The Construction Industry Training Board’s (CITB) announcement of funding cuts has drawn reaction from industry experts at Finishes and Interiors Sector (FIS), who argue it could exacerbate the ongoing skills shortage.
Beena Nana, head of skills and training at FIS, described the move as “a kick in the teeth” for employers, adding: “We recognise CITB’s need to manage rising demand, but the brutal reality for employers in the finishes and interiors sector is that these changes will make it even harder for employers to see tangible return on their levy investment.
“Our members voted against consensus as recently as this summer and the initial reaction seems to be that the offer from CITB is even worse than they thought.”
Set to take effect in January 2026, the changes will overhaul CITB’s funding model, reducing financial support for many training programmes.
Key changes include the removal of the short course training grant, with Employer Networks becoming the main funding route, albeit with a 50 per cent match funding rate.
While funding for Level 7 qualifications and attendance grants for long qualifications such as HNCs, HNDs, and degrees will be halted, and all non-apprentice achievement grants will be capped at £600.
Plus, from April next year, large employers will be moved to a single funding offer and will no longer have access to Employer Networks.
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FIS chief executive, Iain McIlwee, said levy payers had “every right to be concerned and angry” about the cuts, adding: “The changes further negatively impacts value for money for many, leading them to question why they still pay a levy at all.
“Of course we all understand that there needs to be a strategic approach to fixing the skills system, but when that strategy is not denting the problems you face and you are paying the money that you would invest in training to seemingly be redeployed to other parts of construction to solve other people’s problems, a broad based and unpredictable levy becomes hard to justify.”
CITB’s justification for the cuts is a 36 per cent increase in demand for its services over the past four years, coupled with an unchanged Levy rate.
It apologised for the “short notice” of the changes, adding they were necessary to prevent demand from exceeding available funding.
Tim Balcon, chief executive at CITB, said: “This was done to avoid surge claiming that will put our ability to support employers at risk. We had planned to transition our funding model gradually, giving employers time to adjust. The pace of demand growth means we need to act faster than we intended – and faster than we would have liked.
“While it is good news that there has been an increase in demand for our services, we have maintained the same Levy rate. This balanced against the increased demand means it’s necessary to bring forward changes to ensure we’re delivering the greatest value for the greatest number of employers.
“We appreciate this is a change for employers at a challenging time. We want to assure you we are here to support you – to find out how, please visit the CITB website or contact your local CITB engagement advisor.”
The news come as the UK Government has unveiled its own £725 million package aimed at creating 50,000 new apprenticeships over the next three years, with a particular focus on sectors such as construction.
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