BSRIA sees the government’s new apprenticeship levy as an incentive for both the CITB, industry and government to work together on delivering vital apprenticeship training.
The CITB and the Department for Business, Innovation and Skills have come to an agreement which will see firms with a payroll over £3m pay both the CITB levy and the government’s all-industry apprenticeship levy, which will come into effect from April 2017. Just over 900 firms – across 500 groups – will be affected by the changes, which will see firms pay both levies for at least a year while a consultation across the construction sector is carried out on what a new CITB levy will look like from 2018.
Affected firms will only have to pay the two levies on the portion of their payroll above £3m. Firms with a payroll below £3m will be unaffected by the changes.
Julia Evans, Chief Executive, BSRIA, said: “Apprenticeships provide the backbone for a career in engineering for many employees and future employees within the industry. Any political landscape that leads to and encourages a greater level of apprentices is positive for the industry. It is important to promote apprenticeships and their importance. If the government levy and that of the CITB does that – then this is encouraging.
It’s good that government and the CITB have found a compromise on the financial mechanics of delivering apprenticeships. Now BSRIA members, industry and government can work together to deliver fundamental training especially to meet the increase in resource required by the industry.”
Full details of how the double levy system will work will be announced in early July.
Members were asked to respond to a government consultation regarding the introduction of a new apprenticeship levy in September and October 2015.