Update on our annual price increase - effective from 1 September 2023
In March 2023 we notified customers that as part of our annual review there will be a price increase from September 2023.
31 July 2023
We recognise that training providers and colleges are under financial pressure and price increases are never easy to take on board, which is why our aim is always to keep our prices as fair as possible.
For several years now, including over the pandemic, we have kept our price increases below inflation wherever we could. In some areas we made sure there were no increases at all, and we are sure you’ll appreciate that this hasn’t been easy.
The Office for Budget Responsibility's July 2023 report highlights financial difficulties faced following the pandemic, citing the energy and cost-of-living crisis from mid-2021 and the sudden interest rate rises in 2022. This rapid succession of financial pressures is taking a significant toll on the economy. Unfortunately, like many other organisations, City & Guilds is not immune to these pressures.
Factoring in this wider economic context with, in many cases, double-digit price increases from our suppliers, along with the impact of England’s Department for Education (DfE) post-16 technical qualification education reform, we need to make changes to put City & Guilds on a more sustainable footing.
As a result this year's price increases will need to be more closely aligned to the cost pressures we are facing in delivering our products and services, including qualifications and end-point assessments. From September 2023, some of our price increases will be above the rate of inflation, and some below.
By taking this approach, we can:
- continue to provide one of the widest sets of sector portfolios with an exceptional range of choice, whether that is for apprenticeships, T Levels or other qualifications;
- continue to invest in our products and services and evolve skills solutions for the future;
- continue to invest in our charitable purpose.
All revised prices will be available from the beginning of August 2023 in Walled Garden, our secure administration platform.
What is City & Guilds spending money on?
Our charitable purpose and the fulfilment of our Royal Charter are important to us – this means we are not driven by profits and shareholders, so you can be confident our prices are fair, competitive and continue to represent excellent value.
Every year we significantly invest in improving our existing products and services alongside developing new ones.
We reinvest any surplus we make back into a wide range of areas that customers and learners benefit from, including:
- improving and developing our education provision, including fair and rigorous assessments;
- responding to and servicing changes to regulatory requirements;
- our Foundation, which drives £5 of social value for every £1 we spend;
- delivery of our free customer events;
- development of our inclusive curriculum.
How City & Guilds is investing for the future
Although City & Guilds is a charity and does not make a profit, our services are being sold and provided in a highly competitive and commercial marketplace. We therefore need to make a net surplus to allow reinvestment back into our organisation, which in turn enables us to maintain and grow our high-quality products for customers and learners.
We invest in a broad range of areas: our people expertise, our technology, delivering on our net zero targets and developing the future education landscape as part of the post-16 technical qualification reform that the DfE are leading.
We work hard to manage our costs. To understand how careful we are with how we spend and invest, you can see our and annual report.