Pennycook confirms development of ‘construction jobs plan’ aimed at tackling workforce shortages in the sector
The minister for housing and planning has confirmed the government’s plan to publish a ‘comprehensive package of support’ to address workforce shortages across the construction industry.
The ‘Construction Jobs Plan’ is expected to be announced later this year, with Pennycook highlighting the impact of Brexit and the reduction of the EU labour force on the industry’s workforce, which has not since recovered.
Pennycook also acknowledged the challenge to the industry presented by an uncertain pipeline of work, particularly for modern methods of construction (MMC) firms.
Richard Beresford, chief executive of the National Federation of Builders, said: “The government have put several strategies in place to better align a pipeline of work with the ambition to grow the construction workforce, and they have been communicative across industry to understand our perspectives.
The recognition of the MMC pipeline that secures employment and investment must be carried into the broader jobs strategy, particularly in planning reforms and procurement. Underpinning any plan must be the understanding that because SMEs train 8 in 10 construction apprentices, they are key to capacity growth. The mantra must be ‘ensuring the trainers and retainers win work’.”
Pennycook argued that the New Towns Programme, aimed at building large-scale communities to address housing shortages, is essential for providing MMC firms with a consistent pipeline of work that would support their growth.
The minister also highlighted the opportunity for the long-term development of new towns to act as a platform for the enhancement of skills across the industry, as workers have access to consistent practical experience.
Rico Wojtulewicz, director of policy said: “Any measures to grow and sustain worker capacity require an understanding of how industry operates. For example, the Conservative government spent billions of pounds on MMC but because they focused on volumetric, ignoring 99% the of MMC that 100% of industry can utilise, their approach failed.
Labour are right to use new towns to enable MMC, but if it is just those built in factories, rather than enabling the definitions already established by the broader MMC Framework, they will embed failure and do little to nothing to ensure we increase the skills and workforce required to retrofit 28 million UK homes.
History teaches us that the mantra of ‘ensuring trainers and retainers win work’ is the one to follow and the government is right to link demand with workforce growth. In the 1980’s, SMEs built around 40% of homes and we trained more than 20,000 bricklayers and carpenters. In 2026, SMEs build 9% of homes and in total, fewer than 20.000 construction apprentices get trained.”