Construction Industry Training Board: Funding

Richard Foord Excerpts

Wednesday 4th February 2026 Commons Chamber

[Steve Race]

I agree; we need to do everything that we can to make our commitment to getting two thirds of young people into education, training, apprenticeships or work a reality. We all need to work together on that.

Combined with the broader pressures that businesses are facing, these changes will seriously detrimentally affect Apex’s training capacity as a company. Apex and other companies that are committed to developing skilled, competent staff in their industries hope that the CITB will reconsider, given the impact that the adjustments may have on employers, and will explore ways to ensure that training remains accessible and sustainable.

A member of the Somerset Construction Training Group got in touch with me to say that these groups provide invaluable practical support to construction businesses and apprentices alike. In their words, removing CITB funding risks not only the future of the groups but the loss of highly experienced people whose knowledge of training, funding and compliance in the construction sector is difficult to replace. Ultimately, they feel that this could reduce access to apprenticeships, increase pressure on employers and negatively impact jobs in the industry. The group finished by saying that it hopes that CITB will reconsider and recognise the long-term value that training groups deliver.

Another Somerset business owner said to me that they have been fortunate to be part of the Somerset Construction Training Group for over 16 years. They have been provided with an excellent service, including quality training and last-minute training if required, and they have built a solid working relationship over the last 16 years with their training group officer, who understands their company and their training needs. The group enables networking between group members, and supports many aspects of their business. In their opinion, training groups were the best thing that CITB supported, and they are sad to say that their relationship with CITB is nowhere near as solid.

At the national level, it is reported that the CEO of a roofing business and a member of the Construction Industry Training Board funding committee has resigned in protest at the decision to cut funding for training groups. He stated that he could not in good conscience remain a member of the committee, and that the decision to both defund the training groups and slash the number of courses that are to be grant funded will undoubtedly increase, rather than decrease, the skills gap. That surely cannot be right.

The CITB introduced employer networks in 2024, and intended them to be the route for employers to engage with the CITB. However, the feedback I have received is that small and medium-sized enterprises consider the groups to be remote and impersonal, and that they take longer to organise training. In general, some SMEs have expressed to me that they feel largely ignored and let down by the CITB. The withdrawal of funding for training groups has made them feel sidelined and disillusioned. Indeed, the CITB has run concurrently for some years both the employer networks, which seem best able to cater to larger businesses, and the local training groups, which seem better able to support SMEs. I would have thought there is some merit in continuing with both, especially given the small cost of the local training groups.

[Richard Foord (Honiton and Sidmouth) (LD)]

It is my understanding that, in addition to employer networks, the CITB is also seeking to redirect funding to the new entrant support team. I declare an interest: my father worked as a new entrant training officer. Does the hon. Gentleman accept that the new entrant support team is good value, and is perhaps a good place for this investment to be directed towards?

[Steve Race]

There is absolutely a case to be made here, but as I shall go on to say, the way in which this has come about is less than ideal, and it leaves lots of local training groups and local SMEs feeling pretty much left out to dry by the CITB.

Construction skills are critical to the success of Exeter’s economy and to our ambition to build the right homes in the right places for people to live in. I am proud that Exeter college is an outstanding tertiary college that offers a wide range of apprenticeships and vocational courses, and the University of Exeter offers a range of degree apprenticeships in partnership with business. As we work to meet this Government’s vital target of having two thirds of young people in university, college or an apprenticeship, we will need every organisation, business, sector and network pulling together.

I would be interested to hear the Minister’s view of the changes that the CITB has brought in, and whether he and the Department believe that those changes are aligned with our goals of increasing access to and take-up of apprenticeships and closing the skills gap across the country. Further, has he or the Department had conversations with the CITB on the changes, and has there been an impact assessment, particularly on the ability of SMEs to properly participate in the work of the CITB in this space? Finally, does the Minister agree that the CITB could perhaps have worked with the training groups over a longer period to improve the outcomes of the training groups, should it have felt that necessary, or to provide a platform to help them to transition to new models of funding, rather than a decision being taken to simply pull the funding with a mere four months’ notice? I thank colleagues across the House for their interventions, and look forward to hearing the Minister’s thoughts on this issue.

--- Later in debate ---

[Sir Stephen Timms]

I think on this topic there will be less difference across the Dispatch Boxes than was the case with the topic we debated yesterday. The pilots with the mayoral strategic authorities will try out new approaches, and the idea is that the successful approaches can be rolled out wherever appropriate, not just in areas with mayoral strategic authorities. I will come to the point about the training groups in a moment.

Similarly, we expect the construction sector to benefit from the expansion of the youth guarantee, backed by £820 million of investment over the next three years to reach almost 900,000 young people and support them to earn and learn. A great deal of investment is going into this area, and I agree with my hon. Friend the Member for Exeter that it is vital that we make the most of that for creating opportunities in local areas in every part of the country, including the south-west.

The CITB plays a central role in developing construction workforce capability and investing in skills training across England, Scotland and Wales. As we have been reminded, there is a separate arrangement in Northern Ireland. CITB is a registered charity and a non-departmental public body established in statute in 1964—apparently in July. It is sponsored now—following the transfer of responsibility for adult skills policy from the Department for Education—by the Department for Work and Pensions, with the purpose of improving training for people over school age who are working in the construction industry.

The Government set the strategic framework for the board. The board remains accountable to Parliament, but it operates at arm’s length, maintaining operational independence over how it meets industry needs. Its chair is Sir Peter Lauener, a distinguished former civil servant, but its board comprises by statute mainly representatives of construction employers. It is funded not by taxpayers but, as my hon. Friend said, through a levy on registered construction employers based on their payroll size.

[Richard Foord]

I am grateful to the hon. Member for Exeter (Steve Race) for calling the debate. I appreciate that CITB is at arm’s length from Government, but of course, 946,000 young people were registered as NEET last summer. Does the Minister share my view that money is better spent on organisations such as CITB than it is on welfare payments to young people?

[Sir Stephen Timms]

Certainly, it is absolutely right that the construction sector has a lot of promising opportunities for exactly those young people, and we need to ensure that they have the support to take them up. We also need to provide a social security safety net—I do not think it is one or the other—but I agree that the work of the CITB is vital in this area.

The CITB provides a wide range of services and training initiatives. It sets occupational standards, funds strategic industry initiatives to support Government missions, and pays allowances and direct grants to employers, as we have heard, that carry out training to approved standards.

In the five years since 2021, employer demand for CITB services has increased by 36%. Levy rates have deliberately been held steady to support construction businesses, given the very sharp cost increases that we are all familiar with that have arisen from global challenges that the industry has had to grapple with. As a result, the costs of CITB services now exceed levy income. In response, the CITB has announced the changes to keep the funding as tightly focused as possible on the industry’s core priorities, in particular on bringing apprentices and new entrants into the workforce to address skills gaps. There has been no cut in CITB funding, but there has been a reprioritisation to ensure that the available funding is used where it has the greatest impact. The CITB board has understandably identified an urgent need for efficiency improvements, to spend less money on bureaucracy in order to be able to spend more on training.

For many years, CITB training groups have supported businesses by securing cost-effective training through collective bargaining, and by helping firms with grant applications, facilitating workforce planning and sharing best practice along the lines set out by my hon. Friend. I put on record the Government’s thanks to all group training chairs and officers—not least my hon. Friend’s constituent, Peter Lucas, the chair of the Devon construction training group and, since 2023, the national chair of training groups. He and his counterparts have undertaken a great deal of important and dedicated work to meet employers’ skills needs. There are currently 80 training groups across England, Wales and Scotland—there was one other but it closed last year. I think perhaps the figure my hon. Friend gave was just for England.