National Sector Bodies Recommend Maximum 20% Management Fee Limit

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The Association of Employment and Learning Providers, the adult community education and learning organisation Holex, and provider group Collab have agreed a Best Practice Guidance Document that recommends that sub-contracting management fees should not exceed 20% of contract value. The 3 sector bodies have been concerned about recurring reputational issues around top-slicing, with the perception that the management fee removes funds from learners and have taken action to signal preferred arrangements in these circumstances. For more background from AELP’s press release click here and from more comment from FE Week, here.