Reeves reveals Labour plan to coach 60,000 building employees: Is it sufficient to construct 1.5million houses?
- One expert says more than 225,000 new workers are needed
Labour has said it will train 60,000 new construction workers, as part of its mission to build 1.5million homes by the end of the current parliament in 2029.
The government said it wanted to ‘inspire the next generation of British engineers, brickies and chippies’ in a bid to ‘get Britain building’ and increase growth.
In the Spring Statement, Rachel Reeves confirmed plans for a £625million package aimed at ramping up the number of people across Britain who can build homes, and getting younger people into work.
On Wednesday, the Office for Budget Responsibility said it expects Labour’s loosening of planning rules to increase housebuilding levels to a 40-year high.
But concerns remain about whether 60,000 trainees is enough, and whether construction companies will be keen to hire them given the minimum wage rise and increases in employers’ National Insurance contributions in April.
This is Money outlines what the government has proposed, examines the extent of the skills shortage across the construction sector and speaks to experts about whether the training plan goes far enough.
Get building: Labour has announced plans to train up 60,000 new construction workers
What are Labour’s construction plans?
Aside from announcing plans for 60,000 new construction trainees on Tuesday, deputy prime minister Angela Rayner also said the government would provide £2billion of investment to build 18,000 new social and ‘affordable’ homes.
The government said ‘thousands’ of the homes would start construction by March 2027 and would complete by the end of this parliament.
Rayner added: ‘Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of homeownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.’
Findings from the Office for Budget Responsibility suggest that the government is on track to oversee the construction of 1.3million homes by the end of parliament, which is 200,000 less than Labour’s target.
How bad is the construction sector’s skills shortage?
According to research by the Construction Sector Training Board, the skills shortage in the sector is expected to reach around 251,000 by the end of 2028.
This is due to older workers retiring, and fewer young people wanting to enter the trades.
Speaking to This is Money, Rico Wojtulewicz, head of policy and market insight at the National Federation of Builders, said: ‘The UK is short of carpenters, bricklayers, steel workers, site managers, engineers and electricians, to name a few.
‘Yet even if you train new workers, which takes two to three years, apprentices will need two years of job experience to meet the quality levels that industry expects.’
The government plans to train up 60,000 new construction workers over a four-year period by funding placements, establishing technical excellence colleges, launching new foundation apprenticeships and expanding skills bootcamps.
Doubts: Clive Holland, of Fix Radio, is not convinced 60,000 new construction workers will be enough
Is 60,000 new trainees enough?
Labour’s plan to train up 60,000 construction workers has been broadly welcomed, but concerns remain about whether the numbers will be adequate and provide long-term change and growth in the sector.
Significant concerns also remain about higher costs faced by businesses in the construction sector amid changes to employer national insurance contributions and the national living wage from April.
Some businesses are not convinced they are getting a good deal or enough incentives to ramp up hiring and boost production.
Conor Leyden, chief executive of contractor the LK Group, said: ‘The construction industry welcomes the announcement that £600million has been pledged to train 60,000 new workers.
‘However, it’s disappointing to see that Reeves has not offered incentives for businesses that are working tirelessly to tackle the ongoing skills shortage.’
He added: ‘It’s no secret the talent vacuum is worsening, while outputs are dropping and this statement a missed opportunity from the government to support those who will be training these new workers.
‘It’s the businesses who provide apprenticeships and traineeships, who will ultimately drive more young people into the sector.
‘SMEs are already dealing with the ramifications of national insurance hikes and increased interest rates and, for many, offering on-the-job training is getting harder.
‘Without access to skilled workers, the industry will not be able to deliver the Government’s ambitious housebuilding targets.’
Speaking to This is Money, Clive Holland, a broadcaster on Fix Radio, said: ‘The government’s plan to train 60,000 new construction workers is a step in the right direction, but it doesn’t come close to solving Britain’s skills crisis.’
He added: ‘We need at least 225,000 extra workers by 2027 just to meet current demand – 60,000 barely makes a dent.’
Holland thinks the government needs to double down further on its commitment to the construction sector.
He said: ‘If the government is serious about hitting its 1.5million homes target, it needs to stop treating construction as an afterthought.
‘That means real investment in apprenticeships, better incentives for young people to join the trades, and a strategy to keep skilled workers in the industry.
‘The workforce isn’t just shrinking – it’s ageing, and unless we make construction an attractive career, the crisis will deepen.’
Andy Simms, a construction consultant at MyBuilder.com, said: ‘The new announcement is a promising step in the right direction, but more needs to be done to encourage young people into the trades in order to meet building goals in this country.
‘Schools and colleges need to make more young people aware of the options available to them within the construction industry.’
Speaking to This is Money, Wojtulewicz, of the NFB, added: ‘We need 250,000 extra construction workers by 2028 to meet demand and so 60,000 new workers is not enough.
‘Data also suggests that only one in four end up in the industry after they qualify.’
He added: ‘We can only deliver those apprentices if we get a growth in small and medium-sized construction companies, because SMEs train 73 per cent of construction apprentices and make up 90 per cent of training capacity.
‘Sadly, because Labour planning reforms have not focused on SME housebuilders, those sized businesses which typically delivering up to 150 homes a year, cannot afford to take on apprentices or grow their workforce and worse still, some are now quitting the industry.’
