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Statement on Minimum Contract Level Policy
The following types of provider will be exempt from the application of a MCL due to the specific nature of the contractual relationships that the Agency has with them:
The MCL applies to all Apprenticeship providers. However, if the application of the MCL to an Apprenticeship provider would lead to the loss of Apprenticeship places an exemption will be applied.
The Agency’s process for implementing MCL is predicated on the need to give organisations the time and opportunity they need to find alternative arrangements in order to remain in business meeting the skills needs of learners and employers.
Where there is a risk of specialist provision being lost, or a significant impact on the choice available in particular localities for example, in rural communities, the Agency will consider on a case by case basis whether alternative arrangements should be made. Where an exemption is agreed on this basis, it will apply for this Spending Review period (until the end of the 2013/14 academic year), subject to any significant policy developments.
The MCL applies to employers, other than those large employers contracted to the National Employer Service. However, if other self delivery employers are concerned about the impact of the implementation of the MCL on the provision for their learners they should contact their Skills Funding Agency account manager to discuss an exemption for the first year.
Any organisation that makes the case that to enter into any sub-contract or consortia arrangements is detrimental to delivery or is less efficient in terms of the resources which are focussed on learners will be exempt.
Any organisation that makes the case that there are no sensible or suitable sub-contracting or consortia arrangements for them to pursue either because of the geographical or sectoral/specialist nature of the organisation and/or its provision will be exempt.
*Please note that any exemptions requested (other than those listed at the top of the statement) will not be automatic. Exemptions will be considered on a case by case basis. Further information on the process and timetable for this will be published shortly.
The impact of the MCL in 2011/12 will be reviewed through the year before any decisions are taken about further changes for 2012/12.