PROVIDER MINIMUM CONTRACT LEVELS
26 November 2010
The Department for Business, Innovation & Skills’ recent white paper ‘Investing in Skills for Sustainable Growth’ finally confirmed that from August 2011 there will be a minimum contract level (MCL) threshold of £500,000 for training providers contracted to the Skills Funding Agency. Providers falling below the MCL will receive a notional allocation for 2011/12 and are likely to be asked whether they wish to sub-contract this allocation or move into a form of provider consortia arrangement. Providers who do not wish to move forward with any new arrangements will be given a run-down contract. Ultra Training believes that a transparent and fair sub-contract arrangement, that does not place unreasonable financial penalties on the sub-contractor, is the best way forward for providers who fall below the MCL and who wish to retain their independence. We are currently working on a bespoke sub-contract agreement with our solicitors and some of our existing partner providers with the aim of returning around 95% of earned funding to sub-contractors.
If you are an existing training provider who has a track record of delivering high quality provision but who falls below the MCL threshold then give our Managing Director, David Ham, a call on 08454 600 700 or e-mail david (dot) ham (at) utrain.com.
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