The country needs us so why treat ITPs as second-class providers?

Independent training providers are treated unfairly with unequal access to funds so it’s time funding followed the learner, not the institution

Independent training providers are treated unfairly with unequal access to funds so it’s time funding followed the learner, not the institution

22 Jun 2025, 6:32

Having spent over 15 years in the college sector and many more across education and skills, I find it frustrating that independent training providers (ITPs) are still treated like second-class citizens.

Yes, some ITPs have been associated with poor practice, but that’s not the whole picture. Today, we face very different challenges: record numbers of young people not in education, employment or training (NEETs), critical skills shortages, and adults needing to retrain for a rapidly changing economy.

ITPs are part of the solution

ITPs are well placed to respond – if given a fair chance. Their flexibility, responsiveness and entrepreneurial energy enable them to meet diverse learner needs, often at pace and scale.

We’ve seen the benefits of both learner and employer-led funding in apprenticeships since 2017. But outside of that, funding decisions still often prioritise institutions, not learners or employers.

For example, combined authorities in Leeds and Manchester received an additional £10 million, on top of £320 million nationally ringfenced for colleges. But only general FE colleges were invited to bid – despite many ITPs, such as SCL Group, having facilities ready to deliver.

Unequal access and missed opportunities

This exclusion extends beyond capital. ITPs are barred from incentives like the £6,000 recruitment bonus for teachers in high-demand subjects such as maths, English and construction. All other providers can access this – why not ITPs?

A persistent belief lingers that commercial providers are less trustworthy. But this stereotype is outdated. Poor practice is not exclusive to ITPs, and quality assurance already exists through Ofsted and awarding bodies like Gateway Qualifications, which rigorously assess outcomes for NEETs and adult learners.

Adding value, not competition

ITPs bring innovation and investment – often more rapidly than traditional institutions. They fill critical gaps in provision, especially for disadvantaged learners who some colleges struggle to support. We’re not here to compete with colleges; we want to complement them.

The question is not who delivers, but who delivers best for learners and communities.

Devolution and its consequences

Devolution has made the landscape more difficult. National ITPs have lost significant funding as Adult Education Budget (AEB) allocations pass to combined authorities, many of which favour local or familiar providers.

At SCL, we’ve lost £800,000 from our national contract because some delivery falls within newly devolved regions like the East Midlands. Now, we must re-bid without certainty for funding that we’ve already proven we use well.

This risks replacing trusted delivery with untested alternatives.

Some combined authorities openly state they only contract with colleges or charities. That approach locks out high-performing ITPs – hurting learners most.

Policy changes we urgently need

If we’re serious about a funding system that prioritises learners, not institutions, here’s what must change:

  • Equal access to capital investment, so all learner-facing capacity, not just college infrastructure, is used.
  • Allow top-performing ITPs to access funds reallocated from underperforming or underspending providers.
  • Pay providers for actual delivery, removing the 97 per cent tolerance rule on the adult skills fund for grant-funded providers.
  • Ensure equal contracting terms on growth funding, virement, innovation funds, and tailored learning across all provision types.
  • Recognise that many ITPs serve learners that traditional institutions don’t, especially NEETs and adults needing flexible pathways.
  • Support quality subcontracting, where ITPs can add agility and innovation to larger delivery frameworks.
  • Create a fair and transparent approach to devolved procurement, giving national and local ITPs an evidence-based chance to compete.

A call for collaboration, not competition

This isn’t about criticising general FE colleges – they play a vital role. But the sector must acknowledge what ITPs could achieve with equitable access to funding and opportunities. ITPs are not the villains of the skills system; we are vital partners.

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One comment

  1. Nick Smith

    Very well said Stuart, although I fear that the many in the DfE are unwaveringly and ideologically opposed to ITPs, and that they won’t be satisfied until there are no private providers left in the sector.