Following on from last week’s shock announcement that the ESFA have paused the non-levy procurement exercise, we are really pleased that they have confirmed today that they will be delaying the introduction of the new subcontracting rules. This should help companies who currently act as subcontractors to continue to operate whilst we await the award of new contracts in December. Our original post on this topic follows.
The ESFA announced yesterday that they are putting the non-levy apprenticeship procurement exercise on hold and will instead be temporarily extending existing contracts. Whilst the AELP has welcomed this news, many providers are expressing serious concerns.
There has been no clarification as to whether the new subcontracting rules, due to be introduced on the 1st of May, will also be relaxed. These rules state that contract heads “must directly deliver some of the apprenticeship training and/or on-programme assessment associated with each employer’s apprenticeship programme”, “must maintain the relationship with each employer at all times” and “you must not allow a delivery subcontractor to lead that relationship”.
This will be very disappointing for those of you who were subcontracting previously and were hoping to directly contract with the SFA to minimise the impact of the new subcontracting rules.