Grants Scheme changes letter
18 December 2009
Dear employer,
Changes to the Levy & Grants Scheme
I am writing to tell you about some important changes that have been made to the current CITB-ConstructionSkills Levy & Grants Scheme.
Last week, our industry-led Board met to review our Grants Scheme and opted to make some changes, which would help us to balance our books and make the Scheme financially sustainable.
The new changes include:
Reducing the Training Plan day rate to £17.50 (applicable to all plans started during the 2009/2010 Grants Scheme Year and effective for all training carried out since 1 August 2009),
Increasing the minimum duration of training acceptable within a Training Plan from 30 minutes to three hours (applicable to all plans started on or after 1 January 2010)
Limiting entitlement to the Training and Development Plan per capita grant (£7.50 per head with a minimum of £375 payable) to the first Training Plan only (effective for plans started on or after 1 January 2010) and
Reducing all other grants by 15%, with the exception of grants for apprenticeships and undergraduates, on grant claims paid after 1January 2010 irrespective of when the achievement was gained or when the training took place. This is so that we can learn lessons from past recessions and limit widening skills gaps.
2009 has been a tough year for our industry and the deepening recession has started to force some very difficult decisions. For the past two years, demand for grants has risen ahead of increases in Levy. During this time, we have continued to meet our grant commitments, which have resulted in our forecasts being exceeded by £24m in the last two years.
Providing grants to employers remains our priority, but the deficit has prompted us to review our Grants Scheme so that we can balance our books and continue to provide financial support to employers, like you, who are also experiencing the effects of these turbulent times.
With this in mind, we have also taken the decision to send out the 2009 Levy Assessments in February 2010, a month ahead of last year. As grant demands continue to rise, an earlier assessment, which can still be paid over ten monthly Direct Debit instalments will help us to maintain uninterrupted grant payments to employers.
These have been difficult but necessary decisions but in addition to making these changes, I would also like to reassure you that we are taking steps within the organisation to deliver cost efficiencies, so that we can continue to add value to construction employers.
The Board has endorsed a 4 step recovery plan for CITB-ConstructionSkills, which will help us to progress our programme of organisational change, control our working capital (as required by Government) whilst also continuing to deliver a good service to employers as our organisation changes.
These are short term measures. We have started to consult our industry on a fundamental review of the Grants Scheme, which will be rolled out in August 2010.
I would like to thank you for your commitment to training in 2009, and for continuing to strive for excellence in these difficult times. I wish you a busy and prosperous 2010.
If you have any questions, please contact your CDA.
Yours sincerely,
MARK FARRAR
Chief Executive