More than 20,000 training opportunities will be created as London tackles critical construction skills shortages and accelerates housebuilding ambitions.
The Mayor of London, Sadiq Khan, has announced a landmark £88.6 million construction skills package aimed at training the capital's next generation of construction workers, addressing major labour shortages and supporting the delivery of hundreds of thousands of new homes.
Funded by the Department for Education, the investment will provide more than 20,000 construction training courses, industry placements and significant upgrades to training facilities across London colleges. The programme is also designed to equip workers with the green skills needed to improve the energy efficiency of existing homes.
The announcement comes as the Mayor seeks to accelerate housebuilding through his recently published draft London Plan, which outlines ambitions to deliver up to 558,000 new homes by 2037, while increasing the supply of affordable housing.
Addressing London's Construction Skills Gap
London's construction sector faces significant workforce challenges at a time when demand for new housing, infrastructure and commercial development remains high.
The industry continues to experience shortages across key trades including:
- Bricklaying and carpentry
- Plumbing and electrical installation
- Technical project management
- Retrofitting and heat pump installation
According to the Construction Industry Training Board, Greater London will require approximately 26,500 additional construction workers over the next five years to meet demand.
The investment builds on London’s Inclusive Talent Strategy, launched last year, which places employers at the centre of the capital's skills system to better align training provision with business needs.
The new funding package includes:
£43m for College Facilities and Equipment
Up to £43 million will be invested in further education colleges to improve training facilities and purchase industry-standard equipment. The aim is to expand capacity and ensure courses remain closely aligned with employer requirements.
£2.5m Innovation Fund
A further £2.5 million will support the testing and scaling of new construction training programmes developed in partnership with members of the Interim Construction and Built Environment Talent Board.
More Industry Experts in the Classroom
Over 2,700 industry teaching days will be delivered by construction professionals through the Further Education Teacher Industry Exchange programme, helping learners gain relevant, real-world experience and ensuring teaching reflects changing industry demands.
Colleges to Lead Skills Delivery
The Government has appointed New City College (Construction) and South Bank Colleges (Clean Energy) as strategic partners to lead London's Construction Skills Package.
Working alongside training providers and employers across the capital, the colleges will coordinate efforts to improve technical education and ensure Londoners develop the skills most in demand by industry.
New Sector Hubs Launched
Alongside the construction investment, the Mayor has announced a further £3.2 million investment to establish three new virtual Pan-London Sector Hubs focused on:
- Built Environment
- Creative Industries
- Life Sciences
The hubs will help employers engage more effectively with London's skills and training system while ensuring courses and career pathways remain responsive to labour market needs.
Mayor of London, Sadiq Khan, said:
"We can’t build the homes Londoners desperately need without the skilled workforce to deliver them. That's why I'm investing an unprecedented £88.6m to train London's next generation of construction workers, helping thousands of Londoners develop the skills they need to access good jobs while tackling critical skills shortages across the industry.
“This landmark investment will deliver more than 20,000 construction courses, alongside industry placements and major investment in our colleges, ensuring London has the skilled workforce needed to build more homes and make existing homes more energy efficient.
“By bringing employers and training providers together, we can give Londoners clearer routes into good careers while giving businesses the talent they need to grow – helping us to build a greener and more prosperous London for everyone.”
Image credit: iStock
