Approach to apprenticeship subcontracting

Teesside University engages with subcontractors only where there is a clear educational rationale that adds value, enhances quality and improves the apprentice experience, in line with the DfE Subcontracting Standard March 2026 and DfE apprenticeship funding rules.

Subcontracting is only used where it meets one or more of the following aims:

enhancing opportunities available for apprentices
filling gaps in niche or expert provision or providing better access to training facilities
supporting better geographical access for apprentices
offering an entry point for disadvantaged groups
considering the impact on individuals with shared protected characteristics where gaps may otherwise exist.

Subcontracting is exceptional rather than routine, and is only approved where it is necessary, proportionate and clearly justified.

Delivery models and lead provider responsibilities

The University operates subcontracting arrangements in line with DfE requirements as follows:

where the University is the lead training provider, it may subcontract defined elements of delivery only. The University retains full responsibility and accountability for the apprenticeship including quality, compliance, learner experience and outcomes
where the University acts as a subcontractor, the lead provider retains overall responsibility for the apprenticeship
in all cases, apprenticeship provision is not delivered solely by a subcontractor, and subcontracted activity must complement, not replace, the University's substantive delivery
where functional skills are subcontracted, this is treated as a supporting element of the apprenticeship programme.

Principles for subcontracting

The University only approves subcontracting agreements where:

there is a clear, documented educational rationale aligned to DfE Subcontracting Standard March 2026 and DfE apprenticeship funding rules
the University does not have the in-house expertise, capacity or facilities required to deliver a specific element of the programme
there is a contractual requirement with an employer that enhances delivery through employer-based provision
the subcontractor is registered on the APAR as a Main Provider or Employer Provider (where required); and
the subcontracting arrangement demonstrably adds value to the apprentice and employer experience.

The University's default position is to deliver apprenticeship provision directly, with subcontracting used only where it enhances quality and outcomes.

Due diligence, quality assurance and oversight

The University undertakes a robust due diligence process prior to entering any subcontracting arrangement to ensure the subcontractor:

has the capacity, capability and financial stability to deliver high-quality provision
meets the University's quality, compliance and risk management expectations; and
aligns with the University's strategic aims, values and mission.

A formal, legally binding subcontract is in place before delivery commences, clearly setting out roles, responsibilities, performance expectations and funding arrangements.

The University maintains active oversight and control of all subcontracted provision through:

regular performance and compliance reviews
monitoring of learner progress, experience and outcomes
quality assurance activity, including observation and audit
risk management and escalation processes.

Management fees and value for money

Where appropriate, the University may retain a proportion of funding as a management fee to cover the actual costs of managing and assuring subcontracted provision, including quality assurance, contract management, compliance and learner oversight.

Management fees are:

transparent, proportionate and justifiable
aligned to the level of oversight and support provided.

Payments and financial controls

Payments to subcontractors are:

linked to experienced delivery and performance
subject to clear contractual terms and funding rules compliance.

Employer-providers are paid for the direct costs of delivery only and must provide evidence of these costs. All subcontractors are required to provide appropriate evidence of delivery to support payments.

Compliance, transparency and reporting

The University's subcontracting policy requires strict adherence to the DfE Apprenticeship Funding Rules (2025-2026) and all subcontracting guidelines. This means:

submission of subcontractor declarations as required
timely updates where subcontracting arrangements change
publication of subcontracting fees and charges on the University website
annual publication of a summary of payments made to subcontractors.