A spokesperson for learndirect said: “We’d like to reassure all our learners, employees, suppliers and partners that learndirect Limited is financially stable. The business is well supported by our stakeholders and will continue to meet its contractual obligations and the needs of our learners as usual.
“Like all providers in the sector, we’ve had to manage a reduction in central government funding. For learndirect Limited this totals a 50% reduction in our adult skills funding over the last five years. These funding reductions were made at short notice and required significant changes to the business for it to remain viable.
“Our new senior management team, with the support of our stakeholders, has moved quickly to ensure the business responds to the challenges this poses.
“This includes diversifying our income streams and starting to address areas that require development.
“Ofsted’s report acknowledges the improvements being made in this area and the business has moved on further since the inspection in March 2017, with rising learner satisfaction scores and success rates.
“We maintain that the process behind Ofsted’s report did not provide an accurate reflection of the current quality of learndirect Limited’s training and performance due to the unrepresentative sample size and the use of legacy data.
“The report applies solely to provision within learndirect Limited where the funding has come via the ESFA.
“It does not relate to our levy business, learndirect Apprenticeships Limited which continues to grow and is already supporting c3,000 apprenticeships enrolled to date as part of the government’s apprenticeship levy.
“Nor does it relate to the courses we run for the DWP, European Social Fund, The Home Office, The Standards & Testing Agency and local bodies.
“The whole team works incredibly hard to help learners progress in their careers and we remain focused on continuously improving our services and outcomes for learners.”