This will ensure the skills and training board can continue to pay grants to businesses as the recession deepens.
After extensive consultation, the Board ratified proposals that had been suggested by industry-led committees and agreed to reduce grant rates by 10% and supplementary payments to 10% across the board, with protection for apprenticeship and undergraduate grants, where rates remain unaffected.
Continuing strong demand for grants coupled with new forecasts indicating that Levy income will fall significantly more than expected in 2010, and is not likely to recover to current levels until at least 2014, has forced CITB-ConstructionSkills to review its Grants Scheme.
The Board has been advised by its employer-led Training and Finance Committees to take necessary measures to ensure that funding can continue to be provided to help businesses, despite the slow recovery in the economy.
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Since the recession started to bite in August last year, employers have defied gloomy economic forecasts, and learned lessons from the last recession, by continuing to train, so that they are ready for the economic recovery when it happens.
Last year, 23,500 employers claimed grants of £176m to support business training, which was good news for the industry. However, this was £20m more than planned - a situation which is not sustainable.
Chris Jones, Learning and Development Director at BAM Construct UK Ltd, also the Chair of the Grants Scheme Working Party and member of the Training Committee said: "The decisions that have been ratified by the Board are necessary if we want to guarantee funding for business critical training in the long term.
"In an ideal world, we wouldn't reduce grant rates, but the recession is forcing businesses to make tough decisions and unfortunately, we are no different. This has been a very tough decision - regrettable but essential in the current climate."
The changes that were made by the Board are in addition to changes that were introduced earlier this year, which include removing grants for Investors in People (IiP), the Health & Safety Test and OSAT profiling.
Despite changes to the Grants Scheme, which come into effect on 1 August 2009, the forecast grants spend for 2009 is £165m. The CITB-ConstructionSkills Grants Scheme is underpinned by the Levy and for every £1 of Levy collected, CITB-ConstructionSkills still plan to return £1 to industry in training grants and business support.
Employers will receive information about the 2009/10 Grants Scheme in mid July.
(GK/JM)
