1. Introduction
Brighton & Hove City Council receives funding from the Secretary of State for Education via the Department for Work and Pensions (DWP) non-procured block grant.
This policy details how Brighton & Hove City Council complies with Department for Education (DfE)/DWP funding rules through subcontracting. Brighton & Hove City Council prioritises optimal resource use to provide adult learning programs.
As a prime contractor with the DWP, Brighton & Hove City Council subcontracts accredited learning provision.
The policy specifies management charges and fees for these subcontracting arrangements.
Contracts with each subcontractor clearly state their rights and responsibilities for the academic year.
In April 2025, Brighton & Hove City Council’s Adult and Community Learning Service underwent an Ofsted inspection and received a rating of 'Good'. Brighton & Hove City Council has actively engaged subcontractors who have achieved similar standards and who are committed to continuous improvement.
Appendix A provides details regarding the subcontractor and contract values for the period 2026 to 2027.
2. The rationale for our subcontracting position
The Adult Skills Service of Brighton & Hove City Council aims to provide high-quality educational programs for adults aged 19 and over, which:
- meets local needs
- focuses on widening participation
- develops communities
- develops the skills of residents (aged 19 and over) with low skill levels
- provides progression routes to further learning, employment or volunteering
Brighton & Hove City Council will subcontract services to:
- enhance educational opportunities for adult learners
- strengthen local community links for adult learners
- promote collaboration with other adult learning providers
- diversify education and training that Brighton & Hove City Council cannot deliver itself
Brighton & Hove City Council's Adult Skills Service rigorously assesses the added value and cost-effectiveness of subcontracting arrangements before proceeding with any subcontracting decisions. Courses and curriculum plans undergo annual and periodic reviews at advisory board meetings to ensure their relevance and quality.
The procurement process for 2026 to 2027 aimed to find a subcontractor to provide various accredited adult education courses in the following priority curriculum areas:
- English and maths qualifications
- English for Speakers of Other Languages
- ESOL career pathways - hospitality, health and social care
- digital
Brighton & Hove City Council has subcontracted to:
- widen participation from those least likely to participate, including:
- residents on low incomes
- people with no or lower qualifications
- those furthest from the labour market
- maximise participation in formal accredited learning programmes
- develop stronger communities, with more self-sufficient, connected and proactive citizens, leading to increased volunteering, civic engagement and social integration
- improve outcomes for individuals including:
- to help individuals acquire skills to prepare them for training, employment or self-employment
- to improve individuals' digital, financial literacy and/or communication skills
- to help parents or carers be better equipped to support and encourage their children's learning
- to improve or maintain health and/or social wellbeing
- to improve confidence and willingness to engage in learning
- to support economic regeneration outcomes for the wider community
Brighton & Hove City Council reviews supply-chain fees with sub-contractors based on contract type and size. Fees depend on risk assessment, due diligence and support activities.
3. Subcontracting overview
Brighton & Hove City Council’s Adult Skills Service complies with Brighton & Hove City Council's procurement requirements, Contract Standing Orders, and relevant procurement legislation when awarding contracts.
Contracts are awarded through a competitive tendering process.
All subcontracted provision must:
- be delivered in line with the DfE/DWP funding rules
- comply with the requirements of the DfE subcontracting standard
Appendix A provides details of the sub-contractors and contract values for 2026 to 2027.
4. Brighton & Hove City Council’s commitment to improving the quality of adult education
Brighton & Hove City Council is committed to continual improvement in teaching and learning in, both subcontracted and in-house provision. This is demonstrated by ensuring that any subcontractor is selected through a process that requires demonstrable evidence that they can deliver and sustain high-quality education, including high-quality teaching, learning and assessment, for all learners in all venues.
Performance management is conducted through regular monitoring and review processes, which include independent observations of teaching, learning, and assessment. This approach is further supported through contract review meetings and the provider partnership forum.
Subcontractors need a thorough understanding of the evidence required for both the DfE/DWP and Ofsted. Tutors, Brighton & Hove City Council staff, and staff employed by the provider should be experienced, appropriately qualified, and hold current DBS checks, which are confirmed annually.
5. Management fees
Brighton & Hove City Council intends to retain an estimated management fee of up to 20% for the 2026 to 2027 academic year. This fee is calculated based on the salary costs of the Adult Learning Manager and the management support provided by Brighton & Hove City Council. These resources are essential for effective contract management, quality monitoring, and the timely collection and provision of data to the DfE/DWP.
Costs depend on the type of subcontracted provision, associated risks, and overheads managed by Brighton & Hove City Council. Section 8 details services supplied to the subcontractor.
The time allocation of the Brighton & Hove City Council staff (shown as a percentage) has been forecast based on time allocations used in 2025 to 2026 and may vary with the subcontractor’s needs.
It should also be noted that the following Brighton & Hove City Council staff offer additional strategic and operational support:
- Head of Employment and Skills
- Data Analyst
- finance staff
- procurement staff
Brighton & Hove City Council will routinely review the management fee to ensure it is fair and proportionate for delivering sub-contracted services. Each cost aids in service improvement and high-quality learning delivery.
The Contract Management Team will ensure the service meets national standards, benchmarks, and regulatory frameworks, including Ofsted.
This policy is reviewed annually.
DWP accredited learning
Brighton & Hove City Council will retain up to 20% of the contract value from a subcontractor to cover staffing and related costs for supporting and monitoring the subcontracted services.
The rest of the budget allocation will be used for learning opportunities, which external providers can access through a competitive tendering process.
DWP tailored learning
The Tailored Learning allocation is used for providing learning opportunities, delivered by Brighton & Hove City Council’s in-house team. The resource input from Brighton & Hove City Council is funded through its DWP core grant.
Brighton & Hove City Council’s Adult Skills Service also works to facilitate the sharing of good practice and peer support across the subcontracted and internal provision.
6. The monitoring process
Brighton & Hove City Council aims to ensure that the teaching delivered to learners is of high quality and demonstrates effective impact and services.
Brighton & Hove City Council has a contract monitoring process in place which covers:
- performance against targets/planned delivery
- quality of teaching and learning
- safeguarding
- equality and diversity
- British values/Prevent
7. Services provided by Brighton & Hove City Council to support the subcontractor:
Activities covered under the management costs to ensure the quality of the service and teaching offer include those listed below.
The time allocation of the Brighton & Hove City Council staff (shown as a percentage) has been forecast based on time allocations used in 2025 to 2026 and may vary with the subcontractor’s needs.
Dedicated Brighton & Hove City Council contact
Appointment of a named officer (Contracts Manager) as the first point of contact who will respond promptly to any queries and monitor the performance against the contract throughout the year.
Time allocation
The time allocation of the Brighton & Hove City Council staff is shown as a percentage.
Strategic planning, procurement process and due diligence (20%), which includes:
- identifying needs and priorities for the service
- programme planning based on local and national priorities
- performance reporting to Brighton & Hove City Council’s adult learning Advisory Board
- tender and/or procurement authorisation process
- developing, implementing and managing the due diligence process in accordance with DfE/DWP funding rules
- tender and/or procurement evaluation and award of contracts
- pre-contract meeting
- contract development and agreement
- setting up of facility for contract payments
- managing proposed changes to contract in-year
- management of subcontracted provision (25%)
- regular contact, dialogue and professional support with key subcontractor contacts through contract monitoring meetings and governance meetings
- regular contract meetings to monitor provider performance against contract requirements and the quality of delivery against national quality benchmarks
- monitoring of the sub-contractor to ensure compliance with their obligations in respect of processing personal data under the sub-contract and complying with associated legislation
- preparing papers and co-ordinating termly Advisory Board meetings and subcontract performance review meetings
- funding body compliance (25%)
- providing information, advice, guidance and support to ensure delivery is compliant with the DfE/DWP's funding rules
- maintaining Brighton & Hove City Council’s relationship with the DWP
- uploading claims and financial regulatory documents to the DfE/DWP
- developing documentation and paperwork in accordance with the requirements of the DfE/DWP, for example, enrolment form
- purchasing and maintenance of a specialist Management Information System
- collecting data, recording it on the Service’s Management Information System and submitting accurate funding returns to the DfE/DWP
- managing monthly ILR return process
- managing the DWP funding allocation
- managing external audits and internal audits such as paperwork checks, register checks and quality checks
- managing contract payments to subcontractors
- processing and submitting to the DfE/DWP ILR returns, data validation and reporting
- processing business support paperwork, invoices, regular finance payments and inputting data
Quality assurance (35%), which includes:
- providing quality assurance and improvement support
- reviewing, scrutinising and providing constructive feedback on reports, plans and analyses provided by sub-contractors, including:
- Self-Assessment Report (SAR) & Quality Improvement Plan (QIP)
- safeguarding log
- staff database
- complaints log
- KPI and performance reports, including delivery information and observation findings
- reviewing the annual Self-Assessment Review (SAR), this document will involve all staff within the service, learners and appropriate partners, employers and stakeholders, the SAR will review performance in line with the Education Inspection Framework and include reference to national benchmarks, trends and minimum standards, the SAR will be updated through the year, as and when necessary, for example, in response to outcomes
- reviewing the Quality Improvement Plan (QIP) that's developed alongside the SAR and details key improvements to be made within the year, the people, the improvements involved and the deadline for the improvement, the QIP will be reviewed and formally updated at least termly
- undertaking direct observations of learning, teaching and assessment as appropriate
- participating in subcontractors’ course monitoring and RARPA review activity, sample course folders to ensure they meet the agreed quality requirements
- spot-checking venues being used to deliver Brighton & Hove City Council-funded learning opportunities to ensure compliance with requirements
- scrutinising subcontractor ILR data, this would include undertaking compliance checks on information included in the ILR in relation to the DfE Funding Rules, such as:
- undertaking learner eligibility checks and learner file audits (as per DfE/DWP Funding Rules)
- undertaking audits and consultation activities with learners, non-learners and key stakeholders/partners to inform provision and practice
- commissioning external representatives to undertake impartial quality assurance checks of Brighton & Hove City Council and subcontractor practice
In addition, Brighton & Hove City Council provides additional strategic and operational support through its Head of Employment and Skills, data analyst and finance team.
Core support functions include:
- strategic planning and procurement process, due diligence
- management of subcontracted provision
- funding body compliance
- quality assurance
- external audit
- media and publicity
Each subcontract cost is considered reasonable and proportionate to the delivery cost and is reviewed annually by the Governance Body.
8. How and when the policy is communicated to and discussed with current and potential sub-contractors
The policy is communicated during the contract award meeting with potential sub-contractors.
9. Payment arrangements
Subcontractor accredited learning payments will be based on the outcomes from the ILR.
The subcontractor receives payments at regular intervals throughout the year, in accordance with the funding contract and related agreements. The subcontractor must submit monthly ILR Data to Brighton & Hove City Council at least 5 working days before the DfE/DWP deadlines.
After the monthly ILR Data is processed, Brighton & Hove City Council will confirm the invoice amount for that month. The sub-contractor must submit an invoice for this amount within 30 days of Brighton & Hove City Council's confirmation.
Brighton & Hove City Council will make payment to the service provider within 30 days of receiving a valid invoice from the sub-contractor.
10. Policy review
This policy is reviewed annually and updated accordingly. The next planned review date is September 2027.
The Policy may be reviewed if there are significant changes in the DfE/DWP rules. Any mid-contract changes will be discussed with the sub-contractor. Additionally, Brighton & Hove City Council will review performance and delivery to re-profile payments if volumes or service quality drop below agreed levels.
Appendix A: Subcontractor summary information and Brighton & Hove City Council management fees
| UKPRN | Provider | Original contract value 2026 to 2027 | Maximum management fee held by Brighton & Hove City Council from the funding generated | Maximum contract payable | Contract end date |
|---|---|---|---|---|---|
| 10047090 | Functional Skills UK | £452,922 | 20% | £377,435 | 31 July 2027 |
| 10047679 | Creative Process Digital Ltd | £267,926.40 | 20% | £223,272 | 31 July 2027 |
Review date and officer responsible
This policy will be reviewed annually and in-year as required by funding guidelines and rules.
Reviewed - 4 September 2026
Next review date - 4 September 2027
Officer Responsible - Skills Programme Delivery Manager
Signed - Donna Keenan, Skills Programme Delivery Manager
Date - 4 September 2026