The Construction Industry Training Board has slashed grants and capped funding from January, citing rising demand but drawing criticism over timing and available reserves.
The Construction Industry Training Board (CITB) has announced sweeping cuts to its grant and funding programmes, prompting widespread concern across the construction sector about the impact on skills development and training provision.
The training body said the changes, which take effect from 8 January 2026, are necessary to manage a 36 per cent rise in demand for its services over the past four years, while the levy rate paid by employers has remained static. However, the move has drawn criticism over its timing, particularly given CITB’s reported reserves of £78.9 million.
From January, short-course training grants will be withdrawn except for a limited number of specialist courses. Employer Networks will become the main funding route, but match funding will be reduced to 50 per cent. Funding for Level 7 qualifications and attendance grants for longer qualifications will stop entirely, while all non-apprentice achievement grants will be capped at £600.
Further changes from 1 April 2026 will see large employers—those with more than 250 staff and over half their workforce in construction—moved to a new single funding model. These firms will no longer be able to access Employer Networks.
CITB Chief Executive Tim Balcon said the decision was brought forward to prevent a surge in grant claims ahead of the cuts. “We want to apologise for the short notice for some of these changes, he said.
“While it is good news that there has been an increase in demand for our services, we have maintained the same levy rate. This means it’s necessary to bring forward changes to ensure we’re delivering the greatest value for the greatest number of employers.”
The announcement has prompted questions about whether such extensive cuts were unavoidable. According to Construction Enquirer, CITB’s most recent accounts show reserves of almost £79 million, with the board forecasting a fall to its minimum policy level of £50 million by March 2026.
The publication described the reforms as controversial, given the scale of available reserves and the likely impact on smaller firms already facing rising training costs.
CITB said the increased demand stems largely from growth in its Employer Networks and New Entrant Support Team (NEST), which have supported more companies without a corresponding increase in levy income. The organisation maintains that the reforms are designed to protect long-term funding stability and ensure support reaches as many employers as possible.
Employers are advised to check the CITB website or contact local engagement advisers for guidance on how the new rules will affect planned training programmes.
