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The future of the CITB-ConstructionSkills Grants Scheme has been secured, after the industry-led Board opted to make changes that will ensure the Industry Training Board can continue to provide financial help and support to employers in these times of economic uncertainty.

Last year, £176m was paid out to 23,500 construction firms in grants, to support training and help to improve the competitiveness of their business. A record number of claims resulted in the initial forecasts of grant being exceeded by £20m. Whilst this is good news for the skills of the industry, it has prompted a review of the Grants Scheme by CITB-ConstructionSkills and its sub-committees, to ensure that it can continue to support business critical training as the recession deepens.

The Grants Scheme is underpinned by a levy, which government asks CITB- ConstructionSkills to raise on employers. This system has the majority support of industry as the best way of maintaining standards within the industry. Over 100% of the levy is returned to employers in training grants and associated support, however, with levy income expected to fall below original predictions in 2009/10, the CITB-ConstructionSkills Board was forced to make tough decisions and prioritise those grants that best meet the industry’s training requirements.

In line with the current challenges facing industry, core grants for apprenticeships and new entrants remain unchanged and CITB-ConstructionSkills has promised to protect these from any further reviews of the Scheme that may be necessary according to economic conditions.

A number of grants have been affected by the changes to the Grants Scheme. These include:

• Reduction of the Technical and Professional achievement grant (from £1,000 - £500)
• Removal of Investors in People grant – although existing plans will be honoured and companies who have already committed can apply to receive Investors in People grant until 31 July 2010 (total of £5,000).
• Removal of On Site Assessment and Training profiling grant (£100).
• The limit for Short Duration grants will be reduced (from £10,000 to £5,000 per annum)
• Removal of the Health and Safety Test grant (£17.50). Health & Safety training will continue to be supported through the Training and Development Plan and Short Duration routes.
• Reduction in the supplementary payment rates for grants – with the exception of apprentice and new entrant grants from 25% to 20%.
• Removal of grant for the CIOB Site Management and First Line Supervisor modules (£250 per module).

The changes to the Grants Scheme, which take effect from 1 August 2009*, were made following extensive consultation with employers and industry, via the CITB-ConstructionSkills Board, the Training Committee and the Grants Scheme Working Party.

Chris Jones, Learning and Development Director at BAM Construct UK Ltd and Chair of the Grants Scheme Working Party and member of the Training Committee said: “The record numbers of grant claims for 2008 means that we needed to take a serious look at the grants that we can provide. It is crucial that we continue to provide grants for apprenticeships and for new entrants because we cannot afford to create skills shortages within the industry. We need to be ready for an upturn when it happens and these changes have secured the Grants Scheme, which is good news for the industry.”

Mark Farrar, Chief Executive of ConstructionSkills said, “Training is key to the future success of our industry and it is our duty to safeguard skills during these particularly difficult times. By making these necessary changes, we are guaranteeing help and support for businesses and we will continue to provide grants that will help steer the industry through these difficult times.”

The organisation is also stepping up existing cost cutting activity to manage operating costs without impacting on its valued front line services.