The government has announced plans to invest more than £600m to train up to 60,000 additional UK construction workers.
The government said the investment would deliver “well paid jobs across the country in the construction sector and help build 1.5 million homes to transform communities by the end of this Parliament”.
As part of the government’s proposed investment plans, £100m has been allocated to fund 10 new technical excellence colleges and £165m of new funding has been allocated to help colleges deliver more construction courses.
Skills Bootcamps in the construction sector will also be expanded, with £100m of funding to ensure new entrants, returners, or those looking to upskill within the industry will be able to do so. All Local Skills Improvement Plan (LSIP) areas will benefit from £20m to form partnerships between colleges and construction companies, and construction will also be one of the key sectors that will benefit from new foundation apprenticeships backed by an additional £40m, which will launch in August 2025.
A further £100m of government funding, alongside a £32m contribution from the Construction Industry Training Board (CITB) will fund more than 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships. The CITB will also double the size of its New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging and retaining apprentices.
An additional £80m capital fund will support employers to deliver bespoke training based on their needs and the government will sponsor a new Construction Skills Mission Board, co-chaired by government and by Mark Reynolds, executive chair of Mace. The board will be empowered to develop and deliver a construction skills action plan and provide strategic leadership to the construction sector.
Chancellor 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.”
Education Secretary Bridget Phillipson added: “Skills are crucial to this government’s mission to grow the economy under our Plan for Change, and nowhere is that clearer than in the construction industry. We are being held back by the large scale skills shortages in the construction sector which is a major barrier to the delivery of the growth mission. These measures will break down barriers to opportunity for thousands of young people, helping them to thrive in – and build – their local communities.”
Mark Reynolds, executive chair Mace, co-chair of the Construction Skills Mission Board and co-chair of the Construction Leadership, said: “This is fantastic news and demonstrates that government is committed to working with the construction industry to deliver 1.5m 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 government to drive change at pace.
“Understandably, construction firms across the country are looking for certainty of 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, chief executive of the CITB, added: “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 1.5m 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 to 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 of 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.”
Leo Quinn, Balfour Beatty group chief executive and founder of The 5% Club, said: “We welcome this positive announcement today and the government’s focus on skills in construction and infrastructure – sectors that are key to driving the UK’s growth. Balfour Beatty and others are investing heavily in skills, but gaps remain, and they’ll only grow as the demand for critical infrastructure – to support clean, secure energy and better connectivity – ramps up.
“As NISTA takes shape, we’re looking to it to take a holistic view of both skills and supply chain needs to ensure the industry is ready to deliver the infrastructure pipeline. We’re also keen to see the full details of the Growth and Skills Levy, which could make a real difference.”
Melanie Leech, chief executive of the British Property Federation, added: “The government’s bold 1.5 million homes target requires every part of the industry to be firing on all cylinders, and significant investment in construction skills is a core part of this. The package announced today is welcome not only in addressing skills shortages holding back development today, but in retaining experience in the sector and inspiring young people to embark on a career in construction in the future. Great jobs that pay well are available across the industry, and this partnership between the sector and government is an important step in delivering the workforce of tomorrow.”
Paul Rickard, chief executive of Pocket Living, said: “If the government is to succeed in delivering its ambitious target of 1.5 million new homes by the end of this parliament, then planning reform is clearly not enough. This investment to train up to 60,000 more skilled construction workers is certainly a welcome move and will help to address the skills shortage currently blighting the industry.
“However, the fact remains that if developers do not develop, then those additional skills will not be fully utilised. That is why the most radical action is needed now, and why we are working with government to encourage an approach towards that reflects the principles of proportionality and flexibility when trying to reverse the decline of the SME housebuilding sector, which has a crucial role in play in building new homes.”
