City & Guilds Privatisation Faces Intense Scrutiny Amid Bonus Revelations
The privatisation of City & Guilds, a venerable 148-year-old vocational education charity, has sparked widespread concern and multiple investigations following revelations of substantial executive bonuses and plans to cut costs by offshoring UK jobs. The qualifications arm of this institution, which holds a royal charter granted by Queen Victoria, was sold last year to PeopleCert, a Greek-owned business, transforming one of England's most respected further education non-profits into an international brand.
Executive Bonuses and Regulatory Inquiries
Senior staff at City & Guilds, including Chief Executive Kirstie Donnelly and Chief Financial Officer Abid Ismail, received enormous bonuses totalling £2.9 million when the deal was finalised. This has prompted a statutory inquiry by the Charity Commission, with PeopleCert launching its own investigation and placing both executives on leave. Ofqual, the qualifications regulator, is also closely monitoring developments. The charity had previously stated it considered and rejected the idea of paying bonuses linked to the sale, raising critical questions about the decision-making process.
Trustee Leadership Under the Microscope
Dame Ann Limb, the chair of the charity's trustees, co-authored an article with Ms Donnelly claiming the deal enabled them to "shape the course of history." Her subsequent announcement to step down and become a Labour peer, coupled with reports she falsely claimed academic qualifications and donated £50,000 to the Labour party, has further intensified scrutiny of her suitability and the deal's oversight.
Impact on Further Education and Student Choices
Unlike Scotland and some European nations, further education in England operates as a market, and this privatisation shifts the balance further from viewing education as a public good. PeopleCert plans to achieve savings of £22 million, which includes replacing UK staff with cheaper overseas workers. City & Guilds employs 1,600 people, with many more on short-term contracts, and there are fears the new owners may increase fees charged to colleges to secure returns on investment.
Options for students could also narrow, with less profitable qualifications potentially at risk. This raises alarms about accessibility and diversity in vocational training, particularly as technical education becomes increasingly vital amid high economic inactivity among young people.
Future Implications and Accountability
While the sale cannot be reversed, delayed scrutiny offers a chance for accountability. The City & Guilds charity retains assets up to £200 million, and trustees must ensure these funds are used effectively to support public benefit. As investigations unfold, the focus remains on ensuring that profit motives do not undermine the essential role of vocational education in fostering skills and opportunities across the UK.
