CITB cuts 2021-22 Levy bill by 50%

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Levy, CITB,

CITB has announced its ‘Skills Stability Plan 2020-21’ to help employers recover from the impact of Covid-19, including a reduction in Levy bills

The Skills Stability plan aims to protect apprenticeships and provides direct funding to employers to adopt new ways of working needed in the wake of Covid-19.

Employers will continue to have a payment holiday on the CITB Levy until September and then up to a full year to pay the 2020/21 levy.

The CITB will propose a 50% discount on the 2021/22 Levy rate. This means employers will pay 18 months’ Levy out of 24, making an overall saving of 25% across two years, providing help when it is most needed.

Direct funding

An employer with an average annual levy bill of £1,200 would normally pay £2,400 over 2020-22. Instead, they will pay nothing from April to August this year and then take advantage of spreading the costs – £100 per month up to February 2022, paying £1,800 overall.

The plan has prioritised direct funding for employers through the Skills and Training Funds, with £8m earmarked for small and micro businesses, £3.5m for medium-sized businesses, with a £3m Leadership and Management Fund for large firms. This will help employers train to adapt to the new working environment and update the skills of their workforce.

These changes will see CITB’s forecast Levy income drop by £166m across two financial years. Despite this large drop in income, the Skills Stability Plan will protect apprenticeships, direct funding to employers and the Grants Scheme.

CITB is also cutting costs and using its reserves to support employers’ skills needs.

CITB will work with other industry partners to support workers who have lost their jobs or seen their apprenticeship disrupted, matching them with a new employer, including through exploring a talent retention scheme.

This will build on the support already provided to help apprentices complete their programmes through up-front grant payments to current year 2 and 3 apprentices, training materials being made available online and support from Apprenticeship Officers to allow learning to continue remotely.

Meeting the sector’s needs

CITB chief executive Sarah Beale, said: “This represents a radical plan of action that balances the need for a reduction in the Levy at this time, alongside vital investment in the skills needed by employers now and in the future.

“It is the result of hundreds of conversations with employers across the length and breadth of Britain and I’m confident it meets the sector’s immediate needs.

“We are committed to making the Levy work hard to protect apprenticeships and support hard-pressed employers as they equip themselves for the challenges and opportunities ahead.

“We have spoken to employers and federations and most have suggested that they want us to focus full-time on helping the industry meet the challenges posed by Covid. We have confirmed with the Department for Education that we will not run the usual Consensus process and instead we will speak to employers and industry groups to seek their views on our plans for next year.

“We will continue to be responsive and collaborative, working closely with the sector and Government to return the industry to growth.

“We will listen to industry and respond to its priorities and give every employer the confidence that we wish to understand and learn from their concerns and ambitions.”

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