Association of Employment and Learning Providers
Press release – 31 January 2013
Training providers welcome SFA’s recommended adoption of best practice for supply
chain management in FE and skills sector
The Association of Employment and Learning Providers has today warmly welcomed the
strong recommendation from the Skills Funding Agency (SFA) that all lead providers and
colleges should refer to the sector’s new Common Accord and follow newly published best
practice on contracting out skills training to other providers.
AELP also supports the inclusion of new rules on subcontracting in the SFA’s funding rules
for 2013-14 which require greater transparency and encourage more accountability on how
public money is being spent on training.
Jointly developed by AELP and the Association of Colleges (AoC) under a sector-led
approach, the Common Accord for supply chain management will require its provider
signatories to commit supply chains to making sure that the learner receives the maximum
benefit from the arrangement. Providers will also agree to be guided by the principles given
in the LSIS publication “Supply Chain Management – a good practice guide for the post-16
skills sector”.
The Accord and the good practice guide tackle two major concerns that have arisen in the
sector over the last 18 months in relation to supply chain delivery of SFA-funded skills
training: the identification of some instances of inadequate due diligence being undertaken
by lead providers on subcontractors and whether a lead provider’s management fee has
always reflected the actual costs of services being provided to the subcontractor.
On the first issue, the good practice guide sets out a series of best practice procedures for
both a lead provider to procure subcontracting partners and what a potential subcontractor
should do before it agrees to become part of a supply chain. The procedures include
assessing potential sub-contractors to ensure that they meet required quality standards and
supporting them to develop excellent operating practices.
The guide addresses not just how a partnership arrangement should ideally be set up but
how the ongoing relationship should be effectively managed, including a two-way flow of
sharing advice and best practice between the respective partners.
With regard to fees, the Common Accord states that funding for learning that is retained by
the lead provider must be related to the costs of the services provided. These services, and
the levels of funding being retained for them, will be clearly documented and agreed by all
parties.
The SFA is backing the sector’s proposals by inserting in its funding rules for 2013-14 a
requirement for all lead providers to publish on their websites from August 2013 an ‘upfront’
fees and costs policy. Providers must also publish the amount of funding retained by the
lead in respect of each subcontracting relationship alongside the SFA funding received by
each lead for provision delivered by subcontractors.
Graham Hoyle, AELP chief executive, said:
“I am confident that the Common Accord and the good practice guide will to help
providers and colleges minimise the risk within supply chains, ensuring that they offer
high-quality provision for employers and learners.
“AELP and AoC have worked closely to promote our sector’s willingness to share
good practice and our ability to continue to learn from each other. If the good
practice exemplified in the guide is embedded in supply chains throughout the post16 learning and skills sector, then the government and its agencies can be confident
that they are getting good value from the public purse. And while we have
approached this from a starting point of self-regulation, it is greatly encouraging that
the SFA has recommended that all lead providers and colleges should refer to the
Accord during all stages of the subcontracting process.
“AELP urges all of its SFA-funded members to be part of the Common Accord.”
Copies of the Common Accord, the LSIS good practice guide and other associated
documents can be downloaded at: http://www.aelp.org.uk/supply/.
The SFA’s funding rules can be downloaded at:
http://skillsfundingagency.bis.gov.uk/publications/latest/
ENDS
Contact Aidan Relf on 07710 305182
Notes to Editors
1. About the Association of Employment and Learning Providers
The Association of Employment and Learning Providers (AELP) is the leading trade association for
vocational learning and employment providers in Britain. The majority of its 600+ members are
independent private, not-for-profit and voluntary sector training and employment services
organisations. Membership is open to any provider committed to quality provision and it includes over
50 FE colleges involved in work based learning. 70% plus of apprenticeships in England are delivered
by AELP members. Over 70% of the Work Programme prime contractors are AELP members with
many other members delivering the programme as sub-contractors. AELP providers currently
engage with almost 300,000 employers across the country and last year they helped 117,240 learners
complete an apprenticeship.
Web: www.aelp.org.uk Twitter: @AELPUK