New government measures to increase support for apprenticeships are a positive step towards addressing the industry’s long-term skills challenges, BCIS has said.
The Autumn Budget confirmed that apprentices will be required to make up at least 3% of the workforce on large government construction and infrastructure projects. The government also committed £100 million over 2027–28 and 2028–29 to expand local apprenticeship services from seven to 14 mayoral strategic authorities across England. The funding will enable all current mayors to provide tailored support, connecting young people with apprenticeship opportunities and helping employers create them.
BCIS chief economist Dr David Crosthwaite welcomed the measures, highlighting the importance of developing the workforce needed to deliver the government’s housing and infrastructure ambitions. ‘Further support for apprenticeships is a commendable move, and the expansion of local brokerage services could help address some of the barriers preventing smaller businesses from taking on apprentices,’ he said.
‘Most construction businesses are small, and recruiting and training apprentices represents a substantial financial commitment, particularly when workloads are uncertain. If the government wants these measures to deliver lasting results, it must also make it easier for businesses to invest in the next generation of workers. Businesses need sufficient confidence in future workloads to invest the time and resources required for training and supervision.’
The announcements come as labour cost pressures in construction show signs of easing amid subdued activity. Provisional data show the BCIS Labour Cost Index rose by 3.8% in the 12 months to September 2026, compared with an annual increase of 6.4% in the year to September 2025.
However, the longer-term outlook points to substantial workforce requirements, with the government’s updated 10-year Infrastructure Pipeline expected to identify demand for more than 650,000 workers. This demand is unlikely to be evenly distributed, with regional and sectoral pressures shaped by the location, scale and timing of construction projects.
Meeting these requirements will depend not only on increasing the number of people entering the industry, but also on ensuring training opportunities are available where they are most needed.
Research published by the Construction Industry Training Board (CITB) ahead of the Budget highlights regional disparities in apprenticeship provision across Britain(1). For example, Scotland recorded 42.3 construction apprenticeship starts per 1,000 workers in 2024–25, compared with just 8.9 in London. The disparity is also evident when comparing apprenticeship starts with the number of construction employers. In London, there were around 30 construction businesses for every apprenticeship start, compared with fewer than four in Scotland. Across Great Britain, approximately 33,000 people started a construction apprenticeship in 2024–25, while only 17% of construction businesses currently employ an apprentice; 81% say they are not at all likely to take one on.
Dr Crosthwaite said: ‘While labour cost pressures have broadly moderated in recent months, this should not be mistaken for a resolution of the industry’s underlying skills challenges. If activity strengthens across housing and infrastructure, competition for skilled workers could intensify, particularly in specialist trades or regions where training provision is already limited. That has implications for construction costs, productivity and project delivery, making it important that investment in skills keeps pace with the government’s ambitions.’
CITB’s research also underlines challenges beyond attracting new entrants, with apprenticeship achievement rates in England standing at 58%. The report identifies uncertain workloads, limited supervision capacity and administrative complexity among the barriers discouraging employers from offering apprenticeships.
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