City & Guilds Faces Scrutiny After Controversial Sale to PeopleCert

In October 2025, the City and Guilds of London Institute (CGLI), a historic charity established in 1878, sold its training and accreditation business to the private firm PeopleCert for £166 million. This sale has raised significant concerns regarding governance, transparency, and the future of vocational education in the UK. Following the sale, fees for City & Guilds-affiliated courses surged dramatically, prompting criticism from educators like electrician Charlie Butler, who described the increases as "ludicrous."

The Guardian

The sale has been further complicated by revelations of substantial bonuses awarded to top executives shortly after the transition. Kirstie Donnelly, the former chief executive of CGLI, received a £1.7 million bonus, while finance director Abid Ismail was awarded £1.2 million, alongside significant salary increases. These payouts have drawn scrutiny, especially as they occurred within weeks of the executives taking on their new roles in the privatized entity.

The Guardian

In January 2026, the Charity Commission initiated a statutory inquiry into the sale and the bonuses, leading to the suspension of Donnelly and Ismail. Their departure from the company was marked by ongoing litigation, leaving many questions unanswered about the motivations behind the sale and the justification for the bonuses.

The Guardian

In response to the controversy, members of CGLI voted overwhelmingly in favor of an independent inquiry into the sale at the charity's annual meeting. This decision reflects a collective concern regarding the governance of an institution with a royal charter and a public purpose. Neil Bates, a fellow of CGLI, expressed optimism for the future, emphasizing the need for transparency and integrity in the organization’s operations.

City and Guilds members back inquiry into sale of charity’s commercial arm

Jessica Leigh Jones has been appointed as chair of CGLI, with a commitment to reaffirm the charity's public purpose and restore trust among stakeholders. The inquiry aims to address the profound questions raised by the sale and the subsequent actions of the charity's leadership.

City and Guilds members back inquiry into sale of charity’s commercial arm

Despite the charity's assertions that the sale was necessary for modernization, financial records indicate that CGLI had a total income of £174.8 million against an expenditure of £182.4 million, raising doubts about the urgency of the sale. Additionally, documents suggest that alternative proposals to retain the accreditation business were not thoroughly considered by the trustees.

The Guardian

As investigations by the Charity Commission and PeopleCert continue, stakeholders await clarity on the motivations behind the sale and the implications for the future of vocational education in the UK.

City and Guilds members back inquiry into sale of charity’s commercial arm

• “I said, ‘That’s ludicrous.’ His first comment was, ‘Well, everything goes up.’” — Charlie Butler, Electrician

The Guardian

• “Neil Bates, a City and Guilds of London Institute fellow, said in a LinkedIn post this week the decision to vote in favour of an independent inquiry provided “real optimism for the future”.” — Neil Bates, CGLI Fellow

City and Guilds members back inquiry into sale of charity’s commercial arm

The unfolding situation at City & Guilds highlights the tension between public service and private profit, raising critical questions about the future of vocational training in the UK.

The Guardian