{"id":163577,"date":"2026-07-13T09:35:52","date_gmt":"2026-07-13T08:35:52","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=163577"},"modified":"2026-07-13T12:02:26","modified_gmt":"2026-07-13T11:02:26","slug":"nao-report-says-employer-engagement-key-construction-skills-package-success","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/nao-report-says-employer-engagement-key-construction-skills-package-success\/163577\/","title":{"rendered":"NAO report says employer engagement is key to construction skills package success"},"content":{"rendered":"

A new report from the National Audit Office<\/a> says that stronger employer involvement in enhancing construction skills will be critical for the next generation of workers<\/h2>\n

The NAO examined the government\u2019s progress in delivering its \u00a3625m construction skills package, announced in March 2025, which aims to support up to 60,000 more construction workers by 2029.<\/p>\n

However, it doesn\u2019t do enough to support the government\u2019s ambitions to build 1.5 million homes, upgrade home energy standards, and deliver a \u00a3725bn long-term infrastructure pipeline.<\/p>\n

Construction skills shortages make it one of the hardest sectors to hire for<\/h3>\n

The construction skills package is not designed to meet all future workforce needs, with government estimates showing that between 201,000 and 755,000 extra workers could be required by 2030, before accounting for those who leave the sector for other jobs.<\/p>\n

This comes as statistics show that the construction sector had the highest rate of hard-to-fill vacancies due to skills shortages \u2013 45% compared with a national average of 27%.<\/a><\/p>\n

Employer investment in trainees is decreasing year by year<\/h3>\n

In 2024, employer investment in training per construction trainee was at its lowest level in 10 years.<\/p>\n

Foundation apprenticeships<\/a> are intended to help young people<\/a> move into entry-level construction jobs, but\u202fby\u202fApril 2026 only 74 young people had started, against DWP\u2019s assumption of 1,000 in 2025-26.<\/p>\n

Employers must get more involved in attracting workers to the sector<\/h3>\n

Employer\u202fengagement is a critical delivery risk for the construction skills package, with the government hoping that 42% of the additional construction workers will come from further education students completing industry placements.<\/p>\n

Businesses make recruitment and training decisions based on the expected pipeline of work, costs, and market competition \u2013 but tough economic conditions are affecting employers\u2019 confidence to invest and to take on new employees and apprentices.<\/p>\n

Tim Balcon, CEO of the Construction Industry Training Board, said: “There is no single solution to the skills challenge, but by combining better workforce intelligence, stronger employer engagement and a focus on helping people move from training into employment, we can build the workforce needed to deliver the UK’s housing and infrastructure ambitions.<\/p>\n

“The focus now must be on ensuring construction training is closely connected to real employment opportunities. Success should not be measured simply by the number of people starting training, but by how many go on to secure sustainable, long-term careers in construction. That means aligning skills investment with the pipeline of work coming through housing, infrastructure and retrofit projects.”<\/p>\n

He added: “Strong workforce planning will also be essential and, as the NAO recognises, reliable labour market intelligence, like CITB\u2019s Construction Workforce Outlook, is critical to ensuring investment in skills is matched to future workforce demand.\u201d<\/p>\n

Tracking delivery of the construction skills package<\/h3>\n

The NAO concludes that the government\u2019s construction skills package is a positive step and that it now has in place a clearer framework to track delivery.<\/p>\n

It now recommends:<\/p>\n

    \n
  • Departments involved in\u202festimating\u202fconstruction\u202fworker\u202fdemand\u202f\u2014 including MHCLG, DESNZ, NISTA, DBT and the Construction Industry Training Board – work together to improve how they will estimate future workforce needs to deliver government ambitions<\/li>\n
  • Departments responsible for\u202fskills\u202fdelivery\u202fkeep the construction skills package under close review, using performance data to identify problems early, and publish regular updates on progress towards their 60,000 ambition.<\/li>\n
  • DWP and DfE\u202fshould be ready to consider adapting the package where initiatives are not delivering as\u202fexpected,\u202fincluding changing course\u202fif initiatives need to be modified or funding reallocated.<\/li>\n<\/ul>\n

    Gareth Davies, head of the NAO, concluded: \u201cThe government is taking action to address the shortage of skilled construction workers as part of its ambitious commitments for housing, infrastructure and energy efficiency.<\/p>\n

    \u201cSuccess will depend on employers having the confidence and capability to offer placements, apprenticeships and jobs.\u201d<\/p>\n

    \n<\/div>","protected":false},"excerpt":{"rendered":"

    A new report from the National Audit Office says that stronger employer involvement in enhancing construction skills will be critical for the next generation of workers.<\/p>\n","protected":false},"author":37,"featured_media":163578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[285],"tags":[882,173334,173126,660,596],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-163577","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-hr-skills-news","8":"tag-employment","9":"tag-nao","10":"tag-reports-and-analysis","11":"tag-skills-shortage","12":"tag-training"},"acf":[],"yoast_head":"\nNAO report says employer engagement is key to construction skills 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