Rachel Reeves unveils £600m to tackle construction skills shortages

The Chancellor has announced £600 million of funding to train tens of thousands more skilled construction workers over the next four years.

The funding aims to train up to 60,000 engineers, bricklayers, electricians and carpenters by 2029 to tackle skills shortages.

It will go towards creating more placements and Technical Excellence Colleges, launching new foundation apprenticeships and expanding skills bootcamps.

It is part of the Government’s drive to build 1.5 million homes by the end of this Parliament and to ramp up work on the UK’s infrastructure.

“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,” Chancellor Rachel Reeves said.

“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.”

There are more than 35,000 job vacancies in the construction sector.

Some £100 million of the funding will go to 10 new technical excellence colleges, while £165 million will help colleges deliver more construction courses.

Skills bootcamps will get £100 million to expand their services for new entrants to the industry, returners or those looking to upskill.

And £20 million will go to local skills improvement plan areas to form partnerships will colleges and construction companies to boost the number of teachers with construction experience in colleges.

A capital funding pot to support employers to deliver bespoke training will get £80 million.

And £40 million of funding to back new foundation apprenticeships launching in August will benefit construction and other sectors.

A further £100 million from the Government and £32 million from the Construction Industry Training Board (CITB) will be used for industry placements to get students “site ready” and address the “leaky pipeline” of learners who do not go into the sector.

This will fund more than 40,000 placements a year for those studying NVQs, BTECs, T-levels, and advanced apprenticeships.

A new construction skills mission board co-chaired by Government and Mark Reynolds, executive chair of construction consultancy Mace will develop and deliver a construction skills action plan.

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 large scale 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.”