CITB proposes to keep levy rates at pre-Covid levels

Sarah Beale

THE Construction Industry Training Board (CITB) is proposing to keep rates at pre-Covid levels as it launches a new consultation into its funding proposals.

A six-week consultation into how CITB raises its levy begins on March 1, featuring a range of virtual events.

Once feedback is in, CITB will proceed to Consensus this summer, which will see a representative sample of 4,000 levy-paying employers asked for their agreement on plans to raise this funding for the next three years.

Sarah Beale, CEO of CITB, said, “With the impact of Covid-19 last year, we spoke to employers and listened to their view that we should be focusing on supporting them through the pandemic. As such, we postponed Consensus and immediately suspended the levy. This year employers will be assessed at a reduced rate, whilst we continue to maximise the support to employers and impact of your levy.

“The feedback we’ve had now is that the industry wants us to proceed with running Consensus, and we’ve agreed that now is the right time to start. We’re looking forward to talking with businesses from across the sector to understand their views, and explaining how we’ll use their money to provide the training and the skills that the industry needs.”

While views are being sought on the draft levy proposals, CITB revealed that businesses will also be asked about the areas of greatest need for developing skills in the sector. CITB plans to enhance funding and support to these areas, which will include skills gaps, jobs shortages, and the environmental impact.

The draft levy proposals are a return to pre-Covid levels of 2019, of 0.35% for PAYE staff and 1.25% for net paid (taxable) sub-contractors. CITB will support smaller employers by waiving the levy for more businesses this year. Companies with a wage bill below £120,000 will pay nothing, and levy will be halved for those between £120,000 and £400,000.