43.Section 5 sets out the powers of the LSC to give funding to other persons for the purpose of fulfilling its duties and exercising its powers. Under section 5 the LSC will have the power to pay persons who provide or are proposing to provide post-16 education and training, and to pay persons who may not be providers themselves but who supply services which support the delivery of post-16 education and training by providers. A person may be any natural or legal person and would include FE colleges, schools and private training providers, whether incorporated or unincorporated, and individuals. The LSC may also make direct grants to students. Payments may include money intended for awards to students which is distributed by institutions, for example, the Access Funds.
44.The LSC’s powers under section 5 can be used to pay persons for activities including:
	the start-up costs to persons proposing to provide post-16 education or training, including the establishment of an institution in the FE sector;
	a limited range of higher education provision of a vocational and professional nature;
	secondary education for those of compulsory school age provided by FE and HE institutions (see also section 142);
	research and development activities related to education and training generally;
	the provision of work experience and links between the education world and employers (see also section 8);
	information, advice and guidance to people on learning opportunities and related issues, including employment.
45.In paying persons for anything which the LSC is empowered to do, the LSC may:
	use its own financial resources, for example, the grant provided by the Secretary of State (see section 27);
	assist in the transfer of financial resources from one person to another;
	do either of these jointly with other persons or assist in the transfer of financial resources from other persons who are acting jointly.
46.If the LSC makes its own financial resources available to persons it may attach conditions to those payments. Section 6 provides that such conditions may require:
	that the LSC must have access to the education and training provider’s accounts and records, including computer records; or another person specified by the Council (such as an accountant or the National Audit Office) must be able to have such access;
	that the post-16 education and training provider must give the LSC such information as it requires for the purpose of exercising any of its duties and powers;
	that persons providing post-16 education and training must set fees, make awards and recover costs from other persons in accordance with criteria established by the LSC;
	that the post-16 education and training provider must publish statements in respect of its facilities for disabled people (section 30 of the Disability Discrimination Act 1995 provided a similar power to the FEFC in respect of institutions in the FE sector);
	that resources provided be repaid to the Council, with interest, if any of the conditions attached to the provision of the resources are not complied with;
	that the provider of post-16 education and training must make provision of a type specified in an assessment of learning difficulties made under section 140.
Commentary on Sections Sections 1 to 29 and Schedules 1 to 3 Sections 5 and 6: provision of financial resources