City & Guilds pay row amid £22m cost cuts

Published: 20 January 2026. The English Chronicle Desk. The English Chronicle Online.

The controversy surrounding City & Guilds pay has intensified following revelations about executive rewards. Within weeks of a major restructuring, senior leaders received substantial increases. These decisions emerged as the organisation pursued a £22m cost-cutting programme affecting hundreds of jobs. The situation has drawn scrutiny from regulators, unions, and education leaders across the United Kingdom. City & Guilds pay decisions now stand at the centre of a debate about accountability, governance, and ethical leadership within vocational education.

City & Guilds, long regarded as a cornerstone of British vocational training, entered a new era after its qualification awards business was sold. The former charity owner, City & Guilds London Institute, transferred control to international certification firm PeopleCert. The transition was presented as a strategic move to modernise operations and secure global growth. However, concerns quickly surfaced over governance standards and financial priorities following the sale.

According to information verified through UK and international sources, the cumulative pay of the top six executives has risen sharply. Their combined remuneration reportedly reached approximately £6.2m in the current financial year. This marks an increase of around 240 percent compared with figures recorded before privatisation. The rise includes significant one-off bonuses alongside higher salaries and expanded annual incentive payments.

The scale of these awards has drawn particular criticism because they coincided with severe internal cost controls. Shortly after the sale, City & Guilds announced a £22m savings programme. The measures included workforce reductions and a freeze on replacing many departing staff. Employees across the UK have since faced uncertainty as departments were restructured or downsized.

Central to the controversy are payments made to senior figures during the transition. Former chief executive Kirstie Donnelly and finance director Abid Ismail were placed on leave while PeopleCert launched an internal investigation. Their suspension followed media disclosures that both received million-pound bonuses linked to the sale. Donnelly reportedly received £1.7m, while Ismail was awarded £1.2m.

The Guardian’s reporting revealed that overall one-off bonuses across the executive group may total about £4.5m. These figures emerged as frontline staff were being told to prepare for job losses. Critics argue that such disparities undermine trust within the organisation and damage its reputation in the education sector. City & Guilds pay has therefore become symbolic of wider tensions between profit-driven ownership and public service values.

PeopleCert has declined to provide detailed explanations regarding the remuneration surge. A spokesperson stated only that the company had no further comment during the investigation. This limited response has done little to calm critics, who argue that transparency is essential given City & Guilds’ historical charitable status and public mission.

Further concerns arose after details emerged about the cost-saving strategy itself. Internal presentations suggested that a significant portion of savings would come from “personnel cost synergies.” These were to be achieved largely by not replacing staff who left the organisation. Documents indicated that City & Guilds experiences annual staff turnover equivalent to about 300 roles.

The same materials outlined plans to relocate roughly a third of those roles to Greece. According to the presentation, labour costs there could be up to 50 percent lower. Other positions were described as overlapping functions and therefore unnecessary. The remainder of roles would be filled within the UK, though on a reduced scale. The presentation was later removed from PeopleCert’s website following media attention.

Unions and education commentators have expressed alarm at the implications for vocational training quality. City & Guilds qualifications are widely used by colleges, employers, and apprentices across the country. Any disruption to assessment standards or support services could have lasting consequences for learners. The perception that City & Guilds pay rose dramatically while educational capacity shrank has fuelled public anger.

The former charity owner, City & Guilds London Institute, has sought to distance itself from post-sale remuneration decisions. The institute stated that its trustees were not involved in discussions about executive pay after the transaction. Responsibility, it argued, lies solely with the new private owners. However, this position has been questioned following disclosures about trustee deliberations.

Sources indicate that trustees discussed potential bonuses during 2024 and voted on remuneration matters in May 2025. At that time, proposals reportedly included bonuses of up to four times salary. Although the charity later stated that it decided not to pay sale-related bonuses, the figures discussed appear closely aligned with those eventually awarded by the private company.

This apparent overlap has prompted further scrutiny from the Charity Commission. A statutory inquiry is already underway to examine whether trustees acted appropriately during the sale. The commission is assessing whether charitable assets were protected and whether decisions aligned with the institute’s public benefit obligations. City & Guilds pay arrangements form a central part of that investigation.

CGLI has said it is cooperating fully with regulators. In a statement, it expressed confidence that all actions taken by trustees were proper and transparent. It maintained that decisions were consistent with the charity’s mission to advance skills and education. Nonetheless, critics argue that reputational damage has already been done.

Education policy experts note that City & Guilds occupies a unique position in the UK skills system. It operates at the intersection of public trust and commercial delivery. As such, its governance standards are expected to exceed those of purely private firms. The controversy has renewed calls for stronger oversight when charitable bodies privatise core functions.

For employees, the episode has been deeply unsettling. Staff affected by redundancy plans have questioned how leadership could justify large bonuses while pursuing aggressive savings. Morale, according to insiders, has been severely impacted. Some fear that experienced assessors and administrators will leave the sector altogether.

Learners and training providers have also raised concerns. Many rely on City & Guilds qualifications for apprenticeships and professional certification. Stability and credibility are essential to maintaining confidence in assessment outcomes. Any perception of mismanagement risks eroding that confidence at a critical time for UK skills development.

As investigations continue, pressure is mounting on PeopleCert to clarify its governance approach. Stakeholders want assurances that executive rewards will align with organisational performance and social responsibility. City & Guilds pay decisions are now being viewed as a test case for ethical leadership in privatised education services.

The coming months are likely to prove decisive. Findings from the Charity Commission and internal reviews may lead to reforms or further sanctions. For City & Guilds, restoring trust will require openness, accountability, and a renewed commitment to its educational mission. Whether that can be achieved remains uncertain.

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