The government has announced an investment of £600million to train up to 60,000 skilled workers for the construction industry.
The government says that this will not only be crucial in delivering its target of 1.5million homes over this parliament, but also create well-paid jobs across the country in the sector.
The funding includes £100million which will go towards creating 10 new Technical Excellence Colleges, while a further £165million will be used to help existing colleges offer more construction courses.
£100million will be provided to expand Skills Bootcamps within the construction sector which will be used to ensure that new entrants, returners or those looking to upskill will be able to do so.
Local Skills Improvement Plan (LSIP) areas will be granted an additional £20million to form partnerships between colleges and construction companies, boosting the number of teachers with construction experience in colleges who can share their expertise and train the next generation of workers.
The construction sector will also benefit from new foundation apprenticeships, supported by an additional £40million, which will launch in August 2025. This will aim to inspire more young people into the construction industry and allow them to specialise in advanced apprenticeships.
Employees will be given £2,000 for every foundation apprentice they take on and retain in the construction industry, while the training costs will be fully funded through the new Growth and Skills Levy.
The additional investment also includes £100million of government funding, alongside a £32million contribution from the Construction Industry Training Board (CITB), which will fund over 40,000 industry placements a year. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.
Chancellor of the exchequer, Rachel Reeves, said: “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.”
“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. We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”
“The sector is facing significant shortages, the latest Office for National Statistics figures show that there are over 35,000 job vacancies and employers report that over half of vacancies can’t be filled due to a lack of required skills – the highest rate of any sector. Demand is expected to increase further to deliver the homes and infrastructure that this country needs.”
“Funding and reforms announced today will pay for more training places, ensure a sustainable flow of skilled construction workers and help businesses invest more in training. It will encourage the men and women who have spent decades working on building sites, to pass on their skills to the next generation of construction workers.”
“Building the skilled workforce of the future is key to driving economic growth, the central mission of the government’s Plan for Change. These construction jobs are the type of secure, well-paid, in-demand jobs that will help put more money in working people’s pockets and fuel growth.”
Mark Reynolds, executive chair of Mace, co-chair of the Construction Skills Mission Board and co-chair of the Construction Leadership, said: “This is fantastic news and demonstrates that the government is committed to working with the construction industry to deliver 1.5 million homes by the end of this Parliament and its ambitious plans for infrastructure delivery. It’s a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with the government to drive change at pace.”
“Understandably, construction firms across the country are looking for certainty of the pipeline before they commit to investing in new jobs and skills – but this investment by the chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the government’s growth mission and match their ambition.”
Tim Balcon, CITB chief executive, said: “We are delighted with the support the government is giving the construction sector with increased investment. This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5 million new homes for people that desperately need them.”
“As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance for us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.”
Steven Boyes, deputy CEO at Barratt Redrow, said: “Construction faces a long-standing skills shortage at a time when we are challenging ourselves to build even more much-needed new homes across the country. I started out as a trainee on a Barratt Homes’ construction site 47 years ago, and so welcome this significant, long-term investment in skills, which will create real opportunities for people of all backgrounds to build a successful career in homebuilding.”
