£600 Million Investment to Train 60,000 Skilled Construction Workers Ahead of Spring Statement

In a significant boost to the construction industry, the Chancellor has announced a £600 million investment to train up to 60,000 skilled workers. This initiative will help meet the growing demand for construction professionals while supporting the government’s ambitious target of building 1.5 million new homes by the end of this Parliament.

Chancellor Rachel Reeves emphasized the critical role of skilled workers in driving economic growth:

“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. 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.”

Addressing Skills Shortages in Construction

The construction sector has long faced significant labour shortages. According to the Office for National Statistics, there are currently over 35,000 job vacancies, with more than half remaining unfilled due to a lack of skilled workers—the highest rate of any sector. As demand continues to grow, new funding and training initiatives will ensure a steady pipeline of skilled workers to meet the needs of the industry.

Education Secretary Bridget Phillipson highlighted the importance of tackling the skills gap:

“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. These measures will break down barriers to opportunity for thousands of young people, helping them to thrive in—and build—their local communities.”

Major Investments in Training and Apprenticeships

The government’s investment includes:

• £100 million for 10 new Technical Excellence Colleges to expand training opportunities.

• £165 million for colleges to deliver more construction-related courses.

• £100 million to expand Skills Bootcamps for new entrants and upskilling existing workers.

• £20 million to support partnerships between colleges and construction companies, ensuring experienced professionals pass on their skills to the next generation.

• £40 million for new foundation apprenticeships, launching in August 2025. Employers will receive £2,000 per foundation apprentice they take on, in addition to fully funded training costs through the new Growth and Skills Levy.

• £132 million for industry placements, co-funded by the Construction Industry Training Board (CITB), supporting over 40,000 learners each year across NVQs, BTECs, T-Levels, and advanced apprenticeships.

Supporting Employers and Strengthening the Workforce

To help employers train workers to meet future demand, an £80 million capital fund will support industry-led, bespoke training programs. Additionally, the government will establish a Construction Skills Mission Board, co-chaired by Mark Reynolds, Executive Chair of Mace, to provide strategic leadership and drive workforce development in collaboration with industry leaders.

Mark Reynolds welcomed the announcement, stating:

“This is fantastic news and demonstrates that Government is committed to working with the construction industry to deliver 1.5 million homes and its ambitious plans for infrastructure delivery. It’s a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with Government to drive change at pace.”

Industry Leaders Respond to the Investment

Tim Balcon, Chief Executive of CITB, emphasized the urgency of the investment:

“We are delighted with the support the Government is giving the construction sector. This package will cut straight to the heart of the construction industry’s challenge of building 1.5 million new homes. As an industry, we now need to grasp this opportunity and play our part in delivering it. This is a once-in-a-generation chance to recruit and train our workforce.”

Steven Boyes, Deputy CEO at Barratt Redrow, underscored the impact of skills training on career development:

“Construction faces a long-standing skills shortage at a time when we need to build even more much-needed new homes. I started as a trainee on a Barratt Homes construction site 47 years ago, and I welcome this long-term investment in skills, which will create real opportunities for people of all backgrounds to build a successful career in homebuilding.”

Balfour Beatty Group Chief Executive Leo Quinn also praised the initiative:

“We welcome the Government’s focus on skills in construction and infrastructure—sectors that are key to driving the UK’s growth. The Growth and Skills Levy could make a real difference, and as NISTA takes shape, we need a holistic view of both skills and supply chain needs to ensure the industry is ready to deliver the infrastructure pipeline.”

A Long-Term Commitment to Growth

This investment builds on previous government reforms, including changes announced during National Apprenticeship Week that will allow up to 10,000 more apprentices to qualify each year in key sectors. The expansion of Construction Skills Hubs, funded by industry, will further accelerate the training of workers needed for the government’s homebuilding and infrastructure goals.

With this commitment to skills development, the UK is taking a crucial step toward securing a highly trained construction workforce, ensuring economic growth, and meeting the nation’s housing and infrastructure demands.