A welding apprentice at Energy Transition Skills Hub in Aberdeen. Courtesy of Newsline Media/ECITB Tabling the Industrial Training Levy (Engineering Construction Industry Training Board) Order 2026 in the Commons, Stephen Timms, the minister for work and pensions, said, “The industry faces big, longstanding challenges in recruiting and retaining a skilled workforce, which makes voluntary investment in training harder to secure. Only a statutory levy can guarantee that the skills that industry urgently needs will be provided at the scale required.
“It is estimated that the UK needs an additional 40,000 engineering construction workers, and this order will play an important part in supporting major infrastructure projects nationwide.”
In the Lords, Baroness Smith, the minister for skills, said, “The engineering construction industry is critical to the delivery of the government’s wider ambitions for economic growth, clean energy and energy security. It provides the skilled workforce needed to build, maintain and operate major energy and industrial infrastructure across Great Britain. “Maintaining the ECITB’s ability to raise and invest levy income is vital to ensuring employers across all three nations can access the engineering construction skills that they need. “An estimated £137.9 million will be raised in levy over 2026 to 2028, which will be invested in supporting the skills needs of the engineering construction industry.”
ECITB CEO Andrew Hockey 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. “Our approach aligns with the UK Government’s mission-driven focus – particularly its goal to transition to clean power and stimulate sustainable economic growth in doing so.”
The Levy Order was affirmed by both Houses of Parliament, without opposition. The Statutory Instrument coming into force 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. Later this year, the government will announce a decision on a proposed merger of CITB and ECITB. Got a story? Email news@theconstructionindex.co.uk
