Government ploughs £100m into 10 colleges to drive growth in construction skills

The funding follows a report last month which suggested that a critical shortage of skilled workers will seriously impact the government’s ability to deliver 1.5 million new homes by 2029.

The research by City and Guilds found that more than three-quarters (76%) of construction firms are already struggling to recruit the skilled people they need, with 84% agreeing that the industry is suffering from critical shortages.

Major immigration reforms will make it harder to hire skilled workers quickly enough to meet the rapidly increasing demand for houses and will disproportionately impact construction, worsening the sector’s recruitment crisis, with 28% of businesses citing this as a barrier to recruiting the people they need.

Plus, stricter immigration laws, such as the higher immigration skills charge, require employers to pay around a third (32%) more to sponsor overseas workers each year and there are longer settlement periods (up from five years to 10).

The government has insisted that “Britain cannot and should not rely on foreign labour, which is why the specialist colleges are central to delivering growth – by working closely with employers, existing colleges and local communities to make sure that the skills people are getting are in-demand and will lead to well-paid work”.

Education secretary Bridget Phillipson said: “We need skilled workers to deliver the homes, schools and hospitals that communities across the country are crying out for, and today’s announcement underlines our commitment to the next generation of home-grown talent.

“Construction Technical Excellence Colleges will enable us to invest in people and give them the skills they need to break down barriers to opportunity in an industry which is essential to delivering growth through our Plan for Change.”

This builds on the £625m investment announced in March, which will separately be used to train up to 60,000 more skilled construction workers by 2029. 

A recent survey found that the percentage of construction firms funding or offering training to their workers has fallen from 57% in 2011 to 49% in 2024. 

In response, the industry-led Construction Skills Mission Board has pledged to recruit an additional 100,000 construction workers a year by the end of this parliament.

David Hughes, chief executive of the Association of Colleges, described the news as “very positive news for people wanting good jobs”.

He added: “It represents significant investment and trust in the 10 successful colleges, and the college sector, recognising their crucial role in boosting the country’s construction sector by opening up high-quality learning opportunities all over the country.”