The Construction Industry Training Board (CITB) has revealed proposed changes to its levy, which include raising the threshold at which firms pay the charge.
Under the plans for 2026-29, which went out to the construction sector for consultation yesterday (17 March), companies that have a total wage bill of less than £150,000 will be exempt from the levy.
Currently, the threshold is less than £135,000.
The CITB is also proposing that firms with a monthly wage bill of between £150,000 and £499,999 pay 50 per cent less. At present, companies with a bill of £135,000 to £449,999 are eligible for the discount.
However, the training board proposes to leave the full headline rates unchanged. This means businesses would still be charged at 0.35 per cent of all payments to direct employees and 1.25 per cent to subcontractors.
As part of the CITB’s so-called “consensus” process, employers that are affected have until 9 May to respond.
CITB chief executive Tim Balcon said: “The levy is designed to ensure that construction employers of all sizes feel supported with their skills and training needs.”
The process, which normally takes place every three years, had been delayed pending a government-commissioned review of the CITB, which was finally published in January.
The report by Mark Farmer, author of an influential 2016 independent government review of the UK’s construction labour model entitled Modernise or Die, concluded that the body was in need of a “fundamental reset” and should merge with its engineering counterpart.
A draft consultation on the latest levy took place last autumn but only 222 employers responded, which equated to about 0.3 per cent of CITB-registered firms. The body admitted the response rate was “far lower” than originally anticipated.
Nicola Hodkinson, owner and director of contractor Seddon, told Construction News: “The proposed changes to exemption and reduction thresholds might look good on paper, but I’d like to see the data on how many businesses this will actually affect in practice.
“Fewer employers paying the levy doesn’t mean much if the funds aren’t being used effectively.
“The CITB has been around for 60 years, but many in the industry still see it as a bureaucratic burden rather than a go-to resource for support.
“We need more than just taking money out of the industry – real support is still yet to be seen.”
Last month, the CITB also launched its latest strategic plan for 2025-29. It includes plans to retain its current level of support for apprenticeships, despite Farmer’s review saying some levy money should be diverted.
English