The Education and Skills Funding Agency will intervene more quickly when things go wrong at independent training providers (ITP), as part of its new strengthened intervention strategy.

At the moment, the ESFA intervenes when a provider is judged as being “inadequate” by Ofsted or if it fails to meet minimum standards or financial health requirements.

Under its new intervention measures, the funding agency will use data analytics to forecast risks to learners or public finances to justify a more pre-emptive intervention strategy. The ESFA will use sanctions, such as suspension of recruitment or restricting growth, whilst assurance is sought or remedial action is undertaken.

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From August, to prepare for the possibility of a provider failing, the ESFA will ensure that all ITP contracts have an exit plan which sets out how the provider will assist in helping to provide a new training place for learners to provide them with “stability and clarity”.

‘Early intervention’ for training providers

ESFA chief executive Eileen Milner said training providers were a vital part of FE infrastructure.

She added: “Whilst the majority of training providers’ delivery meets our training standards, there will always be a small number who start to fall short of these standards.

“We must continue to ensure that learners have a quality learning experience and every pound of the public purse is invested wisely. By introducing stronger early intervention measures and closer contract management arrangements, it will minimise the disruption to learners and risk to public funds when provider failures start to become apparent.”