The Government will only meet its clean energy 2030 or 2050 decarbonised building targets if there is significant new intervention in the UK workforce, says the Commons Energy Security and Net Zero Committee in a new report.
It says targeting consumer demand is necessary but not sufficient, and public funding to address the supply of skills directly is needed now.
The Committee calls 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.
The UK needs an estimated 250,000 additional workers just to meet new housing targets, and many more for retrofit. After shocking failures in previous Government-backed retrofit and insulation schemes, the Committee calls for a new, nationally recognised, industry-backed construction and retrofit skills programme.
The energy transition offers substantial opportunity. The Climate Change Committee estimates net employment gains from the energy transition of between 135,000 and 725,000 jobs in the next four years . But the vast majority of these workers will have to train or reskill. The UK may need to import some specific skilled workers from overseas, at least in the short term, to meet its targets.
With up to 70% of those embarking on construction-related FE qualifications not completing or not entering the sector, the Committee says Government should expand and formalise 'try-before-you-buy' training opportunities. SMEs, the backbone of the construction and retrofit supply chain, will need support in taking on inexperienced trainees.
Bill Esterson MP, Chair of the Committee, said: “It is essential that we build the workforce for the energy transition so that the Government can hit its clean energy targets and, importantly, ensure that the UK makes the most of the growth opportunity of the century.
“The Committee has found that market forces alone cannot overcome the skills gap. 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.”
The Chief Executive of the Federation of Master Builders (FMB) who gave evidence to the Committee’s inquiry has welcomed the report’s findings, stressing the need for long-term certainty, practical support for SMEs, and clear career pathways to attract young people into high-quality jobs.
Brian Berry said: “The FMB strongly welcomes the Committee’s call for a nationally recognised, industry-backed construction and retrofit skills programme. This is exactly the kind of bold intervention we need to tackle the skills crisis and deliver the Government’s ambitious targets for clean energy and housing.
“Small builders are ready to play their part, but they need clarity, long-term certainty, and practical support to train the next generation. The UK is not going to be able to meet its housing and retrofit goals without investing in home-grown talent. SMEs are the backbone of the construction industry, yet too often they are overlooked in skills planning.
“A national programme must work for small firms, with flexible training routes and funding that makes it viable for them to take on apprentices and upskill their workforce. We are currently experiencing a skills crisis, and so the Government must work with industry together to create clear career pathways and make construction and retrofit attractive to a young people. If we are serious about hitting our net zero targets, we need to do more to create high quality jobs in every community.”
