The move follows complaints from contractors that the current process is too complicated and puts firms off applying for funds.

The changes apply to the flexible funding system which distributes £20m a year.

The current system has 40 flexible funding streams which will be reduced to just two from next month.

The two new categories of flexible funding will be:

The Flexible fund – Short term funding designed for projects less than 18 months in duration allowing CITB to respond to industry needs quickly.

The Structured fund – Long term funding designed to support projects longer than 18 months. It will fund projects that help employers to find long term solutions to the industry’s major skills challenges.

CITB currently distributes £140m annually via Grant Funding where the system is also under review with an announcement due in early 2016.

Steve Radley Director of Policy and External Affairs at CITB said “Industry has told us that accessing CITB’s funding was overly complicated and bureaucratic.

“That’s why we are introducing a system that is clearer, more transparent and straightforward.

“We are also putting robust evaluation in place to ensure that the funding we distribute has clear benefits and that we only fund what works.

“But getting the funding right is only half of the solution. This new approach is underpinned by robust analysis on industry skills needs. It is only by understanding which skills will make the real difference that we can  target funding appropriately and unlock construction’s full productivity.”

Throughout the process, CITB have worked alongside an industry advisory group.

Tim Peach, Head of Operations at Lend Lease who chaired the advisory group for the review said “These changes will make it easier for construction firms to invest in the training and development of our people, with funding that is simpler to access and better matches industry needs.

“Construction can only reach its growth potential by improving skills and training where it is needed most, and the new approach to flexible funding will help make that possible.”