Offsite training levy doubles in engineering construction

Aaron Morby 4 years ago
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Engineering construction contractors have backed a hike in the sector’s offsite training levy.

Presently the offsite workers make up 53% of the workforce and last year demand for training for offsite workers was more than double the amount of income raised through the offsite levy.

To fill the funding gap sector skills body, The Engineering Construction Industry Training Board, has won support from 75% of levy payers to raise the offsite levy rate from 0.14% to 0.33% of total gross payroll.

The levy rise will be phased in gradually, rising to 0.2% payable in 2021, 0.27% payable in 2022 and 0.33% payable in 2023.

The site levy rate will remain unchanged at 1.2%.

At the same time, the ECITB has taken significant steps to reduce its overhead and operating costs, which as of 2018 had fallen by £1.3m since 2016, while 99.4% of levy raised in 2018 went directly into supporting training.

The ECITB is also improving its levy intelligence and collection methods to ensure that all companies in scope pay the levy and can make training claims as efficiently as possible.

Workload forecasts suggest the engineering construction industry will deliver £600bn worth of infrastructure projects across the country in the next decade.

ECITB chair Lynda Armstrong said: “Our employers recognise the need to pull together as an industry to address the challenges set out in our new strategy.

“There is huge demand for high-quality training across our industry and an acute need to replace an ageing workforce and ensure we can attract enough skilled workers.

“With demand for training outstripping available funding, we need to increase the level of funding available if we are to continue to meet training demand from employers and support growth in the industry.”

 

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