Minimum Threshold

How do we know if our centre will be charged for minimum threshold?

Each year we will issue an advisory letter to all centres which are liable for minimum threshold but which have not yet ordered in excess of the threshold amount.

Specific dates and values for the minimum threshold for that year will be confirmed at this stage, alongside the details of next steps if centres choose not to pay the ‘top-up invoice’.

There will also be an opportunity to apply for exemption prior to year end or to clarify any changes in existing business relationships.

We will also issue a year end statement and centres which remain below minimum threshold order value at year end will be issued a top-up invoice shortly after year end for the difference between their actual spend and the minimum threshold.

e.g. With a £5,000 minimum threshold, if a centre spends £200 on a qualification approval, £350 on Smartscreen, £3,800 on candidate fees, and £400 on an additional quality assurance visit, they will be invoiced the £250 difference (£200+£350+£3800+£400=£4,750) to the £5,000 threshold.

What spend is included in the minimum threshold for a year?

The threshold covers all spend, including: all City & Guilds candidate fees (registration, assessments and certification); Centre and Qualification Approvals; Learning Materials (e.g. textbooks and SmartScreen); Learning Technology (including Learning Assistant); customer events; and any additional quality assurance and Advisory visits. See Question 8 for further information for ILM and jointly approved ILM & City & Guilds centres.

When does the time period run from for which City & Guilds calculate the minimum spend?

Minimum threshold is based on orders dated between 1 September to 31 August each year.

What happens if a centre does not pay the difference?

The centre will receive an invoice and any failure to pay within 30 days could lead to City & Guilds exercising the right to remove their centre approval.

During any termination period, the centre would be subject to a finance suspension, although learners who were already registered before the 1 September cut-off will be allowed to complete any qualifications they are registered on.  The centre would be charged for any additional assessment and quality assurance services required to certificate candidates registered before the cut-off.

Once centres have certificated registered learners their accounts will be closed and they will need to reapply to become an approved centre (subject to new centre approval checks and fees).

Are sub-centres of a larger ‘super’ centre subject to the minimum charge?

Yes, but we will calculate spend based on the aggregated fees of all sub-centres linked with a main super centre as a single entity.

Are any centres exempt from this minimum threshold?

City & Guilds reserve the right to waive this minimum charge, based on individual centre requirements. Centres can also apply to be exempt from the minimum threshold via an online application process.

What about a brand new City & Guilds approved centre, do they still have to meet minimum spend threshold in their first year of operation with City & Guilds?

Yes, all centres must meet minimum threshold in every year, to continue new registrations into the following year. Because the minimum threshold includes all spend, it will include the centre approval fee (currently £2,500).

Are ILM centres included?

For standalone ILM centres which have approval to offer ILM qualifications, there is a minimum spend of £500 a year in place. Where centres have joint approval, the threshold will be split with £1,500 for City & Guilds spend and £500 for ILM spend. If the jointly approved centre doesn’t spend £1,500 with City & Guilds, we will still charge them the difference; however if they choose not to pay they will be unable to register City & Guilds candidates (see Question 4). They would then revert to a standalone ILM centre status.

If a centre spends £700 with City & Guilds and £600 with ILM, we would only invoice them for difference between the £700 and £1,500 at the end of August.  If they wish to continue to make registrations with City & Guilds they will need to pay the £800 difference. If they fail to pay, their existing registrations will be allowed to run to certification and they will then be free to continue to operate as a stand-alone ILM centre.

Will it always be £5,000 a year minimum threshold of spend?

We will review this threshold on an annual basis. Changes will be posted on the website before the commencement of the next charging period.

Who do I talk to if I have any concerns?

Please contact your Quality Support contact on csdirect@cityandguilds.com if you require any more information.

To provide details of exemption to minimum threshold please click here.