Tim Balcon outlines how CITB is working to support skills and training needs – and make it simpler for employers to access funding.

As ever, the construction industry has continued to evolve and adapt to a range of challenges while also embracing new opportunities. Over recent years, employers have had to contend with rising prices of materials and a shortage of skilled workers, and this is within a bigger picture of a tough economic context.

Of course, as the Construction Industry Training Board (CITB), we’re laser focused on addressing the skills shortage. We consistently hear from employers that they want a simpler route to funding, and an easier training system to navigate.

And we agree. For too long, there have been too many hoops for employers to jump through to gain access to training and funding. This is what has driven us to launch some of the initiatives we have over the last few years, including our Employer Networks and New Entrant Support Team (NEST).

We’re pleased to say that these initiatives have been successful, and we’ve received some great feedback from the industry. If you haven’t already, I strongly encourage you to get in touch with our teams running these initiatives.

Employer Networks supported over 4,000 employers last financial year, and nearly two-thirds of these were small and micro businesses. Similarly, NEST supported over 4,100 apprenticeship starts last financial year, and we’re doubling the size of the team to support SMEs in recruiting, engaging, and retaining apprentices.

Indeed, to counter any misconceptions, 44% of the total Levy we received in 2024 was from small and micro employers. These same employers received 45% of the total grant we paid out in the same year. We’re aware some in the industry believe the larger employers get more grant than others, but this simply isn’t the case.

These initiatives demonstrate to you, our customers that make up this great industry, that we’re here and ready to support you with your training and skills needs. There are now 33 Networks across the country, meaning your local Network won’t be far away at all.

However, we’re aware there is much more context that many in the industry are conscious of. For example, earlier this year, we undertook our Consensus process. We are really pleased that Levy payers continue to be supportive of the Levy Proposals, with 67% of construction employers in support of our Levy plans. We believe this confidence reflects the tangible impact of our work across 2024-25, including nearly £130 million invested in grant support.

Nonetheless, it also means that roughly a third of employers did not agree with our Levy Proposals. We want to win the support of these employers and ensure they see and feel the benefits we can provide for them. This isn’t done through words, it’s achieved through action.

This is why, as part of our commitment to addressing the issue of Levy-registered employers passing on the Levy to subcontractors, we introduced a new anonymous online reporting system. This platform allows subcontractors affected by these deductions to report instances confidentially and completely anonymously. For those who wish for further action, CITB can make contact with the contractors involved and formally request that they cease making deductions.

We’re focused on maintaining a level playing field, where all Levy-registered employers contribute appropriately to industry training and development without shifting undue financial burdens onto often smaller businesses.

Elsewhere, important changes to our Skills and Training Fund (S&T Fund) were announced recently. This shift was absolutely necessary – due to the success of initiatives like Employer Networks and NEST, we’ve seen a 25% increase in demand for our services in recent years.

In fact, between 2022 and 2024, there was a 17% increase in Levy received, but this is balanced against a 50% increase in Grants paid out during the same period. In short, we need to make the Levy work harder to support all employers and be more discerning where value is created.

So, while the S&T Fund is closing at the end of this month, we will continue to provide funding support through our Employer Networks. We believe the Networks can be a crucial part of skills funding – they’re designed to make training and funding easier to access, as well as providing bespoke advice for each employer on a case-by-case basis.

The premise for this change is that the way funding is accessed must change in order for us to support more employers. It is about delivering the most value for the greatest number of employers. We want to make sure that we maximise the Levy that goes back into supporting skills in our industry.

Finally, we’re also conscious some in the industry believe that employers who don’t pay the Levy shouldn’t be able to access support funded by the Levy. While we understand the sentiment behind this, the reality is that it would have the worst impact on micro employers.

If a company’s employee payroll and Net paid (taxable) CIS subcontractors combined is less than £150,000, the employer will not pay a Levy. If it is between £150,000 and £499,999, they will receive an automatic reduction of 50%.

Much of the industry is made up of micro employers, and many of these employers fall into the Levy exemption and reduction categories. Considering this alongside the wider challenges of materials prices and skills shortages, removing support for non-Levy paying employers would only harm the health of the whole construction industry.

However, within the context of all this, I also want to stress that our endeavour to continue making it simpler for employers to access funding and training doesn’t stop here. Earlier this year, we launched the Training Provider Network (TPN), a unified network of approved, quality-assured training providers across England, Scotland and Wales. The TPN will make it much easier for employers to source and access high-quality training, and down the line, financial support.

We’re also working closely with NFB and its Deputy Chief Executive, James Butcher, who leads the heritage and traditional buildings group within the Repair, Maintenance and Improvement (RMI) Sector Skills Plan. This aims to identify the specific skills needs and requirements across various occupations within the RMI sector, with a total of £3.8 million being allocated to develop tailored strategies, projects and interventions that address the unique needs of each area within the sector.

So, let’s bring this all back to what I said earlier on – we’re laser focused on addressing the skills shortage.

Around 130,000 people start some form of construction training that will lead to a qualification every year across Britain. However, only 40,000 of these people will secure employment in the industry after completing their training. Some will progress onto higher level apprenticeships or other forms of construction training, but many don’t enter the industry at all.

This gap highlights that the core issue isn’t that we’re not training enough people, it’s that there aren’t clear enough pathways to translate their training into jobs. Better retention of trainees and current workers in construction can significantly reduce the skills shortage.

This is also set against what I believe is a once-in-a-generation opportunity. The government’s homebuilding and infrastructure ambitions mean opportunities aren’t just on the horizon, they’re in the here and now.

To support these ambitions and help construction employers take advantage of them, the government announced a £600m construction skills package, £32m of which is investment from CITB to deliver increased industry placements. In late 2024, we announced a £40m commitment to support the creation of Homebuilding Skills Hubs that deliver fast-track apprenticeships.

We’re here to support employers with the skills and training needs. We’re providing funding while making it simpler for employers to access this funding.

As we look ahead, I’m filled with optimism, and I know my colleagues across CITB feel the same. Together, we are united by our commitment to ensure we are addressing industry needs by creating a resilient and robust skills system suitable for this generation of construction professionals and the next.

Tim Balcon, CEO, CITB