CITB Funding Changes 2026: Are CITB Levy Payers Still Getting Value Anymore?
Let’s be honest, the CITB Funding Changes 2026 have brought one of the biggest shifts we’ve seen in CITB funding for years, and not in a way that most employers were hoping for.
At a time when the UK construction industry is being pushed to deliver major infrastructure, net zero projects, and housing targets, we’re now asking employers to do more training with less support.
And the question I’m hearing daily from clients is simple:
“We’re paying more into the CITB levy… but what are we actually getting back?”
Understanding the CITB Levy and Why It Matters
For anyone unsure, the CITB levy is based on your wage bill, which includes:
- PAYE employees
- CIS subcontractor payments
With rates sitting at:
- 0.35% on payroll
- 1.25% on CIS payments
So, the more you grow, the more you pay. Simple. But here’s where it’s no longer simple…
CITB Funding Changes 2026: From £30,000 Returns to £1,500?
Across our client base, we’re seeing a consistent and worrying trend:
- Businesses that historically recovered £20k–£30k+ annually in grants
- Now being told their maximum accessible support might be £1,500
That is not a minor adjustment this is a fundamental shift in value.
And yes, technically:
- Non-apprentice achievement grants have been standardised to £600
- Short course support has largely moved into Employer Networks with capped funding and reduced rates
But in practice, what employers are feeling is this: “We’re still paying the levy but the return has collapsed.”
The Reality of the 2026 CITB Funding Changes
Let’s cut through the policy language and say it how it lands on site:
What’s gone or reduced:
- Most short course grants removed
- Funding cut to 50% or less
- First Aid training removed entirely
- Level 7 qualifications cut
- Attendance grants removed
What’s changed:
- Funding now largely through Employer Networks
- Access controlled, capped, and often slower
- Large employers excluded from key support routes from April 2026
“We Need Construction Skills… But We’re Cutting Training Support?”
Here’s the real tension.
We have:
- A well-documented UK skills shortage
- An ageing workforce
- A massive pipeline of:
- Infrastructure
- Energy transition projects
- Housing demand
Yet at the same time:
- Employers are receiving less direct support for training
- Funding is harder to access
- Planning training has become more complex
CITB themselves have said demand for support has risen 36% in recent years, with no increase in levy income, but passing that pressure back onto employers, right now is where I feel the issue lies.
CITB Employer Networks: The Solution… or Another Barrier?
In theory, Employer Networks are a good idea:
- Local collaboration
- Shared training investment
- Strategic workforce planning
In reality?
Many employers are telling us:
- “It’s slower”
- “It’s more admin”
- “They don’t understand the technical / specialist courses”
- “It’s not guaranteed”
- “We’ve lost control of our training plan”
Many employers ask us:
- “Why do the Employer Networks exist?”
- “We already have a great working relationship why do I need to go through an Employer Network who is not responsive like you for critical training?”
And crucially: You’re now competing for funding, using money you’ve already paid in.
The Big Issue: Confidence in the System
The levy only works if employers believe: “What I pay in, I can reasonably get back or at least see value from.”
Right now, that confidence is slipping.
When a contractor goes from:
- £30,000 of annual training support to potentially £1,500 cap-level access
…it’s not surprising they start asking:
- “Why am I paying this?”
- “Should I even engage with CITB?”
- “Do I train less?”
And that last question is the most dangerous of all.
Impact on Training Decisions (This Is the Risk)
We are already seeing behaviours shift:
- Training being delayed or reduced
- Focus only on mandatory compliance courses
- Less investment in:
- Supervisors
- Leadership
- Higher-level skills
That is exactly the opposite of what this industry needs.
What Are CITB Doing to Support Us?
To be fair, CITB are not ignoring the problem.
They are:
- Trying to stretch levy funds further
- Investing in:
- Employer Networks
- New Entrant Support Team (NEST)
- Keeping levy rates stable despite rising demand
And I do understand the challenge: Same income, more demand, rising expectations.
But here’s the honest view from the ground…
Is It Good Enough in the Current Market?
In my opinion? Not yet.
Not when:
- Employers are under commercial pressure
- Skills gaps are widening
- The UK is relying on construction to deliver economic growth
We cannot:
- Expect employers to fund training
- Reduce their support
- And still hit national delivery targets
That doesn’t stack up.
What Needs to Happen Next
If CITB want to rebuild confidence, we need to see:
1. Clear Value for Levy Payers
Employers must be able to see the return, not chase it.
2. Simpler Access to Funding
Less process.
Less gatekeeping.
More direct routes.
3. Support That Reflects Reality
£600 or £1,500 caps do not reflect:
- Real training costs
- Real workforce needs
4. Better Engagement with Industry
Not announcements to industry but solutions built with industry.
My Final Thought
This isn’t about criticising for the sake of it, it’s about asking a very real question:
At a time when construction is critical to the UK’s future are we making it easier or harder for employers to train their people?
Right now, many would say it’s getting harder, and unless that changes, we risk:
- Less training
- Bigger skills gaps
- Slower delivery
- Failure to deliver this ramp up of National Critical Infrastructure Projects
and ultimately, everyone loses.
If you’re reviewing your training strategy or trying to make sense of what you can actually claim in 2026, now is the time to take a pragmatic approach because the system has changed, whether we like it or not. If you need some guidance on any training, get in touch and we will be happy to help.
If you want to find out more about changes to the CITB Levy or information on funding, read some of our recent articles:
Training Funding in Construction & Utilities: What Support Is Available in 2026?
Construction Training Requirements 2026: What Every Worker Needs to Know
