Part 3: Protection for Learners Funding arrangements with post-16 education or training providers Section 20: Prohibitions on entering into funding arrangements with providers
Subsection (1) provides that this section applies if the Secretary of State makes regulations under section 19 subsection (1)(a) and only prospectively.
	Subsection (2) prohibits a funding authority from entering into relevant funding arrangements with a provider not on the list. It also sets out that funding authorities must not enter into such funding arrangements unless those arrangements include provisions enabling the funding authority to terminate the agreement if the provider ceases to be on the list.
	Subsections (3) and (4) makes similar provision in relation to funding arrangements where there is use of sub-contractor(s) and those sub-contractors are not on the list, or cease to be on the list.
	Subsection (4) also sets out that where relevant funding arrangements prohibit sub-contracting, funding authorities must not enter into those funding arrangements unless those arrangements include provisions allowing the funding authority to terminate the agreement if a relevant sub-contract is entered into in breach of that prohibition.
	The provision in subsections (2) to (4) is to ensure that where a provider ceases to be on the list or enters into prohibited sub-contracting arrangements, the funding authority can take action to terminate funding arrangements in an orderly way. For example, this might be through ensuring, if appropriate, that learners are transferred to another provider before the arrangements come to an end.
	Subsection (5) sets out that a provider may not rely on anything in this section as a reason for not carrying out their obligations under a funding agreement. This means that a provider's obligations under a funding agreement would remain valid and a funding authority could continue to enforce those obligations if a provider were not on the list. Subsection (5) also clarifies that this section does not limit a funding authority's ability to set conditions of funding relating to a separate scheme (for example, conditions of funding which require apprenticeships training providers to be on the Register of Apprenticeship Training Providers).
	Subsections (7) to (11) provide interpretation for this section.
	Subsection (7) confirms the funding authorities whose funding arrangements are within the scope of this section.
	Subsections (8), (9) and (10) set out the type of funding arrangements between a provider and funding authority in scope of this section. This includes grant arrangements and contracts for the provision of education or training wholly or mainly in England (which may include public services contracts which fall under the Public Contract Regulations 2015) and advanced learner loan funding routed through the Student Loans Company. The arrangements must relate to the provision of the categories of relevant education or training within the meaning of section 19 subsection (3). The Secretary of State may also specify any other characteristics that the arrangements must have in order to be within scope of the provision in section, which might, for example, include de minimis provision.
	Subsection (11) provides a definition for a relevant sub-contract in scope of this section. The characteristics of the sub-contract can also be further specified in regulations by the Secretary of State.