July 13, 2026
Employer confidence is critical to construction skills package success, NAO says

Employer confidence is critical to construction skills package success, NAO says

The government’s ambitions to build 1.5 million homes, upgrade home energy standards, and deliver a £725 billion long-term infrastructure pipeline will depend on a significant expansion to the construction workforce – and stronger employer involvement in training the next generation of workers, according to a new report from the National Audit Office (NAO) published today.

Read More »
Latest Issue
Issue 342 : Jul 2026

July 13, 2026

Employer confidence is critical to construction skills package success, NAO says

Employer confidence is critical to construction skills package success, NAO says

The government’s ambitions to build 1.5 million homes, upgrade home energy standards, and deliver a £725 billion long-term infrastructure pipeline will depend on a significant expansion to the construction workforce – and stronger employer involvement in training the next generation of workers, according to a new report from the National Audit Office (NAO) published today. The watchdog examined the government’s progress in delivering its £625 million construction skills package, announced in March 2025, which aims to support up to 60,000 more construction workers by 2029.1 The package combines tried and tested initiatives, alongside newer initiatives, including Skills Bootcamps, and new foundation apprenticeships, and construction technical excellence colleges.  However, the 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 the construction sector had the highest rate of hard-to-fill vacancies due to skills shortages — 45% compared with a 27% national average.2 Employer engagement is a critical delivery risk for the construction package. The government hopes that 42% of the additional construction workers will follow from further education students completing industry placements. Businesses make recruitment and training decisions depending on the expected pipeline of work, costs and market competition – but tough economic conditions are affecting employers’ confidence to invest and take new employees and apprentices on board. 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. 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.  However, delivery is not guaranteed. To achieve its aspiration of up to 60,000 workers — and support its housing and infrastructure commitments — government will need better data, to prioritise resources, and to get employers’ buy in. Without this, skills shortages could drive up costs and put major delivery commitments at risk. The NAO now recommends: Gareth Davies, head of the NAO, said:“The government is taking action to address 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.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Read More »