes to a gapschool inand provisionexpansions.

The Secretary of State retains responsibility for decisions to DfEmake usingsignificant thechanges gapsto inacademies. provisionIf oran studyacademy programmeswishes forto youngextend peopleits (16age range to 19)add –a localsixth-form authorityit applicationshould template (ODTsubmit a business case using the ESFA, 348enquiry KB)form.

WeIn willorder applyto standardmake criteriaa decision, the Secretary of State will need to considerknow:

• the whetherrationale wefor agreethe thereproposal, isincluding athe needdemand tofor securethe additional places. Whetherprovision fundingand isthe availableeducational willbenefits beto discussedstudents
• the asdegree aof distinctsupport partfrom ofthe local authority, the processlocal community and willparents
• evidence beof subjectthe school’s ability to affordability.

  Wedeal willwith mainlythe usechange, localspecifically negotiationin toterms secureof appropriateleadership places. Tenderingand forgovernance

• any additionalproposed placeschanges willto bethe rareway the school is governed and subjectsuggested changes to affordability.

  Inadmissions supportarrangements

• issues ofaround localthe authorities’existing statutoryschool dutysite, toincluding secureany provisionplans infor ancapital area,adaptations, weadditions, willrefurbishments considerand theirland requeststransfers toneeded
• cost filleffectiveness ain gapterms inof provision.capital Whereand evidencedrecurrent gapsfunding cannot(the beproposal filledshould throughinclude negotiationsome withindicative goodcostings existingand institutions,proposals theyfor mayhow becosts putmight outbe tomet)

Read tenderthe throughguide openon competitionmaking andsignificant advertisedchanges through findto aan tenderexisting academy. for more information.

TenderingOther forways replacement16 provisionto 18 education and training can be funded

WeThere mayare seekother toways replacepost-16 provision lostcan throughbe afunded.

High marketneeds failurestudents or16 forcedto exit25 years

The due diligence process for special post-16 institutions, is the means by governmentwhich interventionthe orDepartment afor voluntaryEducation exit(DfE) createdassures itself institutions commissioned by alocal provider’sauthorities ownfor business10 decision.or more high needs places are suitable to receive public funding from ESFA for the delivery of high needs provision.

T Levels

WeThe mayfinal negotiateT withLevels localare providersbeing aboutrolled replacingout provision.in Where2022 replacementand provision2023. cannotFrom be2023, securedall throughproviders anwith appropriatea existingfunding provider,agreement/contract itto willdeliver normallystudy beprogrammes putfor out16 to tender19 throughyear openolds competitionwill andbe advertisedable throughto finddeliver aT tender.Levels from 2023.

WhereOnce theT needLevels toare securefully alternativerolled provisionout, forlocal existingauthorities studentswill isbe urgent, weable mayto electsubmit evidence to makeus aof singlelocal tendergaps award in linetechnical witheducation ourso internalthat schemewe ofcan delegation.review these and take action.

Subcontracting

More DfE-fundedinformation provisionon T Levels is available.

Sub-contracting

As part of our funding guidance, DfE’s subcontracting publishes sub-contracting control regulationsregulations, which set out our expectations and requirements of directly funded institutions entering into subcontractingsub-contracting arrangements in respect of DfEof ESFA-funded provision.

Maintained schools and academies are reminded thatit’s theya arerequirement requiredsub-contracted toactivity recordis subcontractedrecorded activity in theirthe school census return.

We have published subcontracting funding rules for ESFA funded post-16 funding (excluding apprenticeships) for 2022 to 2023.

Contract transfer

Organisations cannot replacenovate or handtransfer over DfEESFA contractscontracts. toIn anotherlimited party.circumstances Wewe may sanction the transfer of a contract from a lead contractor to an existing subcontractor.sub-contractor.

AContract contract transfer to a subcontractorsub-contractor can only occur with the written agreement of the lead contractor. The written agreement of the lead contractor must include confirmation that they are willing to relinquish the funding associated with the subcontracted provision in the year in which it transfers. DfEWe must also be satisfied that the subcontractorsub-contractor has the capacity and facilities to deliver high-qualityhigh quality provision in its own right.

Any such applications should be sent viausing the customerthe helpESFA portalenquiry form.

The appropriate funding limit for the existing subcontractorsub-contractor will be set as part of the financial information supplied as part of due diligence.

Mergers, takeovers and other structural changeschange

AnOrganisations organisation should inform inform DfE of of any plans involving a merger or takeover of the provider, or of any other change thatwhich will have a seriousmaterial bearing onupon the contract or funding agreement it holds with DfEwith ESFA, as soon as it becomes aware of such a change.

It is a requirement of the funding agreement with DfEwith ESFA that providersproviders give a minimum of at least 12 weeks’weeks notice in advance of the proposed date of effectiveness of the change comingin intosuch effect.cases. Giving notice of a change in business model does not constitute consent to a transfer of our contract.

DfE will will review any proposed changes on a case-by-casecase by case basis and will undertake the due diligence and other assurances it considers necessary assurances.according to the circumstances of each case. We reserve the right to terminate the contract ifwhere any proposed assignment, transfer,novation, saledisposal or other arrangementdealing gives cause for seriousmaterial concern.

Academies

Independent wishinglearning toproviders makeproviding significant changes to their organisational structure must refer to the making significant changes or closure by agreement guidance.

Providing education and training to children of compulsory school age as an independent learning provider

Independent learning providers are required to register with with DfE that that they are running an independent school if thethey schoolmeet meets the definition of an independent school set out in law. The The registration of independent schoolschools registrationguidance guidance explains the requirements.

Those responsible for running an independent learning provider that meets the definition of an independent school that is not registered as such would be committing an offence under(under section 96 of the Education and Skills Act 2008 (‘the- “the 2008 Act’)Act”) and may be liable to prosecution.