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Centre Minimum Spend Information And FAQs - UK Centres

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TitleCentre Minimum Spend Information And FAQs - UK Centres
URL NameCentre-Minimum-Spend-Information-And-FAQs
Issue

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Work-Based Learning Centres and Colleges delivering Pearson vocational qualifications are subject to a minimum spend of £5,000, which is calculated across the year from 1st September - 31st August (of the following year). 

Please note that for the period running from 1September 2023 to 31 August 2024 the Minimum Spend expectation will increase to £5,000. All other factors will remain, I.e. exempt centre categories.

To support you regarding the minimum spend, please click on the appropriate option(s):

FAQ

February 2024 communication

This email was to advise customers that they may be in scope for the charge, since records suggested their spend was below £5,000 (as of 01/02/2024) for this academic year.

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Exempt categories  

Organisational types exempt:
  • Charities (charity registration number is required)
  • Prison education centres
  • Special Education Needs or Special College centres
  • Schools (provision for under 16s)
  • Adult Education Centres (local authority-run centres)
  • Alternative provider for under 18s
  • PRUs
  • NHS centres
  • Emergency Services (Fire Service or Police education centres)
  • FE centres in Scotland
  • Local council (@gov)

FAQs    

 

Q: Which customer types are in scope for the minimum spend requirement?
A: Vocational qualification customers, with the exceptions listed. Centres in general scope are private training providers, colleges (FE and private colleges) and employers, with some exceptions.
Q: Are any centre types exempt from the minimum spend requirement?
A: List of exempt categories:
  • all schools, including UTCs (University Technical Colleges)
  • charities (with charity reg. number provided)
  • prisons
  • Special Educational Needs centres
  • Adult learning centre (usually councils - local authority/@gov address)
  • Special college (Special Educational Needs post 16 centres)
  • Alternative provider for under 18s
  • Pupil Referral Units NHS centres
  • Other emergency services - Fire Service/Police/military
  • FE centres in Scotland
  • Local council (@gov)
Q: Does the minimum spend apply to newly approved qualification customers?
A: No. Customers are only expected to reach the £5,000 spend if they have been approved prior to 1 September 2023.
Q: How do you calculate annual spend?
A: Spend is calculated to include all purchase types but must include vocational qualifications. In addition, spend is net of VAT. Spend may also be derived from other Pearson products such as resources, digital etc.
Q: My organisation has several centres and sites. Will they be treated as individual centres or one when calculating our spend?
A: Your spend across all sites will be included when calculating the £5,000 expectation. For example, if you have one site with a spend of £4,000 and another £1000, you will have reached the expected £5,000. However, centres must belong to the same organisation.
Q: Between which dates do you calculate my annual spend?
A: Spend is calculated to include all purchase types invoiced between 1st September 2023 and 31st August 2024.
Q: How will I know that I am subject to a minimum spend fee?
A: In February 2024, we emailed any customer that had a spend of less than £3,000 between 1st September 2023 and 1st February 2024, and is potentially in scope.
A further communication will be sent to all centres, still in scope, once the spend data has been recalculated. 

Our data did not show some categories of centres - charities etc., which is why we asked customers to complete the 'Minimum Spend Exemption Request' form if they thought they were in scope in error.
Q: What if I don't want to pay the minimum spend fee?
A: We believe we have been fair in applying the minimum spend requirement. We have made a number of centre types exempt to recognise the special nature of some customers' activity and to support our learners.
If you believe you should be exempt according to the categories listed, please complete this form. We will respond within 5 working days.

The minimum spend expectation is explained within the Terms & Conditions and also in the 'Understanding our Vocational Qualification fees document on the website here.
Failure to pay the top-up invoice will mean a break in T&Cs, and action may need to be taken accordingly. We gave centres with very low spend, the option of closing as a Pearson centre to avoid the fees.
Q: How do I challenge the decision to bill me for the minimum spend top-up?
A: Contact us & raise a case via the portal. Choose 'Accounts and Invoices' in the 'Request Type' field and quote 'Minimum spend 2024' in the description, together with a summary of your query.
Q: Still need help?
A: Contact us & raise a case via the portal. Choose 'Accounts and Invoices' in the 'Request Type' field and quote 'Minimum spend 2024' in the description, together with a summary of your query.

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