Checkatrade publishes annual UK Trade Skills Index 2024

Checkatrade has unveiled the UK Trade Skills Index Report 2024, shedding light on a critical shortfall in skilled tradespeople that threatens to undermine the UK’s housing and net zero ambitions.

The report, produced in conjunction with Capital Economics, highlights an urgent need for 1.3 million new skilled workers and 350,000 apprentices over the next decade to meet Government targets and the ever-growing demands on the construction, home improvement and repair industries.

Sector growth could be hampered by skills deficit

With an improving economy, lower interest rates, and accelerated planning processes, the home improvement and repair sector is forecast to grow by 40% over the next ten years, contributing 2.4% to the UK’s GDP. National economic growth and warm, decarbonised homes that meet net zero targets are not the only prizes on offer. 50% of the homes in the UK currently have an EPC rating of D or worse, and households could save £8.8bn annually if every household in the UK was upgraded to an EPC rating of C.

However, this promising growth is at risk due to a severe skills deficit. The alarming shortfall is exacerbated by an ageing workforce, with 35% of current workers aged over 50 and many planning to retire within the next decade. To address the replacement of retirees, the sector will need to recruit a total of 377,000 new workers, coupled with the additional 734,000 needed just to meet current demand in the home improvement, repair and construction sectors.

Upskilling the UK’s existing workforce

The report also underscores the importance of upskilling the existing workforce, as 29% of construction sector jobs will require new skills to support the UK’s transition to net zero. Under Labour’s new Growth and Skills Levy, employers can spend a portion of their contributions on partial training rather than a full apprenticeship. For example, a plumber trained on gas boilers could now be able to complete an industry course on installing air-source heat pumps. Checkatrade recommends that more awareness of the changing landscape to come under the Levy is required, in order to incentivise employers to support this training.

To ensure the sector can meet future demands, urgent action is required - not only to broaden and deepen existing skillsets among qualified tradespeople, but to recruit new apprentices. Despite demand for apprenticeships outstripping supply by a ratio of three to one[1] - meaning the UK lags far behind other comparable economies in this space[2] - the Trade Skills Index finds that less than one-third of apprentices who start their training go on to complete it, hindering efforts to close the skills gap. Moreover, the current apprenticeship pool is predominantly male (90.8%) and white (92%), highlighting an urgent need for more inclusive recruitment and training practices.

Jambu Palaniappan, CEO at Checkatrade, stated, “The home improvement and repair sector is a crucial one - not just when it comes to delivering meaningful results against our Government’s ‘Building Better’ plans, but also in order to shore up and future-proof existing housing stock. The potential benefits for both individual homeowners and the wider economy are immense. However, this vision of modern, energy-efficient homes that are fit for 21st-century Britain will remain out of reach unless we tackle the critical trade skills gap head-on.

“Our Trade Skills Index identifies problems not only in recruitment of apprentices, but in retention. I support Lord Richard Layard’s recent call for an overhaul of the UK’s post-18 education system to include a guaranteed apprenticeship for everyone with the requisite qualifications. I believe this would also go some way to helping to attract a more diverse range of talent to these programmes, which I think is key to the future of our industries.

"The UK can no longer afford to be a passive observer when it comes to skills development. It is imperative that we take decisive action now to ensure we have the skilled workforce needed to realise this transformative opportunity, and ensure that UK trades do not get left behind.”

Andrew Evans, Deputy Chief Economist at Capital Economics, said : ‘Addressing the government priorities of increased housebuilding and reaching Net Zero will require a skilled construction workforce with the capacity to deliver the associated increase in activity. Our modelling shows the scale of the challenge. Among many striking findings, 377,000 new recruits are needed over the next decade for home improvement and repair work alone.’

Checkatrade’s recommendations for an approach to tackle this skills crisis include:

• SMEs and sole traders should be incentivised to take on an apprentice under the age of 25 with targeted grants to boost the number of young people starting a career in the trades.

• To encourage lifelong learning and address changing skills needs, tradespeople should be supported with skills grants to upskill in the technologies needed to deliver the net zero transition

• To attract more young people into a well-paying trade career, schools and colleges should provide career guidance on vocational opportunities as part of the curriculum.

The UK Trade Skills Index 2024 is a stark reminder of the challenges ahead, but it also highlights a significant opportunity. By addressing the skills shortage, the UK can unlock substantial economic benefits, create warm and energy-efficient homes, and meet its net zero targets. However, without decisive action, the vision for a modern, sustainable Britain risks remaining unfulfilled.

For more information or to download the full report, visit Trade Skills Index 2024 (flippingbook.com)

https://online.flippingbook.com/view/775016388/

[1] Department for Education, ‘Apprenticeship vacancies: demand and supply’, July 2021

[2] Resolution Foundation, ‘Applying the Robbins Principle to Further Education and Apprenticeship’, October 2023