A Construction Skills Mission Board will oversee a £600m package aimed at training 60,000 construction workers by 2029, including 10 new Technical Excellence Colleges, the government has announced.
The new colleges will be backed by £100m of public funding and will focus on developing advanced technical training in trades and engineering, according to HM Treasury.
A further £165m has been allocated to help colleges expand construction course provision.
Speaking ahead of this week’s Spring Statement, 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 a third runway at Heathrow.
“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 [and] now we are gripping the lack of skilled construction workers…”
Skills Bootcamps will also be extended with £100m of additional funding, offering short-term training to new entrants and those upskilling or returning to the sector.
The government said all Local Skills Improvement Plan areas would receive £20m to create partnerships between colleges and construction firms.
The goal is to boost the number of industry-trained teachers able to prepare learners for work on site.
Foundation apprenticeships in construction will launch in August 2025, with £40m in new funding announced as part of the package.
Employers will receive £2,000 for each apprentice retained under the scheme, which the government said would be funded through the Growth and Skills Levy.
The government last year announced plans to reduce the minimum duration of an apprenticeship to eight months from the current minimum of 12 months.
More than 40,000 industry placements a year will be created for Level 2 and Level 3 learners under a £132m joint funding initiative with the Construction Industry Training Board (CITB).
These placements will include National Vocational Qualifications, BTECs, T-levels and advanced apprenticeships.
The CITB will also double its New Entrant Support Team programme, designed to help small and medium-sized businesses recruit and retain apprentices.
To coordinate delivery, the government will set up a Construction Skills Mission Board co-chaired by the Department for Education and Mace executive chair Mark Reynolds, who is co-chair of the Construction Leadership Board.
The new board will draft a construction skills action plan and provide strategic oversight for the sector.
Construction skills funding package in full:
– £100m for 10 New Technical Excellence Colleges
– £165m for expanding construction course provision
– £100m for Skills Bootcamps
– £20m to build partnerships between colleges and construction firms
– £40m for foundation apprenticeships (Launching August 2025)
– £100m joint funding for industry placements (supplemented by £32m from CITB
– c.£80 million capital pot to support employers to deliver bespoke training
Reynolds called the announcement a “hugely significant funding package”.
He said: “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 chief executive, said: “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.”
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Colin Marrs