Employers report that over half of vacancies can’t be filled due to a lack of required skills – the highest rate of any sector.

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 rebuild our roads, rail and energy infrastructure.

“But none of this is possible without the engineers, brickies, sparkies, and chippies to get the work done, which we are facing a massive shortage of.

“We’ve overhauled the planning system that has been holding this country back; now we are addressing the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”

The government will provide £100 million to fund 10 new Technical Excellence Colleges and £165 million of new funding to help colleges deliver more construction courses.

Skills Bootcamps in the construction sector will also be expanded, with £100 million in funding to ensure that new entrants, returners, or those looking to upskill within the industry can do so.

All Local Skills Improvement Plan (LSIP) areas will benefit from £20 million to form partnerships between colleges and construction companies, boosting the number of teachers with construction experience in colleges and sharing their vital expertise through training the next generation of workers.

Construction will also be one of the key sectors to benefit from new foundation apprenticeships, backed by an additional £40 million, launching in August 2025.

She added that this will inspire more young people to enter the construction industry and allow them to progress and specialise in advanced apprenticeships, giving them the tools they need for a sustained and rewarding career.

As part of this new offer, employers will receive £2,000 for every foundation apprentice they take on and retain in the construction industry, in addition to fully funding the training costs through the new Growth and Skills Levy.

A further £100 million of government funding, alongside a £32 million contribution from the Construction Industry Training Board (CITB), will fund over 40,000 industry placements each year for all Level 2 and Level 3 learners, as well as those studying NVQs, BTECs, T-levels, and advanced apprenticeships.

This will help get learners ‘site-ready’ and address the ‘leaky pipeline’ of learners who don’t progress into the sector. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.

An additional £80 million capital fund will support employers in delivering bespoke training tailored to their specific needs.