Technical and Further Education Act 2017

2017 CHAPTER 19

An Act to make provision about technical and further education.

[27th April 2017]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1 U.K. Technical education

1 The Institute for Apprenticeships and Technical Education E+W

(1) The Institute for Apprenticeships is renamed the Institute for Apprenticeships and Technical Education (referred to in this Act as “the Institute”).

(2) Accordingly, in Part 1 of the Apprenticeships, Skills, Children and Learning Act 2009—

(a) after “Institute for Apprenticeships”, in each place it occurs, insert “ and Technical Education ”;

(b) in section ZA1(2) for “ “the IfA”” substitute “ “the Institute” ”;

(c) for “IfA's” in each place it occurs, substitute “Institute's”;

(d) for “IfA”, in each other place it occurs, substitute “ Institute ”.

(3) In section 122(3)(g) of that Act for “IfA” substitute “ Institute for Apprenticeships and Technical Education ”.

(4) In the following provisions after “Institute for Apprenticeships” insert “ and Technical Education ”

(a) Schedule 1 to the Superannuation Act 1972;

(b) Part 6 of Schedule 1 to the Freedom of Information Act 2000.

(5) Schedule 1—

(a) confers functions on the Institute in relation to technical education qualifications,

(b) makes provision about the sharing of information,

(c) makes provision about the charging of fees by the Institute in connection with evaluations of the quality of apprenticeship assessments, and

(d) makes transitional provision.

Commencement Information

I1 S. 1(1)-(4) in force at 31.1.2019 by S.I. 2019/61, reg. 2(a)

I2 S. 1(5) in force at 16.8.2017 for specified purposes by S.I. 2017/844, reg. 2(a)

I3 S. 1(5) in force at 8.11.2017 for specified purposes by S.I. 2017/1055, reg. 2(a)

I4 S. 1(5) in force at 2.1.2018 for specified purposes by S.I. 2017/1055, reg. 3(a)

I5 S. 1(5) in force at 9.2.2018 for specified purposes by S.I. 2018/140, reg. 2(a)

I6 S. 1(5) in force at 31.1.2019 in so far as not already in force by S.I. 2019/61, reg. 2(a)

2 Information about technical education: access to English schools E+W

(1) The Education Act 1997 is amended as follows.

(2) After section 42A insert—

“42B Information about technical education: access to English schools

(1) The proprietor of a school in England within subsection (2) must ensure that there is an opportunity for a range of education and training providers to access registered pupils during the relevant phase of their education for the purpose of informing them about approved technical education qualifications or apprenticeships.

(2) A school is within this subsection if it provides secondary education and is one of the following—

(a) an Academy;

(b) an alternative provision Academy;

(c) a community, foundation or voluntary school;

(d) a community or foundation special school (other than one established in a hospital);

(e) a pupil referral unit.

(3) The proprietor of a school in England within subsection (2) must prepare a policy statement setting out the circumstances in which education and training providers will be given access to registered pupils for the purpose of informing them about approved technical education qualifications or apprenticeships.

(4) The proprietor must ensure that the policy statement is followed.

(5) The policy statement must include—

(a) any procedural requirements in relation to requests for access;

(b) grounds for granting and refusing requests for access;

(c) details of premises or facilities to be provided to a person who is given access.

(6) The proprietor may revise the policy statement from time to time.

(7) The proprietor must publish the policy statement and any revised statement.

(8) The Secretary of State may by regulations make provision supplementing subsection (1), for example provision about who is to be given access to pupils, to which pupils they are to be given access and how and when.

(9) For the purposes of this section the relevant phase of a pupil's education is the period—

(a) beginning at the same time as the school year in which the majority of pupils in the pupil's class attain the age of 13, and

(b) ending with the expiry of the school year in which the majority of pupils in the pupil's class attain the age of 18.

(10) In this section “approved technical education qualification” means a qualification approved under section A2DA of the Apprenticeships, Skills, Children and Learning Act 2009.”

(3) In section 42A (provision of careers guidance in schools in England), in subsection (7), omit the definition of “apprenticeship” (which has become outdated).

(4) In section 45A (guidance as to discharge of duties: schools in England), in subsection (2), for “42A(1) or (4)” substitute “ section 42A(1) or (4) or 42B ”.

(5) In section 46 (extension or modification of provisions of sections 43 to 45), in subsection (1)—

(a) after “42A,” insert “ 42B, ”;

(b) after “42A(6),” insert “ 42B(9) ”.

Commencement Information

I7 S. 2 in force at 2.1.2018 by S.I. 2017/1055, reg. 3(c)

Part 2 U.K. Further education bodies: insolvency etc

CHAPTER 1 E+W Introduction

3 Overview E+W

This Part is mainly about the insolvency of further education bodies—

(a) Chapter 2 ensures that normal insolvency procedures apply to further education bodies that are statutory corporations;

(b) Chapter 3 restricts the use of normal insolvency procedures;

(c) Chapter 4 creates a special administration regime;

(d) Chapter 5 is about the treatment of trust property held by certain bodies;

(e) Chapter 6 imposes restrictions on existing procedures for dissolution;

(f) Chapter 7 confers power to make provision about the disqualification of members of further education bodies.

Commencement Information

I8 S. 3 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

4 “Further education body” E+W

(1) In this Part “further education body” means—

(a) a further education body in England, or

(b) a further education body in Wales.

(2) In this Part “further education body in England” means—

(a) a further education corporation in England,

(b) a sixth form college corporation, or

(c) a company conducting a designated further education institution in England.

(3) In this Part “further education body in Wales” means—

(a) a further education corporation in Wales, or

(b) a company conducting a designated further education institution in Wales.

Commencement Information

I9 S. 4 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

5 Other key definitions E+W

In this Part—

• “appropriate national authority”—

  (a)

  in relation to a further education body in England, means the Secretary of State;

  (b)

  in relation to a further education body in Wales, means the Welsh Ministers;

• “company” means a company within the meaning of the Companies Act 2006;

• “designated further education institution” means an institution that—

  (a)

  is designated under section 28 of the Further and Higher Education Act 1992, and

  (b)

  is principally concerned with the provision of further education;

• “further education corporation” means a body corporate that—

  (a)

  is established under section 15 or 16 of the Further and Higher Education Act 1992, or

  (b)

  has become a further education corporation by virtue of section 33D or 47 of that Act;

• “further education corporation in England” means a further education corporation established to conduct an institution in England;

• “further education corporation in Wales” means a further education corporation established to conduct an institution in Wales;

• “sixth form college corporation” means a body corporate—

  (a)

  designated as a sixth form college corporation under section 33A or 33B of the Further and Higher Education Act 1992, or

  (b)

  established under section 33C of that Act.

Commencement Information

I10 S. 5 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

CHAPTER 2 U.K. Application of normal insolvency to statutory corporations

6 Application of normal insolvency procedures U.K.

(1) The purpose of this section is to make the following insolvency procedures available in relation to further education bodies that are statutory corporations—

(a) voluntary arrangements,

(b) administration,

(c) creditors' voluntary winding up, and

(d) winding up by the court,

and to make provision about receivers and managers of property.

(2) For that purpose, the relevant insolvency legislation applies in relation to further education bodies that are statutory corporations as it applies in relation to companies, subject to—

(a) any modifications or omissions specified in regulations made by the Secretary of State, and

(b) sections 9 to 12 (restrictions on normal insolvency procedures to facilitate special administration).

(3) The “relevant insolvency legislation” means any provision made by or under the following provisions of the Insolvency Act 1986—

(a) Part 1 (company voluntary arrangements);

(b) Part 2 (administration);

(c) Part 3 (receivership);

(d) Part 4 (winding up);

(e) Parts 6, 7 and 12 to 18 (supplementary provision).

(4) The modifications or omissions that may be made under subsection (2)(a) include modifications or omissions in connection with the interaction between the insolvency procedures made available in relation to further education bodies by this section and education administration under Chapter 4 of this Part.

(5) Regulations under this section that modify or omit a provision of an Act as it applies by virtue of this section are subject to the affirmative resolution procedure.

(6) Any other regulations under this section are subject to the negative resolution procedure.

Commencement Information

I11 S. 6 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

7 Application of other insolvency law E+W

(1) The Secretary of State may make regulations, in consequence of section 6 or regulations made under it—

(a) providing for any legislation about insolvency to apply in relation to a further education body that is a statutory corporation (with or without modifications);

(b) amending, or modifying, any legislation about insolvency as it applies in relation to a further education body that is a statutory corporation.

(2) In subsection (1) “legislation about insolvency” includes any legislation that makes provision by reference to anything that is or may be done under any provision of the Insolvency Act 1986, or under any provision of subordinate legislation made under that Act, as applied by section 6.

(3) Regulations under this section that apply, amend or modify a provision of an Act are subject to the affirmative resolution procedure.

(4) Any other regulations under this section are subject to the negative resolution procedure.

(5) In this section “legislation” means provision made by Schedule 3 to this Act or provision made by or under any other Act passed before or in the same session as this Act.

Commencement Information

I12 S. 7 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

8 Records etc E+W

(1) The Secretary of State may by regulations make provision for or in connection with—

(a) the delivery to the registrar of companies of documents that relate to the insolvency of further education bodies;

(b) the registrar's function of keeping records of information contained in such documents under section 1080(1) of the Companies Act 2006;

(c) the publication of, or access to, those records or related information.

(2) The regulations may, in particular, provide for any provision made by or under the following sections of the Companies Act 2006 to apply (with or without modifications) in relation to those documents or records.

Provision of Companies Act 2006	Description
sections 29 and 30	copies of resolutions etc to be forwarded to the registrar
section 859K	registration of enforcement of security
sections 1077 and 1079	public notice of receipt of certain documents
sections 1081, 1084 and 1085 to 1091	keeping and inspection of register of companies
sections 1093 to 1097	correction or removal of material on companies register
section 1104	documents relating to Welsh companies
sections 1112 to 1113	supplementary provisions

(3) The power under subsection (1) includes power—

(a) to impose requirements on a person who delivers a document to the registrar in relation to the insolvency of a further education body to provide supplementary information;

(b) to confer power on the registrar to make rules in accordance with section 1117 of the Companies Act 2006 imposing such requirements.

(4) Provision made under this section is in addition to any applicable provision made by Part 35 of the Companies Act 2006 or elsewhere.

(5) Regulations under this section are subject to the affirmative resolution procedure.

(6) Section 1114(1) of the Companies Act 2006 (meaning of document etc) applies for the purposes of this section.

Commencement Information

I13 S. 8 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

CHAPTER 3 E+W Restrictions on use of normal insolvency procedures

9 Making of ordinary administration orders E+W

(1) This section applies if a person other than the appropriate national authority makes an ordinary administration application in relation to a further education body.

(2) The court must dismiss the application if—

(a) an education administration order is in force in relation to the further education body, or

(b) an education administration order has been made in relation to the further education body but is not yet in force.

(3) If subsection (2) does not apply, the court, on hearing the application, must not exercise its powers under paragraph 13 of Schedule B1 to the Insolvency Act 1986 (other than its power of adjournment) unless—

(a) notice of the application has been given to the appropriate national authority,

(b) a period of at least 14 days has elapsed since that notice was given, and

(c) there is no outstanding education administration application.

(4) Paragraph 44 of Schedule B1 to the Insolvency Act 1986 (interim moratorium) does not prevent, or require the permission of the court for, the making of an education administration application.

(5) In this section “ordinary administration application” means an application in accordance with paragraph 12 of Schedule B1 to the Insolvency Act 1986.

Commencement Information

I14 S. 9 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

10 Administrator appointments by creditors etc E+W

(1) Subsections (2) to (4) make provision about the appointment of an administrator under—

(a) paragraph 14 of Schedule B1 to the Insolvency Act 1986, in relation to a further education body that is a company, or

(b) paragraph 22 of Schedule B1 to the Insolvency Act 1986, in relation to any further education body.

(2) If in any case—

(a) an education administration order is in force in relation to the further education body,

(b) an education administration order has been made in relation to the further education body but is not yet in force, or

(c) an education administration application in relation to the further education body is outstanding,

a person may not take any step to make an appointment.

(3) In any other case, an appointment takes effect only if each of the following conditions are met.

(4) The conditions are—

(a) that notice of the appointment has been given to the appropriate national authority, accompanied by a copy of every document in relation to the appointment that is filed or lodged with the court in accordance with paragraph 18 or 29 of Schedule B1 to the Insolvency Act 1986,

(b) that a period of at least 14 days has elapsed since that notice was given,

(c) that there is no outstanding education administration application in relation to the further education body, and

(d) that the making of an education administration application in relation to the further education body has not resulted in the making of an education administration order which is in force or is still to come into force.

(5) Paragraph 44 of Schedule B1 to the Insolvency Act 1986 (interim moratorium) does not prevent, or require the permission of the court for, the making of an education administration application at any time before the appointment takes effect.

Commencement Information

I15 S. 10 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

11 Winding-up order E+W

(1) This section applies if a person other than the appropriate national authority petitions for the winding up of a further education body.

(2) The court is not to exercise its powers on a winding-up petition unless—

(a) notice of the petition has been given to the appropriate national authority, and

(b) a period of at least 14 days has elapsed since that notice was given.

(3) If an education administration application is made in relation to the further education body before a winding-up order is made on the petition, the court may exercise its powers under sections 19 and 20 (instead of exercising its powers on the petition).

(4) References in this section to the court's powers on a winding-up petition are to—

(a) its powers under section 125 of the Insolvency Act 1986 (other than its power of adjournment), and

(b) its powers under section 135 of the Insolvency Act 1986.

Commencement Information

I16 S. 11 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

12 Voluntary winding up E+W

(1) A further education body has no power to pass a resolution for voluntary winding up without the permission of the court.

(2) Permission may be granted by the court only on an application made by the further education body.

(3) The court may not grant permission unless—

(a) notice of the application has been given to the appropriate national authority, and

(b) a period of at least 14 days has elapsed since that notice was given.

(4) If an education administration application is made in relation to the further education body after an application for permission under this section has been made but before it is granted, the court may exercise its powers under sections 19 and 20 (instead of granting permission).

(5) In this section “a resolution for voluntary winding up” has the same meaning as in the Insolvency Act 1986.

Commencement Information

I17 S. 12 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

13 Enforcement of security E+W

A person may not take any step to enforce a security over property of a further education body unless—

(a) notice of the intention to do so has been given to the appropriate national authority, and

(b) a period of at least 14 days has elapsed since the notice was given.

Commencement Information

I18 S. 13 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

14 Interpretation of Chapter E+W

(1) In this Chapter—

• “the court”, in relation to a further education body, means the court having jurisdiction to wind up the body;

• “education administration application” has the meaning given by section 18;

• “education administration order” has the meaning given by section 17.

(2) For the purposes of this Chapter an application made to the court is outstanding if it—

(a) has not yet been granted or dismissed, and

(b) has not been withdrawn.

(3) An application is not to be taken as having been dismissed if an appeal against the dismissal of the application, or a subsequent appeal, is pending.

(4) An appeal is to be treated as pending for this purpose if—

(a) an appeal has been brought and has not been determined or withdrawn,

(b) an application for permission to appeal has been made but has not been determined or withdrawn, or

(c) no appeal has been brought and the period for bringing one is still running.

(5) In relation to a further education body that is a statutory corporation, a reference in this Chapter to a provision of the Insolvency Act 1986 is to that provision as it applies to the body by virtue of section 6.

Commencement Information

I19 S. 14 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

CHAPTER 4 E+W Further education bodies: special administration

Introduction to education administration E+W

15 Overview of Chapter E+W

(1) This Chapter creates a procedure to be known as education administration.

(2) The main features of an education administration are that—

(a) it can be used where a further education body is unable to pay its debts or is likely to become unable to pay its debts,

(b) the court appoints an education administrator on the application of the appropriate national authority, and

(c) the education administrator manages the body's affairs, business and property with a view to avoiding or minimising disruption to the studies of existing students.

Commencement Information

I20 S. 15 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

16 Objective of education administration E+W

(1) The objective of an education administration is to—

(a) avoid or minimise disruption to the studies of the existing students of the further education body as a whole, and

(b) ensure that it becomes unnecessary for the body to remain in education administration for that purpose.

(2) The means by which the education administrator may achieve that objective include—

(a) rescuing the further education body as a going concern,

(b) transferring some or all of its undertaking to another body,

(c) keeping it going until existing students have completed their studies, or

(d) making arrangements for existing students to complete their studies at another institution.

Commencement Information

I21 S. 16 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

Process E+W

17 Education administration order E+W

(1) An education administration order is an order of the court appointing a person as the education administrator of a further education body.

(2) A person is eligible for appointment as an education administrator only if the person would be qualified to act as an insolvency practitioner in relation to the further education body.

(3) While an education administration order is in force the further education body may be described as being “in education administration”.

Commencement Information

I22 S. 17 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

18 Application for education administration order E+W

(1) An education administration order may be made only on an application by the appropriate national authority.

(2) The appropriate national authority must give notice of an application—

(a) to the further education body to which the application relates, and

(b) to any person specified in education administration rules (for those rules, see section 32).

(3) An application for an education administration order is referred to in this Chapter as an “education administration application”.

Commencement Information

I23 S. 18 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

19 Grounds for making an education administration order E+W

(1) The court may make an education administration order on an application only if satisfied that the further education body—

(a) is unable to pay its debts, or

(b) is likely to become unable to pay its debts.

(2) The court has no power to make an education administration order in relation to a further education body which—

(a) is in administration under Schedule B1 to the Insolvency Act 1986, or

(b) has gone into liquidation (within the meaning of section 247(2) of the Insolvency Act 1986).

(3) For the purposes of this section a further education body is unable to pay its debts if it is deemed to be unable to pay its debts under section 123 of the Insolvency Act 1986.

Commencement Information

I24 S. 19 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

20 Powers of the court on hearing an application E+W

(1) On hearing an education administration application the court may—

(a) grant the application,

(b) adjourn the application conditionally or unconditionally,

(c) dismiss the application,

(d) make an interim order,

(e) treat that application as a winding-up petition and make any order the court could make under section 125 of the Insolvency Act 1986 (power of court on hearing winding-up petition), or

(f) make any other order that it thinks appropriate.

(2) An interim order under subsection (1)(d) may, in particular—

(a) restrict the exercise of a power of the further education body,

(b) in the case of a further education body that is a statutory corporation, restrict the exercise of a power of its members,

(c) in the case of a further education body that is a company, restrict the exercise of a power of its directors, and

(d) make provision conferring a discretion on a person who would be qualified to act as an insolvency practitioner in relation to the further education body.

(3) An education administration order comes into force—

(a) at the time appointed by the court, or

(b) if no time is appointed by the court, when the order is made.

Commencement Information

I25 S. 20 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

21 Appointment of two or more education administrators E+W

If an education administration order appoints two or more persons as the education administrator of a further education body, the order must set out—

(a) which (if any) of the functions of the education administrator are to be carried out only by the appointees acting jointly,

(b) the circumstances (if any) in which the functions of an education administrator are to be carried out by one of the appointees, or by particular appointees, acting alone, and

(c) the circumstances (if any) in which things done in relation to one of the appointees, or in relation to particular appointees, are to be treated as done in relation to all of them.

Commencement Information

I26 S. 21 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

22 Duty to dismiss ordinary administration application E+W

(1) On the making of an education administration order in relation to a further education body, the court must dismiss any ordinary administration application made in relation to the body which is outstanding.

(2) In this section “ordinary administration application” means an application in accordance with paragraph 12 of Schedule B1 to the Insolvency Act 1986.

(3) Subsections (2) to (4) of section 14 (meaning of “outstanding”) apply for the purposes of this section.

Commencement Information

I27 S. 22 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

23 Status of education administrator E+W

(1) An education administrator is an officer of the court.

(2) In carrying out functions in relation to a further education body an education administrator acts as its agent.

Commencement Information

I28 S. 23 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

Functions of administrator and conduct of administration E+W

24 General functions of education administrator E+W

(1) Where an education administration order is in force in relation to a further education body, the body's affairs, business and property are to be managed by the education administrator.

(2) The education administrator must carry out his or her functions for the purpose of achieving the objective of the education administration.

(3) In pursuing the objective of the education administration set out in section 16(1)(a) the education administrator must, in particular, take into account the needs of existing students who have special educational needs.

(4) The education administrator of a further education body that is a statutory corporation must, so far as is consistent with the objective of the education administration, carry out his or her functions in a way that achieves the best result for the further education body's creditors as a whole.

(5) The education administrator of a further education body that is a company must, so far as is consistent with the objective of the education administration, carry out his or her functions in a way that achieves the best result for—

(a) the company's creditors as a whole, and

(b) subject to that, the company's members as a whole.

(6) For the purposes of this section an existing student has “special educational needs” if he or she has a learning difficulty which calls for special educational provision to be made for him or her.

(7) In subsection (6)—

• “special educational provision”, in relation to an existing student, means provision for education or training that is additional to, or different from, that made generally for other students of the same age;

• “learning difficulty” is to be read in accordance with section 19(6) and (7) of the Further and Higher Education Act 1992.

Commencement Information

I29 S. 24 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

25 Transfer schemes E+W

Schedule 2 gives an education administrator the power to make transfer schemes.

Commencement Information

I30 S. 25 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

26 Conduct of administration E+W

(1) Schedule 3 applies provisions of the Insolvency Act 1986, with modifications, in relation to the education administration of a further education body that is a statutory corporation.

(2) Schedule 4 makes similar provision in relation to the education administration of a further education body that is a company.

Commencement Information

I31 S. 26 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

Financial support for bodies in education administration E+W

27 Grants and loans where education administration order is made E+W

(1) If an education administration order has been made in relation to a further education body, the appropriate national authority may make grants or loans to the body for the purpose of achieving the objective of the education administration.

(2) A grant or loan under this section may be made on whatever terms the appropriate national authority considers appropriate (including terms relating to repayment of the grant or loan, with or without interest).

(3) In the case of a loan, the terms must provide for paragraph 99(7)(a), (b) or (c) of Schedule B1 to the Insolvency Act 1986 (vacation of office: charges and liabilities) to apply in relation to any sum that must be paid by the further education body in respect of the loan or interest on it.

(4) In subsection (3) the reference to paragraph 99 of Schedule B1 to the Insolvency Act 1986 is to that Schedule as applied by Schedule 3 or 4 to this Act.

Commencement Information

I32 S. 27 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

28 Indemnities where education administration order is made E+W

(1) If an education administration order has been made in relation to a further education body, the appropriate national authority may agree to indemnify persons in respect of one or both of the following—

(a) liabilities incurred in connection with the carrying out of functions by the education administrator, and

(b) loss or damage sustained in that connection.

(2) The agreement may be made in whatever manner, and on whatever terms, the appropriate national authority considers appropriate.

(3) As soon as possible after agreeing to indemnify persons under this section, the appropriate national authority must lay a statement of the agreement before Parliament or the National Assembly for Wales (as appropriate).

(4) For repayment of sums paid by the appropriate national authority in consequence of an indemnity agreed to under this section, see section 29.

(5) The power of the appropriate national authority to agree to indemnify persons—

(a) is confined to a power to agree to indemnify persons in respect of liabilities, loss and damage incurred or sustained by them as relevant persons, but

(b) includes power to agree to indemnify persons (whether or not they are identified or identifiable at the time of the agreement) who subsequently become relevant persons.

(6) The following are relevant persons for the purposes of this section—

(a) the education administrator;

(b) an employee of the education administrator;

(c) a partner or employee of a firm of which the education administrator is a partner or employee;

(d) a partner of a firm of which the education administrator was an employee or partner at a time when the order was in force;

(e) a body corporate which is the employer of the education administrator;

(f) an officer, employee or member of such a body corporate;

(g) a Scottish firm which is the employer of the education administrator or of which the education administrator is a partner.

(7) For the purposes of subsection (6)—

(a) references to the education administrator are to be read, where two or more persons are appointed as the education administrator, as references to any one or more of them, and

(b) references to a firm of which a person was a partner or employee at a particular time include a firm which holds itself out to be the successor of a firm of which the person was a partner or employee at that time.

Commencement Information

I33 S. 28 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

29 Indemnities: repayment by further education bodies etc E+W

(1) This section applies where a sum is paid out by the appropriate national authority in consequence of an indemnity agreed to under section 28 in relation to the education administration of a further education body.

(2) The further education body must pay the appropriate national authority—

(a) any amounts in or towards the repayment of that sum that the appropriate national authority directs, and

(b) interest on amounts outstanding under this subsection at whatever rates the appropriate national authority directs.

(3) The payments must be made by the further education body at times, and in a manner, determined by the appropriate national authority

(4) Subsection (2) does not apply in the case of a sum paid by the appropriate national authority for indemnifying a person in respect of a liability to the further education body.

(5) The appropriate national authority must lay before Parliament or the National Assembly for Wales (as appropriate) a statement relating to the sum paid out in consequence of the indemnity—

(a) as soon as possible after the end of the financial year in which the sum is paid out, and

(b) if subsection (2) applies to the sum, as soon as possible after the end of each subsequent financial year in relation to which the repayment condition has not been met.

(6) The repayment condition is met in relation to a financial year if—

(a) the whole of the sum has been repaid to the appropriate national authority before the beginning of the year, and

(b) the further education body was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.

Commencement Information

I34 S. 29 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

30 Guarantees where education administration order is made E+W

(1) If an education administration order has been made in relation to a further education body the appropriate national authority may guarantee—

(a) the repayment of any sum borrowed by the body while that order is in force,

(b) the payment of interest on any sum borrowed by the body while that order is in force, and

(c) the discharge of any other financial obligation of the body in connection with the borrowing of any sum while that order is in force.

(2) The appropriate national authority may give the guarantees in whatever manner, and on whatever terms, the appropriate national authority considers appropriate.

(3) As soon as possible after giving a guarantee under this section, the appropriate national authority must lay a statement of the guarantee before Parliament or the National Assembly for Wales (as appropriate).

(4) For repayment of sums paid by the appropriate national authority under a guarantee given under this section, see section 31.

Commencement Information

I35 S. 30 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

31 Guarantees: repayment by further education body etc E+W

(1) This section applies where a sum is paid out by the appropriate national authority under a guarantee given by the appropriate national authority under section 30 in relation to a further education body.

(2) The further education body must pay the appropriate national authority—

(a) any amounts in or towards the repayment of that sum that the appropriate national authority directs, and

(b) interest on amounts outstanding under this subsection at whatever rates the appropriate national authority directs.

(3) The payments must be made by the further education body at times, and in a manner, determined by the appropriate national authority.

(4) The appropriate national authority must lay before Parliament or the National Assembly for Wales (as appropriate) a statement relating to the sum paid out under the guarantee—

(a) as soon as possible after the end of the financial year in which the sum is paid out, and

(b) as soon as possible after the end of each subsequent financial year in relation to which the repayment condition has not been met.

(5) The repayment condition is met in relation to a financial year if—

(a) the whole of the sum has been repaid to the appropriate national authority before the beginning of the year, and

(b) the further education body was not at any time during the year liable to pay interest on amounts that became due in respect of the sum.

Commencement Information

I36 S. 31 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

Supplementary E+W

32 Education administration rules E+W

(1) The power to make rules under section 411 of the Insolvency Act 1986 is to apply for the purpose of giving effect to this Chapter as it applies for the purpose of giving effect to Parts 1 to 7 of that Act (and, accordingly, as if references in that section to those Parts included references to this Chapter).

(2) Section 413(2) of the Insolvency Act 1986 (duty to consult Insolvency Rules Committee about rules) does not to apply to rules made under section 411 of the Insolvency Act 1986 as a result of this section.

Commencement Information

I37 S. 32 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

33 Application of other insolvency law E+W

(1) The Secretary of State may make regulations, in consequence of this Chapter or subordinate legislation made under it—

(a) providing for any legislation about insolvency to apply in relation to a further education body (with or without modifications);

(b) amending, or modifying, any legislation about insolvency as it applies in relation to a further education body.

(2) In subsection (1) “legislation about insolvency” includes any legislation that makes provision by reference to anything that is or may be done under any provision of the Insolvency Act 1986, or under any provision of subordinate legislation made under that Act, as applied by this Chapter.

[F1 (2A) Regulations under subsection (1) may in particular provide for any provision of the Insolvency Act 1986 to apply (with or without modifications) in relation to a further education body in connection with the education administration procedure created by this Chapter.

(2B) Nothing in Schedule 3 or 4 limits the provision that may be made by virtue of subsection (2A), and provision made by virtue of that subsection may amend Schedules 3 and 4.]

(3) Regulations under this section that apply, amend or modify a provision of an Act are subject to the affirmative resolution procedure.

(4) Any other regulations under this section are subject to the negative resolution procedure.

(5) In this section “legislation” means any provision made by or under an Act passed before or in the same session as this Act.

Textual Amendments

F1 S. 33(2A)(2B) inserted (28.6.2022) by Skills and Post-16 Education Act 2022 (c. 21), ss. 24, 36(2)

Commencement Information

I38 S. 33 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

34 Modification of this Chapter under the Enterprise Act 2002 E+W

A power to modify or apply enactments conferred on the Secretary of State by section 248 or 277 of the Enterprise Act 2002 includes power to make such consequential modifications of this Chapter as the Secretary of State considers appropriate in connection with any other provision made under that section.

Commencement Information

I39 S. 34 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

35 Interpretation of Chapter E+W

(1) In this Chapter—

• “business”, “property” and “security” have the same meaning as in the Insolvency Act 1986;

• “the court”, in relation to a further education body, means the court having jurisdiction to wind up the body;

• “education administration application” has the meaning given by section 18;

• “education administration order” has the meaning given by section 17;

• “education administration rules” means rules made under section 411 of the Insolvency Act 1986 as a result of section 32 above;

• “education administrator” means a person appointed by an education administration order and is to be read in accordance with subsection (2) below;

• “existing student”, in relation to a further education body that is in education administration, means a person who—

  (a)

  is a student at the relevant institution when the administration order is made, or

  (b)

  has accepted a place on a course at the relevant institution when the administration order is made;

• “financial year” means a period of 12 months ending with 31 March;

• “member”, in relation to a further education body that is a company, has the same meaning as in the Insolvency Act 1986;

• “objective of the education administration” is to be read in accordance with section 16;

• “the relevant institution”—

  (a)

  in relation to a further education corporation, means the institution which the corporation is established to conduct;

  (b)

  in relation to a sixth form college corporation, means the relevant sixth form college as defined by section 90(1) of the Further and Higher Education Act 1992;

  (c)

  in relation to a company conducting a designated further education institution, means that designated further education institution;

• “Scottish firm” means a firm constituted under the law of Scotland.

(2) In this Chapter references to the education administrator of a further education body—

(a) include a person appointed under paragraph 91 or 103 of Schedule B1 to the Insolvency Act 1986, as applied by Schedule 3 or 4 to this Act, to be the education administrator of the further education body, and

(b) if two or more persons are appointed as the education administrator of the further education body, are to be read in accordance with the provision made under section 21.

(3) References in this Chapter to a person qualified to act as an insolvency practitioner in relation to a further education body are to be read in accordance with Part 13 of the Insolvency Act 1986.

(4) In relation to a further education body that is a statutory corporation, references in this Chapter to a provision of the Insolvency Act 1986 (except the references in sections 27, 32 and 33 and Schedule 3 and in subsection (2) above) are to that provision as it applies to further education bodies by virtue of section 6.

Commencement Information

I40 S. 35 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

CHAPTER 5 E+W Trust property held by sixth form college corporations

36 Trust property held by sixth form college corporations E+W

If a sixth form college corporation to which section 33J of the Further and Higher Education Act 1992 applies is being wound up under the Insolvency Act 1986, any property held by the corporation on trust for the purposes of the relevant sixth form college must be transferred to the trustees of the relevant sixth form college (as defined by section 90(1) of that Act).

Commencement Information

I41 S. 36 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

CHAPTER 6 E+W Restrictions on other dissolution procedures

37 Restrictions on dissolution of further education corporation E+W

(1) The Further and Higher Education Act 1992 is amended as follows.

(2) In section 27A (dissolution of further education corporation), after subsection (5) insert—

“(6) See also section 27C (restrictions on dissolution in insolvency situations).”

(3) After section 27B insert—

“27C Restrictions on dissolution in insolvency situations

(1) A further education corporation have no power under section 27A to resolve that the corporation should be dissolved if—

(a) the corporation is in education administration under Chapter 4 of Part 2 of the Technical and Further Education Act 2017,

(b) a voluntary arrangement in relation to the corporation has been proposed under Part 1 of the Insolvency Act 1986 and the matter has not been finally concluded,

(c) the corporation is in administration under Part 2 of the Insolvency Act 1986,

(d) paragraph 44 of Schedule B1 to the Insolvency Act 1986 applies (interim moratorium on proceedings where application to the court for an administration order has been made), or

(e) the corporation is being wound up, whether voluntarily or by the court, under Part 4 of the Insolvency Act 1986 or a petition under that Part for winding up of the corporation by the court has been presented and not finally dealt with or withdrawn.

(2) For the purposes of subsection (1)(b), the matter is finally concluded if—

(a) no meetings are to be summoned under section 3 of the Insolvency Act 1986,

(b) meetings summoned under that section fail to approve the arrangement with no, or the same, modifications,

(c) an arrangement approved by meetings summoned under that section, or in consequence of a direction under section 6(4)(b) of that Act, has been fully implemented, or

(d) the court makes an order under section 6(5) of that Act revoking approval given at previous meetings and, if the court gives any directions under section 6(6) of that Act, the corporation has done whatever it is required to do under those directions.

(3) In this section—

(a) a reference to paragraph 44 of Schedule B1 to the Insolvency Act 1986 is to that paragraph as it applies to a further education corporation by virtue of—

(i) section 6 of the Technical and Further Education Act 2017 (application of normal insolvency procedures), or

(ii) Schedule 3 to the Technical and Further Education Act 2017 (special education administration);

(b) any other reference to a provision of the Insolvency Act 1986 is to that provision as it applies to a further education corporation by virtue of section 6 of the Technical and Further Education Act 2017.”

Commencement Information

I42 S. 37 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

38 Restrictions on dissolution of sixth form college corporation E+W

(1) The Further and Higher Education Act 1992 is amended as follows.

(2) In section 33O (dissolution of sixth form college corporation), after subsection (4) insert—

“(5) See also section 33Q (restrictions on dissolution in insolvency situations).”

(3) After section 33P insert—

“33Q Restrictions on dissolution in insolvency situations

(1) A sixth form college corporation have no power under section 33O to resolve that the corporation should be dissolved if—

(a) the corporation is in education administration under Chapter 4 of Part 2 of the Technical and Further Education Act 2017,

(b) a voluntary arrangement in relation to the corporation has been proposed under Part 1 of the Insolvency Act 1986 and the matter has not been finally concluded,

(c) the corporation is in administration under Part 2 of the Insolvency Act 1986,

(d) paragraph 44 of Schedule B1 to the Insolvency Act 1986 applies (interim moratorium on proceedings where application to the court for an administration order has been made), or

(e) the corporation is being wound up, whether voluntarily or by the court, under Part 4 of the Insolvency Act 1986 or a petition under that Part for winding up of the corporation by the court has been presented and not finally dealt with or withdrawn.

(2) For the purposes of subsection (1)(b), the matter is finally concluded if—

(a) no meetings are to be summoned under section 3 of the Insolvency Act 1986,

(b) meetings summoned under that section fail to approve the arrangement with no, or the same, modifications,

(c) an arrangement approved by meetings summoned under that section, or in consequence of a direction under section 6(4)(b) of that Act, has been fully implemented, or

(d) the court makes an order under section 6(5) of that Act revoking approval given at previous meetings and, if the court gives any directions under section 6(6) of that Act, the corporation has done whatever it is required to do under those directions.

(3) In this section—

(a) a reference to paragraph 44 of Schedule B1 to the Insolvency Act 1986 is to that paragraph as it applies to a sixth form college corporation by virtue of—

(i) section 6 of the Technical and Further Education Act 2017 (application of normal insolvency procedures), or

(ii) Schedule 3 to the Technical and Further Education Act 2017 (special education administration);

(b) any other reference to a provision of the Insolvency Act 1986 is to that provision as it applies to a sixth form college corporation by virtue of section 6 of the Technical and Further Education Act 2017.”

Commencement Information

I43 S. 38 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

CHAPTER 7 E+W Disqualification of officers

39 Disqualification of officers E+W

“In the Company Directors Disqualification Act 1986, after section 22F insert—

22G Application of Act to further education bodies

(1) This Act applies to further education bodies as it applies to companies.

(2) Accordingly, in this Act—

(a) references to a company are to be read as including references to a further education body;

(b) references to a director or an officer of a company are to be read as including references to a member of a further education body;

(c) any reference to the Insolvency Act 1986 is to be read as including a reference to that Act as it applies to further education bodies.

(3) As they apply in relation to further education bodies, the provisions of this Act have effect with the following modifications—

(a) in section 2(1), the reference to striking off is to be read as including a reference to dissolution;

(b) sections 9A to 9E are to be disregarded;

(c) references to any of sections 9A to 9E are to be disregarded.

(4) In this section—

• “further education body” means—

  (a)

  a further education corporation, or

  (b)

  a sixth form college corporation;

• “further education corporation” means a body corporate that—

  (a)

  is established under section 15 or 16 of the Further and Higher Education Act 1992, or

  (b)

  has become a further education corporation by virtue of section 33D or 47 of that Act;

• “sixth form college corporation” means a body corporate—

  (a)

  designated as a sixth form college corporation under section 33A or 33B of the Further and Higher Education Act 1992, or

  (b)

  established under section 33C of that Act.”

Commencement Information

I44 S. 39 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(a)

Part 3 E+W Other provision to do with further education

40 Information for Secretary of State about further education E+W

(1) Section 54 of the Further and Higher Education Act 1992 (duty to provide information) is amended as follows.

(2) For subsection (1) substitute—

“(1) Each of the following must give the Secretary of State such information as the Secretary of State may require for purposes connected with further education—

(a) a local authority in England,

(b) the governing body of any institution maintained by a local authority in England,

(c) the governing body of a city technology college in England, a city college for the technology of the arts in England or an Academy,

(d) the governing body of any institution in England within the further education sector or the higher education sector, and

(e) any person or body who—

(i) provides further education, and

(ii) is receiving or has received funding to do so from the Secretary of State, a local authority in England or a combined authority.

(2) Each of the following must give the Welsh Ministers such information as the Welsh Ministers may require for the purposes of the exercise of any of the Welsh Ministers' functions under any enactment—

(a) a local authority,

(b) the governing body of any institution maintained by a local authority, and

(c) the governing body of any institution within the further education sector or the higher education sector.”

(3) Renumber the existing subsection (2) as subsection (3).

Commencement Information

I45 S. 40 in force at 12.11.2018 by S.I. 2018/1161, reg. 2

41 Careers advice in further education institutions: Ofsted inspection E+W

(1) Section 125 of the Education and Inspections Act 2006 (inspection of further education institutions) is amended as follows.

(2) In subsection (4) (matters to be dealt with in inspection report), after paragraph (a) (but before the “and” at the end) insert—

“(aa) must, in a case where it relates to an institution within the further education sector, comment on the careers guidance provided to relevant students at the institution,”.

(3) After subsection (7) insert—

“(8) In this section—

• “careers guidance” includes guidance about undertaking any training, education, employment or occupation;

• “relevant student” means a student—

  (a)

  who is aged under 19, or

  (b)

  who is aged 19 or over and is someone for whom an EHC plan is maintained.”

Commencement Information

I46 S. 41 in force at 2.1.2018 by S.I. 2017/1055, reg. 3(d)

Part 4 U.K. General

42 Power to make transitional provision U.K.

The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Act.

43 Power to make consequential provision U.K.

(1) The Secretary of State may by regulations make provision that is consequential on any provision made by this Act.

(2) Regulations under this section may amend, repeal or revoke any provision made by or under an Act passed before this Act or in the same Session.

(3) Regulations under this section that repeal or amend a provision of an Act are subject to the affirmative resolution procedure.

(4) Any other regulations under this section are subject to the negative resolution procedure.

44 Regulations: general U.K.

(1) Regulations under this Act are to be made by statutory instrument.

(2) Regulations under this Act may make—

(a) consequential, supplementary, incidental, transitional or saving provision;

(b) different provision for different purposes.

45 Affirmative and negative resolution procedures U.K.

(1) Where regulations under this Act are subject to “the negative resolution procedure” the statutory instrument containing the regulations is subject to annulment in pursuance of a resolution of either House of Parliament.

(2) Where regulations under this Act are subject to “the affirmative resolution procedure” the regulations may not be made unless a draft of the statutory instrument containing them has been laid before Parliament and approved by a resolution of each House of Parliament.

(3) Any provision that may be included in an instrument under this Act subject to the negative resolution procedure may be made by regulations subject to the affirmative resolution procedure.

46 Extent U.K.

(1) Any amendment or repeal made by this Act has the same extent as the enactment amended or repealed.

(2) This Part and section 6 so far as it relates to section 426 of the Insolvency Act 1986 extend to—

(a) England and Wales,

(b) Scotland, and

(c) Northern Ireland.

(3) Except as mentioned above, this Act extends to England and Wales only.

47 Commencement U.K.

(1) This Part and paragraph 35 of Schedule 1 come into force on the day on which this Act is passed.

(2) The other provisions of this Act come into force on such day as the Secretary of State may by regulations appoint.

(3) Different days may be appointed for different purposes.

48 Short title U.K.

This Act may be cited as the Technical and Further Education Act 2017.

SCHEDULES

Section 1

SCHEDULE 1 E+W The Institute for Apprenticeships and Technical Education

1 E+W The Apprenticeships, Skills, Children and Learning Act 2009 is amended as follows.

Commencement Information

I47 Sch. 1 para. 1 in force at 16.8.2017 for specified purposes by S.I. 2017/844, reg. 2(b)(i)

I48 Sch. 1 para. 1 in force at 8.11.2017 for specified purposes by S.I. 2017/1055, reg. 2(b)(i)

I49 Sch. 1 para. 1 in force at 2.1.2018 for specified purposes by S.I. 2017/1055, reg. 3(b)(i)

I50 Sch. 1 para. 1 in force at 9.2.2018 for specified purposes by S.I. 2018/140, reg. 2(b)(i)

I51 Sch. 1 para. 1 in force at 31.1.2019 in so far as not already in force by S.I. 2019/61, reg. 2(b)

2 (1) Section ZA2 (general duties) is amended as follows. E+W

(2) Omit subsections (3) and (4).

(3) In subsection (6), for the words after “or may be” substitute “provided—

(a) in the course of an approved English apprenticeship,

(b) for the purposes of an approved technical education qualification, or

(c) for the purposes of approved steps towards occupational competence.”

Commencement Information

I52 Sch. 1 para. 2(1) in force at 8.11.2017 for specified purposes by S.I. 2017/1055, reg. 2(b)(ii)

I53 Sch. 1 para. 2(1) in force at 31.1.2019 in so far as not already in force by S.I. 2019/61, reg. 2(b)

I54 Sch. 1 para. 2(2) in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

I55 Sch. 1 para. 2(3) in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

3 (1) Section ZA3 (provision of advice and assistance to the Secretary of State) is amended as follows. E+W

(2) In subsection (1) for “relating to apprenticeships in relation to England.” substitute “in relation to England relating to—

(a) apprenticeships, or

(b) other education or training.”

(3) In subsection (2) for “100(1A) or otherwise relating to the funding of apprenticeships relating to England” substitute “ 100(1A) or (1B) or otherwise relating to the funding, in relation to England, of the things mentioned in paragraphs (a) and (b) of that subsection ”.

Commencement Information

I56 Sch. 1 para. 3(1) in force at 9.2.2018 for specified purposes by S.I. 2018/140, reg. 2(b)(ii)

I57 Sch. 1 para. 3(1) in force at 31.1.2019 in so far as not already in force by S.I. 2019/61, reg. 2(b)

I58 Sch. 1 para. 3(2) in force at 9.2.2018 by S.I. 2018/140, reg. 2(b)(iii)

I59 Sch. 1 para. 3(3) in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

4 (1) Section ZA4 (delegation of functions of Secretary of State) is amended as follows. E+W

(2) In subsection (1) for “relating to apprenticeships in relation to England.” substitute “in relation to England relating to—

(a) apprenticeships,

(b) technical education qualifications, or

(c) steps that people may take towards becoming competent to work in occupations.”

(3) In subsection (3) for “100(1A) or otherwise relating to the funding of apprenticeships relating to England” substitute “ 100(1A) or (1B) or otherwise relating to the funding, in relation to England, of the things mentioned in paragraphs (a) to (c) of that subsection ”.

Commencement Information

I60 Sch. 1 para. 4 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

5 E+W In section ZA5(1) (conferral of new functions by regulations) for the words after “functions” substitute “in relation to England as the Secretary of State considers appropriate, relating to—

(a) apprenticeships,

(b) technical education qualifications, or

(c) steps that may be taken by persons towards becoming competent to work in occupations.”

Commencement Information

I61 Sch. 1 para. 5 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

6 E+W In the heading for Chapter A1, after “Apprenticeships” insert “ and technical education ”.

Commencement Information

I62 Sch. 1 para. 6 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

7 E+W In Chapter A1, before section A1 (and the italic heading before it) substitute—

“Occupational categories and groups E+W

ZA9 Occupational categories (sometimes referred to as “routes”)

(1) The Secretary of State may determine categories into which occupations may be placed for the purposes of this Chapter.

(2) The Secretary of State must notify the Institute of any categories that are determined.

ZA10 Mapping of occupational groups

(1) The Institute must—

(a) determine occupations in relation to which it may be appropriate for people to undertake apprenticeships or obtain qualifications, and

(b) determine which of those occupations require similar knowledge, skills and behaviour.

(2) Two or more occupations that require similar knowledge, skills and behaviour are referred to in this section as a “group”.

(3) Where categories have been determined under section ZA9, the Institute must allocate each occupation or group to a category.

(4) If the Institute considers that no category is appropriate it must nevertheless allocate the occupation or group to a category (and is not required to adjust its determinations under subsection (1)).

(5) The Institute must publish information showing—

(a) the occupations,

(b) the groups, and

(c) any categories to which the occupations and groups have been allocated.

Standards E+W

ZA11 Standards

(1) The Institute must publish standards in relation to England for such occupations as the Institute considers appropriate.

(2) Each standard must—

(a) describe the occupation to which it relates;

(b) set out the outcomes that persons seeking to achieve the standard are expected to attain in order to do so.

(3) Each standard must have been prepared by a group of persons and approved by the Institute.

(4) The group of persons that prepared a standard must have been approved by the Institute.

(5) The Institute may provide advice or assistance to a group of persons in connection with the preparation of a standard.

(6) The Institute may convene a group of persons to prepare a standard for an occupation only if the Institute considers—

(a) that there is a need for a standard for that occupation, and

(b) that the need will not be met unless a group is convened to prepare the standard.

(7) The Institute must publish—

(a) information about matters that it takes into account when deciding whether or not to approve standards for the purposes of subsection (3);

(b) information about matters that it takes into account when deciding whether or not to approve groups of persons for the purposes of subsection (4).

(8) When making a decision of the kind mentioned in subsection (7)(a) or (b) in a particular case, the Institute may also take into account such other matters as it considers appropriate in the case in question.

(9) Information published under subsection (7) may be revised or replaced, and the Institute must publish under that subsection any revised or replacement information.

(10) Where a standard is published, the Institute must publish, with the information published under section ZA10(5) in relation to the occupation, information indicating that there is a standard for the occupation.”

Commencement Information

I63 Sch. 1 para. 7 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii) (with reg. 4)

8 E+W For the italic heading before section A1 substitute “ Meaning of “approved English apprenticeship” etc ”.

Commencement Information

I64 Sch. 1 para. 8 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

9 E+W In section A1 (meaning of “approved English apprenticeship”)—

(a) in subsection (3)(a)—

(i) for “a sector for which an approved apprenticeship” substitute “ an occupation for which a ”;

(ii) for “A2” substitute “ ZA11 ”;

(b) in the following places omit “apprenticeship”—

(i) subsection (3)(b);

(ii) subsection (6), in the second place it occurs;

(iii) subsection (7), in the first place it occurs;

(c) in subsection (7), for “A2” substitute “ ZA11 ”.

Commencement Information

I65 Sch. 1 para. 9 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

10 E+W For the italic heading before section A2 substitute “ Apprenticeship assessment plans ”.

Commencement Information

I66 Sch. 1 para. 10 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

11 (1) Section A2 (apprenticeship standards and assessment plans) is amended as follows. E+W

(2) For the heading, substitute “ Apprenticeship assessment plans ”.

(3) For subsection (1) substitute—

“(1) The Institute must publish apprenticeship assessment plans in respect of such standards published under section ZA11 as it considers appropriate.”

(4) Omit subsections (2) and (3).

(5) In subsection (4)—

(a) after “An” insert “ apprenticeship ”;

(b) for the words from “a person's attainment” to the end substitute “ it is to be assessed whether a person seeking to complete an approved English apprenticeship has attained the outcomes set out in the standard ”.

(6) In subsection (5) after “Each” insert “ apprenticeship ”.

(7) For subsection (6) substitute—

“(6) Each apprenticeship assessment plan must have been prepared by a group of persons and approved by the Institute.

(7) The group of persons that prepared an apprenticeship assessment plan must have been approved by the Institute.

(8) The Institute may provide advice or assistance to a group of persons in connection with the preparation of an apprenticeship assessment plan.

(9) The Institute may convene a group of persons to prepare an apprenticeship assessment plan in respect of a standard only if the Institute considers—

(a) that there is a need for an apprenticeship assessment plan in respect of that standard, and

(b) that the need will not be met unless a group is convened to prepare the plan.

(10) The Institute must publish—

(a) information about matters that it takes into account when deciding whether or not to approve apprenticeship assessment plans for the purposes of subsection (6);

(b) information about matters that it takes into account when deciding whether or not to approve groups of persons for the purposes of subsection (7).

(11) When making a decision of the kind mentioned in subsection (10)(a) or (b) in a particular case, the Institute may also take into account such other matters as it considers appropriate in the case in question.

(12) Information published under subsection (10) may be revised or replaced, and the Institute must publish under that subsection any revised or replacement information.

(13) Where an apprenticeship assessment plan is published, the Institute must publish, with the information published under section ZA10(5) in relation to the occupation, information indicating that there is an apprenticeship assessment plan in respect of the standard for the occupation.”

Commencement Information

I67 Sch. 1 para. 11 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii) (with reg. 4)

12 E+W Omit section A2A (preparation of apprenticeship standards and plans).

Commencement Information

I68 Sch. 1 para. 12 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

13 E+W In the italic heading before section A2B, at the end insert “ of apprenticeship assessments etc ”.

Commencement Information

I69 Sch. 1 para. 13 in force at 16.8.2017 by S.I. 2017/844, reg. 2(b)(ii)

14 (1) Section A2B (evaluation of quality of apprenticeship assessments) is amended as follows. E+W

(2) In subsection (2), after “to which the” insert “ apprenticeship ”.

(3) In subsection (3), after “may” insert “ carry out evaluations or ”.

(4) After subsection (3) insert—

“(4) The Secretary of State may by regulations authorise the Institute (subject to any restrictions prescribed by the regulations) to charge fees for things done in connection with the carrying out by it of evaluations under subsection (1).”

Commencement Information

I70 Sch. 1 para. 14 in force at 16.8.2017 by S.I. 2017/844, reg. 2(b)(ii) (with reg. 3)

15 E+W After section A2D insert—

“Technical education qualifications E+W

A2DA Approved technical education qualifications

(1) The Institute may, if it considers it appropriate, approve a technical education qualification in respect of one or more occupations for which standards are published under section ZA11.

(2) The Institute may make any arrangements that it considers appropriate—

(a) to secure that suitable technical education qualifications are available for approval under this section, or

(b) in connection with the approval or continued approval of a technical education qualification.

(3) The Institute may approve a technical education qualification under this section only if satisfied that by obtaining the qualification a person demonstrates that he or she has attained as many of the outcomes set out in the standards as may reasonably be expected to be attained by undertaking a course of education.

(4) The Institute may approve a technical education qualification under this section only where the Institute—

(a) has determined the documents relating to the qualification to which it considers section A2IA should apply (if any), and

(b) is satisfied that each person (other than the Institute) who it thinks is entitled to a right or interest in any copyright in those documents agrees to the right or interest being transferred to the Institute (see section A2IA).

(5) If the Institute fails to comply with subsection (4)(b) then, unless it does so in the knowledge that a person does not agree as mentioned in that provision—

(a) the failure does not invalidate the approval of the qualification, but

(b) the Institute must pay such compensation (if any) as may be appropriate to any person whose right or interest is transferred to the Institute without the person's agreement.

(6) In making a determination under subsection (4)(a), the Institute may take into account the likelihood of any person agreeing as mentioned in subsection (4)(b).

(7) The Institute may revise its determination under subsection (4)(a) before approving the qualification.

(8) The Institute may withdraw approval given under this section.

(9) The Institute is not required to withdraw approval given under this section merely because a qualification is modified.

(10) Where a technical education qualification is approved under this section, the Institute must publish, with the information published under section ZA10(5) in relation to the occupations, information indicating that a technical education qualification has been approved in respect of them.

(11) Where approval of a technical education qualification is withdrawn under this section, the Institute must publish, with the information published under section ZA10(5) in relation to the occupations, information indicating that the approval of the qualification has been withdrawn.

(12) In this Chapter “technical education qualification” means a qualification that relates to one or more occupations.

(13) In this Chapter a technical education qualification that the Institute approves under this section is referred to as “an approved technical education qualification”.

A2DB Additional steps towards occupational competence

(1) Where there is an approved technical education qualification in respect of one or more occupations, the Institute may from time to time determine other steps that it considers it would be appropriate for a person to take in order to progress towards being a person who is competent to work in those occupations.

(2) Steps determined under this section may include the obtaining of other qualifications.

(3) The Institute may make a further determination under this section.

(4) The Institute must publish a statement of any steps it determines under this section.

(5) In this Chapter steps that the Institute determines under this section are referred to as “approved steps towards occupational competence”.

A2DC Directions

The Secretary of State may give the Institute a direction in connection with the exercise by the Institute of any function under or for the purposes of section A2DA or A2DB.”

Commencement Information

I71 Sch. 1 para. 15 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

16 E+W For the italic heading before section A2E substitute “ Other provision relating to approved English apprenticeships and technical education ”.

Commencement Information

I72 Sch. 1 para. 16 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

17 E+W In section A2E (regular reviews of published standards and assessment plans), in subsections (1) and (2) after “standard or” insert “ apprenticeship ”.

Commencement Information

I73 Sch. 1 para. 17 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

18 (1) Section A2F (revision or withdrawal of published standards and assessment plans) is amended as follows. E+W

(2) In subsection (1), in paragraphs (a) and (b), after “standard or” insert “ apprenticeship ”.

(3) For subsection (2) substitute—

“(2) Subsections (3) to (9) of section ZA11 apply in relation to a revised version of a standard published under this section as they do in relation to a standard published under that section.

(3) Subsections (6) to (12) of section A2 apply in relation to a revised version of an apprenticeship assessment plan published under this section as they do in relation to an apprenticeship assessment plan published under that section.”

Commencement Information

I74 Sch. 1 para. 18 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

19 E+W Omit the italic heading before section A2G.

Commencement Information

I75 Sch. 1 para. 19 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

20 E+W In section A2G—

(a) after “standard or”, in each place it occurs, insert “ apprenticeship ”;

(b) in subsection (1) (examinations by independent third parties), for “A2A(1)” substitute “ ZA11(3) or section A2(6) ”.

Commencement Information

I76 Sch. 1 para. 20 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

21 E+W After section A2H insert—

“A2HA List of technical education qualifications

(1) The Institute must maintain a list of approved technical education qualifications.

(2) The list must include information for the purpose of enabling people to refer, in relation to each qualification, to—

(a) the standards published under section ZA11 for the occupations in respect of which the qualification is approved, and

(b) any statement of steps published under section A2DB in relation to those occupations.

(3) The Institute must ensure that the list is available free of charge.”

Commencement Information

I77 Sch. 1 para. 21 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

22 (1) Section A2I (transfer of copyright in standards and assessment plans) is amended as follows. E+W

(2) In subsection (1), for paragraph (a) substitute—

“(a) a standard is approved by the Institute under section ZA11 or an apprenticeship assessment plan is approved by the Institute under section A2, and”.

(3) In subsection (3), after “standard or” insert “ apprenticeship ”.

Commencement Information

I78 Sch. 1 para. 22 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii) (with reg. 4)

23 E+W After section A2I insert—

“A2IA Transfer of copyright relating to technical education qualifications

(1) This section applies where a technical education qualification is approved under section A2DA.

(2) The right or interest in any copyright in a relevant course document is, by virtue of this section, transferred from the person to the Institute at the time the approval is given.

(3) The Institute may assign to another person, or grant a licence to another person in respect of, any right or interest transferred to the Institute by virtue of this section.

(4) In this section “relevant course document” means a document in relation to which the Institute has made a determination under section A2DA(4)(a).”

Commencement Information

I79 Sch. 1 para. 23 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

24 E+W After section A3 insert—

“A3A Power to issue technical education certificate

(1) The Secretary of State may issue a certificate (a “technical education certificate”) to a person if it appears to the Secretary of State that the person has—

(a) obtained an approved technical education qualification, and

(b) taken any other steps determined under section A2DB in relation to the occupations in respect of which the qualification is approved.

(2) The Secretary of State may by regulations make provision—

(a) requiring an application to be made in a prescribed manner before a certificate is issued;

(b) about the supply by the Secretary of State of copies of technical education certificates to persons to whom they were issued;

(c) authorising the Secretary of State (subject to any restrictions prescribed by the regulations) to charge a fee for issuing a technical education certificate or supplying a copy.”

Commencement Information

I80 Sch. 1 para. 24 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

25 E+W Part 1A (apprenticeships: information sharing) is amended as follows.

Commencement Information

I81 Sch. 1 para. 25 in force at 2.1.2018 by S.I. 2017/1055, reg. 3(b)(ii)

26 E+W In the Part heading, after “Apprenticeships” insert “ and other education and training ”.

Commencement Information

I82 Sch. 1 para. 26 in force at 2.1.2018 by S.I. 2017/1055, reg. 3(b)(ii)

27 E+W After section 40A insert—

“40AA Sharing of information by or with the Institute

(1) The Institute for Apprenticeships and Technical Education may disclose information to a relevant person for the purpose of a relevant function of that person.

(2) For disclosure of information by the Institute for the purposes of its own functions, see paragraph 10 of Schedule A1.

(3) A relevant person may disclose information to the Institute for the purpose of—

(a) a function of the Institute, or

(b) a relevant function of that person.

(4) In this section “relevant person” means—

(a) Ofqual,

(b) the OfS,

(c) Ofsted, or

(d) a prescribed person.

(5) In this section “relevant function” means—

(a) in relation to Ofqual, the OfS or Ofsted, a function of that body, so far as the function relates to England;

(b) in relation to a prescribed person, a prescribed function of that person, so far as the function relates to England.

(6) In this section—

• “Ofqual” means the Office of Qualifications and Examinations Regulation;

• “OfS” means the Office for Students;

• “Ofsted” means—

  (a)

  the Office for Standards in Education, Children's Services and Skills, and

  (b)

  Her Majesty's Chief Inspector of Education, Children's Services and Skills.

(7) Regulations under this section prescribing functions of a person may prescribe all of the person's functions.”

Commencement Information

I83 Sch. 1 para. 27 in force at 2.1.2018 by S.I. 2017/1055, reg. 3(b)(ii) (with reg. 4)

28 E+W In section 40D(3) (interpretation of Part 1A)—

(a) the words from “affects” to the end become paragraph (a);

(b) after that paragraph insert—

“(b) authorises the disclosure of any information in contravention of any provision made by or under any Act which prevents disclosure of the information.”

Commencement Information

I84 Sch. 1 para. 28 in force at 2.1.2018 by S.I. 2017/1055, reg. 3(b)(ii)

29 (1) Section 100 (funding) is amended as follows. E+W

(2) After subsection (1A) insert—

“(1B) The Secretary of State may secure the provision of financial resources to any person under this subsection (whether or not the resources could be secured under subsection (1)) in connection with approved technical education qualifications or approved steps towards occupational competence.”

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In subsection (5), for “this section” substitute “this section—

“approved steps towards occupational competence” has the meaning given by section A2DB;

“approved technical education qualification” has the meaning given by section A2DA;”.

Textual Amendments

F2 Sch. 1 para. 29(3) repealed (6.11.2018) by The Greater Manchester Combined Authority (Adult Education Functions) Order 2018 (S.I. 2018/1141), arts. 1(1), 7(6)

Commencement Information

I85 Sch. 1 para. 29 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

30 E+W In section 121(1) (interpretation of Part 1), at the appropriate places insert—

““technical education qualification” has the meaning given by section A2DA;”;

““approved steps towards occupational competence” has the meaning given by section A2DB;”;

““approved technical education qualification” has the meaning given by section A2DA;”.

Commencement Information

I86 Sch. 1 para. 30 in force at 31.1.2019 by S.I. 2019/61, reg. 2(b)

31 E+W In section 262(6) (orders and regulations subject to affirmative procedure), after paragraph (aa) insert—

“(aza) regulations under section 40AA;”.

Commencement Information

I87 Sch. 1 para. 31 in force at 2.1.2018 by S.I. 2017/1055, reg. 3(b)(ii)

32 (1) Schedule A1 (the Institute) is amended as follows. E+W

(2) In paragraph 9(2) (delegation) for “A2A and A2E to A2I” substitute “ ZA10, ZA11, A2DA, A2DB and A2E to A2IA ”.

(3) In paragraph 10 (supplementary powers of the Institute)—

(a) after sub-paragraph (c) insert—

“(ca) use, in the exercise of any of its functions, information obtained by it in the exercise of any of its other functions;”

(b) in sub-paragraph (2) for “power in sub-paragraph (1)(d) is” substitute “ powers in sub-paragraph (1) are ”.

Commencement Information

I88 Sch. 1 para. 32 in force at 8.11.2017 for specified purposes by S.I. 2017/1055, reg. 2(b)(iv) (with reg. 4)

I89 Sch. 1 para. 32 in force at 31.1.2019 in so far as not already in force by S.I. 2019/61, reg. 2(b)

33 (1) This paragraph applies to a standard published by the Institute under section A2 of the Apprenticeships, Skills, Children and Learning Act 2009 before the day on which paragraph 11 of this Schedule comes into force. E+W

(2) A standard referred to in sub-paragraph (1) is to be treated on and after that day as having been approved and published by the Institute under section ZA11 of that Act (as inserted by paragraph 7 of this Schedule).

Commencement Information

I90 Sch. 1 para. 33 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

34 (1) This paragraph applies to an assessment plan published by the Institute under section A2 of the Apprenticeships, Skills, Children and Learning Act 2009 before the day on which paragraph 11 of this Schedule comes into force. E+W

(2) An assessment plan referred to in sub-paragraph (1) is to be treated on and after that day as an apprenticeship assessment plan that was approved and published by the Institute under that section as amended by that paragraph.

Commencement Information

I91 Sch. 1 para. 34 in force at 8.11.2017 by S.I. 2017/1055, reg. 2(b)(iii)

35 (1) The Secretary of State may by regulations provide for anything done by the Secretary of State before the commencement day to be treated, on and after that day, as done by the Institute under a provision of the Apprenticeships, Skills, Children and Learning Act 2009 as amended by this Act. E+W

(2) Regulations under this paragraph are subject to the negative resolution procedure.

(3) The regulations may provide for that Act (as so amended) to have effect with specified modifications in relation to the thing treated as done by the Institute (for example, if the regulations provide for a group of persons convened by the Secretary of State to be treated as convened by the Institute under section ZA11(6), the regulations may disapply the conditions in section ZA11(6)(a) and (b) in relation to the convening of that group).

(4) In this paragraph “the commencement day” means the day on which section 1 and Schedule 1 come fully into force.

Section 25

SCHEDULE 2 E+W Education administration: transfer schemes

Power to make a transfer scheme E+W

1 E+W The education administrator of a further education body may make a scheme for the transfer of property, rights and liabilities (a “transfer scheme”) from the further education body (“the transferor”) to one or more persons or bodies prescribed for the purposes of section 27B(1) or 33P(1) of the Further and Higher Education Act 1992 (“the transferee”).

Commencement Information

I92 Sch. 2 para. 1 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

2 E+W A transfer scheme takes effect at the time specified in the scheme.

Commencement Information

I93 Sch. 2 para. 2 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

Procedural requirements: consent and approval E+W

3 E+W The education administrator may make a transfer scheme only if—

(a) the transferee consents, and

(b) the appropriate national authority has approved the scheme.

Commencement Information

I94 Sch. 2 para. 3 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

4 E+W The appropriate national authority may modify a transfer scheme before approving it but only with the consent of the education administrator and the transferee.

Commencement Information

I95 Sch. 2 para. 4 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

Modifying a scheme after it takes effect E+W

5 (1) The appropriate national authority may modify a transfer scheme after it takes effect by giving notice to the transferor and the transferee. E+W

(2) The appropriate national authority may modify a scheme under sub-paragraph (1) only with the consent of the transferor and the transferee.

(3) A scheme modified under sub-paragraph (1) is to be treated for all purposes as having come into force at the time specified under paragraph 2.

Commencement Information

I96 Sch. 2 para. 5 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

Property, rights and liabilities that may be transferred E+W

6 E+W A transfer scheme may transfer—

(a) property, rights and liabilities that could not otherwise be transferred;

(b) property acquired, and rights and liabilities arising, after the making of the scheme.

Commencement Information

I97 Sch. 2 para. 6 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

[F3 6A (1) A transfer scheme may not transfer property which is subject to a security (other than a floating charge) free of that security except— E+W

(a) in accordance with an order of the court under paragraph 71 of Schedule B1 to the Insolvency Act 1986 as applied by Schedule 3 or 4, or

(b) where—

(i) an amount is attributed to the transfer of the property in the transfer scheme,

(ii) the secured creditor agrees with that amount, and

(iii) the secured creditor is paid that amount.

(2) In sub-paragraph (1), “floating charge” means a charge which is a floating charge on its creation.]

Textual Amendments

F3 Sch. 2 para. 6A inserted (28.6.2022) by Skills and Post-16 Education Act 2022 (c. 21), ss. 25(2), 36(2)

7 (1) A transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular— E+W

(a) create rights, or impose liabilities, in relation to property or rights transferred;

(b) make provision about the continuing effect of things done by the transferor in respect of anything transferred;

(c) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the transferor in respect of anything transferred;

(d) make provision for references to the transferor in an instrument or other document in respect of anything transferred to be treated as references to the transferee;

(e) make provision for the shared ownership or use of property;

(f) if the TUPE regulations do not apply in relation to the transfer, make provision which is the same or similar.

(2) In sub-paragraph (1)(f) “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246).

(3) A transfer scheme may modify the interests, rights or liabilities of third parties in relation to anything to which the scheme relates.

(4) The reference here to third parties is to persons other than the transferor and transferee.

Commencement Information

I98 Sch. 2 para. 7 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

Proof of title by certificate E+W

8 E+W A certificate by the appropriate national authority that anything specified in the certificate has vested in a person by virtue of a transfer scheme is conclusive evidence for all purposes of that fact.

Commencement Information

I99 Sch. 2 para. 8 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

Interpretation E+W

9 E+W In this Schedule—

(a) references to rights and liabilities include rights and liabilities relating to a contract of employment;

(b) references to the transfer of property include the grant of a lease.

Commencement Information

I100 Sch. 2 para. 9 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(b)

Section 26

SCHEDULE 3 E+W Conduct of education administration: statutory corporations

Introductory E+W

1 (1) The provisions of the Insolvency Act 1986 mentioned in sub-paragraph (2) apply in relation to the education administration of a further education body that is a statutory corporation as they apply in relation to a company administration, but with the modifications set out in this Schedule. E+W

(2) The provisions are—

(a) sections 233 to 237 (management by administrators, liquidators etc);

(b) sections 238 to 241 (transactions at an undervalue and preferences);

(c) section 244 (extortionate credit bargains);

(d) section 246 (unenforceability of liens on books, etc);

(e) section 246ZA to 246ZC (fraudulent and wrongful trading);

(f) section 246ZD (power to assign certain causes of action);

(g) section 246B (use of websites);

(h) section 246C (creditors' ability to opt out of receiving certain notices);

(i) sections 247, 248(b), 249 and 251 (interpretation);

(j) the applicable provisions of Schedule B1 (conduct of administration).

(3) The applicable provisions of Schedule B1 are—

(a) paragraphs 1, 40 to 49, 54, 59, 60, 61 to 68, 71 to 75, 79, 83 to 91, 98 to 104, 106 and 107 and 109 to 111, and

(b) paragraph 50 (until the repeal of that paragraph by Schedule 10 to the Small Business, Enterprise and Employment Act 2015 comes into force).

Commencement Information

I101 Sch. 3 para. 1 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

General modifications E+W

2 E+W The provisions of the Insolvency Act 1986 applied by paragraph 1 are to have effect as if for any term specified in column 1 of the table there were substituted the term specified in column 2.

Term	Modification
company	further education body
administration application	education administration application
administration order	education administration order
administrator	education administrator
director	(a) member of the further education body, (b) principal of the relevant institution, or (c) if the context requires, both of the above.
enters administration	enters education administration
in administration	in education administration
officer (in relation to a company)	(a) a member of the further education body, (b) the clerk to the further education body, (c) the chief executive of the relevant institution, (d) any senior post holder or principal of the relevant institution, or (e) if the context requires, all of the above.
purpose of administration	objective of the education administration
the rules	the education administration rules

Commencement Information

I102 Sch. 3 para. 2 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

Specific modifications to Schedule B1 to the Insolvency Act 1986 E+W

3 E+W Paragraphs 4 to 37 set out modifications to the applicable provisions of Schedule B1 to the Insolvency Act 1986 as applied by paragraph 1 above.

Commencement Information

I103 Sch. 3 para. 3 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

4 E+W Paragraph 1 (administration) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) In this Schedule “education administrator”, in relation to a further education body, means a person appointed by the court for the purposes of an education administration order to manage its affairs, business and property.”, and

(b) in sub-paragraph (2), for “Act” there were substituted “ Schedule ”.

Commencement Information

I104 Sch. 3 para. 4 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

5 E+W Paragraph 40 (dismissal of pending winding-up petition) is to have effect as if sub-paragraphs (1)(b), (2) and (3) were omitted.

Commencement Information

I105 Sch. 3 para. 5 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

6 E+W Paragraph 41 (dismissal of administrative or other receiver) is to have effect as if—

(a) sub-paragraph (1) were omitted;

(b) in sub-paragraph (3), “administrative receiver or” and “(1) or” were omitted;

(c) in sub-paragraph (4)(a) and (b), “administrative receiver or” were omitted.

Commencement Information

I106 Sch. 3 para. 6 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

7 E+W Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if sub-paragraphs (4) and (5) were omitted.

Commencement Information

I107 Sch. 3 para. 7 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

8 E+W Paragraph 43 (moratorium on other legal process) is to have effect as if sub-paragraphs (5) and (6A) were omitted.

Commencement Information

I108 Sch. 3 para. 8 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

9 E+W Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2) to (4), (6) and (7) were omitted.

Commencement Information

I109 Sch. 3 para. 9 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

10 E+W Paragraph 45(2) (publicity) is to have effect as if for paragraph (b) there were substituted—

“(b) a member of the further education body,

(ba) the clerk to the further education body,

(bb) the chief executive of the relevant institution,

(bc) any senior post holder or principal of the relevant institution, and”.

Commencement Information

I110 Sch. 3 para. 10 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

11 E+W Paragraph 46(6) (date for notifying administrator's appointment) is to have effect as if for paragraphs (a) to (c) there were substituted “ the date on which the education administration order comes into force ”.

Commencement Information

I111 Sch. 3 para. 11 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

12 E+W Paragraph 47 (statement of affairs) is to have effect as if—

(a) for sub-paragraph (3)(a) there were substituted—

“(a) a person who is or has been a member of the further education body,

(aa) a person who is or has been the clerk to the further education body,

(ab) a person who is or has been chief executive of the relevant institution,

(ac) a person who is or has been a senior post holder or principal of the relevant institution, and”,

(b) in sub-paragraph (3), paragraph (d) were omitted, and

(c) sub-paragraph (5) were omitted.

Commencement Information

I112 Sch. 3 para. 12 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

13 E+W Paragraph 49 (administrator's proposals) is to have effect as if—

(a) sub-paragraphs (2)(b) and (3) were omitted,

(b) in sub-paragraph (4), after paragraph (a) there were inserted—

“(aa) to the appropriate national authority,

(ab) to the director of children's services at the local authority [F4 , combined authority or combined county authority] in whose area the relevant institution is based, and to any other director of children's services that the education administrator thinks appropriate,”, and

(c) sub-paragraphs (5)(b) and (6) were omitted.

Textual Amendments

F4 Words in Sch. 3 para. 13(b) substituted (26.12.2023) by Levelling-up and Regeneration Act 2023 (c. 55), s. 255(2)(c), Sch. 4 para. 210(a) (with s. 247)

Commencement Information

I113 Sch. 3 para. 13 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

14 E+W Paragraph 54 is to have effect as if the following were substituted for it—

“54 (1) The education administrator of a further education body may on one or more occasions revise the proposals included in the statement made under paragraph 49 in relation to the body.

(2) If the education administrator thinks that a revision is substantial, the education administrator must send a copy of the revised proposals—

(a) to the registrar of companies,

(b) to the appropriate national authority,

(c) to any director of children's services to whom the statement of proposals was sent under paragraph 49,

(d) to every creditor of the further education body, other than an opted-out creditor, of whose claim and address the education administrator is aware, and

(e) to every member of the further education body of whose address the education administrator is aware.

(3) A copy sent in accordance with sub-paragraph (2) must be sent within the prescribed period.

(4) An education administrator who fails without reasonable excuse to comply with this paragraph commits an offence.”

Commencement Information

I114 Sch. 3 para. 14 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

15 E+W Paragraph 60 is to have effect as if the following were substituted for it—

“60 (1) The education administrator of a further education body has the powers specified in Schedule 1 to this Act (reading references in that Schedule to the company as references to the further education body).

(2) The education administrator of a further education body has the power to act on behalf of the further education body for the purposes of provision contained in any legislation which confers a power on the further education body or imposes a duty on it.

(3) In sub-paragraph (2) “legislation” means provision made by or under any Act.”

Commencement Information

I115 Sch. 3 para. 15 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

16 E+W Paragraph 61 is to have effect as if the following were substituted for it—

“61 The education administrator—

(a) may appoint or remove the clerk to the further education body,

(b) may appoint or remove the chief executive of the relevant institution, and

(c) may appoint or remove the principal of the relevant institution.”

Commencement Information

I116 Sch. 3 para. 16 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

17 E+W Paragraph 64 (management powers may not be exercised without consent of the administrator) is to have effect as if in sub-paragraph (1) for “an officer of a company in administration” there were substituted “ the clerk to the further education body or chief executive of the relevant institution ”.

Commencement Information

I117 Sch. 3 para. 17 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

18 E+W Paragraph 68 (management duties of an administrator) is to have effect as if—

(a) in sub-paragraph (1), for paragraphs (a) to (c) there were substituted “the proposals as—

“(a) set out in the statement made under paragraph 49 in relation to the further education body, and

(b) from time to time revised under paragraph 54,

for achieving the objective of the education administration. ”, and

(b) in sub-paragraph (3), for paragraphs (a) to (d) there were substituted “ the directions are consistent with the achievement of the objective of the education administration ”.

Commencement Information

I118 Sch. 3 para. 18 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

19 E+W Paragraph 71 (charged property: non-floating charge), is to have effect as if, in [F5 sub-paragraph (1)—

(a) after “dispose” there were inserted “(whether by way of a transfer scheme under Schedule 2 to the Technical and Further Education Act 2017 or otherwise)”, and]

[F6 (b)] the words “(other than a floating charge)” were omitted.

Textual Amendments

F5 Sch. 3 para. 19(a) and words substituted for words in Sch. 3 para. 19 (28.6.2022) by Skills and Post-16 Education Act 2022 (c. 21), ss. 25(3)(a), 36(2)

F6 Words in Sch. 3 para. 19 renumbered as Sch. 3 para. 19(b) (28.6.2022) by Skills and Post-16 Education Act 2022 (c. 21), ss. 25(3)(b), 36(2)

Commencement Information

I119 Sch. 3 para. 19 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

20 E+W Paragraph 73 (protection for secured or preferential creditor) is to have effect as if—

(a) in sub-paragraph (2), paragraphs (c) and (d) were omitted, and

(b) in sub-paragraph (3), for “or modified” there were substituted “ under paragraph 54 ”.

Commencement Information

I120 Sch. 3 para. 20 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

21 E+W Paragraph 74 (challenge to administrator's conduct) is to have effect as if—

(a) sub-paragraph (1) were omitted,

(b) for sub-paragraph (2) there were substituted—

“(2) Where a further education body is in education administration the appropriate national authority or a creditor may apply to the court claiming that the education administrator is not carrying out his or her functions in accordance with section 24(2) or (4) of the Technical and Further Education Act 2017 (general functions of education administrator).”,

(c) in sub-paragraph (6), paragraphs (b) to (c) were omitted, and

(d) after that sub-paragraph there were inserted—

“(7) In the case of a claim made by a creditor, the court may grant a remedy or relief or make an order under this paragraph only if it has given the appropriate national authority a reasonable opportunity of making representations about the claim and the proposed remedy, relief or order.

(8) Before the making of an order of the kind mentioned in sub-paragraph (4)(d)—

(a) the court must notify the education administrator of the proposed order and of a period during which the education administrator is to have the opportunity of taking steps falling within sub-paragraph (9), and

(b) the period notified must have expired without the taking of such of those steps as the court thinks should have been taken,

and that period must be a reasonable period.

(9) The steps referred to in sub-paragraph (8) are steps for—

(a) remedying the failure to carry out functions in accordance with section 24(2) or (4) of the Technical and Further Education Act 2017, and

(b) ensuring that the failure is not repeated.”

Commencement Information

I121 Sch. 3 para. 21 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

22 E+W Paragraph 75(2) (misfeasance) is to have effect as if—

(a) after paragraph (b) there were inserted—

“(ba) a person appointed as an administrator of the further education body under the provisions of this Act as they have effect in relation to administrators other than education administrators,”,

(b) at the end of paragraph (c) there were inserted “or”, and

(c) paragraph (e) (and the “or” before it) were omitted.

Commencement Information

I122 Sch. 3 para. 22 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

23 E+W Paragraph 79 (end of administration) is to have effect as if—

(a) for sub-paragraphs (1) and (2) there were substituted—

“(1) On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of an education administrator of a further education body to cease to have effect from a specified time.

(2) An application may be made to the court under this paragraph—

(a) by the appropriate national authority, or

(b) with the consent of the appropriate national authority, by the education administrator.”, and

(b) sub-paragraph (3) were omitted.

Commencement Information

I123 Sch. 3 para. 23 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

24 E+W Paragraph 83 (notice to registrar when moving to voluntary liquidation) is to have effect as if—

(a) sub-paragraph (2) were omitted, and

(b) in sub-paragraph (3) after “may” there were inserted “ , with the consent of the appropriate national authority, ”.

Commencement Information

I124 Sch. 3 para. 24 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

25 E+W Paragraph 84 (notice to registrar when moving to dissolution) is to have effect as if—

(a) in sub-paragraph (1), for “to the registrar of companies” there were substituted—

“(a) to the appropriate national authority, and

(b) if directed to do so by the appropriate national authority, to the registrar of companies”,

(b) sub-paragraph (2) were omitted, and

(c) in sub-paragraphs (3) to (6), for “(1)”, in each place, there were substituted “ (1)(b) ”.

Commencement Information

I125 Sch. 3 para. 25 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

26 E+W Paragraph 87(2) (resignation of administrator) is to have effect as if for paragraphs (a) to (d) there were substituted “ by notice in writing to the court ”.

Commencement Information

I126 Sch. 3 para. 26 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

27 E+W Paragraph 89(2) (administrator ceasing to be qualified) is to have effect as if for paragraphs (a) to (d) there were substituted “ to the court ”.

Commencement Information

I127 Sch. 3 para. 27 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

28 E+W Paragraph 90 (filling vacancy in office of administrator) is to have effect as if for “Paragraphs 91 to 95 apply” there were substituted “ Paragraph 91 applies ”.

Commencement Information

I128 Sch. 3 para. 28 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

29 E+W Paragraph 91 (vacancies in court appointments) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) The court may replace the education administrator on an application made—

(a) by the appropriate national authority, or

(b) where more than one person was appointed to act jointly as the education administrator, by any of those persons who remains in office.”, and

(b) sub-paragraph (2) were omitted.

Commencement Information

I129 Sch. 3 para. 29 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

30 E+W Paragraph 98 (discharge from liability on vacation of office) is to have effect as if sub-paragraphs (2)(b) and (ba), (3) and (3A) were omitted.

Commencement Information

I130 Sch. 3 para. 30 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

31 E+W Paragraph 99 (charges and liabilities upon vacation of office by administrator) is to have effect as if—

(a) in sub-paragraph (3), paragraph (b) were omitted, and

(b) after sub-paragraph (6) there were inserted—

“(7) Where a loan is made under section 27 of the Technical and Further Education Act 2017 before cessation, sub-paragraph (4) does not apply in relation to the loan or interest on it and—

(a) if the terms of the loan provide for this paragraph to apply, any sum that must be paid by the further education body in respect of the loan or interest shall be—

(i) charged on and payable out of property of which the education administrator had custody or control immediately before cessation, and

(ii) payable in priority to any charge arising under sub-paragraph (3);

(b) if the terms of the loan provide for this paragraph to apply, any sum that must be paid by the further education body in respect of the loan or interest shall be treated as an unsecured debt that is not a preferential debt;

(c) if the terms of the loan provide for this paragraph to apply, any sum that must be paid by the further education body in respect of the loan or interest shall be payable after all other creditors have been paid in full.”

Commencement Information

I131 Sch. 3 para. 31 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

32 E+W Paragraph 100 (joint and concurrent administrators) is to have effect as if sub-paragraph (2) were omitted.

Commencement Information

I132 Sch. 3 para. 32 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

33 E+W Paragraph 101(3) (joint administrators) is to have effect as if after “87 to” there were inserted “ 91, 98 and ”.

Commencement Information

I133 Sch. 3 para. 33 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

34 E+W Paragraph 103 (appointment of additional administrators) is to have effect as if—

(a) in sub-paragraph (2) the words from the beginning to “order” were omitted,

(b) in sub-paragraph (2), for paragraph (a) there were substituted—

“(a) the appropriate national authority, or”, and

(c) sub-paragraphs (3) to (5) were omitted.

Commencement Information

I134 Sch. 3 para. 34 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

35 E+W Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g), (i) and (l) to (n) were omitted.

Commencement Information

I135 Sch. 3 para. 35 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

36 E+W Paragraph 109 (references to extended periods) is to have effect as if “or 108” were omitted.

Commencement Information

I136 Sch. 3 para. 36 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

37 E+W Paragraph 111 (interpretation) is to have effect as if the following were substituted for it—

“111 (1) In this Schedule—

• “education administrator” includes a reference to a former education administrator, where the context requires;

• “enters education administration” has the meaning given by paragraph 1;

• “hire-purchase agreement” includes a conditional sale agreement, a chattel leasing agreement and a retention of title agreement;

• “in education administration” has the meaning given by paragraph 1;

• “market value” means the amount which would be realised on a sale of property in the open market by a willing vendor.

(2) For the purposes of this Schedule a reference to an education administration order includes a reference to an appointment under paragraph 91 or 103.

(3) In this Schedule a reference to a provision of this Act other than this Schedule is to the provision as it applies to a further education body by virtue of section 6 of the Technical and Further Education Act 2017.

(4) In this Schedule a reference to action includes a reference to inaction.”

Commencement Information

I137 Sch. 3 para. 37 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

Specific modifications to section 251 of the Insolvency Act 1986 E+W

38 E+W Section 251 of the Insolvency Act 1986 (definitions) as applied by paragraph 1 above is to have effect as if—

(a) for the definition of “prescribed” there were substituted—

““prescribed” means prescribed by rules made under section 411 of the Insolvency Act 1986 as a result of section 32 of the Technical and Further Education Act 2017;”,

(b) the definitions of “officer” and “the rules” were omitted, and

(c) at the appropriate places, there were inserted—

““appropriate national authority”—

(a) in relation to a further education body in England, means the Secretary of State;

(b) in relation to a further education body in Wales, means the Welsh Ministers;”,

““combined authority” means an authority established under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009;

[F7 ““combined county authority” means an authority established under section 9(1) of the Levelling-up and Regeneration Act 2023;”,”],

““director of children's services” means—

(a) in respect of a local authority, a person appointed under section 18 of the Children Act 2004;

(b) in respect of a combined authority [F8 or a combined county authority], a person appointed to discharge functions corresponding to those of a person appointed under section 18 of the Children Act 2004;”,

““education administration application” has the meaning given by section 18 of the Technical and Further Education Act 2017;”,

““education administration order” has the meaning given by section 17 of the Technical and Further Education Act 2017;”,

““education administration rules” has the meaning given by section 35 of the Technical and Further Education Act 2017;”,

““education administrator” has the meaning given by section 35 of the Technical and Further Education Act 2017;”,

““further education body” has the meaning given by section 4 of the Technical and Further Education Act 2017;”,

““further education body in England” has the meaning given by section 4 of the Technical and Further Education Act 2017;”,

““further education body in Wales” has the meaning given by section 4 of the Technical and Further Education Act 2017;”,

““local authority” has the meaning given in section 65 of the Children Act 2004;”,

““the principal”, in relation to a relevant institution, means a principal appointed under the further education body's instrument of government;”,

““objective”, in relation to an education administration, is to be read in accordance with section 16 of the Technical and Further Education Act 2017;”,

““the relevant institution”—

(a) in relation to a further education corporation, means the institution which the corporation is established to conduct, and

(b) in relation to a sixth form college corporation, means the relevant sixth form college as defined by section 90(1) of the Further and Higher Education Act 1992;”,

““senior post holder”, in relation to a relevant institution, means a person appointed as a senior post holder by the further education body;”.”.

Textual Amendments

F7 Words in Sch. 3 para. 38(c) inserted (26.12.2023) by Levelling-up and Regeneration Act 2023 (c. 55), s. 255(2)(c), Sch. 4 para. 210(b)(i) (with s. 247)

F8 Words in Sch. 3 para. 38(c) inserted (26.12.2023) by Levelling-up and Regeneration Act 2023 (c. 55), s. 255(2)(c), Sch. 4 para. 210(b)(ii) (with s. 247)

Commencement Information

I138 Sch. 3 para. 38 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

Power to add modifications E+W

39 (1) The Secretary of State may by regulations— E+W

(a) amend paragraph 1(3)(a) so as to add further provisions to the list of applicable provisions in Schedule B1 to the Insolvency Act 1986;

(b) amend this Schedule so as to add further modifications to that Schedule.

(2) Regulations under this paragraph are subject to the affirmative resolution procedure.

Commencement Information

I139 Sch. 3 para. 39 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(c)

Section 26

SCHEDULE 4 E+W Conduct of education administration: companies

Introductory E+W

1 (1) The provisions of the Insolvency Act 1986 mentioned in sub-paragraph (2) apply in relation to an education administration of a further education body that is a company as they apply in relation to administration under that Act, but with the modifications set out in this Schedule. E+W

(2) The provisions are—

(a) sections 233 to 237 (management by administrators, liquidators etc);

(b) sections 238 to 241 (transactions at an undervalue and preferences);

(c) section 244 (extortionate credit bargains);

(d) section 246 (unenforceability of liens on books, etc);

(e) section 246ZA to 246ZC (fraudulent and wrongful trading);

(f) section 246ZD (power to assign certain causes of action);

(g) section 246B (use of websites);

(h) section 246C (creditors' ability to opt out of receiving certain notices);

(i) sections 247, 248(b), 249 and 251 (interpretation);

(j) the applicable provisions of Schedule B1 (conduct of administration).

(3) The applicable provisions of Schedule B1 are—

(a) paragraphs 1, 40 to 49, 54, 59, 60, 61 to 68, 70 to 75, 79, 83 to 91, 98 to 104, 106 and 107 and 109 to 111, and

(b) paragraph 50 (until the repeal of that paragraph by Schedule 10 to the Small Business, Enterprise and Employment Act 2015 comes into force).

Commencement Information

I140 Sch. 4 para. 1 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

General modifications E+W

2 E+W The provisions of the Insolvency Act 1986 applied by paragraph 1 are to have effect as if for any term specified in column 1 of the table there were substituted the term specified in column 2.

Term	Modification
administration application	education administration application
administration order	education administration order
administrator	education administrator
enters administration	enters education administration
in administration	in education administration
purpose of administration	objective of the education administration
the rules	the education administration rules

Commencement Information

I141 Sch. 4 para. 2 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

Specific modifications to Schedule B1 to the Insolvency Act 1986 E+W

3 E+W Paragraphs 4 to 35 set out modifications to the applicable provisions of Schedule B1 to the Insolvency Act 1986 as applied by paragraph 1 above.

Commencement Information

I142 Sch. 4 para. 3 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

4 E+W Paragraph 1 (administration) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) In this Schedule “education administrator”, in relation to a company, means a person appointed by the court for the purposes of an education administration order to manage its affairs, business and property.”, and

(b) in sub-paragraph (2), for “Act” there were substituted “ Schedule ”.

Commencement Information

I143 Sch. 4 para. 4 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

5 E+W Paragraph 40 (dismissal of pending winding-up petition) is to have effect as if sub-paragraphs (1)(b), (2) and (3) were omitted.

Commencement Information

I144 Sch. 4 para. 5 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

6 E+W Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if sub-paragraphs (4) and (5) were omitted.

Commencement Information

I145 Sch. 4 para. 6 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

7 E+W Paragraph 43 (moratorium on other legal process) is to have effect as if sub-paragraphs (5) and (6A) were omitted.

Commencement Information

I146 Sch. 4 para. 7 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

8 E+W Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2) to (4), (6) and (7)(a) to (c) were omitted.

Commencement Information

I147 Sch. 4 para. 8 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

9 E+W Paragraph 45(2) (publicity) is to have effect as if after paragraph (b) there were inserted—

“(ba) a member of the governing body of the relevant institution,

(bb) any senior post holder or principal of the relevant institution,”.

Commencement Information

I148 Sch. 4 para. 9 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

10 E+W Paragraph 46(6) (date for notifying administrator's appointment) is to have effect as if for paragraphs (a) to (c) there were substituted “ the date on which the education administration order comes into force ”.

Commencement Information

I149 Sch. 4 para. 10 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

11 E+W Paragraph 47 (statement of affairs) is to have effect as if—

(a) in sub-paragraph (3), after paragraph (a) there were inserted—

“(aa) a member of the governing body of the relevant institution,

(ab) any senior post holder or principal of the relevant institution, and”, and

(b) sub-paragraph (5) were omitted.

Commencement Information

I150 Sch. 4 para. 11 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

12 E+W Paragraph 49 (administrator's proposals) is to have effect as if—

(a) sub-paragraphs (2)(b) and, (3) were omitted,

(b) in sub-paragraph (4), after paragraph (a) there were inserted—

“(aa) to the appropriate national authority,

(ab) to the director of children's services at the local authority [F9 , combined authority or combined county authority] in whose area the relevant institution is based, and to any other director of children's services that the education administrator thinks appropriate,”, and

(c) sub-paragraph (5)(b) and (6) were omitted.

Textual Amendments

F9 Words in Sch. 4 para. 12(b) substituted (26.12.2023) by Levelling-up and Regeneration Act 2023 (c. 55), s. 255(2)(c), Sch. 4 para. 211(a) (with s. 247)

Commencement Information

I151 Sch. 4 para. 12 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

13 E+W Paragraph 54 is to have effect as if the following were substituted for it—

“54 (1) The education administrator of a company may on one or more occasions revise the proposals included in the statement made under paragraph 49 in relation to the company.

(2) If the education administrator thinks that a revision is substantial, the education administrator must send a copy of the revised proposals—

(a) to the registrar of companies,

(b) to the appropriate national authority,

(c) to any director of children's services to whom the statement of proposals was sent under paragraph 49,

(d) to every creditor of the company, other than an opted-out creditor, of whose claim and address the education administrator is aware, and

(e) to every member of the company of whose address the education administrator is aware.

(3) A copy sent in accordance with sub-paragraph (2) must be sent within the prescribed period.

(4) The education administrator is to be taken to have complied with sub-paragraph (2)(d) if the education administrator publishes, in the prescribed manner, a notice undertaking to provide a copy of the revised proposals free of charge to any member of the company who applies in writing to a specified address.

(5) An education administrator who fails without reasonable excuse to comply with this paragraph commits an offence.”

Commencement Information

I152 Sch. 4 para. 13 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

14 E+W Paragraph 60 (powers of an administrator) is to have effect as if the following were substituted for it—

“60 (1) The education administrator of a company has the powers specified in Schedule 1 to this Act.

(2) The education administrator of a company has the power to act on behalf of the company for the purposes of provision contained in any legislation which confers a power on the company or imposes a duty on it.

(3) In sub-paragraph (2) “legislation” means provision made by or under any Act.”

Commencement Information

I153 Sch. 4 para. 14 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

15 E+W Paragraph 61 is to have effect as if the following were substituted for it—

“61 The education administrator—

(a) may appoint or remove a director of the company,

(b) may appoint or remove a member of the governing body of the relevant institution,

(c) may appoint or remove the chief executive of the relevant institution, and

(d) may appoint or remove the principal of the relevant institution.”

Commencement Information

I154 Sch. 4 para. 15 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

16 E+W Paragraph 64 (management powers may not be exercised without consent of the administrator) is to have effect as if in sub-subparagraph (1) after “an officer of a company in administration” there were inserted “ or the chief executive of the relevant institution ”.

Commencement Information

I155 Sch. 4 para. 16 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

17 E+W Paragraph 68 (management duties of an administrator) is to have effect as if—

(a) in sub-paragraph (1), for paragraphs (a) to (c) there were substituted “the proposals as—

“(a) set out in the statement made under paragraph 49 in relation to the company, and

(b) from time to time revised under paragraph 54,

for achieving the objective of the education administration. ”, and

(b) in sub-paragraph (3), for paragraphs (a) to (d) there were substituted “ the directions are consistent with the achievement of the objective of the education administration ”.

Commencement Information

I156 Sch. 4 para. 17 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

[F10 17A E+W Paragraph 71 is to have effect as if in sub-paragraph (1), after “dispose” there were inserted “(whether by way of a transfer scheme under Schedule 2 to the Technical and Further Education Act 2017 or otherwise)”.]

Textual Amendments

F10 Sch. 4 para. 17A inserted (28.6.2022) by Skills and Post-16 Education Act 2022 (c. 21), ss. 25(4), 36(2)

18 E+W Paragraph 73 (protection for secured or preferential creditor) is to have effect as if in sub-paragraph (3) for “or modified” there were substituted “ under paragraph 54 ”.

Commencement Information

I157 Sch. 4 para. 18 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

19 E+W Paragraph 74 (challenge to administrator's conduct) is to have effect as if—

(a) for sub-paragraph (2) there were substituted—

“(2) Where a company is in education administration, the appropriate national authority, a creditor or member may apply to the court claiming that the education administrator is not carrying out his or her functions in accordance with section 24(2) or (5) of the Technical and Further Education Act 2017 (general functions of education administrator).”,

(b) sub-paragraph (6)—

(i) at the end of paragraph (b) there were inserted “or”, and

(ii) paragraph (c) (and the “or” before it) were omitted, and

(c) after that sub-paragraph there were inserted—

“(7) In the case of a claim made by a creditor or member, the court may grant a remedy or relief or make an order under this paragraph only if it has given the appropriate national authority a reasonable opportunity of making representations about the claim and the proposed remedy, relief or order.

(8) Before the making of an order of the kind mentioned in sub-paragraph (4)(d)—

(a) the court must notify the education administrator of the proposed order and of a period during which the education administrator is to have the opportunity of taking steps falling within sub-paragraph (9), and

(b) the period notified must have expired without the taking of such of those steps as the court thinks should have been taken,

and that period must be a reasonable period.

(9) The steps referred to in sub-paragraph (8) are—

(a) remedying the failure to carry out functions in accordance with section 24(2) or (5) of the Technical and Further Education Act 2017, and

(b) ensuring that the failure is not repeated.”

Commencement Information

I158 Sch. 4 para. 19 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

20 E+W Paragraph 75(2) (misfeasance) is to have effect as if after paragraph (b) there were inserted—

“(ba) a person appointed as an administrator of the company under the provisions of this Act as they have effect in relation to administrators other than education administrators,”.

Commencement Information

I159 Sch. 4 para. 20 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

21 E+W Paragraph 79 (end of administration) is to have effect as if—

(a) for sub-paragraphs (1) and (2) there were substituted—

“(1) On an application made by a person mentioned in sub-paragraph (2), the court may provide for the appointment of an education administrator of a company to cease to have effect from a specified time.

(2) An application may be made to the court under this paragraph—

(a) by the appropriate national authority, or

(b) with the consent of the appropriate national authority, by the education administrator.”, and

(b) sub-paragraph (3) were omitted.

Commencement Information

I160 Sch. 4 para. 21 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

22 E+W Paragraph 83 (notice to registrar when moving to voluntary liquidation) is to have effect as if—

(a) sub-paragraph (2) were omitted, and

(b) in sub-paragraph (3) after “may” there were inserted “ , with the consent of the appropriate national authority, ”.

Commencement Information

I161 Sch. 4 para. 22 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

23 E+W Paragraph 84 (notice to registrar when moving to dissolution) is to have effect as if—

(a) in sub-paragraph (1), for “to the registrar of companies” there were substituted—

“(a) to the appropriate national authority, and

(b) if directed to do so by the appropriate national authority, to the registrar of companies”,

(b) sub-paragraph (2) were omitted, and

(c) in sub-paragraphs (3) to (6), for “(1)”, in each place, there were substituted “ (1)(b) ”.

Commencement Information

I162 Sch. 4 para. 23 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

24 E+W Paragraph 87(2) (resignation of administrator) is to have effect as if for paragraphs (a) to (d) there were substituted “ by notice in writing to the court ”.

Commencement Information

I163 Sch. 4 para. 24 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

25 E+W Paragraph 89(2) (administrator ceasing to be qualified) is to have effect as if for paragraphs (a) to (d) there were substituted “ to the court ”.

Commencement Information

I164 Sch. 4 para. 25 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

26 E+W Paragraph 90 (filling vacancy in office of administrator) is to have effect as if for “Paragraphs 91 to 95 apply” there were substituted “ Paragraph 91 applies ”.

Commencement Information

I165 Sch. 4 para. 26 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

27 E+W Paragraph 91 (vacancies in court appointments) is to have effect as if—

(a) for sub-paragraph (1) there were substituted—

“(1) The court may replace the education administrator on an application made—

(a) by the appropriate national authority, or

(b) where more than one person was appointed to act jointly as the education administrator, by any of those persons who remains in office.”, and

(b) sub-paragraph (2) were omitted.

Commencement Information

I166 Sch. 4 para. 27 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

28 E+W Paragraph 98 (discharge from liability on vacation of office) is to have effect as if sub-paragraphs (2)(b) and (ba), (3) and (3A) were omitted.

Commencement Information

I167 Sch. 4 para. 28 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

29 E+W Paragraph 99 (charges and liabilities upon vacation of office by administrator) is to have effect as if after sub-paragraph (6) there were inserted—

“(7) Where a loan is made under section 27 of the Technical and Further Education Act 2017 before cessation, sub-paragraph (4) does not apply in relation to the loan or interest on it and—

(a) if the terms of the loan provide for this paragraph to apply, any sum that must be paid by the company in respect of the loan or interest shall be—

(i) charged on and payable out of property of which the education administrator had custody or control immediately before cessation, and

(ii) payable in priority to any charge arising under sub-paragraph (3);

(b) if the terms of the loan provide for this paragraph to apply, any sum that must be paid by the company in respect of the loan or interest shall be treated as an unsecured debt that is not a preferential debt,

(c) if the terms of the loan provide for this paragraph to apply, any sum that must be paid by the company in respect of the loan or interest shall be payable after all other creditors have been paid in full.”

Commencement Information

I168 Sch. 4 para. 29 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

30 E+W Paragraph 100 (joint and concurrent administrators) is to have effect as if sub-paragraph (2) were omitted.

Commencement Information

I169 Sch. 4 para. 30 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

31 E+W Paragraph 101(3) (joint administrators) is to have effect as if after “87 to” there were inserted “ 91, 98 and ”.

Commencement Information

I170 Sch. 4 para. 31 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

32 E+W Paragraph 103 (appointment of additional administrators) is to have effect as if—

(a) in sub-paragraph (2) the words from the beginning to “order” were omitted,

(b) for paragraph (a) there were substituted—

“(a) the appropriate national authority, or”, and

(c) sub-paragraphs (3) to (5) were omitted.

Commencement Information

I171 Sch. 4 para. 32 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

34 E+W Paragraph 109 (references to extended periods) is to have effect as if “or 108” were omitted.

Commencement Information

I172 Sch. 4 para. 34 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

35 E+W Paragraph 111 (interpretation) is to have effect as if the following were substituted for it—

“111 (1) In this Schedule—

• “administrative receiver” has the meaning given by section 251,

• “ “appropriate national authority”—

  (a)

  in relation to a company conducting a designated further education institution in England, means the Secretary of State;

  (b)

  in relation to a company conducting a designated further education institution in Wales, means the Welsh Ministers;

• “designated further education institution” has the meaning given by section 5;

• “education administrator” includes a reference to a former education administrator, where the context requires;

• “enters education administration” has the meaning given by paragraph 1;

• “floating charge” means a charge which is a floating charge on its creation;

• “governing body”, in relation to a designated further education institution, means any board of governors of the institution or any persons responsible for the management of the institution, whether or not formally constituted as a governing body or board of governors;

• “hire-purchase agreement” includes a conditional sale agreement, a chattel leasing agreement and a retention of title agreement;

• “in education administration” has the meaning given by paragraph 1;

• “market value” means the amount which would be realised on a sale of property in the open market by a willing vendor;

• “the relevant institution” in relation to company, means the institution which the company is established to conduct;

• “senior post holder”, in relation to a relevant institution, means a person appointed as a senior post holder at the institution.

(2) For the purposes of this Schedule a reference to an education administration order includes a reference to an appointment under paragraph 91 or 103.

(3) In this Schedule a reference to action includes a reference to inaction.”

Commencement Information

I173 Sch. 4 para. 35 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

Specific modifications to section 251 of the Insolvency Act 1986 E+W

36 E+W Section 251 of the Insolvency Act 1986 (definitions) as applied by paragraph 1 above is to have effect as if—

(a) for the definition of “prescribed” there were substituted—

““prescribed” means prescribed by rules made under section 411 of the Insolvency Act 1986 as a result of section 32 of the Technical and Further Education Act 2017;”,

(b) the definition of “the rules” were omitted, and

(c) at the appropriate places, there were inserted—

““combined authority” means an authority established under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009;

[F11 ““combined county authority” means an authority established under section 9(1) of the Levelling-up and Regeneration Act 2023;”,”],

““director of children's services” means—

(a) in respect of a local authority, a person appointed under section 18 of the Children Act 2004;

(b) in respect of a combined authority [F12 or a combined county authority], a person appointed to discharge functions corresponding to those of a person appointed under section 18 of the Children Act 2004;”,

““education administration application” has the meaning given by section 18 of the Technical and Further Education Act 2017;”,

““education administration order” has the meaning given by section 17 of the Technical and Further Education Act 2017;”,

““education administration rules” has the meaning given by section 35 of the Technical and Further Education Act 2017;”,

““education administrator” has the meaning given by section 35 of the Technical and Further Education Act 2017;”,

““local authority” has the meaning given in section 65 of the Children Act 2004;”,

““objective”, in relation to an education administration, is to be read in accordance with section 16 of the Technical and Further Education Act 2017;”.

Textual Amendments

F11 Words in Sch. 4 para. 36(c) inserted (26.12.2023) by Levelling-up and Regeneration Act 2023 (c. 55), s. 255(2)(c), Sch. 4 para. 211(b)(i) (with s. 247)

F12 Words in Sch. 4 para. 36(c) inserted (26.12.2023) by Levelling-up and Regeneration Act 2023 (c. 55), s. 255(2)(c), Sch. 4 para. 211(b)(ii) (with s. 247)

Commencement Information

I174 Sch. 4 para. 36 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)

Power to add modifications E+W

37 (1) The Secretary of State may by regulations— E+W

(a) amend paragraph 1(3)(a) so as to add further provisions to the list of applicable provisions in Schedule B1 to the Insolvency Act 1986;

(b) amend this Schedule so as to add further modifications to that Schedule.

(2) Regulations under this paragraph are subject to the affirmative resolution procedure.

Commencement Information

I175 Sch. 4 para. 37 in force at 31.1.2019 by S.I. 2018/1161, reg. 3(d)