The Construction Industry Training Board (CITB) to review the levy order exemption threshold

On the 17 March 2025, the Construction Industry Training Board (CITB) launched its consensus process to gather feedback on the proposed changes to the CITB levy. The changes include allowances for smaller businesses to be exempt from the levy or subject to a 50% discount. The consultation will assess how the construction industry is responding to the CITB’s targeted strategy to address the nationwide skills shortage the marketplace, by increasing skills training and promoting small businesses to take on apprentices.

Levy proposals for 2026-2029 

Companies with a total wage bill (payroll and net paid CIS subcontractors) below £150,000 would be exempted from the levy order. This is an increase from the previous exemption threshold of £135,000. Companies with a total wage bill between £150,000 and £499,999 will be given a 50% reduction on the levy. Otherwise, no changes will be made to the levy percentage rates themselves.

Consensus

A request has been sent to employers and key industry organisations asking them to participate in the survey on the CITB’s proposals. It is hoped there will be a sample size of 4,000 employers.

Addressing skills shortage in the construction industry

These proposed levy changes are part of the CITB’s strategic plan for 2025-2029, aimed at motivating smaller businesses to take on and train apprentices. There is a shortage of workers skilled by UK industry standard requirements for all the construction projects currently under development – an issue which was only exacerbated by Brexit. The government has committed to funding up to £180 million in training costs to support industry placements and allow employers to deliver bespoke training as needed.

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