Chancellor Rachel Reeves has reiterated the government’s commitment to addressing the ongoing skills shortages across the construction industry.
It comes after many experts warned that Labour’s plans to build 1.5 million new homes within this current parliament would not be achievable given the significant gaps in the sector’s workforce.
However, as part of March’s Spring Statement, the Chancellor announced that the government would commit to £600m worth of investment to train up to 60,000 more skilled construction workers.
Speaking about the investment, 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.”
Skills shortages continue for construction
According to the Office for National Statistics’ (ONS) latest findings, there are over 35,000 unfilled job vacancies across the construction industry. Employers say that over half of these vacancies can’t be filled due to a lack of required skills, the highest rate of any sector.
This echoes recent research carried out by Sky News, which found that there are only 29 construction workers per 1,000 people in the UK, the lowest on record.
Given that the government seemingly has no plans to divert from its lofty homebuilding targets, this demand for new skilled workers is expected to surge even further.
A positive but cautious step forward?
The news of investment has been largely welcomed by the construction industry, though concerns remain over whether the plans will realistically be enough to meet that 1.5 million home target in the next five years.
As well as including £100m to fund 10 new Technical Excellence Colleges, a further £100 million, alongside a £32 million contribution from the Construction Industry Training Board (CITB) will develop over 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships.
An additional £80m will be set aside to support employers in delivering bespoke training based on their specific needs.
The government has also confirmed it would sponsor a new Construction Skills Mission Board, which will spearhead the development and delivery of a construction skills action plan and provide strategic leadership for the sector.
Despite these signs of progress on what is a major long-standing issue for the construction industry, large portions of this funding have been assigned to longer-term solutions, like developing new colleges, leaving major gaps in the workforce in the immediate months and years.
This could place an onus on alternative training routes, such as private providers, who are in a position to train new talent up to industry-required standards within a much shorter time frame.