£600 million investment to address national construction sector skills shortages

Ahead of her upcoming Spring Statement, Chancellor Rachel Reeves has announced £600 million investment to boost training and tackle skills shortages in the construction industry.

Funding will enable training of up to 60,000 skills construction workers by 2029, including joiners, bricklayers, electricians and engineers. The commitment to training is part of efforts to meet a target of building 1.5 million new homes across the country by the end of this Parliament.

The construction industry currently faces the most significant skills shortages of any sector of the economy: 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 situation is set to worsen as reforms to planning processes aimed at accelerating delivery of new developments and infrastructure increases demand on the sector.

Funding and reforms announced will pay for more training places and help businesses invest more in training. The announcement will provide £100 million of new investment to fund 10 new Technical Excellence Colleges and £165 million of new funding to help colleges deliver more construction courses.

Skills Bootcamps in the construction sector will also be expanded, with £100 million of funding to ensure ew entrants, returners, or those looking to upskill within the industry will be able to do so.

Construction will also be one of the key sectors that will benefit from new foundation apprenticeships backed by an additional £40 million, which will be launching in August 2025. As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of fully funding the training costs through the new Growth and Skills Levy.

A further £100 million of government funding, alongside a £32 million contribution from the Construction Industry Training Board (CITB) will fund over 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships. This will help get learners ‘site-ready’ and address the ‘leaky pipeline’ of learners who don’t progress into work in the 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 said:

“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 largescale 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.“

Industry leaders have welcomed the investment to address skills shortages in the construction sector. Steven Boyes, Deputy CEO at housebuilder, 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.“