City & Guilds Privatisation Faces Intense Scrutiny Over Bonuses and Future of Qualifications
The privatisation of City & Guilds, a venerable 148-year-old vocational education charity, has sparked significant controversy and multiple investigations. The transfer of its qualifications arm to Greek-owned business PeopleCert, completed last year, is now under intense examination following revelations of substantial executive bonuses and concerns about the future of further education in England.
Executive Bonuses and Charity Commission Inquiry
Senior City & Guilds staff, including Chief Executive Kirstie Donnelly and Chief Financial Officer Abid Ismail, received huge bonuses totalling £2.9 million when the deal concluded. The Charity Commission has opened a statutory inquiry into these payments, while PeopleCert has launched its own investigation, placing both executives on leave. The qualifications regulator, Ofqual, is also monitoring developments closely.
These bonus payments raise serious questions about governance and transparency within the charity sector. City & Guilds had previously stated it had considered and rejected the idea of paying bonuses in connection with the deal, making the actual payments particularly contentious.
Trustee Leadership Under Examination
The role of Dame Ann Limb, chair of the charity's trustees, has also come under scrutiny. Dame Ann co-authored an article with Ms Donnelly claiming they had "shaped the course of history" through the deal. Her subsequent announcement that she would step down and become a Labour peer, combined with reports about her educational qualifications and political donations, has raised further questions about the decision-making process.
Impact on Further Education and Students
The privatisation represents a significant shift in England's further education landscape. Unlike Scotland and some European countries where further education operates as a public service, England's system functions as a market. This deal tilts the balance further away from education as a public good toward profit-driven models.
PeopleCert plans to make savings totalling £22 million, which includes replacing UK jobs with cheaper staff abroad. City & Guilds currently employs 1,600 people, with many more on short-term contracts. There are genuine concerns that the new owners could raise fees charged to colleges as they seek returns on their investment.
Most worryingly for students, qualification options could narrow significantly. Less profitable qualifications may be at risk as the new owners prioritise financial returns over educational breadth. This could particularly impact vocational and technical education pathways that are crucial for addressing economic inactivity among young people.
Future Implications and Accountability
While the deal cannot be reversed, delayed scrutiny and accountability are better than none. The City & Guilds charity retains assets of up to £200 million, and trustees must ensure this money serves educational purposes effectively. As PeopleCert becomes a major player in technical education, ongoing monitoring of its practices and impact on students will be essential.
The investigations currently underway must provide clear answers about the bonus payments, decision-making processes, and safeguards for educational quality. The future of vocational education in England depends on transparent governance and commitment to student opportunities rather than purely financial considerations.
