Funding for industry apprenticeships could be cut by up to 30% with the introduction of the Government's apprenticeship levy, according to the Construction Industry Training Board (CITB).

Steve Hearty, Head of Apprenticeships at CITB, said the organisation is concerned the new tariff might deter firms from taking on new apprentices due to the funding shortfall.

The levy will come into effect from April 2017 and requires employers with a pay bill over £3 million each year to make an investment in apprenticeships.

However, with the possibility contractors may be asked to make up the remaining cost, the CITB is urging employers to share their concerns during the Government's consultation on the scheme.


Mr Hearty said: "The Government's proposed funding bands for framework apprenticeships raise real concerns for the construction industry.

"We support the new, employer-designed standards, because we think they will improve the quality of apprenticeships, and it is encouraging to note that Government state these will be funded at a higher rate than those recently published. However, no standards for construction have yet been approved and we are still working under the existing frameworks system and may well continue beyond 2017.

"Even with the sector beneficial STEM increases to funding the Government's proposed funding bands will cut funding for construction apprenticeships by between 20% and 30%.

"We are concerned that training providers could stop training or they could ask employers to make up the shortfall in cost, which might deter firms from taking apprentices on.

"We have shared our concerns with DfE and will be doing formally through the formal consultation process that closes on 5 September. Employers can do the same."

(LM/CD)