The CITB has today confirmed a major overhaul of its funding and grant system, including significant cuts, a move likely to ripple across the UK construction sector. The changes, to take effect from early 2026, represent one of the most wide-ranging shifts in recent memory, and come as a blow to many training providers and employers relying on CITB support.
CITB says the decision is driven by a sharp increase in demand for training support: over the past four years, demand for its services has risen by some 36 per cent. But, crucially, the levy that funds the grants has not increased in the same period.
As a result, CITB warns that continuing under the current model would eventually mean demand outstripping levy income, threatening to undermine support to employers across the board.
According to CITB’s chief executive, the changes are intended to “deliver the greatest value for the greatest number of employers,” while navigating a “challenging” financial picture.
What’s changing…and when
The overhaul is rolling out in two main phases:
- From Thursday 8 January 2026:
- The short-course training grant is being removed. Instead, employers are encouraged to use Employer Networks, though under a changed funding framework
- The scope of what Employer Networks will fund is being revised, and match-funding rates reduced to 50 %
- Funding for Level 7 qualifications (e.g. advanced or master-level quals) and the attendance grant for long courses will be discontinued
- All non-apprentice achievement grants will be capped at £600
- From Wednesday 1 April 2026:
- Large employers will be moved to a single large-employer funding offer replacing their current arrangements.
- Large employers will also lose access to Employer Networks as a funding route.
CITB emphasises that existing bookings made by 8 December 2025, or training completed before 7 January, will be honoured under the current funding rules.
What’s being removed (and partly replaced)
These are among the biggest changes:
- The short-course training grant is to be scrapped — putting short-duration courses, often relied upon by small contractors or subs, on a different footing.
- Employer Networks (ENs) become the primary funding channel — but with reduced funding rates and narrower scope.
- Support for Level 7 (higher-level) qualifications is being removed.
- Attendance grants and many long-course supports are being ended
CITB states that core apprenticeship funding remains unaffected.
Why the industry is alarmed
The reaction from parts of the sector has been sharp. Some small and medium contractors , especially those who had planned training around the old funding model, say they were “blindsided,” with little time to rearrange training plans before the cuts kick in.
For many firms, especially smaller trades and subcontractors, the removal of short-course grants could significantly increase training costs or make some courses unaffordable.
Meanwhile, the decision has raised concerns at a time of already tight resources and serious skills shortages, particularly as the sector struggles to attract and retain workers.
What employers and workers should do now
CITB urges employers to review their training plans immediately. Key recommended actions:
- Book and complete any planned training before 7 January 2026, if possible, to secure current funding arrangements.
- Register with Employer Networks if not already, to understand what funding may remain available.
- Review whether planned Level 7 or long-course qualifications are essential, given funding is being withdrawn.
CITB says it will continue to support “high-impact, skills-gap” training aligned with industry needs, even under the new system.
Overall, while the changes may be financially necessary from CITB’s perspective, the scale and pace, especially for smaller firms and individual trainees, could prove deeply disruptive. Many in the industry will now be scrambling to rework training plans and budgets before the 2026 deadlines.
