The Construction Industry Training Board (CITB) has reaffirmed its dedication to ensuring the Levy system operates fairly across the construction sector. In partnership with the Levy Strategy Committee, the three Nation Councils, and the 14 Prescribed Organisations, CITB has introduced new measures to address the issue of Levy-registered employers passing on the Levy to subcontractors.
A key element of this initiative is the launch of an anonymous online reporting platform that allows subcontractors to confidentially report instances where deductions have been made under the guise of the Levy. CITB will use this data to assess the extent of the practice and take necessary steps to mitigate it. Contractors involved may also be formally requested to cease such deductions.
The Levy, which is mandated for Levy-registered employers within the construction industry, is intended to fund skills development and training across the sector. However, there have been cases where some employers attempt to shift this financial responsibility onto their subcontractors. CITB clarifies that contractors are not authorised to deduct money from workers’ wages to pay their Levy obligations.
Deb Madden, Executive Director of Nations Engagement at CITB, highlighted the negative impact of this practice, stating, “Passing the Levy down the supply chain reduces the overall investment in workforce development, undermining the very purpose of the Levy. As the construction sector works to meet growing demand, it’s essential that employers support the development of a skilled workforce rather than diverting resources elsewhere.”
CITB advocates for industry self-regulation to address this issue, emphasizing collaboration between employers and stakeholders to ensure fairness and sustainability within the sector.
A Fair Levy System for Industry Progress
CITB is committed to maintaining a fair and equitable Levy system that benefits all participants in the construction industry. The Levy, calculated based on payroll and payments to subcontractors, plays a crucial role in funding essential training and development. Employers who unfairly pass on the Levy undermine these efforts and place additional financial burdens on smaller businesses, many of which may not be obligated to pay the Levy under current regulations.
CITB urges subcontractors affected by this practice to report any deductions via the anonymous online feedback form, available on its website.
Statement on Passing on the CITB Levy
CITB, the statutory body responsible for collecting the Levy under the Industrial Training Act 1982, has issued a statement in response to concerns about Levy deductions made by some construction employers. These deductions, often passed off as ‘Levy contributions,’ are neither authorised nor required by law and may even exceed the rates set out in official Levy Orders.
CITB reiterates that responsibility for paying the Levy lies solely with Levy-registered employers and should not be shifted to subcontractors or other workers. Employers engaging in such practices are in violation of the spirit of the Levy system, which is designed to support training and skills development for the entire construction workforce.
While CITB has no legal power to intervene in contractual agreements between parties, the organisation strongly opposes any attempts to misrepresent Levy obligations. Employers are encouraged to uphold ethical standards by paying the Levy in full and refraining from imposing deductions on others.
This statement has been agreed upon by the Levy Strategy Committee, Prescribed Organisations, and the Nation Councils, and serves to reinforce CITB’s commitment to a fair and transparent Levy system.