Technical and Further Education Act 2017
The Institute for Apprenticeships is renamed the Institute for Apprenticeships and Technical Education (referred to in this Act as “the Institute”).
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after “Institute for Apprenticeships”, in each place it occurs, insert “and Technical Education”;
in section ZA1(2) for ““the IfA”” substitute ““the Institute””;
for “IfA’s” in each place it occurs, substitute “Institute’s”;
for “IfA”, in each other place it occurs, substitute “Institute”.
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Schedule 1 to the Superannuation Act 1972;
Part 6 of Schedule 1 to the Freedom of Information Act 2000.
Schedule 1—
confers functions on the Institute in relation to technical education qualifications,
makes provision about the sharing of information,
makes provision about the charging of fees by the Institute in connection with evaluations of the quality of apprenticeship assessments, and
makes transitional provision.
The Education Act 1997 is amended as follows.
After section 42A insert—
In section 42A (provision of careers guidance in schools in England), in subsection (7), omit the definition of “apprenticeship” (which has become outdated).
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 ”.
In section 46 (extension or modification of provisions of sections 43 to 45), in subsection (1)—
after “42A,” insert “ 42B, ”;
after “42A(6),” insert “ 42B(9) ”.
This Part is mainly about the insolvency of further education bodies—
Chapter 2 ensures that normal insolvency procedures apply to further education bodies that are statutory corporations;
Chapter 3 restricts the use of normal insolvency procedures;
Chapter 4 creates a special administration regime;
Chapter 5 is about the treatment of trust property held by certain bodies;
Chapter 6 imposes restrictions on existing procedures for dissolution;
Chapter 7 confers power to make provision about the disqualification of members of further education bodies.
In this Part “further education body” means—
a further education body in England, or
a further education body in Wales.
In this Part “further education body in England” means—
a further education corporation in England,
a sixth form college corporation, or
a company conducting a designated further education institution in England.
In this Part “further education body in Wales” means—
a further education corporation in Wales, or
a company conducting a designated further education institution in Wales.
In this Part— “appropriate national authority”— in relation to a further education body in England, means the Secretary of State; 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— is designated under section 28 of the Further and Higher Education Act 1992, and is principally concerned with the provision of further education; “further education corporation” means a body corporate that— is established under section 15 or 16 of the Further and Higher Education Act 1992, or 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— designated as a sixth form college corporation under section 33A or 33B of the Further and Higher Education Act 1992, or established under section 33C of that Act.
“learning difficulty” is to be read in accordance with section 19(6) and (7) of the Further and Higher Education Act 1992.
“education administration rules” means rules made under section 411 of the Insolvency Act 1986 as a result of section 32 above;
Section 251 of the Insolvency Act 1986 (definitions) as applied by paragraph 1 above is to have effect as if—
“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;
the definition of “the rules” were omitted, and
“combined authority” means an authority established under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009; ““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— “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;
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”).
“education administration order” has the meaning given by section 17.
A transfer scheme may transfer—
property, rights and liabilities that could not otherwise be transferred;
property acquired, and rights and liabilities arising, after the making of the scheme.
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.
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.
A transfer scheme may make consequential, supplementary, incidental or transitional provision and may in particular— In sub-paragraph (1)(f) “TUPE regulations” means the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006/246). A transfer scheme may modify the interests, rights or liabilities of third parties in relation to anything to which the scheme relates. The reference here to third parties is to persons other than the transferor and transferee.
Paragraph 1 (administration) is to have effect as if—
for sub-paragraph (1) there were substituted—, and
in sub-paragraph (2), for “Act” there were substituted “ Schedule ”.
Paragraph 1 (administration) is to have effect as if—
for sub-paragraph (1) there were substituted—, and
in sub-paragraph (2), for “Act” there were substituted “ Schedule ”.
Paragraph 40 (dismissal of pending winding-up petition) is to have effect as if sub-paragraphs (1)(b), (2) and (3) were omitted.
Paragraph 40 (dismissal of pending winding-up petition) is to have effect as if sub-paragraphs (1)(b), (2) and (3) were omitted.
Paragraph 41 (dismissal of administrative or other receiver) is to have effect as if—
sub-paragraph (1) were omitted;
in sub-paragraph (3), “administrative receiver or” and “(1) or” were omitted;
in sub-paragraph (4)(a) and (b), “administrative receiver or” were omitted.
Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if sub-paragraphs (4) and (5) were omitted.
Paragraph 42 (moratorium on insolvency proceedings) is to have effect as if sub-paragraphs (4) and (5) were omitted.
Paragraph 43 (moratorium on other legal process) is to have effect as if sub-paragraphs (5) and (6A) were omitted.
Paragraph 43 (moratorium on other legal process) is to have effect as if sub-paragraphs (5) and (6A) were omitted.
Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2) to (4), (6) and (7)(a) to (c) were omitted.
Paragraph 44 (interim moratorium) is to have effect as if sub-paragraphs (2) to (4), (6) and (7) were omitted.
Paragraph 45(2) (publicity) is to have effect as if after paragraph (b) there were inserted—.
Paragraph 45(2) (publicity) is to have effect as if for paragraph (b) there were substituted—.
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 ”.
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 ”.
Paragraph 47 (statement of affairs) is to have effect as if—
in sub-paragraph (3), after paragraph (a) there were inserted—, and
sub-paragraph (5) were omitted.
Paragraph 47 (statement of affairs) is to have effect as if—
for sub-paragraph (3)(a) there were substituted—,
in sub-paragraph (3), paragraph (d) were omitted, and
sub-paragraph (5) were omitted.
Paragraph 49 (administrator's proposals) is to have effect as if—
sub-paragraphs (2)(b) and, (3) were omitted,
in sub-paragraph (4), after paragraph (a) there were inserted—, and
sub-paragraph (5)(b) and (6) were omitted.
Paragraph 49 (administrator's proposals) is to have effect as if—
sub-paragraphs (2)(b) and (3) were omitted,
in sub-paragraph (4), after paragraph (a) there were inserted—, and
sub-paragraphs (5)(b) and (6) were omitted.
Paragraph 54 is to have effect as if the following were substituted for it—
Paragraph 54 is to have effect as if the following were substituted for it—
Paragraph 60 (powers of an administrator) is to have effect as if the following were substituted for it—
Paragraph 60 is to have effect as if the following were substituted for it—
Paragraph 61 is to have effect as if the following were substituted for it—
Paragraph 61 is to have effect as if the following were substituted for it—
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 ”.
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 ”.
Paragraph 68 (management duties of an administrator) is to have effect as if—
for achieving the objective of the education administration.
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 ”.
Paragraph 68 (management duties of an administrator) is to have effect as if—
for achieving the objective of the education administration.
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 ”.
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 ”.
Paragraph 71 (charged property: non-floating charge), 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)”, and the words “(other than a floating charge)” were omitted.
Paragraph 74 (challenge to administrator's conduct) is to have effect as if—
for sub-paragraph (2) there were substituted—,
sub-paragraph (6)—
at the end of paragraph (b) there were inserted “or”, and
paragraph (c) (and the “or” before it) were omitted, and
after that sub-paragraph there were inserted—
Paragraph 73 (protection for secured or preferential creditor) is to have effect as if—
in sub-paragraph (2), paragraphs (c) and (d) were omitted, and
in sub-paragraph (3), for “or modified” there were substituted “ under paragraph 54 ”.
Paragraph 75(2) (misfeasance) is to have effect as if after paragraph (b) there were inserted—.
Paragraph 74 (challenge to administrator's conduct) is to have effect as if—
sub-paragraph (1) were omitted,
for sub-paragraph (2) there were substituted—,
in sub-paragraph (6), paragraphs (b) to (c) were omitted, and
after that sub-paragraph there were inserted—
Paragraph 79 (end of administration) is to have effect as if—
for sub-paragraphs (1) and (2) there were substituted—, and
sub-paragraph (3) were omitted.
Paragraph 75(2) (misfeasance) is to have effect as if—
after paragraph (b) there were inserted—,
at the end of paragraph (c) there were inserted “or”, and
paragraph (e) (and the “or” before it) were omitted.
Paragraph 83 (notice to registrar when moving to voluntary liquidation) is to have effect as if—
sub-paragraph (2) were omitted, and
in sub-paragraph (3) after “may” there were inserted “ , with the consent of the appropriate national authority, ”.
Paragraph 79 (end of administration) is to have effect as if—
for sub-paragraphs (1) and (2) there were substituted—, and
sub-paragraph (3) were omitted.
Paragraph 84 (notice to registrar when moving to dissolution) is to have effect as if—
in sub-paragraph (1), for “to the registrar of companies” there were substituted—,
sub-paragraph (2) were omitted, and
in sub-paragraphs (3) to (6), for “(1)”, in each place, there were substituted “ (1)(b) ”.
Paragraph 83 (notice to registrar when moving to voluntary liquidation) is to have effect as if—
sub-paragraph (2) were omitted, and
in sub-paragraph (3) after “may” there were inserted “ , with the consent of the appropriate national authority, ”.
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 ”.
Paragraph 84 (notice to registrar when moving to dissolution) is to have effect as if—
in sub-paragraph (1), for “to the registrar of companies” there were substituted—,
sub-paragraph (2) were omitted, and
in sub-paragraphs (3) to (6), for “(1)”, in each place, there were substituted “ (1)(b) ”.
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 ”.
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 ”.
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 ”.
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 ”.
Paragraph 91 (vacancies in court appointments) is to have effect as if—
for sub-paragraph (1) there were substituted—, and
sub-paragraph (2) were omitted.
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 ”.
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.
Paragraph 91 (vacancies in court appointments) is to have effect as if—
for sub-paragraph (1) there were substituted—, and
sub-paragraph (2) were omitted.
Paragraph 99 (charges and liabilities upon vacation of office by administrator) is to have effect as if after sub-paragraph (6) there were inserted—
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.
Paragraph 100 (joint and concurrent administrators) is to have effect as if sub-paragraph (2) were omitted.
Paragraph 99 (charges and liabilities upon vacation of office by administrator) is to have effect as if—
in sub-paragraph (3), paragraph (b) were omitted, and
after sub-paragraph (6) there were inserted—
Paragraph 101(3) (joint administrators) is to have effect as if after “87 to” there were inserted “ 91, 98 and ”.
Paragraph 100 (joint and concurrent administrators) is to have effect as if sub-paragraph (2) were omitted.
Paragraph 103 (appointment of additional administrators) is to have effect as if—
in sub-paragraph (2) the words from the beginning to “order” were omitted,
for paragraph (a) there were substituted—, and
sub-paragraphs (3) to (5) were omitted.
Paragraph 101(3) (joint administrators) is to have effect as if after “87 to” there were inserted “ 91, 98 and ”.
Paragraph 109 (references to extended periods) is to have effect as if “or 108” were omitted.
Paragraph 103 (appointment of additional administrators) is to have effect as if—
in sub-paragraph (2) the words from the beginning to “order” were omitted,
in sub-paragraph (2), for paragraph (a) there were substituted—, and
sub-paragraphs (3) to (5) were omitted.
Paragraph 111 (interpretation) is to have effect as if the following were substituted for it—
Paragraph 106(2) (penalties) is to have effect as if paragraphs (a), (b), (f), (g), (i) and (l) to (n) were omitted.
Paragraph 109 (references to extended periods) is to have effect as if “or 108” were omitted.
Paragraph 111 (interpretation) is to have effect as if the following were substituted for it—
A transfer scheme takes effect at the time specified in the scheme.
“designated further education institution” means an institution that—
“education administration rules” means rules made under section 411 of the Insolvency Act 1986 as a result of section 32 above;
“education administration application” has the meaning given by section 18;
“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;
has accepted a place on a course at the relevant institution when the administration order is made;
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;
has accepted a place on a course at the relevant institution when the administration order is made;
Section 1
The Apprenticeships, Skills, Children and Learning Act 2009 is amended as follows.
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In the heading for Chapter A1, after “Apprenticeships” insert “ and technical education ”.
In Chapter A1, before section A1 (and the italic heading before it) substitute—
For the italic heading before section A1 substitute “ Meaning of “approved English apprenticeship” etc ”.
In section A1 (meaning of “approved English apprenticeship”)—
in subsection (3)(a)—
for “a sector for which an approved apprenticeship” substitute “ an occupation for which a ”;
for “A2” substitute “ ZA11 ”;
in the following places omit “apprenticeship”—
subsection (3)(b);
subsection (6), in the second place it occurs;
subsection (7), in the first place it occurs;
in subsection (7), for “A2” substitute “ ZA11 ”.
For the italic heading before section A2 substitute “ Apprenticeship assessment plans ”.
Section A2 (apprenticeship standards and assessment plans) is amended as follows. For the heading, substitute “ Apprenticeship assessment plans ”. For subsection (1) substitute— Omit subsections (2) and (3). In subsection (4)— In subsection (5) after “Each” insert “ apprenticeship ”. For subsection (6) substitute—
Omit section A2A (preparation of apprenticeship standards and plans).
In the italic heading before section A2B, at the end insert “ of apprenticeship assessments etc ”.
Section A2B (evaluation of quality of apprenticeship assessments) is amended as follows. In subsection (2), after “to which the” insert “ apprenticeship ”. In subsection (3), after “may” insert “ carry out evaluations or ”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After section A2D insert—
For the italic heading before section A2E substitute “ Other provision relating to approved English apprenticeships and technical education ”.
In section A2E (regular reviews of published standards and assessment plans), in subsections (1) and (2) after “standard or” insert “ apprenticeship ”.
Section A2F (revision or withdrawal of published standards and assessment plans) is amended as follows. In subsection (1), in paragraphs (a) and (b), after “standard or” insert “ apprenticeship ”. For subsection (2) substitute—
Omit the italic heading before section A2G.
In section A2G—
after “standard or”, in each place it occurs, insert “ apprenticeship ”;
in subsection (1) (examinations by independent third parties), for “A2A(1)” substitute “ ZA11(3) or section A2(6) ”.
After section A2H insert—
Section A2I (transfer of copyright in standards and assessment plans) is amended as follows. In subsection (1), for paragraph (a) substitute—. In subsection (3), after “standard or” insert “ apprenticeship ”.
After section A2I insert—
After section A3 insert—
Part 1A (apprenticeships: information sharing) is amended as follows.
In the Part heading, after “Apprenticeships” insert “ and other education and training ”.
After section 40A insert—
In section 40D(3) (interpretation of Part 1A)—
the words from “affects” to the end become paragraph (a);
after that paragraph insert—
Section 100 (funding) is amended as follows. After subsection (1A) insert— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “approved steps towards occupational competence” has the meaning given by section A2DB; “approved technical education qualification” has the meaning given by section A2DA;
“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;
In section 262(6) (orders and regulations subject to affirmative procedure), after paragraph (aa) insert—.
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is principally concerned with the provision of further education;
Section 25
“education administrator” means a person appointed by an education administration order and is to be read in accordance with subsection (2) below;
The education administrator may make a transfer scheme only if—
the transferee consents, and
the appropriate national authority has approved the scheme.
The appropriate national authority may modify a transfer scheme before approving it but only with the consent of the education administrator and the transferee.
“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;
The appropriate national authority may modify a transfer scheme after it takes effect by giving notice to the transferor and the transferee. The appropriate national authority may modify a scheme under sub-paragraph (1) only with the consent of the transferor and the transferee. 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.
In this Schedule—
references to rights and liabilities include rights and liabilities relating to a contract of employment;
references to the transfer of property include the grant of a lease.
A transfer scheme may not transfer property which is subject to a security (other than a floating charge) free of that security except— In sub-paragraph (1), “floating charge” means a charge which is a floating charge on its creation.
Section 26
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. The provisions are— The applicable provisions of Schedule B1 are—
Section 26
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;
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. The provisions are— The applicable provisions of Schedule B1 are—
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)”.
The purpose of this section is to make the following insolvency procedures available in relation to further education bodies that are statutory corporations— and to make provision about receivers and managers of property.
voluntary arrangements,
administration,
creditors' voluntary winding up, and
winding up by the court,
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—
any modifications or omissions specified in regulations made by the Secretary of State, and
sections 9 to 12 (restrictions on normal insolvency procedures to facilitate special administration).
The “relevant insolvency legislation” means any provision made by or under the following provisions of the Insolvency Act 1986—
Part 1 (company voluntary arrangements);
Part 2 (administration);
Part 3 (receivership);
Part 4 (winding up);
Parts 6, 7 and 12 to 18 (supplementary provision).
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.
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.
Any other regulations under this section are subject to the negative resolution procedure.
The Secretary of State may make regulations, in consequence of section 6 or regulations made under it—
providing for any legislation about insolvency to apply in relation to a further education body that is a statutory corporation (with or without modifications);
amending, or modifying, any legislation about insolvency as it applies in relation to a further education body that is a statutory corporation.
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.
Regulations under this section that apply, amend or modify a provision of an Act are subject to the affirmative resolution procedure.
Any other regulations under this section are subject to the negative resolution procedure.
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.
The Secretary of State may by regulations make provision for or in connection with—
the delivery to the registrar of companies of documents that relate to the insolvency of further education bodies;
the registrar's function of keeping records of information contained in such documents under section 1080(1) of the Companies Act 2006;
the publication of, or access to, those records or related information.
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
The power under subsection (1) includes power—
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;
to confer power on the registrar to make rules in accordance with section 1117 of the Companies Act 2006 imposing such requirements.
Provision made under this section is in addition to any applicable provision made by Part 35 of the Companies Act 2006 or elsewhere.
Regulations under this section are subject to the affirmative resolution procedure.
Section 1114(1) of the Companies Act 2006 (meaning of document etc) applies for the purposes of this section.
This section applies if a person other than the appropriate national authority makes an ordinary administration application in relation to a further education body.
The court must dismiss the application if—
an education administration order is in force in relation to the further education body, or
an education administration order has been made in relation to the further education body but is not yet in force.
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—
notice of the application has been given to the appropriate national authority,
a period of at least 14 days has elapsed since that notice was given, and
there is no outstanding education administration application.
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.
In this section “ordinary administration application” means an application in accordance with paragraph 12 of Schedule B1 to the Insolvency Act 1986.
Subsections (2) to (4) make provision about the appointment of an administrator under—
paragraph 14 of Schedule B1 to the Insolvency Act 1986, in relation to a further education body that is a company, or
paragraph 22 of Schedule B1 to the Insolvency Act 1986, in relation to any further education body.
If in any case— a person may not take any step to make an appointment.
an education administration order is in force in relation to the further education body,
an education administration order has been made in relation to the further education body but is not yet in force, or
an education administration application in relation to the further education body is outstanding,
In any other case, an appointment takes effect only if each of the following conditions are met.
The conditions are—
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,
that a period of at least 14 days has elapsed since that notice was given,
that there is no outstanding education administration application in relation to the further education body, and
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.
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.
This section applies if a person other than the appropriate national authority petitions for the winding up of a further education body.
The court is not to exercise its powers on a winding-up petition unless—
notice of the petition has been given to the appropriate national authority, and
a period of at least 14 days has elapsed since that notice was given.
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).
References in this section to the court's powers on a winding-up petition are to—
its powers under section 125 of the Insolvency Act 1986 (other than its power of adjournment), and
its powers under section 135 of the Insolvency Act 1986.
A further education body has no power to pass a resolution for voluntary winding up without the permission of the court.
Permission may be granted by the court only on an application made by the further education body.
The court may not grant permission unless—
notice of the application has been given to the appropriate national authority, and
a period of at least 14 days has elapsed since that notice was given.
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).
In this section “a resolution for voluntary winding up” has the same meaning as in the Insolvency Act 1986.
A person may not take any step to enforce a security over property of a further education body unless—
notice of the intention to do so has been given to the appropriate national authority, and
a period of at least 14 days has elapsed since the notice was given.
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;
Section 251 of the Insolvency Act 1986 (definitions) as applied by paragraph 1 above is to have effect as if—
“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;
the definitions of “officer” and “the rules” were omitted, and
“appropriate national authority”— “combined authority” means an authority established under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009; ““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— “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”— “senior post holder”, in relation to a relevant institution, means a person appointed as a senior post holder by the further education body;”.
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
The Secretary of State may by regulations— Regulations under this paragraph are subject to the affirmative resolution procedure.
For the purposes of this Chapter an application made to the court is outstanding if it—
has not yet been granted or dismissed, and
has not been withdrawn.
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.
An appeal is to be treated as pending for this purpose if—
an appeal has been brought and has not been determined or withdrawn,
an application for permission to appeal has been made but has not been determined or withdrawn, or
no appeal has been brought and the period for bringing one is still running.
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.
This Chapter creates a procedure to be known as education administration.
The main features of an education administration are that—
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,
the court appoints an education administrator on the application of the appropriate national authority, and
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.
The objective of an education administration is to—
avoid or minimise disruption to the studies of the existing students of the further education body as a whole, and
ensure that it becomes unnecessary for the body to remain in education administration for that purpose.
The means by which the education administrator may achieve that objective include—
rescuing the further education body as a going concern,
transferring some or all of its undertaking to another body,
keeping it going until existing students have completed their studies, or
making arrangements for existing students to complete their studies at another institution.
An education administration order is an order of the court appointing a person as the education administrator of a further education body.
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.
While an education administration order is in force the further education body may be described as being “in education administration”.
An education administration order may be made only on an application by the appropriate national authority.
The appropriate national authority must give notice of an application—
to the further education body to which the application relates, and
to any person specified in education administration rules (for those rules, see section 32).
An application for an education administration order is referred to in this Chapter as an “education administration application”.
The court may make an education administration order on an application only if satisfied that the further education body—
is unable to pay its debts, or
is likely to become unable to pay its debts.
The court has no power to make an education administration order in relation to a further education body which—
is in administration under Schedule B1 to the Insolvency Act 1986, or
has gone into liquidation (within the meaning of section 247(2) of the Insolvency Act 1986).
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.
On hearing an education administration application the court may—
grant the application,
adjourn the application conditionally or unconditionally,
dismiss the application,
make an interim order,
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
make any other order that it thinks appropriate.
An interim order under subsection (1)(d) may, in particular—
restrict the exercise of a power of the further education body,
in the case of a further education body that is a statutory corporation, restrict the exercise of a power of its members,
in the case of a further education body that is a company, restrict the exercise of a power of its directors, and
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.
An education administration order comes into force—
at the time appointed by the court, or
if no time is appointed by the court, when the order is made.
If an education administration order appoints two or more persons as the education administrator of a further education body, the order must set out—
which (if any) of the functions of the education administrator are to be carried out only by the appointees acting jointly,
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
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.
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.
In this section “ordinary administration application” means an application in accordance with paragraph 12 of Schedule B1 to the Insolvency Act 1986.
Subsections (2) to (4) of section 14 (meaning of “outstanding”) apply for the purposes of this section.
An education administrator is an officer of the court.
In carrying out functions in relation to a further education body an education administrator acts as its agent.
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.
The education administrator must carry out his or her functions for the purpose of achieving the objective of the education administration.
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.
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.
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—
the company's creditors as a whole, and
subject to that, the company's members as a whole.
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.
In subsection (6)—
“learning difficulty” is to be read in accordance with section 19(6) and (7) of the Further and Higher Education Act 1992.
Schedule 2 gives an education administrator the power to make transfer schemes.
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.
Schedule 4 makes similar provision in relation to the education administration of a further education body that is a company.
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.
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).
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.
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.
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—
liabilities incurred in connection with the carrying out of functions by the education administrator, and
loss or damage sustained in that connection.
The agreement may be made in whatever manner, and on whatever terms, the appropriate national authority considers appropriate.
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).
For repayment of sums paid by the appropriate national authority in consequence of an indemnity agreed to under this section, see section 29.
The power of the appropriate national authority to agree to indemnify persons—
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
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.
The following are relevant persons for the purposes of this section—
the education administrator;
an employee of the education administrator;
a partner or employee of a firm of which the education administrator is a partner or employee;
a partner of a firm of which the education administrator was an employee or partner at a time when the order was in force;
a body corporate which is the employer of the education administrator;
an officer, employee or member of such a body corporate;
a Scottish firm which is the employer of the education administrator or of which the education administrator is a partner.
For the purposes of subsection (6)—
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
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.
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.
The further education body must pay the appropriate national authority—
any amounts in or towards the repayment of that sum that the appropriate national authority directs, and
interest on amounts outstanding under this subsection at whatever rates the appropriate national authority directs.
The payments must be made by the further education body at times, and in a manner, determined by the appropriate national authority
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.
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—
as soon as possible after the end of the financial year in which the sum is paid out, and
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.
The repayment condition is met in relation to a financial year if—
the whole of the sum has been repaid to the appropriate national authority before the beginning of the year, and
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.
If an education administration order has been made in relation to a further education body the appropriate national authority may guarantee—
the repayment of any sum borrowed by the body while that order is in force,
the payment of interest on any sum borrowed by the body while that order is in force, and
the discharge of any other financial obligation of the body in connection with the borrowing of any sum while that order is in force.
The appropriate national authority may give the guarantees in whatever manner, and on whatever terms, the appropriate national authority considers appropriate.
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).
For repayment of sums paid by the appropriate national authority under a guarantee given under this section, see section 31.
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.
The further education body must pay the appropriate national authority—
any amounts in or towards the repayment of that sum that the appropriate national authority directs, and
interest on amounts outstanding under this subsection at whatever rates the appropriate national authority directs.
The payments must be made by the further education body at times, and in a manner, determined by the appropriate national authority.
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—
as soon as possible after the end of the financial year in which the sum is paid out, and
as soon as possible after the end of each subsequent financial year in relation to which the repayment condition has not been met.
The repayment condition is met in relation to a financial year if—
the whole of the sum has been repaid to the appropriate national authority before the beginning of the year, and
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.
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).
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.
The Secretary of State may make regulations, in consequence of this Chapter or subordinate legislation made under it—
providing for any legislation about insolvency to apply in relation to a further education body (with or without modifications);
amending, or modifying, any legislation about insolvency as it applies in relation to a further education body.
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.
Regulations under this section that apply, amend or modify a provision of an Act are subject to the affirmative resolution procedure.
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.
Any other regulations under this section are subject to the negative resolution procedure.
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.
In this section “legislation” means any provision made by or under an Act passed before or in the same session as this Act.
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.
In this Chapter—
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.
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 enters administration enters education administration in administration in education administration officer (in relation to a company) purpose of administration objective of the education administration the rules the education administration rules
The Secretary of State may by regulations— Regulations under this paragraph are subject to the affirmative resolution procedure.
“the court”, in relation to a further education body, means the court having jurisdiction to wind up the body;
is a student at the relevant institution when the administration order is made, or
“education administration application” has the meaning given by section 18;
“education administration order” has the meaning given by section 17;
In this Chapter references to the education administrator of a further education body—
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
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.
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.
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.
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).
The Further and Higher Education Act 1992 is amended as follows.
In section 27A (dissolution of further education corporation), after subsection (5) insert—
After section 27B insert—
The Further and Higher Education Act 1992 is amended as follows.
In section 33O (dissolution of sixth form college corporation), after subsection (4) insert—
After section 33P insert—
In the Company Directors Disqualification Act 1986, after section 22F insert—
Section 54 of the Further and Higher Education Act 1992 (duty to provide information) is amended as follows.
For subsection (1) substitute—
Renumber the existing subsection (2) as subsection (3).
Section 125 of the Education and Inspections Act 2006 (inspection of further education institutions) is amended as follows.
In subsection (4) (matters to be dealt with in inspection report), after paragraph (a) (but before the “and” at the end) insert—.
After subsection (7) insert—
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.
The Secretary of State may by regulations make provision that is consequential on any provision made by this Act.
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.
Regulations under this section that repeal or amend a provision of an Act are subject to the affirmative resolution procedure.
Any other regulations under this section are subject to the negative resolution procedure.
Regulations under this Act are to be made by statutory instrument.
Regulations under this Act may make—
consequential, supplementary, incidental, transitional or saving provision;
different provision for different purposes.
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.
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.
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.
Any amendment or repeal made by this Act has the same extent as the enactment amended or repealed.
This Part and section 6 so far as it relates to section 426 of the Insolvency Act 1986 extend to—
England and Wales,
Scotland, and
Northern Ireland.
Except as mentioned above, this Act extends to England and Wales only.
This Part and paragraph 35 of Schedule 1 come into force on the day on which this Act is passed.
The other provisions of this Act come into force on such day as the Secretary of State may by regulations appoint.
Different days may be appointed for different purposes.
This Act may be cited as the Technical and Further Education Act 2017.