A new careers advice service for schools and colleges will replace the functions of the Careers & Enterprise Company, government has confirmed, but the organisation plans to bid to run its successor.
The CEC has been responsible for supporting colleges with careers advice since 2014, when it was founded by then-education secretary Nicky Morgan, now its chair. It receives annual grant funding of around £30 million.
FE Week revealed last week the government was considering a different funding model, launching a market engagement notice regarding “future support for schools and colleges to deliver careers education, information, advice and guidance”.
At a market engagement event on Tuesday, the Department for Education (DfE) revealed that ministers intended to create a new careers advice service by August 2027.
Officials confirmed that this new service would replace the current functions of the CEC, while building on aspects of the current service.
The new service would be delivered nationally, but the supplier would also be expected to provide grant funding for existing local careers hubs.
The CEC told FE Week it would bid to run the new contract “if and when” it goes to tender.
The notice published last month by the government contained little information, and the DfE did not confirm at the time whether the services potentially up for tender were those currently delivered by the CEC.
It also said that the notice was “not a formal commitment to go to market” and that the specification for the service was not final.
More money via local careers hubs
At the event this week, DfE officials said that the service would include a training offer for careers advisers, the provision of digital tools and a “searchable, high-quality digital resource bank” for schools and colleges.
A successful supplier would also be expected to collect and analyse data to be shared with schools, colleges and careers hubs.
It would also develop partnerships with employers, sector organisations and education providers to strengthen careers guidance and work with the government to provide the service.
And the supplier would also be expected to provide grant funding to local authorities for careers hubs.
This aims to give councils the flexibility to shape how the service is delivered and respond to local priorities.
The DfE said it was “keen to maximise the amount of funding directed to local careers hubs” at the event, but it is not clear exactly how much money will flow through town halls.
The funding would need to be used to allow hubs to support schools and colleges, promote apprenticeships and technical education routes, allow employer engagement and work experience and remove barriers for disadvantaged students and those with SEND.
The arrangements must be based on outcomes-based grant agreements which last for multiple years in line with the overall contract, the DfE said.
CEC plans its bid
This week, the CEC said it “welcomes the supplier engagement process and its aim to attract future investment into England’s careers education system over the next 3-5 years.
“CEC looks forward to bidding to continue in its role as the national service provider, if and when an invitation to tender is confirmed.
“In the meantime, CEC continues to deliver on its commitments as the national body for careers education, within its current grant funding agreement with the Department for Education and stands prepared to continue delivering up to summer 2027.”
While the CEC receives an annual grant, the DfE is proposing the new service would be delivered via a three-year contract, with the option for a two-year extension.
The contract would amount to up to £36 million a year and is estimated to be worth between £90 million and £180 million for a three-to-five-year agreement.
The DfE said that it hoped that by moving to a contractual relationship, it would provide “longer term security of funding and delivery arrangements” for schools, colleges and local government.
The tender is expected to go live between August and October, while the contract award is expected in early 2027.
There would be a six-month mobilisation period with a view to the service being in place for the 2027-28 academic year.
Another engagement event will take place in early June to allow interested parties to give more feedback.
While it expects that there would only be one contract, the DfE said it would be open to partnerships between organisations to deliver the service.
The DfE was contacted for further comment.
Your thoughts