Employers need confidence to bring in more staff to meet skills targets, NAO says

The government’s housing infrastructure ambitions will depend on a significant expansion to the construction workforce and stronger employer involvement in training the next generation of workers, a new report from the National Audit Office has said.

The spending watchdog said that up to 755,000 additional workers will be needed by 2030 in order to deliver the planned £725bn infrastructure pipeline.

But it said a £625m construction skills package announced last March will only bring in an extra 60,000 workers by 2029.

The NAO warned: “The 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.”

It added: “To achieve its aspiration of up to 60,000 workers and support its housing and infrastructure commitments government will need better data, to prioritise resources, and to get employers’ buy in. Without this, skills shortages could drive up costs and put major delivery commitments at risk.”

The NAO said those government departments responsible for skills delivery – the Department for Work and Pensions and the Department for Education – needed to keep the “skills package under close review, using performance data to identify problems early, and publish regular updates on progress towards their 60,000 ambition”.

It added: “DWP and DfE should be ready to consider adapting the package where initiatives are not delivering as expected including changing course if initiatives need to be modified, or funding reallocated.”

NAO head Gareth Davies said: “Success will depend on employers having the confidence and capability to offer placements, apprenticeships and jobs.”