Industry

02 NOV 2022

INDUSTRY SUPPORT FOR ECITB LEVY PROPOSALS

Government skills body ECITB says it has received overwhelming backing from industry, with engineering construction companies voting resoundingly in favour of its proposed levy rates for the next three years.

Engineering construction companies voted in favour of the ECITB’s levy proposals for 2023-25 – 85% of levy-paying employers, representing 97% of the industrial training levy paid, backed the proposal.

The ECITB launched the levy consultation following the publication of its new three-year strategy, Leading Industry Learning, in September. 

ECITB - the Engineering Construction Industry Training Board - is an arm’s length body of the Department for Education.

It says the high level of support for the proposals indicates industry is fully behind its strategy to support employers in addressing skills shortages as well as investing in essential workplace training required to deliver the country’s net zero and energy security ambitions.

The levy proposal agreed by the board sought to maintain levy rates at 1.2% for site workers and 0.33% for the offsite/other workers. 

The decision to hold the rates reflected the board’s determination to strike a balance between the need to effectively resource support for training and the fragile operating and cost environment facing many in-scope companies.

ECITB chair Lynda Armstrong OBE said: “I am delighted to report that industry has emphatically backed our levy proposals. The level of support we have received represents a significant vote of confidence in the ECITB.

“We consulted with employers throughout the development of the strategy and this result shows that our plans correctly identify the key workforce challenges and set out the right priorities to support industry.

“It is now up to the ECITB to deliver on this strong mandate, building on our successful track record of driving skills improvements throughout the industry and helping employers meet their current and future skills needs.”

The ECITB has now written to the education secretary, Rt. Hon. Gillian Keegan MP, to communicate the result. Following approval by the secretary of state, the levy proposals will be enacted into legislation. 

The rates will be applied to levies raised in 2023-25 and will be payable in 2024, 2025 and 2026 respectively.

The latest vote follows the ECITB’s previous levy consultation in 2019, where three quarters of levy payers backed a phased increase in the offsite levy rate.

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