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Skills Update

Order for Funding to Underpin CITB-ConstructionSkills Passes Safely through Houses of Parliament and Lords


As part of an annual review, MPs and Lords unanimously agreed that the construction industry levy that supports the work of CITB-ConstructionSkills can be collected for another year. Commitment for the levy was secured in the House of Commons on 20th February followed by cross-party support in the House of Lords on 3rd March.

The Levy-raising powers are granted to CITB-ConstructionSkills, a partner in ConstructionSkills. Funding from industry is supplemented by other income raising activities and reinvested to help deliver on the industry aims and targets set out in the Sector Skills Agreement. The Levy funds are repaid to industry in the form of grants and other allowances to provide financial support to employers undertaking a range of training.

In 2007:

  • For every £1.00 of CITB-ConstructionSkills Levy received in 2007, the industry received back £2.03 in total benefits.
  • Employers benefited directly from a record total of £164.8m paid in the form of grants, college fees and other training allowances – up 12% on 2006.
  • 77,624 employers registered with CITB-ConstructionSkills (59,055 being small or micro firms).
  • Of the total registered firms only 26,208 paid levy (the remainder being below the £73,000 threshold), with all registered firms being able to claim grants.
  • Small and micro firms, i.e. those employing less than 50 people, contributed 45% of levy income and benefited from 50% of the grants, college fees and other training allowances.
  • 48% of grants were used to support the training of new entrants to the industry via apprenticeships and other training schemes.
  • 52% of grants were provided to fund the further training of workers already employed in the industry, in areas such as health and safety.

Sir Michael Latham, Chairman, ConstructionSkills commented: “ConstructionSkills consults widely with industry in order to ensure we provide a service appropriate to the industry and endorsed by it.

“The Levy supports the sector-based approach that was put firmly in place with the formation of Sector Skills Councils from 2003 and is in line with the key recommendations in Lord Leitch’s Review of UK Skills. It sets ConstructionSkills apart from other SSCs and provides an essential platform for meeting the skills and training needs of the industry.”


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