Government will not decarbonise buildings by 2050 without significant skills intervention, MPs say

The government will not meet its goal to meet Britain’s electricity demand with clean energy by 2030 or decarbonise the country’s building stock by 2050 without a “significant intervention” in the workforce, according to a House of Commons committee.

In a report published on Friday, the energy security and net zero committee said that targeting consumer demand was necessary but not sufficient and that public funding to address the skills supply would be needed.

The committee called for ‘local skilled labour’ conditions in Contracts for Difference, an expanded skills passport scheme, a leading role for local authorities, and greater clarity for industry on levies, EPC ratings and the Warm Homes Plan.

It also demanded a new, nationally recognised construction and retrofit skills programme to address perceptions of poor quality in previous government-backed insulation schemes.

The committee also suggested the expansion and formalisation of “try-before-you-buy” training opportunities, noting that up to 70% of those embarking on construction-related FE qualifications either did not complete them or did not enter the sector subsequently.

“The Committee has found that market forces alone cannot overcome the skills gap,” said committee chair Bill Esterson.

“We need policy certainty for the long-term, locally directed investment in training, and policies that make clean energy careers attractive and accessible.

“For British workers this isn’t about hitting deadlines; it’s about securing good jobs, driving innovation, and ensuring Britain leads in the global race for clean energy.”

It comes as the government announced details around how it plans to spend money allocated to skills training at last month’s Budget.

Rachel Reeves had announced that £725m would be set aside for the Growth and Skills Levy, with the government committing to cover the cost of apprenticeships for eligible people under the age of 25 working at small or medium-sized businesses.

The Department for Work and Pensions has now revealed that the funding will include £140m for a pilot scheme through which mayors will be able to connect young people with apprenticeship opportunities at local employers.

It also announced that new short courses in “cutting edge areas” including artificial intelligence, engineering and digital skills would be rolled out from April 2026.

Speaking to the BBC over the weekend, work and pensions secretary Pat McFadden indicated that young people could lose benefits if they do not take up opportunities offered through the funding.