The Construction Industry Training Board announced massive cuts to training grants starting January 8, 2026. The reason? Demand for their services surged 36% over four years, but their funding stayed flat.
They’re cutting training because too many people want training.
The Math That Doesn’t Work
CITB is:
Slashing grants by 60% for leadership development (from £1,500 to £600)
Eliminating short-course funding entirely
Requiring 50% employer match funding through Employer Networks
Removing level 7 qualification support for advanced specialization
Chief Executive Tim Balcon apologized for the “short notice” and admitted they needed to prevent “surge claiming that will put our ability to support employers at risk.” Employers will rush to claim benefits before the cutoff, draining funds faster.
The Timing Could Not Be Worse
The UK construction industry needs 251,500 additional workers by 2028.
Fewer than 50% of apprentices complete their training. CITB is reducing support for a system already hemorrhaging talent at the midpoint.
Average weekly construction earnings jumped 6.2% to November 2024, driven by labor scarcity. Less training means fewer qualified workers. Fewer workers means higher wages. Higher wages mean more expensive projects. CITB’s cuts accelerate this cycle.
This Isn’t Just a UK Problem
Levy-based training systems face structural problems everywhere. The core issues:
Deadweight: Levies end up funding training employers would have paid for anyway
Threshold gaming: Companies reduce training to minimum levels to qualify for rebates
Difficult-to-spend surpluses: When levy rates stay static but demand grows, systems break
CITB’s crisis reflects chronic underinvestment patterns across developed nations.
The Hidden Cost of Cutting Training
Employees who receive training are less likely to change employers. Research shows substantial reductions in workforce turnover.
CITB’s cuts will increase workforce turnover costs beyond what employers save on training. Employers will spend more to lose more people.
Small and medium enterprises will absorb the biggest impact. The shift to 50/50 cost-sharing changes the economics, and tighter training budgets mean smaller firms will reduce training investment.
This widens the skills gap by company size.
What This Means for Other Sectors
CITB’s approach will become a template for other sector skills bodies facing similar pressures. When successful programs strain capacity and funding models don’t scale, forced restructuring follows.
Other training organizations will watch this and prepare similar consolidations.
The levy system worked when training demand was predictable. It breaks when demand explodes and revenue stays flat. No organization can sustain 36% growth without matching revenue.
CITB chose survival over mission. Other training bodies will make the same choice.
The construction industry will pay for it in higher costs, longer timelines, and a shrinking skilled workforce. The real bill comes due in 2028, when the worker shortage hits and there’s no training pipeline to fill it.