The United Kingdom Skills Crisis in Construction & Energy

The United Kingdom is currently grappling with a significant skills crisis, particularly in sectors like construction and clean energy. 

This shortage hampers economic growth and impedes ambitious infrastructure projects. For instance, the Construction Industry Training Board (CITB) estimates that an additional 250,000 construction workers will be needed by 2028 to meet the nation’s housing and infrastructure goals. 

Apprenticeships have traditionally been a pathway to equip the workforce with necessary skills and promote social mobility. However, recent trends indicate that the apprenticeship system is not adequately supporting individuals from disadvantaged backgrounds or lower-income households. Notably, there has been a 36% decline in apprenticeship starts among people from disadvantaged backgrounds since the introduction of the Apprenticeship Levy in 2017, compared to a 23% decline for others. 

A more flexible approach to allowing digital-only content to count towards formal qualifications, funded through the Levy would also be a welcome shift.

Several factors contribute to this disparity:

• Geographical and Socioeconomic Barriers: Businesses in less advantaged areas are less likely to offer advanced apprenticeships, limiting opportunities for local youth. The Co-op recently highlighted this issue, urging the government to ensure that apprenticeship funding considers social mobility to create equitable opportunities across different regions. 

• Shift Towards Higher-Level Apprenticeships: The apprenticeship landscape has seen a move towards higher-level programs, which often require prior qualifications. This shift disproportionately benefits individuals from more privileged backgrounds, leaving those from disadvantaged communities with fewer accessible opportunities. For example, only 13% of degree-level apprenticeships are undertaken by individuals from disadvantaged backgrounds. 

• Utilisation of Apprenticeship Funds: A significant portion of apprenticeship funding is being allocated to train existing senior staff through advanced courses, such as management training programs. This practice diverts resources away from entry-level apprenticeships that could benefit young people from lower-income backgrounds. Recent research indicates that nearly one-sixth of apprenticeships are now being taken by university graduates, with around 10% of the £2.5 billion apprenticeship budget used for advanced apprenticeship courses. 

Addressing these challenges requires a multifaceted approach. Recommendations include revising the Apprenticeship Levy to incentivise the creation of entry-level positions, ensuring that funding is directed towards sectors and regions most in need, and implementing targeted outreach programs to support underrepresented groups. An increasing number of learners are engaging with video-based content, for example learning trade skills on YouTube and Tiktok, so a more flexible approach to allowing digital-only content to count towards formal qualifications, funded through the Levy would also be a welcome shift.

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