The Government will only meet its clean energy 2030 or 2050
decarbonised building targets if there is significant new
intervention in the UK workforce, says the Commons Energy
Security and Net Zero Committee in a report today. It says
targeting consumer demand is necessary but not sufficient, and
public funding to address the supply of skills directly is needed
now.
The Committee calls for ‘local skilled labour' conditions in
Contracts for Difference, an expanded skills passport scheme, a
leading role for local authorities, and greater clarity for
industry on levies, EPC ratings and the Warm Homes Plan.
The UK needs an estimated 250,000 additional workers just to meet
new housing targets, and many more for retrofit. After shocking
failures in previous Government-backed retrofit and insulation
schemes, the Committee calls for a new, nationally recognised,
industry-backed construction and retrofit skills programme.
The energy transition offers substantial opportunity. The Climate
Change Committee estimates net employment gains from the energy
transition of between 135,000 and 725,000 jobs in the next four
years . But the vast majority of these workers will have to train
or reskill. The UK may need to import some specific skilled
workers from overseas, at least in the short term, to meet its
targets.
With up to 70% of those embarking on construction-related FE
qualifications not completing or not entering the sector, the
Committee says Government should expand and formalise
'try-before-you-buy' training opportunities. SMEs, the backbone
of the construction and retrofit supply chain, will need support
in taking on inexperienced trainees.
MP, Chair of the Committee,
said: “It is essential that we build the workforce for
the energy transition so that the Government can hit its clean
energy targets and, importantly, ensure that the UK makes the
most of the growth opportunity of the century.
“The Committee has found that market forces alone cannot overcome
the skills gap. We need policy certainty for the long-term,
locally directed investment in training, and policies that make
clean energy careers attractive and accessible.
“For British workers this isn't about hitting deadlines; it's
about securing good jobs, driving innovation, and ensuring
Britain leads in the global race for clean energy.”
The Committee calls on Government to:
- Put commitments to transition the existing local skilled
labour supply into Contracts for Difference, leveraging UK
manufacturing content requirements where possible.
- By the end of 2026, set out the options for conditionality
that can leverage more skilled immigration in the short-term and
crucially boost support for home-grown talent longer-term.
- Empower devolved government across the UK to lead on
approaches tailored to local and regional strengths or weaknesses
– and facilitate a greater role for local authorities to
accelerate the roll-out of retrofit.
- Give the Office for Clean Energy Jobs and Skills England the
authority and resources to ensure the necessary consistency that
will make skills portable across the country, in both the clean
energy and the retrofit workforces.
- Accelerate the adoption of clean energy and retrofit skills
policies in the Spending Review, with a ten-year horizon for
initiatives and funding which is revised and extended every five
years. -Identify how new technologies can bring increases in
productivity to help meet the scale of labour demand identified
in this inquiry.
- Launch new initiatives to promote clean energy and retrofit
careers among under-represented groups and those outside the
existing workforce.
- Clarify its stance on how environmental levies will be paid
for in future and what role they will play in electricity and gas
bills, after welcome moves on the costs in electricity bills in
the Budget.
- Clarify its position on revisions to the EPC regime and the
role of hydrogen in heating.
- Promptly bring forward the Warm Homes Plan, setting out its
estimate of workforce needs and how those needs will be met.
