Labour’s only hope for growth is new housebuilding – but Britain doesn’t have the workforce to deliver even the newly downgraded targets. There is an obvious solution, says Jamila Robertson
In the Spring Statement, Rachel Reeves acknowledged that she will no longer be able to meet the government’s manifesto pledge to build 1.5m homes by the end of this parliament, pointing to the OBR downgrading cumulative net additions to UK housing stock to 1.3m.
Nevertheless, Angela Rayner’s National Planning Policy Framework was the one bright spot in an otherwise bleak emergency Budget – with the OBR predicting planning reforms would yield 170,000 new homes, boosting growth by 0.2 per cent a year.
But there’s an elephant in the room: we don’t have the skilled workforce to build these homes. To solve this, Labour has worked with the Construction Industry Training Board (CITB) and the National House-Building Council (NHBC), who have invested £140m into developing the pipeline of construction workers. This will result in 32 ‘homebuilding skills hubs’ to “fast-track training to local areas that need more housing” and ultimately deliver 5,000 more construction apprentices a year.
Yet, there are two problems. Firstly, the hubs aren’t scheduled to launch until 2028. Secondly, according to the Construction Industry Training Board (CITB) chief executive, Tim Balcon: “Under the government’s homebuilding plans, up to an additional 152,000 workers will need to be found, and this doesn’t include the quarter of a million additional construction workers we need to meet all forecasted construction demand through to 2028”. While admirable, 5,000 apprentices by the end of this parliament will not plug a vacancy gap of 402,000 workers, or deliver 1.3-1.5m homes.
While admirable, 5,000 apprentices by the end of this parliament will not plug a vacancy gap of 402,000 workers, or deliver 1.3-1.5m homes
One thing Labour’s plans do right is radically reduce the time it takes to train a construction apprentice, halving apprenticeships from 24-30 months to 12-18 months. In 2010 the average age in the industry was 45, rising to 50 by 2020. Based on current projections, over 20 per cent of the workforce will retire in the next decade. So, how can we plug this 402,000 worker gap? Welfare reform.
The total number of people on Universal Credit in January 2025 was 7.5m, the highest level since the introduction of Universal Credit in 2013. According to the January 2025 figures, we currently have 1.6m people on Universal Credit searching for work. In 2023, the Conservative government stipulated that benefit claimants who failed to find work for more than 18 months would have to undertake work experience placements. This should now go further. The government should reduce this to six months and insist that roles are taken up in industries like construction, where there are staff shortages and a lot of work.
Welfare reform is a no-brainer
For the young, it should be a no-brainer. The average Universal Credit payment for under 25s is £311.68pcm and £393.45pcm for those over 25. An average construction salary, according to Total Jobs, is £42,500, with higher salaries rising to £62,500. On a construction starting salary of £31,787, take-home pay would be £2,200pcm, £1,391 a month more than they would receive on Universal Credit, and much better for their mental health.
But, carrot rather than stick will, of course, be the best way to ensure job seekers see construction as the thriving and future-proof industry that it is.
There are already great initiatives like Open Doors, which provide the opportunity to see live construction sites in action. These should be embraced by schools and colleges, to inspire those who aren’t yet sure of what they want to do. Encouraging more young people, or career switchers, to consider the industry starts with outlining attractive salaries, explaining roles and opportunities for growth and development, and the option to work for yourself down the line. It also has a lot to do with persuading parents.
With traditional first jobs like retail and hospitality facing hiring freezes and redundancies due to Rachel Reeves’ Autumn Budget, now is a great time for the construction industry to present itself as the alternative for young people – and if that doesn’t work, they can always share the story of Pimlico Plumbers.
Jamila Robertson is the director of the Centre for the Future of Work