85% of employers in favour of proposed levy rates for the next three years
Industry endorses five-year strategy to address workforce challenges
Vote demonstrates confidence in government skills body's approach
Results from the Engineering Construction Industry Training Board’s (ECITB) levy consultation show that engineering construction companies are resoundingly in favour of the proposed levy rates for the next three years.
The employer-led skills body received the backing of industry, with 85% of levy-paying employers, representing 98% of the Industrial Training Levy paid, voting in favour.
The result is slightly higher than the record response the ECITB received in 2022 when 85% of levy paying employers, representing 97% of the industrial training levy paid, voted in favour.
The vote followed consultation on the ECITB’s five-year strategy, Leading Industry Learning, published in September. The strategy identifies key workforce challenges and sets out priorities to address critical skills shortages in the engineering construction industry.
The ECITB Board proposed that levy rates should remain at 1.2% of gross labour emoluments for site workers and 0.33% for offsite workers between 2026 and 2028. This decision balances the need to resource training effectively whilst recognising the challenging operating environment many companies face.
Andrew Hockey, CEO of the ECITB, said: “I am delighted that industry has again emphatically backed our levy proposals. The positive response represents another significant vote of confidence in the ECITB and I would like to thank our employers for this.
“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. We are committed to delivering positive, long-term outcomes for our levy payers, the wider workforce and the UK.”
Pictured: ECITB Chief Executive Andrew Hockey speaking at the London regional levy voting forum in October.
The ECITB, an arm’s length body of the UK Government, asked all the companies that pay the industrial training levy to have their say on its new strategy and to support the levy proposal in October.
It has today written to Pat McFadden, Secretary of State for Work and Pensions and the Minister for Skills, the Rt Hon Baroness Jacqui Smith of Malvern, 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 respect of 2026-28 and will be payable in 2027, 2028 and 2029 respectively.
The full breakdown of levy consensus voting
- 85% of the levy-paying employers are supportive of the proposal, and such employers will pay 98% of the aggregate levy,
- 4% of the levy-paying employers did not support the proposal, representing less than 1% of the aggregate levy, and
- 11% of the levy-paying employers did not respond to the consultation.
The levy proposals also maintain the existing emolument thresholds. Companies whose aggregate site emoluments and payments made in respect of their leviable establishments are less than £275,000 during each base period will be exempt from the site levy. Companies with aggregate off-site emoluments of less than £1m will be exempt from paying the offsite levy.
