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Our sources of funding
The smallest employers don’t have to pay but can still get benefits and access our services.
We also compete for contract funding from government for providing specific services to industry and we generate commercial income, which we use to cover our operating costs. Any surplus is returned to our industry.
Details are available in our published Annual Report and Accounts.
What is the Levy?
Introduced in 1964, the Levy was introduced to make sure that our industry invested enough in attracting and training new entrants, training and qualifying experienced workers and maintaining high levels of health and safety on site.
All construction employers with a wage bill of £80,000 or more pay the Levy.
Why the construction industry needs the Levy
- It ensures sufficient training and skills development – we incentivise employers to train through the Grants Scheme, and by giving other funding.
- Employers who train their workforce can claim grants, paid for by the Levy. So employers that pay levy but don’t regularly train help support those that do, which drives up standards overall.
- We offer industry-specific training not available elsewhere – so specialist trades get the training provision and apprenticeships they need.
- It helps prevent skills gaps and shortages – investment in skills and training is maintained during the peaks and troughs of industry output.
How Levy funds are used
- Giving grants to employers to support training, including new apprentices and graduates
- Developing the qualifications employers need for use in colleges and schools
- Supporting skills competitions to showcase construction careers
- High profile campaigns to improve the image of the industry
- Running card schemes which help prove the competence of workers on site
We get no money from UK Governments for our running costs (“grant-in-aid”).
What we do get from the UK Commission for Employment and Skills (UKCES) is for specific contracted activities, which include, for example:
- Helping apprentices achieve their qualifications
- Helping employers identify their skills and training needs
- Providing clear labour market intelligence for our sector (Construction Skills Network)
- Developing National Occupational Standards