More than 50 training providers have been granted special permission from the government to exceed a new cap on subcontracting, FE Week can reveal.
The Education and Skills Funding Agency introduced a rule in 2022/23 that bans providers from contracting out 25 per cent or more of training in any funding stream.
It is part of the agency’s reforms that aim to significantly reduce the amount of subcontracting in FE, in a crackdown prompted by concerns about poor oversight and fraud.
However colleges and providers can secure written permission to exceed the cap if they can show that the subcontracting brings niche or expert provision, better access to training facilities, makes training easier to get to for learners, or offers an entry point for disadvantaged groups.