A global education firm has been named as the government’s preferred supplier for a £876 million contract to support PE and sport in schools. Etio is set to run the “PE and sport partnership network”, which will replace the existing PE and sport premium paid directly to primary schools from next year. The new network will provide targeted support to both secondary and primary schools, and has “a particular focus on increasing participation, reducing inequalities and improving outcomes for children and young people”. An award notice published this week shows Etio, also known as Empowered Education International, is the DfE’s preferred supplier to be “national delivery partner” for the programme. A DfE spokesperson said they “intend to award them the contract to establish and lead the network”. Outsourcing giant Capita and “big four” consultancy PricewaterhouseCoopers also bid for the contract, but were not successful. It is the latest large government contract handed to Etio, which was also appointed recently to run the new National Centre for Arts Education (NCAE), which will soon also incorporate the music hubs programme. The firm also delivers the government’s attendance mentoring programme. ‘Universal support’ Unlike the PE premium, which funnelled money directly to schools, the network will involve Etio working with national governing bodies to deliver PE support to schools. The company will set up and manage the network, which will include national, regional and local partners, providing schools with “universal support, targeted support based on identified need, and access to additional school-requested services”. This includes school engagement and needs assessment, co-ordinating local and regional provision, swimming and water-safety support, managing grants and other funding, workforce development and continuing professional development. They will also provide and operate a digital platform, which schools and delivery partners can use to “access services, manage referrals and delivery activity, maintain relevant records, and report performance and outcomes”. The contract also includes transitioning from the existing delivery arrangements, “supply-chain management, stakeholder engagement, continuous improvement, evaluation” and support for the DfE’s wider policy objectives for PE and school sport. Questions over contract value The network is supposed to be up and running by next spring. The estimated contract dates are November 2026 to March 2029, with a possibility to extend to March 2032. The DfE previously said the network would receive £580 million over seven terms, meaning the funding would be 22 per cent lower than the PE premium, which was £320 million a year. It is not clear why the advertised contract is larger at £876 million. The DfE has been approached for clarification. There will also be £200 million in capital funding for school sports facilities and a one-off £100 million for schools to help them transition to the new system. Etio said it was unable to comment, given the standstill period. Capita did not respond to a request for comment. PwC declined to comment.