600 million investment for 60,000 more skilled construction workers announced

1 Announcement
2 Sector shortages
3 Indicative breakdown of funding
4 Supporting initiatives
5 Comments from government
6 Comments from skills and training bodies
7 ECA comments on Government’s construction skills announcement
8 CIOB welcomes investment in construction skills.
9 Related articles on Designing Buildings
10 External links

[edit] Announcement

On 23 March 2025, ahead of the Spring Statement due on 26 March, HM Treasury and Rachel Reeves announced a £600 million investment over the next four years to train up to 60,000 construction workers..

The funding, to support training engineers, brickies, sparkies, and chippies will help tackle skills shortages and inspire the next generation to join the construction sector. Reforms aim to get young people into well-paid, high-skilled jobs in construction by funding additional placements, establishing Technical Excellence Colleges, launching new foundation apprenticeships, and expanding Skills Bootcamps.

[edit] Sector shortages

The sector is facing significant shortages, with the latest Office for National Statistics figures showing over 35,000 job vacancies, with over half that can’t be filled due to lack of required skills, the highest of any sector. Meanwhile it is expected that demand will increase further in order to deliver the homes and infrastructure needed. The funding aims to ensure a sustainable flow of skilled construction workers, help businesses invest more in training and encourage experienced workers to pass on their skills to the next generation of construction workers.

The newly skilled workers will deliver well-paid jobs across the country in the construction sector and help build 1.5 million homes to transform communities by the end of this Parliament. Building the skilled workforce of the future is key to driving economic growth, the central mission of the government’s Plan for Change. These construction jobs are the type of secure, well-paid, in-demand jobs that will help put more money in working people’s pockets and fuel growth.

[edit] Indicative breakdown of funding

So far the indicative breakdown of funding is as follows:

£100 million of new investment will fund 10 new Technical Excellence Colleges.
£100 million of funding to expand Bootcamps in the construction sector, ensuring new entrants, returners, or those looking to upskill within the industry can.
£165m of the new funding to help colleges deliver more construction courses.
£20 million for All Local Skills Improvement Plan (LSIP) areas to benefit from and form partnerships between colleges and construction companies to boost the number of teachers with construction experience in colleges, sharing expertise.
£40 million for new foundation construction apprenticeships to be launched in August 2025. As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of fully funded training costs through the new Growth and Skills Levy.
£100 million of government funding, alongside a £32 million contribution from the Construction Industry Training Board (CITB), will fund over 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships. Tackling the ‘leaky pipeline’ of learners who don’t progress into the sector and helping get learners ‘site-ready’, with CITB to double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.
£80 million capital fund to support employers in delivering bespoke training based on their needs.

[edit] Supporting initiatives

The government will sponsor a new Construction Skills Mission Board, co-chaired by the government and Mark Reynolds, Executive Chair of Mace, empowered to develop and deliver a construction skills action plan and provide strategic leadership to the construction sector, ensuring employers are able to work collaboratively and secure the workforce needed to meet future demand.

In collaboration with the Department for Work and Pensions (DWP) through Job Centre Plus, the DfE campaign highlights the construction industry’s value for growth, celebrates employers who contribute significantly to workforce training, and emphasises the benefits of careers in construction.

The announcement follows a series of reforms announced during National Apprenticeship Week, including changes to English and maths requirements that will see up to 10,000 more apprentices qualify each year in key sectors and new shorter apprenticeships. Changes to endpoint assessments will also mean it is even easier for businesses and providers to support getting people into the workforce.

Last year the education secretary announced new homebuilding skills hubs, funded by industry, which will also speed up the training of construction workers crucial to supporting the government’s homebuilding drive. The government’s communications campaigns will continue to promote skills and their contribution to opportunity and growth for individuals and employers.

[edit] Comments from government

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. 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."

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."

[edit] Comments from skills and training bodies

Mark Reynolds, Executive Chair Mace, Co-Chair of the Construction Skills Mission Board and Co-Chair of the Construction Leadership Council said:

"This is fantastic news and demonstrates that Government is committed to working with the construction industry to deliver 1.5m homes by the end of this Parliament 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. Understandably, construction firms across the country are looking for certainty of pipeline before they commit to investing in new jobs and skills – but this investment by the Chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the Government’s growth mission and match their ambition."

Tim Balcon, CITB (Construction Industry Training Board) Chief Executive said:

"We are delighted with the support the Government is giving the construction sector with increased investment. This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5m new homes for people that desperately need them. As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future."

[edit] ECA comments on Government’s construction skills announcement

In response to the Government’s announced skills programme to deliver 1.5 million homes, Andrew Eldred, COO of the Electrical Contractors’ Association (ECA), issued the following remarks:

“We’re pleased to see the Government taking significant steps to address the construction skills crisis, which remains one of the biggest blockers to building homes, upgrading infrastructure and delivering net zero. Today’s announcement recognises the scale of the challenge and the vital role that electricians and the electrical sector will play in meeting it."

“Funding for new Technical Excellence Colleges and construction training is a positive step, but this must be matched by a sharper focus on quality and relevance. Too often, existing electrical training provision produces classroom-based learners without the practical experience or competence employers need. We must prioritise pathways that lead to becoming a qualified, competent electricians – via apprenticeship, NVQ or Experienced Worker Assessment."

“Government’s ambition to offer placements to all Level 2 and 3 learners is laudable, but risks being unworkable without a more targeted, locally brokered approach. SMEs simply don’t have the capacity to absorb tens of thousands of placements unless those learners are genuinely committed to a career in the sector."

"This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”

[edit] CIOB welcomes investment in construction skills.

CIOB responded to the UK Government's Spring Statement, made in Westminster on 26 March 2025, following the Treasury announcement on 23 Mar ch, 2025. Eddie Tuttle, Director of policy, external affairs and research at CIOB, said:

“We're pleased construction is finally being recognised as a key economic driver and welcome this substantial investment. Having continuously called for government to develop a long-term plan to improve the pipeline of people entering the construction sector, we are encouraged by the latest plans to address the ongoing skills shortage by increasing funding for educational and workplace training through an injection of £600m over the next four years.

"However, it will take several years for the thousands of workers the Government is planning to recruit to be trained to a competent standard and ready to work, so the plans are unlikely to have an immediate impact on the industry’s capacity to build the 1.5 million homes the Government is committed to. The impact of the increased funding will not come to fruition until this parliamentary period is coming to an end, so while we very much welcome the plans, we question if this will enable the Government to meet its ambitious housing targets."

“Our research into young people’s perceptions of construction careers, published in March, found two thirds (68%) of young people aged between 16 and 24 hold a positive view of construction careers and around a third (31%) would consider working in the construction sector. However, almost half (47%) said information about it was not included in the careers advice they received whilst in education. Therefore, vital consideration should be given to how construction career opportunities are promoted to young people if we are to get more of them taking up the training places the Government is planning to create. Construction is a career that has something for everyone. Without proper communication of the varied opportunities within the industry, additional funding towards construction careers will go to waste.

“We were pleased to learn of plans for the new Teacher Industry Exchange Schemeto encourage industry experts into further education roles to ensure their valuable skills and knowledge are passed on the next generation.High quality training experiences are vital if we are to tackle the large drop-out rates in construction, and thought must be given to ensuring jobs are available for those completing courses.

“Finally, we welcome the creation of the Construction Skills Mission Board and look forward to hearing more about how it will function. CIOB alone has access to 50,000 members with a variety of expertise in construction. Without the views of those who work for or run their own construction business, we risk the mission board failing to develop the targeted policy solutions needed to address the skills gap in both the short and long term. We urge the Government to set up clear communication channels between the mission board and professional bodies like CIOB.”