Up to 60,000 more specialist Construction workers will be trained by 2029 to tackle Construction Skills shortages. £100 million of new investment to fund 10 new Technical Excellence Colleges and £165m of new funding to help colleges deliver more construction courses. Employers to receive £2000 for every Foundation Apprentice in Construction. 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

• Up to 60,000 more engineers, brickies, sparkies, and chippies to be trained by 2029, as Chancellor outlines how the Government will train more workers to tackle skills shortages and inspire the next generation into the construction sector.
• New training will help deliver 1.5 million homes which will transform communities and drive growth through the Plan for Change.
• Reforms will get young people into well paid, high skilled, jobs in the construction sector by funding additional placements, establishing Technical Excellence Colleges, launching new foundation apprenticeships, and expanding Skills Bootcamps.
• This injection of over £600 million over the next four years will also encourage experienced builders to help train and inspire the next generation.

Ahead of the Spring Statement (Wednesday 26 March ) the Chancellor has announced £600 million worth of investment to train up to 60,000 more skilled construction workers to help build 1.5 million homes to transform communities by the end of this Parliament. 

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.”

Over 35,000 Construction job vacancies and employers report that over half of vacancies can’t be filled due to a lack of required skills

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.

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.”

£100M for 10 new Technical Excellence Colleges and £165m of new funding to help colleges deliver more construction courses

The announcement which was made over the weekend, highlighted that £100 million of new investment to fund 10 new Technical Excellence Colleges and £165m 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 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 £20 million to form partnerships between colleges and construction companies, to boost the number of teachers with construction experience in colleges, sharing their vital expertise by training the next generation of workers.

Employers to receive £2000 for every Foundation Apprentice

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. This will inspire more young people into the construction industry and allow them to progress and specialise in advanced apprenticeships, giving them the tools they need for a sustained and rewarding career. 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.

40,000 industry placements each year for all Level 2 and Level 3 learners

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 the sector. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.

To ensure employers are able to work collaboratively to secure the workforce needed to meet future demand, 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.

The government’s communications campaigns continue to promote skills and their contribution to opportunity and growth for individuals and employers.

In collaboration with the Department for Work and Pensions (DWP) through Job Centre Plus, the DfE campaign highlights the construction industry’s value for growth, celebrating employers who contribute significantly to workforce training, and emphasising the benefits of careers in construction. 

The announcement follows a series of reforms announced during National Apprenticeship Week, including changes to English and maths requirements that will see up to 10,000 more apprentices qualify each year in key sectors, and new shorter apprenticeships. Changes to end point assessments will also mean it is even easier for businesses and providers to support getting people into the workforce.

Last year the Education Secretary announced new Construction Skills Hubs, funded by industry, which will also speed up the training of construction workers crucial to supporting the government’s homebuilding drive.

Sector Reaction

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, CITB (Construction Industry Training Board) 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 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.” 

Responding to the announcement of a £600million funding package to boost construction training, Association of Colleges Chief Executive David Hughes said:

“A package worth £600m over four years to support 60,000 people into construction jobs, at a time where public spending is under significant pressure, is great news. It shows the Chancellor recognises that spending on skills is an investment, not a cost. It reflects the big increase in construction sector jobs which will be needed to build the homes, infrastructure and clean energy system the government is aiming for. And it shows faith in our colleges across the country, who deliver the majority of training places in construction. They will be able to scale up their offer with this package.

“This funding will allow colleges to grow their offer to young people and adults across the country, equipping thousands of people with the skills they need to get good jobs. While the funding is a significant and vital part of this announcement, so is the commitment from the construction employers. Their engagement to open up industry placements, offer more apprenticeships, support college teacher and curriculum development and to make the sector attractive to a more diverse workforce, particularly to women, is a significant enabler in attracting people into the industry. Colleges will welcome the strong employer commitment to working in partnership as much as they do the additional funding. ”

 Anna Dawe, Principal of Wigan and Leigh College, said:

“Our college boasts a strong and comprehensive offer across professional construction and construction trades, but currently there are real barriers to us and our employer partners being able to do more.

“Investment to reduce those barriers and enable us to offer additional pathways into such an important sector is very welcome. We see the high demand amongst young people wanting to enter the construction sector, adults looking to upskill and employers wishing to secure the right skills so a targeted strategy such as this has the potential to reduce the number of young people not in employment, education or training (NEETs), remove barriers to training and contribute to productivity in our locality.”

Jerry White, Principal and Chief Executive of City College Norwich, Paston College and Easton College: “We have just opened a new construction skills hub and this will enable us to fill it with the staff required to teach the students and apprentices of the future. Any increase in funding will help us pay staff at the industry standard rate, meaning we can truly recruit the best people for these roles. The Department for Education’s workforce survey last year showed one in 10 teaching roles in construction in colleges was vacant – this funding will help us address that.”

“Norfolk, like other parts of the country, has large construction projects including houses, roads and clean power infrastructure planned. Anything that allows us to create more workforce for these projects will help.”

Andy Berry, Principal and Chief Executive, Bridgwater & Taunton College, said:

“We have a number of significant green energy infrastructure projects in the southwest, and this vital investment into skills will unlock our ability to respond to employers’ needs. Supporting us to employ industry experts and deliver the skilled workforce into the construction sector and in so doing address the significant skills shortages that are holding back growth.  This will make a big difference and help us support young people and adults from across our community into high paid and skilled employment, while also delivering economic growth and unlocking jobs in the clean energy sector.”

Simon Ashworth, Director of Policy and Deputy Chief Executive at AELP, said:

“AELP welcomes the government’s investment in construction skills, and its recognition of the role skills will play in achieving its ambitions. We are also pleased to see that Foundation Apprenticeships are being supported through employer incentive payments, which should encourage employers to bring more young people into the labour market and begin their journey of training.

The announcement also builds on the concept of Technical Excellence Colleges, which should prioritise ‘excellence’ rather than any provider type or method of delivery.

The government now needs to catalyse its primary mission of economic growth by ending the £800m top slice of the levy and allow employers in all sectors to realise their growth plans.”

Graham Hasting-Evans, Chief Executive NOCN and President of BACH, said:

“The increased investment in construction skills and training is to be welcomed and we would hope will contribute to the reductions in NEETs and people not economically active. In addition to building new homes we need to retrofit our existing housing stock and invest in improvements in our infrastructure to ensure we can match the Government’s ambitions on cleaner energy. Critical first step is to address the issues of lack of training capacity and tutor pay.”

Andrew Eldred, Chief Operating Officer, ECA, said:

“We’re pleased to see the Government taking significant steps to address the construction skills crisis, which remains one of the biggest blockers to building homes, upgrading infrastructure and delivering net zero. Today’s announcement recognises the scale of the challenge and the vital role that electricians and the electrical sector will play in meeting it.

“Funding for new Technical Excellence Colleges and construction training is a positive step, but this must be matched by a sharper focus on quality and relevance. Too often, existing electrical training provision produces classroom-based learners without the practical experience or competence employers need. We must prioritise pathways that lead to becoming a qualified, competent electricians – via apprenticeship, NVQ or Experienced Worker Assessment.

“Government’s ambition to offer placements to all Level 2 and 3 learners is laudable, but risks being unworkable without a more targeted, locally brokered approach. SMEs simply don’t have the capacity to absorb tens of thousands of placements unless those learners are genuinely committed to a career in the sector.

“This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”

Nikki Davis, CEO & Principal of Leeds College of Building:

“We welcome the announcement made by the Chancellor that £600 million worth of investment is being made available to train up to 60,000 more skilled construction workers. Without this, government priorities such as house building, retrofit, or mass transit would likely be stalled.

“The news, which came just ahead of the Spring Statement (Wednesday, 26^th March), commits to delivering well-paid jobs across the country in the construction sector. These roles are urgently needed to build a target of 1.5 million homes by the end of this Parliament and are part of a skilled workforce that will help drive economic growth. 

“Construction employs 2.15 million people, but more than a third are now over 50 years old. The latest Office for National Statistics figures show that there are over 35,000 job vacancies in the industry, with many due to a lack of required skills – the highest rate of any sector. Demand is only expected to increase further.

“FE colleges, such as Leeds College of Building, are instrumental in meeting these training demands, and we are ready to meet the challenge. Although we are doing much already with limited resources, we urgently need this funding to tackle critical shortages and ensure a skills bottleneck is averted.

“After years of campaigning on this issue, we are delighted that the skills crisis in construction and the built environment is being taken seriously, and I look forward to reading the details of the plans.”

While the news was welcomed by Lee Parkinson, chief executive at Efficiency North, the holding group for flexi-job apprenticeship service EN:Able Futures, he said more needs to be done.

“We find ourselves at yet another crossroads in construction at the moment, where, even with the highly-encouraging announcements, we must remain grounded,” said Lee. “This long-awaited backing for a new skills mission is a step forward but we can’t overlook the fact that the industry does require an additional 50,000 workers each year just to meet existing demand.

“There certainly seems to be some mobilisation across the sector, but the key now is ensuring there’s a comprehensive and collaborative effort to fully embrace and capitalise on this investment.

“With apprenticeships being one of the biggest drivers of social value generation within construction, there’s a real opportunity for clients to serve the workforce of tomorrow and drive the creation of real, project-initiated, and future-proofed apprenticeships.”

Lee said adapting to the new Procurement Act was bringing the construction sector fresh layers of complexity.

He added: “Equally, this presents an opportunity to ensure apprenticeships are not only compliant with the evolving regulatory landscape but tailored to meet these new norms. This calls for an effectual approach to procurement and on-going contract management to ensure that the delivery and completion of apprenticeships become a direct and measurable outcome of their capital investment.

“In doing so, employers can not only achieve their own ambitions but also help replenish the nation’s workforce, which has become increasingly depleted over the years. And with what we can see as the growing enthusiasm among younger generations to join our industry, now is the time to pave the way for a thriving, sustainable future in construction, securing long-term career development.”