Are you getting the most from your CITB Levy contributions?
7 April 2025
Many CITB levy payers are concerned about escalating employment costs due to new tax policies and the effectiveness and financial impact of the current levy system, but the CITB may just have the solution with additional grant funding for levy payers.
Construction industry feeling the financial squeeze
CITB levy payers are expressing significant concerns due to the recent Labour budget and associated tax increases. The Chartered Institute of Personnel and Development (CIPD) reports that 90% of employers anticipate higher employment costs, with 42% planning to raise prices and 32% considering job cuts. These concerns are primarily driven by the upcoming rise in national insurance contributions and the increased national living wage, both set to take effect in April.
The construction industry, in particular, is apprehensive about the compounded financial pressures. The Construction Industry Training Board (CITB) has proposed retaining the current levy rates for 2026–2029 but plans to increase the levy exemption and reduction thresholds to £150,000 and £500,000, respectively. While this adjustment aims to alleviate some burden on smaller firms, many businesses remain concerned about the overall financial strain.
CITB release additional funding for levy payers
The CITB Employer Network Grants and Funding initiative helps levy payers maximise value from their contributions by simplifying access to training funds, reducing bureaucracy and tailoring support to local business needs. Employers can directly influence training priorities, ensuring funding goes toward high-impact skills development like health & safety, leadership and green skills. Unlike traditional grants, funds are paid upfront, easing financial strain, especially for SMEs. The initiative fosters collaboration, enabling businesses to share resources, reduce costs and improving workforce productivity, ensuring a real return on investment for levy payers.
