The Construction Industry Training Board (CITB) has announced today its strengthened position on ‘passing on the Levy’. The move reflects the CITB, Levy Strategy Committee, three Nation Councils and the 14 Prescribed Organisations’ ongoing commitment to ensuring that the Levy system operates fairly and equitably across the construction industry.
As part of CITB’s commitment to addressing the issue of Levy-registered employers passing on the Levy to subcontractors, a new anonymous online reporting system has been introduced. This platform is designed to better understand the scale of the practice and gather valuable insights to help bring an end to it. Subcontractors affected by these deductions can use the platform to report instances confidentially and completely anonymously. For those who wish for further action, CITB can make contact with the contractors involved and formally request that they cease making deductions.
This initiative is part of a broad effort to ensure fairness across the construction industry and uphold the integrity of the Levy system. CITB is committed to supporting subcontractors and ensuring that all industry participants are treated equitably.
The Levy is imposed on Levy-registered construction employers who meet the criteria and is used to fund training and skills development within the industry. Contractors are not authorised to deduct money from workers’ wages (both PAYE and Net CIS) on CITB’s behalf. There have, however, been instances of construction businesses or principal contractors ‘passing on the Levy’ to their subcontractors in order to raise funds to pay their own Levy.
Deb Madden, Executive Director of Nations Engagement at CITB, said: “Passing the Levy down the supply chain reduces the overall investment in workforce development, undermining the purpose of the Levy. We are currently in a climate where we need to grow a highly skilled workforce to meet demand and get Britian building again. We need support from Levy-paying employers to help us to provide longevity in careers within the sector and provide more opportunities for entry.
“We believe that the best way to resolve the issue of passing on the Levy is through industry self-regulation. Collaboration between CITB, employers, and other stakeholders is essential to developing sustainable solutions which foster a culture of fairness and responsibility in the sector.”
Now more than ever a fair Levy system is needed to ensure that CITB can play its vital role in upskilling and training the construction workforce, providing access to funding for every registered employer and helping the industry deliver to the highest standards with the necessary knowledge and experience.
CITB is focused on maintaining a level playing field, where all Levy-registered employers contribute appropriately to industry training and development without shifting undue financial burdens onto often smaller businesses. In highlighting the negative impact of passing on the Levy, CITB is encouraging industry-wide self-regulation with a cooperative effort to ensure fair practice.
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