£600m pledged to tackle construction skills gap

The UK government has pledged £600 million to address critical skills shortages in the construction sector, with the aim of training 60,000 workers by 2029. This funding, part of the government’s broader Plan for Change, is intended to help build 1.5 million homes by the end of this Parliament and transform local communities.

Chancellor Rachel Reeves emphasised the need for skilled workers to support the country’s infrastructure ambitions. “We are determined to get Britain building again. That’s why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail, and energy infrastructure,” Reeves said. “But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of.”

The construction sector has been struggling with a shortage of skilled workers, exacerbated by factors like Brexit and the COVID-19 pandemic. Recent data from the Office for National Statistics shows more than 35,000 vacancies in the industry, with employers struggling to fill more than half of them due to a lack of necessary skills.

To address this, the government’s funding will go towards increasing the number of training opportunities and creating new pathways into the construction sector. This includes £100 million to fund 10 new Technical Excellence Colleges, £165 million for additional construction courses at colleges, and £100 million to expand Skills Bootcamps for new entrants, returners, and those looking to upskill.

“Skills are crucial to this government’s mission to grow the economy,” said education secretary Bridget Phillipson. “We are being held back by the largescale skills shortages in the construction sector, which is a major barrier to growth. These measures will break down barriers to opportunity for thousands of young people.”

The government is also introducing new foundation apprenticeships, supported by £40 million in funding, to encourage young people to enter the industry. Employers will be given £2,000 for each apprentice they take on and retain, in addition to fully funded training costs through the new Growth and Skills Levy.

“This is a fantastic announcement,” said Mark Reynolds, executive chair of Mace and co-chair of the new Construction Skills Mission Board. “This funding package is a huge step forward and will help us deliver the 1.5 million homes the UK needs.”

The government is also working with the Construction Industry Training Board (CITB) to fund over 40,000 industry placements each year for learners at various levels. This initiative is aimed at getting students site-ready and bridging the gap between education and practical work experience.

With construction vacancies at record highs and an ageing workforce, the government’s investment is seen as a vital step in ensuring that the industry can meet the growing demand for skilled workers in the coming years.

The government expects these reforms and funding to support the creation of thousands of well-paid, secure jobs across the UK and help drive economic growth.