An anonymous online reporting website has been launched by the Construction Industry Training Board (CITB) to stop contractors passing its levy onto subcontractors.
The reporting tool was created to gather evidence of firms deducting payments from the wages of subcontractors without their consent.
It said the tool was part of a “strengthened position” on the issue that was backed by the Levy Strategy Committee, three national councils and 14 prescribed organisations.
The objective is to ensure the system “operates fairly” across the construction industry.
According to the CITB, some employers still make deductions from payments made to their subcontractors or other workers’ wages (both PAYE and net Construction Industry Scheme) without their agreement.
It is usually called “a deduction for CITB Levy” or “amounts in respect of CITB Levy”, or similar.
Subcontractors affected by such deductions are urged to use the online tool to report instances anonymously.
The CITB pledged to then make contact with the contractors involved and formally request that they cease making deductions, with the agreement of the subcontractor.
Deb Madden, executive director of nations engagement at the CITB, said: “Passing the levy down the supply chain reduces the overall investment in workforce development, undermining the purpose of the levy.
“We need support from levy-paying employers to help us to provide longevity in careers within the sector and provide more opportunities for entry.”
She added that the CITB believes that the best way to resolve the issue of passing on the levy is through industry self-regulation.
“Collaboration between CITB, employers and other stakeholders is essential to developing sustainable solutions which foster a culture of fairness and responsibility in the sector,” she said.
The issue of contractors passing the levy down the supply chain is nothing new to the industry, with numerous efforts made to stamp out the practice. It was raised in 2011 by the CITB and 10 of its consensus federations. Then, in 2017, an online petition was started by the Finishing and Associated Trades Equity association as a protest against the practice.
The latest attempt to deal with the issue comes ahead of a four-week CITB consultation on the levy, from 26 September until 24 October. It will run as a series of webinars for England, Scotland and Wales.
The CITB will share draft levy proposals with prescribed organisations and employers, who will then reply online.
Signatories
- CITB executive team
- Levy Strategy Committee
- The national councils of England, Scotland and Wales
- British Woodworking Federation
- Build UK
- Civil Engineering Contractors Association
- Construction Plant-hire Association
- Finishes and Interiors Sector
- Federation of Master Builders
- Hire Association Europe
- Home Builders Federation
- National Association of Shopfitters
- National Federation of Builders
- National Federation of Demolition Contractors
- Scottish Building Federation
- Scottish Decorators Federation
- Scottish Plant Owners Association
