The ECITB Industrial Training Levy

The ECITB works to ensure the engineering construction workforce has the specialist skills required by industry. Establishments which are mainly engaged in engineering construction activities fall within the scope of the ECITB.  If employers operate such in-scope establishments over a certain size, they are required by law to pay an industrial training levy to the ECITB. However, all employers operating in-scope establishments, regardless of size, are eligible to receive grants for training undertaken by their workers.

This will depend on the information declared in your Statutory Levy Declaration.

In-scope engineering construction employers working in Great Britain or its offshore waters are required by law to make an annual declaration containing information about their workforce (full-time and part-time employees, as well as any labour-only contractors). The annual declaration will include details of the establishment’s total labour payments during the base period (6thApril to 5thApril).

The employer’s total annual labour payments form the basis of the calculation of any training levy which is payable.

Employers must declare the total number of full and part-time employees working in Great Britain during the year ending 5 April, and the total annual labour payments made.

Employers must also declare all full and part-time persons working under labour-only agreements or arrangements during the year ending 5 April and the payments made, provided that such individuals were mainly working in Great Britain.

A more detailed explanation relating to employee wages, labour-only contractor payments and labour-only contractor arrangements may be found in the ECITB’s Levy Guidance Notes (see below).

To ensure that levy is not paid twice for the same workers, if an employer hires out its workers to other registered establishments in Great Britain, the payments received (labour-only receipts) may be taken into account when calculating the amount of levy due. Employers wishing to declare any labour-only receipts should contact the ECITB’s levy team for a labour-only receipts declaration form.

The industrial training levy is calculated by applying the appropriate levy rate to the employer’s total annual labour payments.

For employees and labour-only contractors who mainly work on sites in Great Britain or its offshore waters, the training levy is 1.2% of the total payments to employees and labour-only contractors during the base period 6 April to 5 April.

If the total payments, including salaries and other allowances, are less than £275,000 then no training levy is payable in respect of site-based workers.

For all other employees and labour-only contractors mainly working in Great Britain, the training levy is 0.33% of the total payments to employees and labour-only contractors during the base period 6 April to 5 April.

If the total payments, including salaries and other allowances, are less than £1,000,000 then no training levy is payable in respect of all other workers.

The ECITB training levy must be paid within one month of the demand for payment and in one instalment. ECITB grants and services may be withheld where payment of the levy is overdue.

In-scope employers make their annual Statutory Levy Declarations using the ECITB’s on-line portal service. Employers will be notified by email when their on-line declaration forms are available for completion, together with details of the date by which completed declarations must be submitted.

The levy calculated in the manner described above is payable in January of the following year when employers receive a demand for payment.

The ECITB Industrial Training Levy is specific to the engineering construction industry. In consultation with industry, the ECITB determines how the money is invested in a wide range of training and other projects to underpin skills development.

Employers with a pay bill of over £3m per fiscal year relating to employed labour have been required to pay the Apprenticeship Levy since April 2017. This levy is used to fund apprenticeship training.

The Apprenticeship Levy applies to all UK employers but is accessed in different ways.

England employers manage their Apprenticeship Levy through a digital apprenticeship account. The administrative arrangements for apprenticeship funding for Scotland, Wales and Northern Ireland employers are handled by the relevant devolved government via their own specific routes and bodies. They receive funding from HM Treasury as part of their overall allocation for that nation.

For more information about the Apprenticeship Levy visit 

The ECITB has prepared guidance notes relating to the industrial training levy, which are available to employers.  The guidance includes further information relating to:

  • the application of the regulations underpinning the levy;
  • the completion of the annual Statutory Levy declaration;
  • the use of the ECITB’s on-line portal service; and
  • levy appeals.

You may also contact the ECITB’s levy team by email at:

Levy Documents

For key legal documents about the ECITB’s industrial training levy including a list of all leviable establishments follow the link below.

Click here