ECITB levy-grant scheme

Name of the instrument - Local language: ECITB levy-grant scheme
Name of the instrument - English translation: ECITB levy-grant scheme
Country: United Kingdom
Type of instrument: Training fund
Type of entry: Single instrument

Short description: Companies of the construction engineering sector are obliged by law to contribute a share of the payroll 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.
Short description of the related instruments: nap

Level of operation

Sectoral

Name of a part of the country

Name of the region (for regional instruments)

nap

Name of the sector (for sectoral instruments)

Engineering construction industry

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

Year of latest amendment

1991

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)

All employers operating establishments on the ECITB's Register of Leviable Establishments (any that are wholly or mainly engaged in the principal and related activities of the engineering construction industry) are eligible to claim ECITB grants and services, even those who do not pay a levy

Group(s) with preferential treatment

None

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

A compulsory levy from construction engineering sector companies.
Rates:
- for employees and labour-only contractors wholly or mainly working on-site: 1.75% of the total gross emoluments paid to employees and the total gross payments made in respect of labour-only contractors during the base period. If the total gross emoluments and total gross payments are less than GBP 275 000 no training levy will be payable.
- for all employees and labour-only contractors wholly or mainly working off-site: 0.18% on the total gross emoluments paid to employees and the total gross payments made in respect of labour-only contractors during the base period. If the total gross emoluments and total gross payments are less than GBP 1 000 000 no training levy will be payable.

Funds from other organisatons including EU.

Eligible costs