The UK construction skills gap crisis continues to create project delays and increase costs, embedding an ongoing threat to growth and sustainability throughout the industry.
However, 2025 marks a turning point. There has been a shift from discussion on the skills gap to tangible action to address the construction workforce crisis.
The government has implemented a range of initiatives to develop skills and attract more people into the industry through training and company incentives. Some of these are already being rolled out while others require further deliberation.
To realise government ambitions and instigate real change, however, more action is needed within the industry which will require collaboration between construction companies and education providers to make a construction career path more appealing.
Why does construction have a widening skills gap?
The Strategic Resourcing Bridging the Skills Gap white paper was published to highlight the skills gap issue, initiate discourse and bolster industry engagement in finding solutions. Research for the white paper found:
- An ageing sector: Construction has 20% more workers over the age of 55 than those under 25
- Lack of public awareness of the skills gap: Only 31% of the public is aware this exists in the industry
- Ineffective apprenticeships and training programmes: 76% of construction workers believe current programmes don’t adequately prepare people for working in the sector
- Misconceptions around low salaries: Despite already offering competitive salaries, 79% of respondents believe offering competitive salaries and more benefits will attract more people to the sector
- Lack of understanding of career opportunities in the sector, particularly in technology: 60% of the general public believe greater awareness of job opportunities will attract more people to construction
- Gender and diversity imbalances: 63% of construction workers believe women are underrepresented in the industry. Strategic Resourcing tackles this issue by hosting events to attract the next generation of women into the built environment sector.
In addition, just 12% of main contractor workforces are from an ethnic minority background.
The Government’s 2025 Skills Agenda for Construction
What does the government’s commitment to the future of the construction sector mean in real terms for HR and training leads, industry bodies, education and training providers, as well as senior leaders in construction, housing and infrastructure?
£600m Construction Skills Package
In March 2025 the government announced £600 million of investment to train up to 60,000 more skilled construction workers. Of this, £100 million will fund 10 new technical excellence colleges, while £165 million will help colleges deliver more construction courses.
New foundation apprenticeships will be backed by an additional £40 million, with employers given £2000 for every foundation apprentice they take on and retain in the construction industry, as an incentive.
As part of the skills package, the government is sponsoring a new Construction Skills Mission Board, co-chaired by the government and Mark Reynolds, Executive Chair of Mace. The Board will develop and deliver a construction skills action plan to drive change at pace.
Skills England / The Growth and Skills Levy
Skills England is a new public body that has brought about structural reforms for training and employer engagement. It addresses skills shortages through clear education and training pathways for both young people and adults.
The Growth and Skills Levy provides more flexibility in how construction businesses fund employee training. It extends beyond traditional apprenticeships by providing shorter apprenticeship programmes, foundation apprenticeships for young people and short courses that address critical skills gaps.
Local Skills Improvement Plans (LSIPs)
Local Skills Improvement Plans (LSIPs) were originally introduced in the Skills for Jobs White Paper in January 2021 by the previous government to reshape skills training provision. Employer Representative Bodies (ERBs) were designated to develop LSIPs for all areas of the country to better meet the local training needs of employers and the wider economy.
2025 sees real implementation of LSIPs with the development of meaningful further education/employer partnerships.
Green Skills and Retrofit
The expansion of skills bootcamps, alongside targeted sustainable construction training, will provide workers with the green skills and retrofit training needed for the industry to meet environmental targets.
Skills bootcamps are developed by training providers in partnership with employers to help workers develop priority skills that are in demand at both local and national level.
Construction Skills Gap Challenges That Remain
While government action in 2025 is significant, the Strategic Resourcing white paper highlights several critical challenges that remain unresolved:
Awareness and Perception
Only 31% of the public is aware of the skills gap in construction. Awareness that the sector is actively encouraging people to apply could boost the number of entrants into the industry.
It would also, however, be necessary to address misconceptions about pay, the types of roles available and career progression, as these are deterring young people from considering construction as a career path.
A recent Building article highlights typical words associated with construction as ‘dirty’ and ‘stressful’, whereas those inside the industry understand these are outdated and, in fact, there is huge potential for career progression across a diversity of roles. Far from only requiring physical on-site labour, construction is now arguably technology-led, opening up many modern career opportunities.
The white paper recommends a focus on rebranding the industry to showcase modern, tech-driven careers while addressing widely held misconceptions about the industry as a whole.
Construction’s ageing and mid-career workforce
With 20% more workers over 55 than under 25, construction is an ageing sector with much to do to avoid the retirement cliff that is fast approaching. Proactive measures are vital to galvanise the sector to deliver change and attract younger workers A report by training and Apprenticeship provider, PfP Thrive, claims that over one third of construction workers will retire by 2035 which puts the government’s target for 1.3 million new homes at serious risk.
One of our white paper recommendations for combatting the ageing workforce is to develop stronger apprenticeship pathways. According to PfP Thrive, with fewer than 50% of apprentices completing their training, solving the skills shortage isn’t just about getting young people to begin an apprenticeship; apprentices need to be motivated to successfully finish courses.
Another of our white paper recommendations is to create a central digital repository to connect young talent with opportunities. This would provide easy access to younger workers which at present is predominantly achieved through recruiters, advertising, and partnerships with education and training providers, which can take weeks or months to reap results.
Regional disparities
73% of construction workers are concerned about too few young people entering the industry, which is amplified in regions without strong pipelines. LSIPs are designed to tailor training to regional needs, but capacity is uneven. Some regions lack the further education teaching staff and employer partnerships needed to deliver at scale.
A 2024 North East Evidence Hub report states that the construction sector in the North East represents around 7.5% of regional employment so the health of the sector is crucial for the North East economy. As recommended in the white paper, regional investment and collaboration are necessary to ensure consistency nationwide and allow currently underfunded regions to thrive.
These white paper findings around persistent challenges show that government investment must be matched by industry reform and cultural change if the skills gap is to be truly closed.
Freelance and Flexible Talent
In the search for solutions to skills gap challenges, can freelancers and other flexible workers alleviate the pressure?
A large pool of freelance professionals exists in the sector, who are often highly skilled, but often overlooked by employers. Many of these workers actively choose not to join large firms but still want meaningful, secure work. This is a wasted opportunity for the industry.
The upcoming Employment Rights Bill could lead to more reliance on freelance construction workers in the sector due to the likely increase in company costs and administrative load that stronger employee rights will bring.
According to the CIPD (Chartered Institute of Personnel and Development), almost a fifth of organisations anticipating higher costs are more likely to rely on temporary workers while 10% report they will increase their use of atypical workers and self-employed contractors.
Next Steps Towards Closing the Construction Skills Gap
2025 is a critical turning point for construction skills. Government initiatives are finally providing a genuine platform for change, but closing the skills gap and achieving lasting progress requires industry collaboration to confront deeper challenges.
What steps can you take to protect the future of the construction industry? The Strategic Resourcing white paper, Bridging the Skills Gap: A UK Construction Report, explores how employers, policymakers, and educators can work together to secure the future workforce.
Download the Bridging the Skills Gap white paper for a comprehensive overview of the issue, supported by survey data, contractor insights, and our strategic recommendations for long-term change.
