THE Engineering Construction Industry Training Board’s (ECITB) levy proposals that received the ‘overwhelming’ backing from industry last November have been enacted into legislation following approval from both the House of Commons and House of Lords.
The ECITB launched the levy consultation following the publication of its new five-year strategy in September 2025. The organisation said the level of support for the proposals showed industry is fully behind the strategy to support employers in addressing skills shortages as well as investing in essential workplace training required to deliver net zero and energy security ambitions.
The Levy Order was affirmed by both Houses of Parliament, without opposition. The Statutory Instrument will be applied to levies raised in respect of 2026-28 and will be payable in 2027, 2028 and 2029, respectively.
The Order maintains the levy rates of 0.33% of the earnings paid by employers to off-site employees and 1.2% of the earnings paid by employers to on-site employees for businesses liable to pay the levy.
Recognising the budgetary pressures on small businesses, the Order retains the current exemption thresholds. Engineering construction employers with an annual wage bill of less than £1 million for off-site employees will not pay any levy.
Employers with an average wage bill of less than £275,000 for on-site employees will also be exempted from paying the levy. These employers will nevertheless continue to be eligible to receive training grants if they are in-scope to the ECITB.
Andrew Hockey, CEO of the ECITB, said, “The ECITB received the overwhelming backing of industry for its levy proposals last November with engineering construction companies voting resoundingly in favour of its proposed levy rates for the next three years. The subsequent consultation on the ITB reform does not detract from the urgent need to attract, develop, qualify and retain skilled workers within the engineering construction industry now.
“We will continue to support the industry priorities outlined in our new strategy and deliver against this industry-backed plan. Approval of the levy order gives us the financial underpinning to do this.”
