ECITB levy-grant scheme

Name of the instrument - Local language: ECITB levy-grant scheme
Name of the instrument - English translation: ECITB levy-grant scheme
Scheme ID: 208
Country: United Kingdom
Reporting year: 2020
Type of instrument: Training fund
Sub-type of instrument: Sectoral level collection and sectoral level distribution
Type of entry: Single instrument

Short description: Companies of the construction engineering sector are obliged by law to contribute a share of the payroll (1.2% of the total payments to employees and labour-only contractors) to a training fund. In return, training costs of employers (including those not liable to pay the training levy) are refunded. Eligible education and training activities include apprenticeship, upskilling, reskilling. Engineering constructions companies are the principal eligible group. Training grants and graduate development grants are available to employees of eligible companies.

Level of operation

Sectoral

Name of a part of the country

Not applicable

Name of the region (for regional instruments)

Not applicable

Name of the sector (for sectoral instruments)

Construction

Relevance

Further instrument

Legal basis

The Industrial Training Act 1964, The Industrial Training Act 1982 (setting out functions and powers of ITB, The Industrial Training (Engineering Construction Board) Order 1991 [the board Order](defining the activities of the engineering construction industry). The Industrial Training Levy (Engineering Construction Board) Order [the Levy Order]. This is passed periodically and defines the rates of training levy to be applied and authorises the ECITB to raise levies.

Objective(s) and target(s)

To help employers to attract, develop and qualify the people needed to meet work demands and create a sustainable and competitive workforce.

Year of implementation

1982

Operation/management

ECITB is a statutory body which acts on behalf of the engineering construction industry in assessing and collecting a training levy from all employers who operate engineering construction establishments. Under the Industrial Training Act, all 'establishments' operated by employers which are wholly or mainly engaged in engineering construction activities are registered with the ECITB and annually assessed for industrial training levy. All registered establishments are required by law to complete an annual statutory manpower and payroll return. The information provided enables the ECITB to assess the amount of training levy payable (if any) and to establish eligibility to receive grants. Available ECITB funds are used to support approved training-related activities. ECITB is a centre of excellence for advice, information and skills development for the engineering construction industry.

Eligible group(s)

Eligible groups are in-scope engineering construction companies.

Group(s) with preferential treatment

Education and training eligible

Apprenticeship, upskilling, reskilling. Examples: technical courses, supervisory management training courses, project management short courses, interactive training events (interpersonal skills, technical leadership, train the coach/occasional trainer, advanced and modern apprenticeships for young people entering the industry).

Source of financing and collection mechanism

For employees and labour-only contractors who mainly work on sites in Great Britain or its offshore waters, the training levy is 1.2% of the total payments to employees and labour-only contractors during the base period 6 April to 5 April. If the total payments, including salaries and other allowances, are less than £275,000 then no training levy is payable in respect of site-based workers. However, if the total paid is less than £1,000,000 then no training levy is payable in respect of all other workers. For all other employees and labour-only contractors mainly working in Great Britain, a training levy of 0.33% of the total payments to employees and labour-only contractors will be payable from 2023. This is an increase on the previous level of 0.14% and was agreed by the overwhelming majority of levy-paying employers in Autumn 2019. The ECITB's proposal will see the offsite levy rising to 0.2% in 2021, 0.27% in 2022 and 0.33% payable in 2023.

Financing formula and allocation mechanisms

The training fund is financed through a range of sources, including the sectoral training levy.

Eligible costs

Fees only

Volumes of funding

Levy income collected: 2019: GBP 23 732 000 (approx. EUR 27 861 000)2018: GBP 22 964 000 (approx. EUR 25 763 168)2017: GBP 30 073 000 (approx. EUR 34 060 458) Grants disbursed: 2019: GBP 19 927 000 (approx. EUR 23 393 989)2018: GBP 21 299 000 (approx. EUR 23 895 215)2017: GBP 33 797 000 (approx. EUR 38 278 233)

Beneficiaries/take up

Not available

Organisation responsible for monitoring/evaluation

ECITB

Most relevant webpage - in English