Understanding the Industrial Training Levy Order for Northern Irelands Construction Sector

The Department for the Economy in Northern Ireland has unveiled the Industrial Training Levy (Construction Industry) Order 2025, aimed at supporting workforce training within the construction sector. This legislative update ensures that the Construction Industry Training Board Northern Ireland (CITB NI) continues to secure funding through a levy on employers, fostering a culture of comprehensive training within the industry.

Key Points of the 2025 Order:

• Levy Details: The levy, set at 0.55% of employers' payroll costs, remains unchanged from the previous period. This rate will be applicable from September 1, 2025, to August 31, 2026.

• Exemption Threshold: Employers with payroll costs under £80,000 are exempt from the levy, maintaining consistency with the prior year.

• Consultation Process: CITB NI engaged with construction sector employers through a formal consultation, initiated on April 1, 2025. This process involved discussions with Industry Federations representing relevant employers, ensuring that the levy rate reflects sector consensus.

• Regulatory and Financial Impact: The Order does not introduce new financial burdens or changes in policy. Consequently, no Regulatory Impact Assessment was deemed necessary.

• Appeals: Employers have the right to appeal levy assessments through an industrial tribunal, providing a safeguard for businesses.

This Order aligns closely with similar legislation in Great Britain, though the specific levy rate is determined locally through employer consultations in Northern Ireland. The continuity of the levy rate aims to provide stability and predictability for businesses while supporting the ongoing development of skills within the construction industry.