The Mayor of London has announced an £88.6m investment to train thousands of construction workers, tackle skills shortages and support plans to build hundreds of thousands of new
homes across the capital.
The funding package, backed by the Department for Education, will create more than 20,000 construction training opportunities, provide industry placements and upgrade facilities at colleges across London.
Mayor Sadiq Khan said the investment would help prepare Londoners for careers in construction while addressing a shortage of skilled workers needed to deliver new housing and improve the energy efficiency of existing homes.
The announcement comes as City Hall works on its draft London Plan, which sets out ambitions to deliver up to 558,000 new homes by 2037.
However, the construction sector is facing major challenges, including rising costs, higher borrowing rates and a shortage of qualified workers. The difficulties have created some of the toughest conditions for housebuilding since the 2008 financial crisis.
London’s construction industry is particularly short of skilled tradespeople, including bricklayers, carpenters, plumbers and electricians. Demand is also increasing for workers with green skills, such as those involved in home retrofitting and heat pump installation.
The Construction Industry Training Board estimates that Greater London needs around 26,500 additional construction workers over the next five years to meet demand from housing, infrastructure and commercial projects.
Under the new package, up to £43m will be invested in further education colleges to improve training facilities and purchase new equipment. A further £2.5m fund will support the development of new training programmes designed with industry leaders.
The scheme will also bring more than 2,700 days of teaching from construction professionals into colleges through the Further Education Teacher Industry Exchange programme, helping ensure courses reflect the latest industry requirements.
Two colleges — New City College and South Bank Colleges — have been appointed as strategic partners to lead the programme. They will coordinate training providers and work with employers to improve technical education across the capital.
The Mayor is also launching three new virtual Pan-London Sector Hubs focused on the built environment, creative industries and life sciences, supported by an additional £3.2m investment from the Greater London Authority.
The hubs will connect businesses with colleges and training providers, helping employers influence courses and ensuring Londoners gain the skills needed in some of the capital’s fastest-growing industries.
The investment follows the launch of London’s Inclusive Talent Strategy, which aims to place employers at the centre of the skills system and better align training with the needs of the economy.
City Hall said the measures would help create a stronger pipeline of skilled workers, support housing delivery and provide Londoners with access to better-paid jobs in growing sectors.
Mayor of London, Sadiq Khan, said: "We can’t build the homes Londoners desperately need without the skilled workforce to deliver them. That's why I'm investing an unprecedented £88.6m to train London's next generation of construction workers, helping thousands of Londoners develop the skills they need to access good jobs while tackling critical skills shortages across the industry.
“This landmark investment will deliver more than 20,000 construction courses, alongside industry placements and major investment in our colleges, ensuring London has the skilled workforce needed to build more homes and make existing homes more energy efficient.
“By bringing employers and training providers together, we can give Londoners clearer routes into good careers while giving businesses the talent they need to grow – helping us to build a greener and more prosperous London for everyone.”
Anna Devlet, Chair of the Interim Built Environment Talent Board and Strategic Advisor on Social Value & Skills at The Crown Estate, said: “The investment announced today will unlock thousands of opportunities in our industry and ensure we have the talent we need to meet housing and infrastructure demand across the city.
“As chair of the interim Built Environment Talent Board I, along with other industry leaders, have worked closely with the GLA to shape this package of support. From bringing business into the classroom through the FE Teacher Industry Exchange, to industry placements for young people, the Construction Skills Package is developing the skilled workforce London needs.
“As the interim Board transitions to become a permanent Board, we look forward to continuing to champion this work strengthening the skills pipeline, creating stronger links between employers and providing opportunities for young people.”
Craig Hanlon-Smith, Principal at South Bank Colleges said: “This additional investment is good news for London’s further education sector and our learners. As a training provider, our partnerships with employers are central to the types of courses we develop and deliver. Training needs to keep pace with evolving construction standards and the changing skills needs across the built environment sector. Our learners need the latest theory and practice so they’re job-ready by the end of the course.
“As one of London’s Technical Excellence Colleges, leading on Clean Energy, the funding has allowed us to bring in expertise from industry. This gives our tutors the latest knowledge and skills on building physics and low carbon construction. This is an area where we see future growth in demand; we need to have the teaching workforce to deliver the training that employers need and which will support Londoners into good job opportunities.
“And it has given our learners real insight into the types of careers available in the sector and get on-site experience, developing the range of skills you need when in a job.”
Badmos Kuti, learner at London South Bank, said: “The Industry Placement I completed with HG Construction was amazing. Thank you to everyone involved, especially the Social Value team and the Head of Social Value.
“It showed me how what I’ve learned in college translates into the real working world. It gave me valuable insight into the construction industry and the opportunity to learn from experienced professionals, ask questions, and gain a better understanding of what it’s like to work in the sector.
“It has made me even more confident that I’ve chosen the right career in the built environment, and I can’t wait to start working professionally.
“I would also like to say a huge thank you to HG Construction for giving me another opportunity to complete further work experience in the trade I would like to start my apprenticeship in, which is electrical installation. I’m really grateful for the opportunity and excited to continue learning and developing my skills.”
Andy George, Director of Industry Attraction and Skills at the Home Builders Federation, said: “Today’s announcement is positive news for the home building industry’s future workforce. Colleges, learner placements and strong employer-education partnerships will be critical to scaling up housing output to meet the Mayor’s ambitions.
“Through the Home Building Skills Partnership, industry is already working closely with colleges and training providers to give young people practical, work-ready skills, including through our Partner a College programme and NHBC Training Hubs.
“However, these young people will need homes to build and move into, and London’s housing pipeline has dried up, with home building investment at alarmingly low levels. Today's commitment to growing the workforce is encouraging, and we look forward to working with the Mayor and central Government to remove the barriers making it harder to build and buy in the capital.”
John Dickie, Chief Executive of BusinessLDN, said: “Skills shortages are driving up the cost of building in London and it’s vital that we train up more people with the skills to build the homes and infrastructure that London needs. This investment from the Mayor will give London’s FE colleges the resources to provide this training and make it easier for employers to engage with the capital’s skills system, so that we can have effective, co-designed schemes.” Photo by Ministry of Housing, Communities & Local Government, Wikimedia commons.
