Construction Skills Shortage: The UK government has announced a major £600 million investment package aimed at addressing the chronic shortage of skilled workers in the construction industry, where over 35,000 vacancies currently remain unfilled.
Chancellor Rachel Reeves outlined the package, which includes funding for ten new Technical Excellence Colleges (£100 million), an expansion of skills bootcamps (£100 million), and a boost to construction training courses in colleges (£165 million). A further £20 million will go to all Local Skills Improvement Plan (LSIP) areas to strengthen ties between colleges and construction businesses.
One of the key new initiatives is the launch of foundation construction apprenticeships in August 2025. Employers will receive £2,000 for every foundation apprentice they take on and retain in the industry, part of the government’s broader strategy to develop a skilled construction workforce capable of supporting infrastructure and housing ambitions.
The reforms will be overseen by the newly established Construction Skills Mission Board, co-chaired by Mark Reynolds, Executive Chair of Mace. Reynolds praised the plan, saying it’s “a hugely significant funding package” and a sign the government is committed to collaborating with the industry.
“There is now no excuse – industry must embrace the Government’s growth mission and match their ambition.”
Nikki Davis, CEO of Leeds College of Building, also welcomed the investment, noting that a third of construction workers are now over 50 and that the training capacity needs a rapid boost:
“We urgently need this funding to tackle critical shortages and ensure a skills bottleneck is averted.”
However, some in the industry have raised concerns about the practical impact of the new measures.
Sonia Murton, Managing Director of Westbury FM, shared a mixed response to the announcement:
“I’m a huge supporter of apprentices, we have seven at Westbury FM right now, but the maths just doesn’t add up. The £2,000 grant runs out in 10 weeks, and after that, we are left juggling rising costs.
If the Government genuinely wants to boost apprenticeships and motivate employers, they need to go further: offer tax breaks or scrap employer National Insurance Contributions on apprentice wages entirely. That would make a real, immediate impact.
Apprentices need to be seen as the future. Every employer and business leader should be thinking about growing their own talent, but without real incentives from the government, many will simply look for easier, cheaper alternatives. I worry well see more young people drawn into the black market — paid in cash, with no structure, no training, and no future.
That’s not just bad for them it’s bad for business and bad for the country.”
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The original article can be found on TWinFM.
