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Up
to 755,000 additional construction workers could
be needed by 2030 to deliver government ambitions on 1.5
million homes, infrastructure and wider demand across the
economy.
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£625mpackageis a welcome step
towards closing theskillsgap, using a mix of
tried-and-tested and innovative ideas to support up
to 60,000 more workers by 2029.
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However, theNAOwarnsthat employers
continue to be affected by economic conditions that
could put the success of the skills package, and wider
building commitments at risk.
The government's ambitions to build
1.5 million
homes, upgrade home energy standards, and
deliver a £725 billion long-term infrastructure pipeline will
depend on a significant expansion to the construction workforce -
and stronger employer involvement in training the next generation
of workers, according to a new report from the National
Audit Office (NAO) published today.
The watchdog examined the government's
progress in delivering its £625 million construction skills
package, announced in March 2025,which aimsto support up to
60,000 more construction workers by
2029.1The package combines
tried and tested initiatives, alongside newer
initiatives, including Skills Bootcamps, and
newfoundation apprenticeships, and construction
technical excellence colleges.
However, the package is not designed
to meet all future workforce needs, with government estimates
showing that between 201,000 and 755,000 extra
workers could be required by 2030, before accounting for those
who leave the sector for other jobs. This comes as
statistics show the construction sector had the highest rate of
hard-to-fill vacancies due to skills shortages 45% compared with
a 27% national average.2
Employerengagement is a critical
delivery risk for the construction package. The
government hopes that 42% of
the additional construction
workers will follow from further education
students completing industry placements.
Businesses make recruitment and
training decisions depending on the expected pipeline
of work, costs and market competition but
tough economic conditions are affecting
employers' confidence to invest and
take new employees and apprentices on
board. In2024,employer investment in training per
construction trainee was at its lowest level in 10 years.
Foundation apprenticeships are intended to help young people
move into entry-level construction jobs, butbyApril 2026 only 74
young people had started, against DWP's assumption of 1,000 in
2025-26.
The NAO concludes that the government's construction
skills package is a positive
step, and that
it now has in place
a clearer framework to track
delivery.
However, delivery is not guaranteed. To achieve its aspiration
of up to 60,000 workers and support its housing and
infrastructure commitments government will
need better
data, to
prioritise resources, and to
get employers'
buy in. Without this,
skills shortages could drive up costs and put major delivery
commitments at risk.
The NAO
nowrecommends:
-
Departments involved
inestimatingconstructionworkerdemand
including MHCLG, DESNZ, NISTA, DBT
and the Construction Industry Training Board -
work together to improve how they will estimate
future workforce needs to deliver government
ambitions
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Departments responsible
forskillsdelivery DWPand DfE
keep the construction skills package under close review, using
performance data to identify problems
early, and publish regular updates on
progress towards their 60,000 ambition.
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DWP and
DfE-should be
ready to consider adapting the
package where initiatives are not delivering
asexpected,including changing courseif initiatives need
to be modified,
or funding reallocated.
, head of the
NAO, said:
The
government is taking action to address shortage of
skilled construction workers as part of
its ambitious commitments
for housing, infrastructure and
energy efficiency. Success will depend on employers having
the confidence and capability to offer
placements, apprenticeships and
jobs.
ENDS
Notes to editors
Press notices and reports are
available from the date of publication on the NAO website. Hard
copies can be obtained by using the relevant links on our
website.
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1. 755,000 by 2030 covers:
government commitments on 1.5 million new homes and the
Infrastructure Pipeline; government-created demand related to
housing quality, building safety and cladding; and future
non-government demand.
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2. 2024 Nationwide. 'Core indicators' from 'Employer Skills Survey ',
Permanent data table - Explore education statistics -
GOV.UK. Employer Skills
Survey: Release home - Employer Skills Survey - Explore
education statistics - GOV.UK
