In a move that has sent shockwaves through the UK’s further education sector, the iconic City & Guilds vocational training organisation has been privatised and sold to a Greek-owned firm, PeopleCert. This decision, made quietly by the charity’s trustees, has come under intense scrutiny, with questions being raised about the motivations behind the deal and who has ultimately benefited.
The 148-year-old City & Guilds, which holds a royal charter granted by Queen Victoria, was previously a highly respected non-profit organisation at the heart of the country’s technical education landscape. However, it has now been transformed into an international brand, with plans by the new owners to cut costs and offshore UK jobs in favour of cheaper overseas staff.
The deal has raised concerns among critics, who argue that profit-driven businesses do not behave in the same way as charities, which are legally obligated to deliver a public benefit. There are fears that the new owners could raise fees charged to colleges as they seek to maximise returns on their investment, potentially narrowing options for students and putting less profitable qualifications at risk.
Adding to the controversy, it has been revealed that senior City & Guilds staff, including the chief executive and chief financial officer, received substantial bonuses totalling £2.9 million when the deal was finalised. The Charity Commission has launched a statutory inquiry, while PeopleCert has initiated its own investigation, placing the two executives on leave.
The role of Dame Ann Limb, the former chair of the charity’s trustees, has also come under scrutiny. She co-authored an article with the chief executive, claiming that the “alignment of the stars” had enabled them to “shape the course of history” – a statement that has raised eyebrows. It has also been reported that Dame Ann, who is set to become a Labour peer, had falsely claimed to hold an MA and PhD.
This privatisation deal has far-reaching implications for the future of technical education in England. Unlike in Scotland and some other European countries, further education in England is already run as a market-driven system. The City & Guilds sale has tilted the balance even further away from a social democratic view of education as a public good.
As the investigations continue, it is crucial that the actions of those involved, as well as the long-term impact of this decision, are thoroughly examined. While the deal cannot be undone, delayed scrutiny and accountability are essential to ensure that the interests of students, educators, and the wider public are protected.