Rachel Reeves has announced a £600m investment in skills training for the construction industry.
The investment over the next four years will, according to the government, “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”.
Skills shortage
HM Treasury recognised the “significant” skills shortages across the sector, highlighting the latest ONS figures which showed that there were more than 35,000 job vacancies available but according to employers, over half of these could not be filled due to a lack of required skills.
Where will the £600m investment be spent?
£100m to fund ten new Technical Excellence Colleges will be included in the funding, as will £165m towards helping colleges deliver more construction courses.
£100m is expected to go towards expanding 'Skills Bootcamps' in the construction sector, ensuring that new entrants, returners or those looking to upskill within the industry will be able to do so. £20m has been allocated for all Local Skills Improvement Plan (LSIP) areas, helping to form partnerships between colleges and construction companies and boosting the number of teachers with construction experience in colleges.
There is also an additional £80m capital fund to support employers to deliver bespoke training based on their needs.
"At NHBC, we believe a thriving construction industry depends on a pipeline of well-trained, motivated people who are ready to step onto site from day one with confidence and competence," said Roger Morton, director of business change at NHBC, "That’s why we are investing £100 million in a national network of 12 new multi-skill training hubs across the UK. These will initially deliver high-quality trained apprenticeships in key trades including bricklaying, groundwork and site carpentry."
The Home Builders Federation highlighted that the skills shortage in home building had been a long-term issue, exacerbated by several factors.
However, HBF stated that the government’s broader construction announcement was “very positive” and called upon ministers to work alongside housebuilders to implement the industry sector plan “and create a blueprint of how we recruit enough key trades to deliver the new homes target”.
“While the replacement of the Apprenticeship Levy with the new Growth and Skills Levy is welcomed, the industry should be consulted on how the replacement is developed to ensure that is fit for purpose,” HBF stated.
Paul Rickard, Chief Executive, 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 the government to encourage an approach 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.”
