citb.co.uk Levy and Grant How they work Your benefits now you are registered
Levy and Grant how they work Who we are For nearly 50 years the construction industry has strongly supported the levy to guarantee that the industry invests enough in attracting and training new entrants and equips its existing workforce with the skills needed to ensure construction projects are completed safely, on time, to cost and to the highest standards. The levy is a way of sharing this investment to ensure that the industry maintains a solid skills base. The Construction Industry Training Board CITB is the non-departmental public body authorised by Parliament to collect the training levy for the construction industry and then distribute training grants on behalf of the industry. CITB s role is to ensure that the construction sector can access suitable training and funding to allow it to prosper. Developing skills in the sector is crucial to the health of the UK economy that s why we work with employers like you to make sure our industry has the right skills in the right place, at the right time. What is the levy? The industry asks CITB to collect an annual levy from all liable employers. This then funds advice, support and grants that are available to employers who train. Our industry sees this as the best way to support new entrants and training and up-skilling the existing workforce amongst other activities. Without the CITB grant some businesses simply could not afford to train and the industry as a whole would suffer. Who pays a levy? Employers wholly or mainly engaged in construction industry activities throughout England, Scotland and Wales, but there are exclusions and reductions for some employers. Over 75,000 employers are currently registered with us and all are required to complete an annual Levy Return, however only those with a wage bill that is 80,000 or more per annum (including payments to labour-only sub-contractors (LOSC)), will be required to pay a levy. Employers with total PAYE and LOSC payments of 80,000 or more, but below 100,000, will receive a reduction of 50% in their levy bill. Only employers registered with CITB can benefit from advice, support and grants. 2
Over half of those who want to train are small and micro businesses. It is our job to support these businesses and increase training and skills within the industry. In fact, in 2012 12,708 of these businesses employed new entrant trainees and received nearly 50million in training support. In 2012, 105million was distributed in training support. 3
Levy and Grant how they work Why the levy is compulsory for our industry All construction employers registered with CITB are legally obliged to complete an annual Levy Return and pay any levies that may be due. This is because the industry sees this as the best way to support and encourage training. If you choose not to get directly involved in training but you do pay a CITB levy, not only are you helping to maintain the industry s training and recruitment levels, but you still benefit from the other support CITB provides such as engaging with Government, attracting people into construction roles and industry research, as well as possibly benefiting from trained staff in the future. All of these services add value to our industry. The Levy Order is the piece of legislation that sets out what the levy rates will be. They apply to a three year period and are approved by Parliament. The current rates at time of printing are 0.5% for PAYE staff and 1.5% on payments to LOSC. Every April we ask all employers on our register to complete a Levy Return. This is the information we then use to calculate your Levy Assessment early the following year, which can be settled by monthly interest-free direct debit instalments. You can complete your Levy Return online at citb.co.uk/levy or you can complete a paper Levy Return that we send to you each year. Why have you been registered? You have been registered with CITB as you are classed as an employer wholly or mainly engaged in the construction industry. What is the levy charged on? We have an employment-based levy which is charged on the payments you make: to your directly employed staff (PAYE) and to sub-contractors and others that work for you on a labour-only basis (LOSC). 4
What are the benefits of being registered? You are entitled to benefit from the full range of services that CITB provides for the industry. CITB supports employers every day with their skills and training needs. From developing qualifications and standards and supporting lifelong learning for individuals, to identifying grants for the training you need, CITB works hard to provide more value for your levy every year. We work with CITB as our training partner, in the form of grants, training plans and courses, and are very pleased with all their effort and help. Gary Mayson, Managing Director, Mayson Bros Limited Many of our apprentices remain loyal to the company once they qualify, which shows that we are recruiting and up-skilling our staff efficiently. Apprenticeships are a golden opportunity for us. For very little cost and the support of CITB, after two years you have a competent employee with all the qualifications they need to work on any site in the country. John Butler, Director and Safety Executive, McPhillips (Wellington) Limited 5
Levy and Grant how they work Advice and support now that you are registered with us You will have access to a local Company Development Adviser (CDA). CDAs visit employers throughout Great Britain, providing guidance on how to get the best from their workforce. Your CDA will be on hand to offer advice and will also provide information on training. We can even help you to pay for it through our Grants Scheme, as our grants support a wide range of training from Apprenticeship support through to Training and Development Plans. As well as the provision of grants, CITB operates a broad range of products and services: training programmes (held throughout Great Britain, directly through our own centres and via partner organisations, and at various National Construction College sites across the three nations) awards and accreditations the recruitment and placement of apprentices publications (written and online) advice and guidance on training and skills to the industry industry research engagement and lobbying with Government, locally and nationally. A great deal for businesses that train Industry sees the CITB Levy and Grant system as the best way to support training. The table below shows how the system shares the cost of training for the industry. In general, large and medium employers pay more of the levy, but smaller businesses receive nearly half of the grants paid out because they train more of the industry s new entrants. In 2012, employers with 49 employees or fewer received nearly 50million in training support and trained 21,397 new entrants, 67% of the total number supported by CITB. Without grants, many small businesses would not be able to afford to train their staff. This table shows how CITB support was divided in 2012 Size of employer by number of employees TOTAL Small 0-49 Medium 50-249 Large 250+ Levy paid ( 000s) 135,798 63,899 31,381 40,518 Training support ( 000s)* Number of new entrant trainees** 105,161 49,822 29,024 26,315 31,964 21,397 7,408 3,159 * Value of grant and other support payments **Number supported by CITB. Please note this includes trainees in their first and subsequent years of training. 6
7
Levy and Grant how they work What grants are available to help me train my staff? There are some conditions, but generally speaking you can claim grants for all your employees and LOSC that have been declared on your Levy Return and who receive training. Training can give your workforce new skills and develop existing ones to keep your business competitive. Grants are available for support at every level of your business from Apprenticeships through to director-level courses. All employers who are registered with CITB can claim a grant, even those who don t have to pay levy. However there are conditions regarding the date you were registered with CITB and eligibility is dependent on the timely completion of your Levy Return. Grants are available for training and qualifying your employees and labour-only sub-contractors. For full details of the grants available and the terms and conditions that apply, qualifying periods and deadlines for claiming grants, visit citb.co.uk/grant Providing local support You can also contact us for more information about the full range of grants and training, or to arrange a meeting with one of our Company Development Advisers (CDAs). Your local Company Development Adviser will help find the right training and grants to make your business safer and more efficient. The total benefits to the industry in 2012 equated to 1.20 for every 1 paid in levy. Contact us (see the back cover for contact details) with any questions about what we do and how we can help you. 8
You can t give someone too much training. We see the potential in people, so we train them. Gordon Robertson, Training Manager, Turriff Contractors 9
Levy and Grant how they work Get the most out of the CITB Grants Scheme Apprenticeships An Apprenticeship can bring a lot more to your site and business than an extra pair of hands, including energy, enthusiasm and supervisory opportunities for more senior staff. You can get grant support when you take on an apprentice. For more information on CITB Apprenticeships visit citb.co.uk/citb-apprenticeships Construction has given me more of a chance than I would have had otherwise more of an opportunity. I feel as if I have a great career ahead of me now. Ashley Barnes, Apprentice of the Year Qualifying the workforce You can get support for qualifying your existing workforce and new entrants with grants covering both NVQ or SVQ attendance/achievement and the Experienced Worker Practical Assessment (EWPA) route. Carding your plant team More and more clients and employers need proof that plant operators are trained and competent. Grants are available for operators who gain a new Construction Plant Competence Scheme category of plant; or experienced operators who only need to demonstrate their competence. 10
Technical, management and professional The broader your staff s range of skills, the more you can bring to the construction project you are working on. Grants are available for providing employed workers and students with vocational work experience essential to their advanced qualifications and courses. Improve the whole of your business Developing and implementing a Training and Development Plan allows you to claim grants for training in many different disciplines that will benefit your business. For example, computer skills, administration, sustainability and construction related training. Training and Development Plans are designed to make the planning of training easy, both now and in the future, for all your staff and your LOSC. It s important to be accurate Our staff check and verify the information given in Levy Returns and claims made under the CITB Grants Scheme. They visit employers to check that the information they have provided on grant claims and Levy Returns is accurate as well as visiting employers who have not sent in a completed Levy Return. We also have a new registrations team that actively seek to keep the levy register of employers as up to date as possible. How Levy and grants work in practice Here are some typical examples of the levy paid and grants that can be claimed by employers. The grant rates are those applicable from August 2012. They depend upon the business of the employer, the age and skill level of the workforce and the suitability of the training for grant support. The thresholds, levy rates and grant rates are current at the time of printing. For full details and terms and conditions visit citb.co.uk/grant or contact us on 0344 994 4455 or levy.grant@citb.co.uk 11
Levy and Grant how they work 1. Employer with PAYE + LOSC less than 80,000 Barmer Roofers (three employees) Wage bill Direct employees (PAYE) Labour-only sub-contractors (LOSC) Levy Assessment As the total wage bill is less than 80,000 this employer is not liable to pay Levy 53,378 0 Total Levy paid by Barmer Roofers 0 Grants claimed First year attendance grant for an apprentice who started in the 2012/2013 Grants Scheme (grant ref A02) 1,965 One person attended a two-day first aid course (claimed under Short Duration (B201) in the 2012/2013 Grants Scheme at 50 per day) 100 One person attended a three-day Safe Working at Heights course (claimed under Short Duration (B201) in the 2012/2013 Grants Scheme 150 at 50 per day) Note: No supplementary payment of 22% due as employer does not contribute to levy Total grants claimed by Barmer Roofers 2,215 0 12
2. Employer with PAYE + LOSC between 80,000 and 100,000 (based in Scotland) McInnes Bros (5 employees) Wage bill Direct employees (PAYE) Labour-only sub-contractors (LOSC) Levy Assessment Direct employees (PAYE): at Levy Rate 0.5% LOSC: at Levy Rate 1.5% Less Small Business Levy Reduction -50% 82,176 10,600 410 159 285 Total levy paid by McInnes Bros 284 Grants claimed Second year attendance grant for an apprentice following an SBATC/SPDC approved Apprenticeship who started in the 2011/2012 Grants Scheme 1,410 Third year attendance grant for an apprentice who started in the 2010/2011 Grants Scheme, achieves the SVQ Level 3 and completes their Apprenticeship Framework 875 275 2,650 An experienced member of staff achieves an SVQ Level 2 through the On Site Assessment and Training process (grant ref A31) 400 One person attends the two-day SSSTS course during the 2012/2013 Grants Scheme (Grant ref A29) 105 Four people attend a one-day Health and Safety course (claimed under Short Duration (B201) in the 2012/2013 Grants Scheme at 50 per day) 200 One person attends a three-day First Aid at Work course (claimed under Short Duration (B201) in the 2012/2013 Grants Scheme at 50 per day) 150 Supplementary payment totalling 1,335 will be added to the grant when it is paid if employer is eligible 1,335 Total grants claimed by McInnes Bros 7,400 13
Levy and Grant how they work 3. Employer with PAYE + LOSC more than 100,000 Kings Wood Ltd. (25 employees) Wage bill Direct employees (PAYE) Labour-only sub-contractors (LOSC) Levy Assessment Direct employees (PAYE): at Levy Rate 0.5% LOSC: at Levy Rate 1.5% 357,125 32,793 1,785 491 Total levy paid by Kings Wood Ltd. 2,276 Grants claimed First year attendance grant for two apprentices who started in the 2012/2013 Grants Scheme 3,930 Five employees pass the theory element of the CPCS Technical Test in the 2012/2013 Grants Scheme (5 x 60) 300 Five employees pass the practical element of the CPCS Technical Test for 180 degree excavator above 5 tonnes in the 2012/2013 Grants Scheme 2,050 (5 x 410) Work experience for a student doing a construction degree over 10 weeks in the 2012/2013 Grants Scheme ( 30 per day x 50 days) 1,500 Achievement of an NVQ Level 4 in Management during the 2012/2013 Grants Scheme 650 Attendance at college for an employee doing a construction HNC during the 2012/2013 Grants Scheme ( 50 per day x 35 days) 1,750 Training and Development Plan started on 1 August 2012. Employer completes 125 days of training (125 x 50) 6,250 Supplementary payment totalling 3,615 will be added to the grant when it is paid if employer is eligible 3,615 Total grants claimed by Kings Wood Ltd. 20,045 14
4. Employer with PAYE + LOSC more than 100,000 Smith & Son (Builders) Ltd. (58 employees) Wage bill Direct employees (PAYE) Labour-only sub-contractors (LOSC) Levy Assessment Direct employees (PAYE): at Levy Rate 0.5% LOSC: at Levy Rate 1.5% 901,844 114,681 4,509 1,720 Total levy paid by Smith & Son (Builders) Ltd. 6,229 Grants claimed Training and Development Plan started on 1 August 2012. Employer completes 10 days of training (10 x 50) 500 Supplementary payment totalling 110 will be added to the grant when it is paid if employer is eligible 110 Total grants claimed by Smith & Son (Builders) Ltd. 610 5. Employer with PAYE + LOSC more than 100,000 that either doesn t train their workforce or doesn t claim grants for their training Robinson & Co. (40 employees) Wage bill Direct employees (PAYE) 880,818 Labour-only sub-contractors (LOSC) 195,200 Levy Assessment Direct employees (PAYE): at Levy Rate 0.5% 4,404 LOSC: at Levy Rate 1.5% 2,928 Total levy paid by Robinson & Co. 7,332 Grants claimed As the employer either doesn t train its workforce or doesn t access grant support, no grants are claimed 0 Total grants claimed by Robinson & Co. 0 Please note that all grant day rates quoted here relate to the 2012/2013 Grants Scheme year and may change in subsequent years. Please check our website for the latest information at citb.co.uk/grant Employers that either do not train or do not claim grant support will not benefit from the Grants Scheme, but they will still be required to pay any levy due. However they will continue to benefit from the wider activities of CITB such as lobbying governments on behalf of the industry, standards setting and industry research. 15
Contact details for CITB For more information please visit our website at citb.co.uk and if you have any queries, contact your Customer Services agent on 0344 994 4455 or email us at levy.grant@citb.co.uk 13/335/34 (06/13) citb.co.uk CITB, CIC and CITB Northern Ireland are working as ConstructionSkills, the Sector Skills Council for Construction. (CITB Registered Charity Number 264289)