UK government unveils £600m investment to tackle construction skills shortage

The sector is experiencing significant shortages. According to the latest figures from the Office for National Statistics, there are over 35,000 job vacancies, with employers indicating that more than half of these positions remain unfilled due to a lack of required skills.

Demand for skilled workers is expected to increase further as the UK government work to deliver 1.5 million homes across the country as well as the required infrastructure.

The investment will be allocated to the following:

• £100 million: To fund 10 new Technical Excellence Colleges
• £165 million: For colleges to deliver more construction courses
• £100 million: To expand Skills Bootcamps in the construction sector for new entrants, returners, or those upskilling
• £20 million: Allocated to Local Skills Improvement Plan (LSIP) areas to form partnerships between colleges and construction companies, boosting the number of experienced construction teachers
• £40 million: To back new foundation apprenticeships in construction from August 2025. Employers will receive £2,000 per apprentice, in addition to full funding for training costs through the Growth and Skills Levy
• £100 million: For industry placements supporting over 40,000 learners annually at Level 2 and Level 3, including NVQs, BTECs, T-levels, and advanced apprenticeships. This includes an additional £32 million contribution from the Construction Industry Training Board (CITB) to support these placements
• Additional £80 million: For a capital fund to help employers deliver bespoke training tailored to their needs

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.

“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.”