CITB cuts funding and grants

CITB cuts funding and grants

The Construction Industry Training Board (CITB) has today announced a series of changes it is making to the funding and grant system, which will come into effect from 8 January 2026.  In making the changes changes have sought to reassure the sector that they are designed to ensure CITB can deliver the greatest value for the greatest number of employers and maximise the value of the Levy for industry.

They claim that due to the success of initiatives like Employer Networks and the New Entrant Support Team (NEST), CITB has seen a 36% increase in demand for its services over the last four years. Over this same period, CITB has not raised the Levy rate, meaning that it is needing to support more employers with the same amount of Levy.

Consequently, at current levels, demand for CITB support will exceed its Levy income. Without action, CITB risks being unable to support any of these programmes.

Some of the funding and grant changes will come into effect from Thursday 8 January 2026.

These include:

  • Removal of short course training grant, with Employer Networks as the main replacement funding route and a small number of courses to still be grant funded.
  • The scope of what is funded by Employer Networks is changing, as well as a reduction of the rate to 50% match funding
  • Funding for level 7 qualifications and attendance grant from long qualifications will be stopped (note long qualifications have a specific definition available here and this change should not impact trade apprenticeships)
  • All non-apprentice achievement grants will be £600.

The remaining changes will come into effect from Wednesday 1 April 2026. These are:

  • Large employers* will be moved to a single large employer funding offer
  • Large employers* will no longer be able to access Employer Networks.

Tim Balcon, Chief Executive, CITB, said:

“First and foremost, we want to apologise for the short notice for some of these changes. 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.”

Upon hearing about the changes, Beena Nana, Head of Skills and Training at FIS said:

“We had no foresight of these changes and are now working to understand the full impact on our community and how they will support the need for systemic change that CITB have highlighted.

There is, however, no doubt that the timing and depth of cuts will be a real kick in the teeth to many who have set Budgets and committed to training plans.  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.  We wholeheartedly agree with the sentiment that fundamental changes are needed to the training landscape for construction, but you can understand why increasingly companies are questioning whether a swathing levy that is unpredictable and remote from the needs of individual companies and sub sectors is helping to drive that change”.

Tell us how these changes will impact your business

FIS has planned a Skills Board meeting on Tuesday 16 December at 2.30pm to discuss these recent announcements. If you would like to join this call to share your thoughts and explain how these changes will impact your business, please email beenanana@thefis.org for the meeting details.

To find out more about these changes and how CITB can support you, please visit: www.citb.co.uk/funding-changes

There are four Zoom webinars available, tailored for small and medium employers, large employers, and training providers.

You will have the opportunity to discuss your point of view, as well as ask questions.

All Employers webinar – for small, medium, and large employers
Tuesday 16th December 2025
6.30pm – 7.30pm

Large Employers webinar – for large employers (over 250 employees) only
Wednesday 17th December 2025
8.30am – 9.30am

All Employers webinar – for small, medium, and large employers
Wednesday 17th December 2025
10am – 11am

Training Providers webinar – for training providers only
Wednesday 17th December 2025
12.30pm – 1.30pm

*A CITB Large Employer is a business that:

    1. Has 250 or more workers
      (PAYE employees + net-paid CIS subcontractors), and

    1. Is wholly or mainly engaged in construction
      (over 50% of total workforce time spent on construction activities)
Government Confirms Changes to Unfair Dismissal Qualifying Period

Government Confirms Changes to Unfair Dismissal Qualifying Period

The Government has announced an amendment to the upcoming Employment Rights Bill, confirming that the qualifying period for claiming unfair dismissal will be reduced from two years to six months. This change replaces the earlier proposal to make unfair dismissal a day-one right.

Under the revised plan, existing day-one protections, including automatically unfair dismissal provisions and discrimination safeguards, will remain unchanged.

In addition, the Government has reaffirmed that new day-one rights to Statutory Sick Pay and paternity leave will come into effect from April 2026, supporting wider reforms to improve workplace protections.

Open Doors 2026: Booking Opens Soon

Open Doors 2026: Booking Opens Soon

With just over a month to go until visitor bookings open on Monday 12 January, excitement is already building for Open Doors 2025. More than 100 events have been registered across the UK so far, offering the public a rare chance to step behind the scenes of some of the nation’s most iconic construction projects; including Buckingham Palace, Natural History Museum – Unlocked, Edgbaston Cricket Ground, and Aintree Hospital.

A huge thank you to all FIS members who are opening their sites, offices, manufacturing facilities and training centres from 23–28 March, helping to showcase the opportunities and diversity within the construction industry.

Delivered by Build UK, Open Doors continues to be one of the most effective initiatives for attracting new talent into construction. Interest from schools, colleges and universities is already strong, and a new report from Open Doors partner Prospects highlights just how vital workplace experiences are in helping young people transition successfully into employment.

With this in mind, we are encouraging members to upload all planned events to the Open Doors website before the Christmas break. The more opportunities available, the more young people we can inspire to take their first step into the industry.

Upload your events and get ready for visitor bookings from 12 January.

CBAM Primary legislation set before Parliament

CBAM Primary legislation set before Parliament

Draft primary legislation for Carbon Border Adjustment Mechanism (CBAM) was published in April 2025 for technical consultation.  At Budget 2025 government announced that indirect emissions associated with the production of CBAM goods will not be included in scope of CBAM at its implementation on 1 January 2027. Their inclusion in CBAM scope will be delayed until 2029 at the earliest. This is to reflect continued support for the Energy Intensive Industries (EII) Compensation Scheme

CBAM is effectively a new tax aimed at reducing carbon emissions. It will impact companies importing (and potentially exporting to the EU) and specifying products made with aluminium, cement, iron and steel (it is likely to be extended to cover other products such as glass in the future).

CBAM imposes a carbon cost to ensure imports face a comparable carbon price to goods produced domestically. This mechanism is designed to prevent “carbon leakage,” where companies might relocate production to countries with less stringent emissions regulations. .

The UK CBAM will come into force on 1 January 2027 and will apply to businesses importing £50,000 or more of CBAM goods over a 12-month period.

The UK government has published Finance (No.2) Bill 2025-26 on the UK Parliament Bills website. This includes the primary legislation for CBAM which you can find here. To download a copy of the Bill, click ‘Get file’ in ‘Bill 342 2024-25 (as introduced)’.

CBAM primary legislation can be found at Part 5:

Clauses 139-155 (pages 147-159)

Schedules 15 – 18 (pages 471-506)

Further changes may arise as a result of Parliamentary scrutiny, but the deadlines are likely to stand and it is vital that companies start understanding the potential costs and how this may impact upon estimates for future projects. Companies importing directly are recommended to look at any requirements that may be imposed on them. Contractors who may be preparing tenders for projects that run past 1st January 2027 should be speaking to their suppliers about any potential additional costs that CBAM might place on their project

You can find more information on CBAM in the Factsheet here.

FIS Sustainability Hub

We look at some of the key actions that you can take and also some of the wider sector initiatives that can support your business in setting a sustainability strategy.

Timely Payment Reminder in Scotland

Timely Payment Reminder in Scotland

The Scottish Government have issued a reminder to all in the construction sector:

“Construction sector cashflow is important all year round and imperative at the festive shutdown.

We strongly encourage all contracting authorities and businesses in every public works contract supply chain to fully comply with relevant provisions of SPPN 2/2022 and CPN 9/2020.

✅ SPPN 2/2022: https://lnkd.in/ehxA6Cbb


✅CPN 9/2020: https://lnkd.in/eMxzhpBy“

The announcement is welcome, but as well as being a helpful and thoughtful intervention, it is a reminder that often the industry doesn’t shower itself in payment glory and particularly at this time of year.  See a similar reminder issued by FIS CEO Iain McIlwee in Construction News in December 2022.

2026 we will see the response to the Government’s Late Payment and Retention consultation issued earlier this year.  The sheer weight of evidence supplied will, we hope, support the Government in their intention to tighten payment regulation and radical reform to retention.  

In the meantime, FIS Members are reminded if they have payment issues over the festive period that they can access advice and support from the FIS team and our specialist advisors.  To support the process we also issued new guidance on credit control that includes template resources and guidance on chasing payment and escalating to dispute status.  This guide is included in the Business Management Section of our Contractual and Business Toolkit.

Collective lobby leads to pause of Apprentice reforms 

Collective lobby leads to pause of Apprentice reforms 

A Construction Coalition led by the British Woodworking Federation and supported by Finishes and Interiors Sector wrote to the Prime Minister last month expressing concerns related to proposed reform of Apprenticeships.  In response to this letter and subsequent meetings, Skills England announced at a meeting this week (attended by FIS) that implementation had been paused to allow time to understand and address concerns raised.
The letter expresses serious concern over plans by Skills England to shorten apprenticeship durations to as little as eight months and introduce new assessment methods that could weaken quality assurance and consistency.  The stark warning is that these reforms could dismantle established routes to competence, erode employer confidence, and threaten the delivery of safe, high-quality construction at a time when the UK faces an ambitious target of building 1.5 million new homes.
The changes were set to apply to all apprenticeships in England, with site carpentry and joinery at the forefront  one of five pilot areas this summer.
FIS Head of Skills Beena Nana reflected: 
“The positive to draw is that they are listening and that changes are not going to be railroaded through.   The last round of Apprentice reforms were all about putting employers at the heart of decisions – this is critical.  The direction of travel was a worry, but at least we have been heard and as we develop apprenticeships we can ensure that the duration and assessment methodology are commensurate with the competence standard that must be reached to support the emphasis on competence in the latest iterations of the Building Regulations”.