ConstructionSkills axes grants to make up £13m shortfall

ConstructionSkills is to axe its £17.50 grant towards the safety test for the industry skill card. The move is part of a programme of grant cuts to meet a £13m shortfall of income over expenditure last year.

The deficit was due to an unexpectedly high level of demand for grants during the year, with payouts rising by nearly 30%.

The training board is also axing its £1,000 commitment and £4,000 achievement grants for the Investors in People programme. Other grants to be withdrawn are the £100 for on-site OSAT profiling and the £250 CIoB attendance module. Some other grants are being reduced.

The board’s strategy is to give priority to preserving apprenticeship grants.

In the medium term, ConstructionSkills expects the cuts to achieve savings of around £48m. However, it acknowledges that the current economic climate is making financial forecasting particularly difficulty.

Overall training board income rose by 11% last year to £324 million. But spending was up by 16% to £334 million. Levy income was up some 10% to £182 million.

The rise in demand for grants last year is attributed to the first effects of the recession. The cuts are being implemented from this summer.