Leading consultancy KPMG has called on industry and government to find alternative funding for Building Lives, the innovative construction training organisation that has had its CITB grant withdrawn.
KPMGwas responding in the light of research it carried out with the London Chamber of Commerce and Industry on the scale of the industry’s skills gap as developers and public sector clients in the south east bring a wave of projects to market.
Richard Threlfall, head of infrastructure, building and construction at KPMG, said: “CITB pulling the funding on Building Lives is a blow to the construction industry, especially at a time when the sector is crying out for skilled employees. According to our estimates, the industry is now facing a shortage of 150,000 workers on sites to deliver major projects in London and the south east.
“Building Lives is an outstanding charity which last year supported 20% of all the apprenticeships in London. It cannot be allowed to fail and there is an urgent need for the government and leaders in the construction industry to come together to find a solution that allows Building Lives to continue its good work.”
Building Lives operates an unusual training model: it directly employs previously unemployed young people, training them in construction skills at community-based renovation projects, delivered in partnership with local councils and housing associations. There are currently 10 of these “training academies” around London.
"Building Lives last year supported 20% of all the apprenticeships in London. It cannot be allowed to fail and there is an urgent need for the government and leaders in the construction industry to come together to find a solution that allows Building Lives to continue its good work."
Richard Threlfall, KPMG
Trainees can achieve a Level 2 multi-skilled apprenticeship while at Building Lives over 16 months: in the first year they spend two days a week at the academy and three days on site with contractor partners, then the last four months full-time on site.
The community interest company says that 80% of its apprentices successfully complete the course and 87% secure employment after their apprenticeship.
It is understood that CITB decided to cancel Building Lives’ grant funding in January 2015, after reviewing its status. The organisation was formerly part of east London contractor Lakehouse, but when it devolved it fell “out of scope”.
A spokeswoman for Building Lives told Construction Manager that the CITB grant was the main source of the company’s income, and that it was currently trying to find alternative sources of funding to “keep afloat”.
“We do have relationships with other funding sources, but nothing’s come up yet. We have a load of people who are enrolled but haven’t yet started – we were on track to train 500 apprentices over the next year.”
A CITB statement from Carl Rhymer, delivery and customer engagement director, slightly revised its position from earlier this week, saying: “CITB has not funded Building Lives. We provide funds to in scope employers and in this case, a standard verification process revealed that an in scope employer had not complied with the grant scheme rules.
“These rules were set by industry, following extensive consultation. CITB is fully supportive of what Building Lives is doing to help unemployed and disadvantaged people into the industry, but we are unable to change these rules at will.
“We have committed to support all apprentices currently training with Building Lives who were enrolled with CITB by January 2015, until they complete their training. And, we have offered to help Building Lives to seek other funding, which Building Lives has declined.”
A total and utter disgrace – shame on the CITB. Rules and more rules will not help the unemployed and disadvantaged. I suspect the vast majority of employers who actually pay the salaries of people like Carl Rhymer would totally disagree with this decision
Where is the CITB’s facilitative spirit? ”in scope / out scope” – some kind of code ??
I don’t understand and I doubt the many young people who are assisted into training and skilled work through the hard work of Building Lives Academy will understand (or care) either. The CITB should focus all its efforts to ensure that a sustainable funding package is in place for the continued positive outcomes that BLA consistently delivers. Beyond lip service – please!