The UK government has announced a major investment of over £600 million to train the next generation of construction workers, aiming to build 1.5 million homes and boost local communities

across the country.

By 2029, up to 60,000 new workers – including engineers, bricklayers, electricians, and carpenters – will be trained to help tackle the current shortage of skilled workers in the construction industry. This initiative is part of the government’s wider Plan for Change, which focuses on growing the economy and creating well-paid, high-skill jobs.

Key elements of the plan include:

- 10 new Technical Excellence Colleges with £100 million in funding.

- £165 million to support more construction courses in colleges.

- £100 million to expand Skills Bootcamps for new entrants and those wanting to retrain.

- £40 million to introduce new foundation apprenticeships starting in August 2025.

- £100 million (plus £32 million from the Construction Industry Training Board) to fund over 40,000 industry placements each year.

- £80 million capital fund to help employers create custom training programs.

The new foundation apprenticeships will provide a pathway for young people into construction careers, with employers receiving £2,000 for each apprentice they take on. Training costs will also be covered by the new Growth and Skills Levy.

A new Construction Skills Mission Board, co-chaired by government officials and industry leader Mark Reynolds (Executive Chair of Mace), will guide this effort. The board will create a long-term action plan to ensure the UK has the skilled workers needed to meet future housing and infrastructure demands.

This announcement builds on recent apprenticeship reforms, including changes to English and maths requirements and more flexible assessment rules, designed to help more people qualify and enter the workforce.

Last year, new Construction Skills Hubs, funded by the industry, were also announced to fast-track training for future homebuilders.

The government is also working with Job Centre Plus and running national campaigns to highlight the benefits of careers in construction and celebrate employers investing in training.

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 largescale 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”.

Mark Reynolds, Executive Chair Mace, Co-Chair of the Construction Skills Mission Board and Co-Chair of the Construction Leadership 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”.

Steven Boyes, Deputy CEO at Barratt Redrow said: 

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

Leo Quinn, Balfour Beatty Group Chief Executive and Founder of The 5% Club said:

“We welcome this positive announcement today and the Government’s focus on skills in construction and infrastructure - sectors that are key to driving the UK’s growth. Balfour Beatty and others are investing heavily in skills, but gaps remain, and they’ll only grow as the demand for critical infrastructure - to support clean, secure energy and better connectivity - ramps up. 

As NISTA takes shape, we’re looking to it to take a holistic view of both skills and supply chain needs to ensure the industry is ready to deliver the infrastructure pipeline. We’re also keen to see the full details of the Growth and Skills Levy, which could make a real difference”.