Up to 755,000 additional construction workers could be needed by 2030 to achieve the government’s 1.5 million housing target, according to a new report by the National Audit Office.
Earlier this year, the government announced a £625million initiative to support on-the-job training and career opportunities in the construction industry, as well as a commitment to recruit 100,000 more construction workers per year by the end of Parliament.
The NAO says that the package is a “welcome step” towards closing the skills gap, but warns that employers continue to be affected by economic conditions that could put the success of the skills package and wider building commitments at risk.
The report finds that the government’s ambitions to build 1.5 million homes, upgrade home energy standards, and deliver a £725billion long-term infrastructure pipeline will depend on a significant expansion to the construction workforce, as well as stronger employer involvement in training the next generation of workers.
The NAO examined the government’s construction package, which combines tried and tested initiatives alongside newer initiatives, including Skills Bootcamps, and new foundation apprenticeships and construction technical excellence colleges.
However, the NAO says that the package is not designed to meet all future workforce needs, with government estimates showing that between 201,000 and 755,000 extra workers could be required by 2030, before accounting for those who leave the sector for other jobs. This comes as statistics show the construction sector had the highest rate of hard-to-fill vacancies due to skills shortages – 45% compared with a 27% national average.
The NAO says that employer engagement is a critical delivery risk for the construction package.
The government hopes that 42% of the additional construction workers will follow from further education students completing industry placements. However, businesses make recruitment and training decisions depending on the expected pipeline of work, costs and market competition, and tough economic conditions are affecting employers’ confidence to invest and take new employees and apprentices on board. In 2024, employer investment in training per construction trainee was at its lowest level in 10 years.
Foundation apprenticeships are intended to help young people move into entry-level construction jobs, but by April 2026, just 74 young people had started, against the DWP’s assumption of 1,000 in 2025-26.
The NAO concludes that while the government’s construction skills package is a positive step, delivery is not guaranteed. To achieve its aspiration of up to 60,000 workers and support its housing and infrastructure commitments, the NAO says that the government will need better data to prioritise resources and to get employers’ buy in. Without this, skills shortages could drive up costs and put major delivery commitments at risk.
The NAO recommends:
- Departments involved in estimating construction worker demand – including MHCLG, DESNZ, NISTA, DBT and the Construction Industry Training Board – work together to improve how they will estimate future workforce needs to deliver government ambitions
- Departments responsible for skills delivery – DWP and DfE – keep the construction skills package under close review, using performance data to identify problems early, and publish regular updates on progress towards their 60,000 ambition
- DWP and DfE should be ready to consider adapting the package where initiatives are not delivering as expected, including changing course if initiatives need to be modified, or funding reallocated
Gareth Davies, head of the NAO, said: “The government is taking action to address the shortage of skilled construction workers as part of its ambitious commitments for housing, infrastructure and energy efficiency. Success will depend on employers having the confidence and capability to offer placements, apprenticeships and jobs.”
