A new report from the National Audit Office says that stronger employer involvement in enhancing construction skills will be critical for the next generation of workers
The NAO examined the government’s progress in delivering its £625m construction skills package, announced in March 2025, which aims to support up to 60,000 more construction workers by 2029.
However, it doesn’t do enough to support the government’s ambitions to build 1.5 million homes, upgrade home energy standards, and deliver a £725bn long-term infrastructure pipeline.
Construction skills shortages make it one of the hardest sectors to hire for
The construction skills package is not designed to meet all future workforce needs, with government estimates showing that between 201,000 and 755,000 extra workers could be required by 2030, before accounting for those who leave the sector for other jobs.
This comes as statistics show that the construction sector had the highest rate of hard-to-fill vacancies due to skills shortages – 45% compared with a national average of 27%.
Employer investment in trainees is decreasing year by year
In 2024, employer investment in training per construction trainee was at its lowest level in 10 years.
Foundation apprenticeships are intended to help young people move into entry-level construction jobs, but by April 2026 only 74 young people had started, against DWP’s assumption of 1,000 in 2025-26.
Employers must get more involved in attracting workers to the sector
Employer engagement is a critical delivery risk for the construction skills package, with the government hoping that 42% of the additional construction workers will come from further education students completing industry placements.
Businesses make recruitment and training decisions based on the expected pipeline of work, costs, and market competition – but tough economic conditions are affecting employers’ confidence to invest and to take on new employees and apprentices.
Tracking delivery of the construction skills package
The NAO concludes that the government’s construction skills package is a positive step and that it now has in place a clearer framework to track delivery.
It now recommends:
- Departments involved in estimating construction worker demand — including MHCLG, DESNZ, NISTA, DBT and the Construction Industry Training Board – work together to improve how they will estimate future workforce needs to deliver government ambitions
- Departments responsible for skills delivery keep the construction skills package under close review, using performance data to identify problems early, and publish regular updates on progress towards their 60,000 ambition.
- DWP and DfE should be ready to consider adapting the package where initiatives are not delivering as expected, including changing course if initiatives need to be modified or funding reallocated.
Gareth Davies, head of the NAO, concluded: “The government is taking action to address the shortage of skilled construction workers as part of its ambitious commitments for housing, infrastructure and energy efficiency.
“Success will depend on employers having the confidence and capability to offer placements, apprenticeships and jobs.”
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