Government publishes Industrial Training Board review report
The Department for Education today published the Government’s response to the ITB Review, which was conducted by Mark Farmer in 2023 and finalised last year.
The report stresses the vital need for the work of the Industrial Training Boards (ITBs) within the construction and engineering construction industries and concludes that the ITB levy-grant model should be retained. Indeed, it states that the role of the ITBs should be strengthened and calls on them to do more.
It reinforces that both the CITB and ECITB exist to meet the industries’ specialist skills needs. The ITBs are needed to address the market failure in training provision, driving up skill levels and incentivising training that would otherwise not take place.
The Minister of State for Skills, The Rt Hon Baroness Smith of Malvern, supported many of the recommendations laid out in the report including that the ITB model should be retained.
Among the 17 strategic recommendations, the review proposes that the CITB and ECITB should form a single body. The Government’s position is that while there are significant benefits to greater alignment and collaboration between the two ITBs, there are currently no plans to legislate to create a single body. A steering group will be set up to consider implementation of all recommendations.
In the meantime, the Minister has requested greater collaboration between the CITB and ECITB on specific areas such as infrastructure across Great Britain, increasing trainers, clean energy jobs and skills passporting. Work is already underway to develop joint action in these areas.
Tim Balcon, CEO of CITB said: “Importantly, the report recognises the significant skills challenges facing the construction and engineering industries and the vital role that the ITBs play in helping address these. Further, it asserts that the best way of doing so is to retain the ITB model and industry-specific levies.
“Grant funding for apprenticeships and new entrants is vital, with more than two-thirds of apprenticeship starts in the construction industry being employed by companies of fewer than 50 employees.
“We are already well advanced in improving our engagement with employers and learners, such as the nationwide rollout of our Employer Networks and the significant improvements at our National Construction Colleges.
“Additionally, we’re addressing many of the areas identified within the report through our strategic plan. We are working with industry and all our partners to develop a training and skills system that works now and in the future. A system that supports industry in training its workforce and helps bring skilled and diverse workers into industry.
“We already work in close collaboration with ECITB on some key areas and we will expand this into a more formal collaboration where it offers value to the sector.
“We must move at pace to work together to tackle the joint needs of industry without the delay and disruption that legislative or structural changes would surely bring and that would inevitably be detrimental to industry success. We need to be laser-focused on addressing industry needs by providing standardised levels of competence, alternative routes into industry and making it easier and cheaper to access high-quality training.”
Andrew Hockey, CEO of the ECITB, said: “The report highlights the value that both the ECITB and CITB make to our respective industries. It cites the ECITB’s work on Connected Competence, our programmes to grow new entrants and our Regional Skills Hub initiative as good examples of what needs to be done, and what can be scaled up.
“We welcome closer collaboration with the CITB, particularly in the area of infrastructure skills where there is the most commonality between the ITBs’ respective footprints.
“As the review acknowledges, there is significant benefit in both ITBs collaborating more closely on infrastructure; nuclear new build being a clear example where workers in both civil construction and the engineering construction industry (ECI) work alongside each other.
“We are already working with the CITB and EDF on strategic skills planning for Sizewell C with a view to developing whole-career training pathways and interventions that span both the civil and ECI phases of that project.
“Formalising this approach for nuclear and other key infrastructure projects – such as those centred around the decarbonisation of the UK’s industrial clusters – will be highly beneficial and should strengthen delivery and impact.
“We have started the process of scoping the recommendations and developing plans to implement them, which will involve consultation with industry and government. We are already addressing many of the structural skills challenges highlighted by the review and will further build upon these as we develop our new strategy, which will be published later this year.
“In the meantime, we will continue to deliver our mandate from industry to lead industry learning. This includes attracting new entrants, expanding the entry pathways into industry and supporting high-quality training provision.”
Last reviewed in 2017, the ITB review assessed the role and effectiveness of both the Engineering Construction Industry Training Board (ECITB) and the Construction Industry Training Board (CITB). The review results from a requirement, set by the Cabinet Office, for all public bodies to be reviewed periodically.
View the full report along with the Government’s response 2023 Industry Training Board (ITB) review
Q&A for further information relating to the ITB Review
At present there are no plans to legislate to combine the two Industry Training Boards, as the recommendation to form a single body was only partially accepted by Government. A steering group consisting of a number of Government Departments and both ITBs will be set up to look at the possible implementation of all recommendations. The work to scope potentially combining the two ITBs will take time, so nothing is currently certain, and it would be wrong to pre-empt the outcome.
The outcome could range from voluntary joint working through to creating a single body. In the meantime, the Minister has requested greater and enhanced collaboration between us and ECITB on specific areas where we can support each other and where there is crossover between our work. The specific areas are:
1. Infrastructure across Great Britain
2. Increasing trainer and assessor numbers
3. Clean energy jobs
4. Skills passporting
Both ITBs are committed to working more closely together and this work has already begun in earnest on a voluntary basis. CITB are already working with the ECITB in a number of areas including strategic skills planning for Sizewell C.
We cannot give an exact timescale at this stage, but we expect this exercise to take place over the next twelve months and be led by DfE. Whatever the outcome of this scoping, it will take detailed planning to formalise any alignment and at present there is no plan to legislate to combine the two ITBs.
No. The Board was clear that we should not wait. We have a duty to industry to continue the vital work we do in attracting new entrants, expanding the entry pathways into industry and supporting high-quality training provision, and we want to be bold in our ambition.
Our Strategic Plan will reflect and set out how we plan to implement some of the recommendations of the ITB Review Report. This includes the work we are doing in collaboration with ECITB.
No. The Department for Education has been clear that we should continue with Consensus as normal, and the formal process will commence on March 17th following the industry-wide consultation on the draft Levy Proposals that took place in the Autumn of 2024. The review has confirmed that it believes the Statutory ITB system should be retained and, for CITB to continue to support industry seamlessly, Consensus will need to continue as planned. Our current Levy Order will expire in early 2026, and we are required by law to consult on Levy Proposals for the following three-year period.
Very closely. We shared our detailed response to the recommendations with Ministers last year and since then have closely engaged with officials on the form that closer collaboration and alignment might take. As a member of the steering group, we will be involved in how to implement all recommendations within the report. We have also started work with ECITB to develop plans to collaborate on infrastructure (e.g. Sizewell C) and increasing trainers and assessors.
The scoping activity is expected to take a year to complete. Even after the process has concluded, it is likely to take more time and planning to formalise any agreed alignment. The creation of a single body – if that is the decision - will take significantly longer as it will involve changes to the legislation.
Therefore, we will continue to work towards achieving our mission, to close the skills gap in the construction industry. Our framework for our work to achieve this will be sent out in our Strategic Plan due to be published shortly.
No, plans for Consensus on Levy Proposals consulted on with employers in 2024 remain unchanged and will commence on 17 March 2025. The proposed levy rates that are going to Consensus also remain unchanged at 0.35% PAYE and 1.25% Taxable CIS Payments and will deliver the required funding to deliver the Strategic Plan for the period April 2026 – April 2029.
We have taken into account the ITB Review recommendations, government’s response to them and the views of industry, and allocated funds in line with expected Levy income. There are no plans to reduce grants, funding or support through our Employer Networks.
The purposes of the ITB Review and Consensus are very different. The future direction and performance of CITB is the purpose of the ITB Review, whereas Consensus has a much narrower purpose, which is to understand the level of support from Levy paying employers for the proposed Levy generating arrangements for a three-year period. Consensus is not a question of whether CITB should be retained or not, it’s about agreeing the most appropriate mechanism to generate the Levy to fund the Strategic Plan and support the skills and training needs for the industry.
The ITB Review has confirmed the retention of the statutory basis and now Consensus will help to demonstrate the level of support for the proposed Levy arrangements.
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