Employment and Training

Judith Cummins Excerpts

Monday 6th July 2026 Commons Chamber

[The Minister for Social Security and Disability (Sir Stephen Timms)]

I beg to move,

That the draft Industrial Training Levy (Engineering Construction Industry Training Board) Order 2026, which was laid before this House on 1 June, be approved.

In my view, the provisions in this statutory instrument are compatible with the European convention on human rights.

The statutory purpose of the Engineering Construction Industry Training Board is to make better provision for training throughout the engineering construction industry in England, Scotland and Wales. Engineering construction is critical to the Government’s wider ambitions for economic growth, clean energy and energy security. The industry provides the skilled workforce to build, maintain and operate major energy, manufacturing and industrial infrastructure across the country. The continued value of the ECITB and the Construction Industry Training Board was confirmed by a 2023 independent review, which found that a statutory levy remains the most effective model for industry-wide investment in training, and is needed to address persistent structural workforce challenges within the industries covered by the industry training boards.

This order gives effect to the ECITB’s levy proposals for 2026, 2027 and 2028. The levy remains the board’s primary source of funding, and the order is required for the board to raise mandatory assessments on employers that are in scope. It continues to receive strong support from employers: more than 85% of levy-paying employers supported the levy proposals, representing nearly 98% of total levy value—well above the statutory threshold of more than 50% support required from industry.

A 12-week Government consultation has just closed on a proposal to bring the two ITBs together into a single, unified body to support the combined skills needs of the engineering construction and construction sectors. The Government are now carefully considering the views expressed before making decisions on reforms that may be needed to ensure that the system delivers the support that employers need. I cannot prejudge the outcome but, in order to maintain the ECITB for support for employers, we need this levy order. If the Government chose to proceed with the proposed reform, the earliest that a single body could be in place would be the spring of 2028. If reform required a new ITB levy order, it would come to the House through the usual parliamentary process.

I thank the Joint Committee on Statutory Instruments for its detailed review of this levy order. The order retains levy assessment rates from the Industrial Training Levy (Engineering Construction Industry Training Board) Order 2023 and retains the exemption threshold to protect small businesses and microbusinesses that are still eligible for ECITB grants and support.

An estimated £137.9 million will be raised in levy between 2026 and 2028. It will be invested in meeting the skills needs of the engineering construction industry. It will fund programmes to widen participation, raise skill levels, increase opportunity and maintain occupational standards for the industry. It includes targeted grant support for employers to develop the skills pipeline in engineering construction. Since 2023, more than 5,000 apprenticeship starts have been supported through ECITB employer funding, including electrical, mechanical and nuclear-specific apprenticeships. That support includes direct grants for employers, travel and accommodation costs, and costs of additional qualifications that are required.

The funding raised by the ECITB levy directly underpins broader economic priorities. More than 90,000 people are employed in the leviable workforce, contributing an estimated £33 billion in gross value added, which rises to £100 billion when we include the wider sectors serviced by the engineering construction industry. However, the industry faces big, long-standing challenges in recruiting and retaining a skilled workforce, which makes voluntary investment in training harder to secure. Only a statutory levy can guarantee that the skills that industry urgently needs will be provided at the scale required. If this order is not approved, the ECITB will be unable to collect the levy in 2026. That would hit apprenticeships and other vital industry qualifications, employer support programmes, training standards and the future capabilities of one of our most economically significant sectors.

It is estimated that the UK needs an additional 40,000 engineering construction workers, and this order will play an important part in supporting major infrastructure projects nationwide. In addition to industry support, the proposals before the House today have received the full support of the devolved Governments of Scotland and Wales. They recognise, as we do, that the ability of the ECITB to raise and invest levy income is vital to ensuring that employers across all three nations can access the engineering construction skills that they need. I commend the order to the House.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.

--- Later in debate ---

[Amanda Martin]

As someone who studied STEM—science, technology, engineering and maths—subjects at college, I agree with the hon. Member. We need to ensure that our young people have the maximum number of opportunities to give our country resilience, whether that is in defence, farming or maritime—also something close to my heart—so I whole heartedly agree with him. For those reasons, I am pleased to support the proposals.

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.