Understanding the CITB Levy: What You Need to Know

jodie2839
2 days ago
2 min read

What's the purpose of the CITB Levy?
Does the levy apply to you?
How much is it?
How the CITB use the levy
How levy funds are distributed across industry

What's the purpose of the CITB Levy?

The CITB Levy is used to support the construction industry to have a skilled, competent and inclusive workforce, now and in the future.

It is dedicated to ensuring the construction workforce has the right skills for now and the future, based around our three strategic priorities:

Careers
Standards and qualifications
Training and development

Does the levy apply to you?

The levy applies to all employers ‘engaged wholly or mainly in construction industry activities’. In other words, when construction activities take up more than half of your total employees’ time (including subcontractors).

Find out more about who should register

How much is it?

How much levy you pay is based on your total wage bill (the amount you pay your employees in a year).

Here the word ‘employees’ specifically means individuals on the payroll and Construction Industry Scheme (CIS) subcontractors from whom you make a CIS deduction. This is defined by Industrial Training legislation.

Levy rates for the 2025 Levy Assessment are proposed as 0.35% for PAYE and 1.25% for Net CIS under the 2026 Levy Order which will be confirmed in Spring 2026.

There are some exemptions and reductions in the levy for small employers.

Find out more about levy rates and how they are assessed

How the CITB use the Levy

CITB uses the levy to:

Support training development through grants and funding
Promote the construction industry as a great career choice and offer high-quality apprenticeships
Identify skills needs across the construction industry
Develop occupational standards and qualifications.

CITB’s levy supports the British construction industry to develop the skilled workforce it needs.

How levy funds are distributed across industry

The table below (data from 2021-2022 annual statistics) shows how levy funds are distributed to construction employers of all sizes to support training:

Micro employers: 1 to 9 employees
Small employers: 10 to 49 employees
Medium employers: 50 to 249 employees
Large employers: 250+ employees

Category	Micro employers	Small employers	Medium employers	Large employers	Other	Total
Levy funds from employers	£18.6m	£30m	£27.4m	£32.1m	£0.2m	£108.3m
CITB grants and support for training	£21.1m	£26.4m	£25m	£28.3m	£0.9m	£101.7m
Number of employers claiming grant and other support	8,335	5,766	1,663	299	88	16,151