Following new data showing that the “construction, planning and the built environment” sector recorded a nationwide low apprenticeship completion rate of just 58.3% in 2024/25, Patricia Gardiner, director of sales and marketing at Trade Direct Insurance, discusses why prioritising strategic skills investment is essential to tackling the industry’s labour deficit. This comes as Andy Burnham today unveiled plans to ensure “hard hats as important as graduate caps” via a new scheme arriving in September 2028, which will allow pupils aged 14 and over to complete a technical qualification alongside core subjects while working with local businesses.
Patricia said: “Andy Burnham’s announcement outlining plans to invest in technical qualifications such as construction, alongside core subjects including maths and English, demonstrates a commitment to building skills from the ground up and encouraging more young people to pursue careers in the trades, rather than simply attempting to fill workforce quotas. It’s a welcome step in the right direction, but it still fails to address one of the biggest barriers facing the industry today, which is: a lack of construction work available for apprentices to train on.
“This is a long overdue step that will help create career pathways for talented students who don’t wish to pursue further education, but aspire to develop technical skills that will help them learn a trade. For the construction and trades sector, this is welcome, and will hopefully see more young people choosing a life on the tools in coming years. But to truly make the most of this, there needs to be opportunities ready for them to learn on the job.
“The previous Government’s Construction Skills Mission Board appeared promising on paper, with a £600 million package that included £20 million to create partnerships between colleges and construction firms, alongside proposals to reduce apprenticeship training from 12 months to eight months. However, delays in launching the scheme meant providers had just three months to prepare, leaving little time to recruit apprentices, establish employer partnerships or put the necessary training frameworks in place. It’s therefore unsurprising that the National Audit Office reported just 74 people had started a new construction apprenticeship in the 2025/26 academic year, compared with the 1,000 originally forecast.
“This highlights a wider issue that increasing apprenticeship places alone is not enough, if the industry doesn’t have sufficient work to support trainees. Construction output has recorded its sharpest decline since the COVID-19 pandemic, driven by economic uncertainty, rising costs and inflationary pressures following conflict in the Middle East. For many firms already looking to reduce labour costs, taking on apprentices becomes a significant financial risk if workloads are uncertain.
“At the same time, the Government continues to face challenges in delivering its housing ambitions. Angela Rayner has acknowledged the scale of the task involved in meeting the commitment to build 1.5 million homes by 2029, but without greater construction output there simply aren’t enough active sites for apprentices to gain the practical experience required to complete their training. This creates a cycle where businesses are reluctant to recruit because there isn’t enough work, leaving the industry’s long-term skills shortage unresolved.
“This represents a major missed opportunity. The UK already faces a significant workforce gap, with more than a third of construction workers expected to retire by 2035. Without a steady pipeline of skilled workers entering the industry, labour shortages are likely to intensify, increasing project costs, driving up prices for consumers and putting further pressure on the Government’s housing and infrastructure ambitions.
“As the Government looks to accelerate housebuilding, giving regional leaders greater responsibility for aligning skills provision with local demand could play an important role. Those closest to local economies are often best placed to understand where shortages exist and which skills are needed to support priorities such as housing, retrofitting and infrastructure. Redirecting the existing £39 billion affordable housing programme towards an ambition to build more council houses will only succeed if there is a skilled workforce available to deliver those projects. Strengthening links between employers, colleges and local authorities could help ensure investment in skills translates into sustainable careers.
“It’s also important that the Government closely monitors the progress of these reforms and removes barriers before they undermine their success. A key concern across the industry is that policy has focused heavily on creating apprenticeship starts rather than supporting apprentices through to completion. The introduction of a £2,000 incentive for employers is positive, but financial support alone will not solve the problem if meaningful construction work isn’t available. Investment in skills must be matched by sustained investment in housing and infrastructure projects that create long-term employment opportunities.
“As the Government pushes ahead with plans to deliver new homes and major infrastructure, expanding the construction workforce has never been more important. However, with construction output continuing to decline, increasing apprenticeship opportunities alone will not be enough. Ensuring there is sufficient work for apprentices to develop their skills and progress into permanent employment will be critical to rebuilding the industry’s capacity and delivering the homes and infrastructure the UK urgently needs.
“For tradies and construction firms that are able to recruit apprentices, it’s equally important to ensure both the business and its employees are properly protected. Having appropriate employers’ liability insurance provides vital cover if an apprentice or employee is injured or becomes ill as a result of their work, helping businesses manage risk while investing confidently in the next generation of skilled workers.”
