Consultation Hub

The consultation set out ten proposals for reforming the future arrangements for subcontracting of ESFA funded post 16 education and training. The proposals sought to reduce the overall volume of subcontracted delivery across the sector by eliminating provision that is poorly managed and delivered, and provision undertaken for the wrong reasons. It also sought to strengthen the ESFA’s oversight of subcontracted activity.

In general, respondents felt that some of the proposals, particularly where we have suggested obtaining prior agreement from the agency, would be excessively bureaucratic, both for providers and the agency. Many have pointed out where some of the proposals may be suitable for some funding streams but not for others.

We have reflected upon the responses and have made changes to our final approach taking account of the views expressed. We have, in some cases, decided to differentiate our approach by funding stream and to take account of particular structures/modes of delivery. Overall, we have tried to eliminate proposals that would be excessively bureaucratic and will build more of our oversight and assurance into the development of the Standard for the Management of Subcontracting (proposal 9).

Do you agree with the proposed 10% increases to fees for 2020-21, and how will that affect you as a provider?

The fees should not be increased because doing so will put additional pressure on the budgets of providers.

The majority of providers are a long way from paying the full cost of the inspection and regulatory activity undertaken by Ofsted, which means that the taxpayer continues to subsidise the regulation of the majority of children’s social care providers. However, due to additional pressures on the sector caused by Covid-19, we have since decided to waive the collection of the uplift in fees for the financial year 2020-21.

We asked for views about strengthening the arrangements for ring-fencing DSG so that it is clear that DSG deficits do not have to be met from local authorities’ general funds.

The majority of respondents agreed with the proposals but thought they needed further strengthening to achieve what was intended.

The department put the ring-fencing requirement into the School and Early Years Finance Regulations 2020 to give it statutory backing.  DSG deficits can no longer be paid off from general funds without requesting permission from the Secretary of State, and the DfE will work with authorities to enable them to pay off their deficits from within DSG funds.

https://www.gov.uk/government/consultations/consultation-on-changing-the-dedicated-schools-grant