2026 Discretionary Grants: Insights to Help Employers Optimise their Submissions

By Leshya Kisten, SDF Manager at Ubuhle People Solutions

For many large employers, Discretionary Grants (DGs) remain one of the most valuable mechanisms for funding strategic skills development. Yet approval rates continue to depend on far more than simply submitting a Workplace Skills Plan (WSP) and training request. In 2026, Sector Education and Training Authorities (SETAs) are placing more emphasis on impact, alignment and compliance, so employers who approach DG submissions with a broader workforce strategy in mind are more likely to succeed.

Some key trends shaping the 2026 DG landscape include:

1. There is a strong shift toward occupational qualifications registered on the QCTO framework. SETAs increasingly prefer programmes that lead to nationally recognised occupational qualifications rather than short, standalone courses. These qualifications are designed around real job roles and workplace competencies, which makes them easier to link to employment outcomes.

2. Workplace-based learning remains a top priority. Learnerships, apprenticeships and internships continue to receive significant support because they combine formal learning with practical workplace experience. For employers, this means submissions that include structured workplace exposure and mentorship components are more likely to be viewed favourably.

3. Alignment with scarce and critical skills is becoming non-negotiable. SETAs are closely monitoring whether proposed training directly addresses industry skills shortages. Programmes that connect clearly to hard-to-fill roles or future workforce needs tend to stand out during evaluation.

4. There is also a growing focus on socio-economic impact. Many SETAs are prioritising initiatives that contribute to rural and township development. Employers that recruit learners from these communities or deliver training opportunities outside major urban centres may strengthen the developmental impact of their applications.

5. There is an increasing emphasis on the inclusion of Persons with Disabilities (PWDs) in training initiatives. SETAs are encouraging employers to actively recruit and support PWD learners and to create pathways for their meaningful integration and potential absorption into the workplace. This focus promotes greater workplace diversity and ensures that skills development initiatives are inclusive and accessible to all.

6. Another emerging requirement is the emphasis on employment absorption. SETAs increasingly want to see evidence that learners will move into meaningful employment after completing programmes. While permanent placement may not always be possible, employers should demonstrate realistic pathways into jobs, further training or structured career progression.

7. Compliance and accurate learner tracking remain critical. Incomplete documentation, unclear reporting or poor record management can easily derail an otherwise strong application. SETAs expect clear audit trails, updated compliance records and consistent learner monitoring throughout the training cycle.

8. It is advisable that companies view DG applications as part of a longer-term workforce strategy rather than an annual administrative exercise. Employers should consider multi-year learner pipelines – instead of applying for isolated training cohorts each year, structured talent pipelines create continuity and improve the credibility of submissions. This approach also signals that the company is investing in sustained skills development rather than once-off initiatives.

9. Workplace readiness is another important factor. Where learnerships or apprenticeships are proposed, employers should ensure that the workplace is approved for training and that supervisors or mentors are prepared to support learners.

10. And finally, strong governance also supports successful DG applications. Up-to-date BBBEE certification, tax clearance and other compliance documentation should be readily available before submission windows open.

Given these trends, a practical starting point is to prioritise accredited, occupationally aligned programmes that support real roles in the business and should clearly address identified hard-to-fill vacancies within the company or sector. When learning programmes directly support workforce gaps, they strengthen both the employer’s business case and the SETA’s mandate to address national skills shortages.

For HR leaders, the message is clear. The most successful DG submissions in 2026 will be those that connect skills development, workforce planning and socio-economic impact into a coherent strategy.