The government’s £625m construction skills package is a positive step towards tackling labour shortages, but its success will depend on employers having the confidence to recruit and train more workers, according to the National Audit Office (NAO).

In a report published today, the public spending watchdog says the skills package will help address workforce shortages but warns it is not sufficient on its own to meet the scale of demand created by the government’s housing and infrastructure ambitions.

The government estimates that between 201,000 and 755,000 additional construction workers could be needed by 2030 to deliver its pledge to build 1.5 million homes, improve the energy efficiency of existing housing and deliver a £725bn long-term infrastructure pipeline. The estimates do not include workers leaving the industry through retirement or career changes.

The report examines progress on the £625m construction skills package announced in March 2025, which aims to support up to 60,000 additional construction workers by 2029 through measures including Skills Bootcamps, foundation apprenticeships and new construction technical excellence colleges.

Employer role critical

However, the NAO says employer engagement represents one of the biggest risks to the programme’s success. Around 42% of the additional workers are expected to come from further education students completing industry placements, making employers’ willingness to offer placements and apprenticeships critical.

The report notes that recruitment and training decisions are closely linked to firms’ confidence in future workloads, costs and market conditions. It highlights that employer investment in training per construction trainee fell to its lowest level in a decade in 2024.

The watchdog also points to disappointing early take-up of foundation apprenticeships. By April 2026, just 74 young people had started a foundation apprenticeship, well below the Department for Work and Pensions’ expectation of 1,000 starts during 2025/26.

Skills shortages continue to pose a significant challenge for the sector. According to the report, 45% of construction vacancies are hard to fill because of skills shortages, compared with a national average of 27%.

While concluding that government has established a clearer framework for delivering the skills package, the NAO warns that delivery is far from guaranteed. It says ministers will need better workforce data, closer monitoring of programme performance and greater employer participation if they are to achieve the target of recruiting up to 60,000 additional workers.

The report recommends that government departments improve forecasting of future construction workforce demand, regularly review progress against the skills package and be prepared to adapt or reallocate funding where initiatives are underperforming.

Gareth Davies, head of the NAO, said: “The government is taking action to address shortage of skilled construction workers as part of its ambitious commitments for housing, infrastructure and energy efficiency. Success will depend on employers having the confidence and capability to offer placements, apprenticeships and jobs.”