黑洞社区

More than 900 contractors will have to pay both the CITB levy and the government鈥檚 new apprenticeship levy, the CITB has confirmed.

The CITB and the Department for Business, Innovation and Skills have come to an agreement which will see firms with a payroll over 拢3m pay both the CITB levy and the government鈥檚 all-industry apprenticeship levy, which will come into effect from April 2017.

Just over 900 firms 鈥� across 500 groups 鈥� will be affected by the changes, which will see firms pay both levies for at least a year while a consultation across the construction sector is carried out on what a new CITB levy will look like from 2018.

Speaking to 黑洞社区, CITB head of policy and research Gillian Econopouly said affected firms will only have to pay the two levies on the portion of their payroll above 拢3m.

Firms with a payroll below 拢3m will be unaffected by the changes.

Econopouly said: 鈥淚n some cases they may not pay much. If a company has a 拢4m payroll, they only pay on the amount above 拢3m, so in that case it would work out at around 拢5,000.鈥�

She added that 鈥渆nhanced funding鈥� 鈥� usually given to specialist firms with more expensive training requirements 鈥� will be available for firms who have to pay twice.

Econopouly confirmed the cost to the CITB will be between 拢35m and 拢38m, and said: 鈥淲e鈥檙e not going to refund companies every penny they pay in, but we will give them as much as we can through enhanced funding.鈥�

The extra funding for firms will come from efficiency savings from the CITB鈥檚 restructure as well as its bank reserves.

Full details of how the double levy system will work will be announced in early July.