On the rise: national minimum wage and national living wage increases

On the rise: national minimum wage and national living wage increases

The National Minimum Wage and National Living Wage rates will increase on 1 April 2019

The rates will increase as follows:

Age bracket  Current rate  April 2019 rate 
Over 25’s £7.83 £8.21
21 to 24-year-olds £7.38 £7.70
18 to 20-year-olds £5.90 £6.15
16 to 17 year-olds £4.20 £4.35
Apprentices* £3.70 £3.90

*Apprentices under age 19, or age 19 and over but in the first year of apprenticeship.

Accommodation offset

The accommodation offset also increases from £7.00 to £7.55 a day for each day when accommodation is provided during the pay period.

The future 

All these increases are above both inflation and rises in average earnings.

However, the rise in the National Living Wage to £8.21 represents a particularly significant increase of 4.9%, with the Treasury confirming that the annual earnings of a full-time minimum wage worker (aged 25 or over) will have increased by over £2,750 since the introduction of the NLW in April 2016.

The Low Pay Commission has stated that its recommendation is to keep increasing the NLW each year. This is to achieve its aim of an NLW rate of 60 per cent of median earnings by 2020, with the Commission predicting that the NLW will reach £8.62 in April 2020.

However, this is a lower rate than was predicted in the Government’s original plans. In his 2015 budget speech, former Chancellor George Osborne announced plans to bring the NLW to £9 an hour by 2020.

Increased funding to support apprenticeships and training

Increased funding to support apprenticeships and training

Following announcements from the Chancellor last week that funding for apprenticeship training would be increased to cover 95% of costs for non-Apprenticeship Levy payers, CITB has announced a significant increase in grants available to support the additional costs to the business from running an apprenticeship programme (remember the training is funded by the Sector Skills Council and CITB support is in addition).

CITB Apprenticeship Funding

CITB has outlined that from 1 April the following grants will be available:

  • £2,500 attendance grant per year for every new eligible apprentice
  • £3,500 achievement grant for every eligible apprentice

This is an overall funding increase from £10,250 to £14,500 for each apprentice an employer takes on – an increase of over 40% on existing rates.

Previously, a typical two-year apprenticeship package would have attracted grants of £6,000 and a typical three-year apprenticeship package would have attracted £10,250.

CITB Skills and Training Fund

In addition CITB has also extended the Skills and Training Fund, which provides an extra incentive to small employers to deliver construction training which align with CITB’s grant scheme. This funding also supports training interventions in management and leadership.

CITB-registered employers can apply for funding related to how many direct employees they have:

  • Employers with 1 to 49 PAYE staff can receive up to £5,000.
  • Employers with 50 to 74 PAYE staff can receive up to £7,500.
  • Employers with 75 to 99 PAYE staff can receive up to £10,000.

This is a very flexible funding pot and CITB has confirmed that more than £100,000 of funding has been awarded to FIS members through its new and easy to apply for funding solution, with FIS members having a 90 per cent success rate when applying, based on prior applications.

To apply for skills and training funds, please read the guidance notes provided in the application form (PDF 226KB).

To complete and submit the form, you should:

  1. Download the application form and save it to your computer
  2. Complete all fields
  3. Ensure that you regularly save this application to your desktop to prevent loss of data

Save and send the completed form to skills.training@citb.co.uk

If you are thinking about taking on an apprentice or have any questions about training or grant support, the FIS are only too happy to help, you can speak to our skills engagement team on 0121 707 0077 or email info@thefis.org

More on FIS Skills Activity:

  • FIS BuildBack – recruit new workers in this dedicated programme to train and bring unemployed individuals into the drylining trade
  • FIS BuildME – open your sites and offices for work experience opportunities (aimed at those doing FE courses associated with construction)
  • FIS Apprenticeships – modern apprentices without the pain
  • CSCS Card Support – working towards a fully competent and qualified workforce

Did you know (as a member) you can advertise any vacancies for free on FIS Jobspot

New JCT On Demand digital contracts now available

New JCT On Demand digital contracts now available

JCT has released more of its 2016 Edition of contracts online via its JCT On Demand digital service.

The contract families included are the JCT Standard Building Contract (Standard Building Contract With Quantities (SBC/Q), Standard Building Contract Without Quantities (SBC/XQ), and Standard Building Contract With Approximate Quantities (SBC/AQ)), and the JCT Intermediate Building Contract (Intermediate Building Contract (IC), and Intermediate Building Contract with contractor’s design (ICD)).

Digital versions of the guides corresponding with each family, namely the Standard Building Contract Guide (SBC/G) and Intermediate Building Contract Guide (IC/G) are also available to purchase via the service.

These products join the other JCT contracts available via JCT On Demand, including the Minor Works Building Contracts and Design and Build Contract.

The JCT On Demand contracts can be purchased via JCT’s online store, by visiting the relevant product page and selecting the ‘JCT On Demand’ option from the format box.

JCT On Demand provides users with a digital equivalent of the JCT hardcopy contract. By purchasing via the JCT online store, users can get instant online access. The secure and intuitive interface enables users to fill in their contract using a comprehensive Q&A process, save their drafts, and print out ready for signing.

The service is aimed at those who want instant access to their JCT contract, guidance in filling out the contract comprehensively, and the ability to print out a professional black-and-white copy and a comparison document showing their customised contract against the original JCT text.

More information about the service is available at jctltd.co.uk/jct-on-demand.

CSCS Industry Accreditation withdrawal update

CSCS Industry Accreditation withdrawal update

Following consultation with industry, CSCS has agreed a plan that will pave the way for the eventual withdrawal of cards issued under Industry Accreditation.

For several years the strategic direction of the Construction Skills Certification Scheme (CSCS) has focused on ensuring that all applicants can demonstrate the achievement of a nationally recognised construction related qualification.

With the introduction of the Labourer card, the withdrawal of the Construction Related Occupation card and the planned removal of the Site Visitor card the next step is the withdrawal of cards issued under Industry Accreditation.

Industry Accreditation, also known as Grandfather Rights, allowed workers to obtain CSCS cards on the strength of an employers’ recommendation rather than the achievement of a recognised qualification. CSCS closed Industry Accreditation to new applicants in 2010 but those already holding a card are currently able to renew on the same basis.

CSCS has consulted with the industry and agreed a plan that will pave the way for the eventual withdrawal of cards issued under Industry Accreditation.

From 1 January 2020, all cards renewed under Industry Accreditation will expire on 31 December 2024 and CSCS will stop issuing the card from 30 June 2024. CSCS has also announced a new online service to speed-up the card application process – find out more here.

FIS is working with members and the wider sector to support the transition to blue skilled cards.  To find out more click here

More on FIS Skills Activity:

  • FIS BuildBack – recruit new workers in this dedicated programme to train and bring unemployed individuals into the drylining trade
  • FIS BuildME – open your sites and offices for work experience opportunities (aimed at those doing FE courses associated with construction)
  • FIS Apprenticeships – modern apprentices without the pain
FIS extends helping hand to Paragon Interiors Group staff facing redundancy

FIS extends helping hand to Paragon Interiors Group staff facing redundancy

FIS, representative body for the £10 billion finishes and interiors sector in the UK, has extended its hand to help the 75 staff being made redundant at Paragon Interiors.

Iain McIlwee, FIS CEO said “Paragon Interiors Group is a time served Gold award winning member of FIS and it’s tragic to learn the deal with Red 7 Property has collapsed.   We care deeply about our membership base and recognise that staff are the most valuable asset of any organisation.  We have worked with our colleagues at Paragon Interiors Group for a long time and for this reason we would like to help them secure employment in other organisations through our contacts and networks.”

FIS has reached out to their colleagues at Paragon Interiors Group, their MP, local employment groups and its membership base to see if they can find new employment opportunities for those impacted. Staff at Paragon Interiors Group can email FIS their details to  info@thefis.org and we will endeavour to help them through discussions with our industry networks and on social media.

Resource and Waste Strategy

Resource and Waste Strategy

The CPA Technical Report 19 (02) covered the government’s newly published Resource and Waste Strategy which aimed to make businesses and manufacturers pay the full cost for recycling and disposing of packaging waste by placing obligations on those responsible for producing waste to be more accountable.

Following this, DEFRA, in conjunction with the three devolved governments, has issued a Consultation on reforming the UK packaging producer responsibility system in which they are seeking views on introducing extended producer responsibility to reduce the amount of unnecessary and difficult to recycle packaging and to increase the amount of packaging that can be recycled. The consultation documentation can be viewed here.

The proposals being consulted on are:

  • The definition of full net cost recovery and approaches to recovering full net costs from producers
  • Incentives to encourage producers to design and use packaging that can be recycled
  • The businesses that would be obliged under a packaging extended producer responsibility system
  • Producer funding is used to pay local authorities for the collection and management of household packaging waste and to support the collection for recycling of household-like packaging ARISING IN THE COMMERCIAL WASTE
  • Mandatory labelling on all packaging to indicate if it is recyclable or not
  • New packaging waste recycling targets for 2025 and 2030 and interim targets for 2021 and 2022
  • Alternative models for the organisation and governance of a packaging extended producer responsibility system.

The consultation is split into three parts and 12 sub-sections. Not all sections may be relevant to all stakeholder so not all questions are mandatory.

The proposals will impact:

  • Manufacturers that use recycled materials
  • Businesses that produce and sell packaging products
  • Local authorities
  • Waste management companies that collect and manage packaging waste
  • Businesses that recycle or export for recycling packaging waste

The consultation closes on 13 May 2019