PHAM MAR21:Layout 1 02/03/2021 13:57 Page 1
MARCH 2021 | VOLUME 59 | ISSUE 2
phamnews.co.uk
Lack of skilled trades predicted to hamper economic recovery A new report on UK domestic trade skills has highlighted a chronic shortage of plumbers, electricians and other key trades, and an urgent need for an expansion of apprenticeship schemes A new report commissioned by the HomeServe Foundation, a notfor-profit division of HomeServe PLC, has suggested that more than ˚̍˛˞ million construction workers will need to be recruited by ˛˙˜˙ to meet a predicted growth in demand for home repairs and construction work. The UK Trades Skills Index, an analysis of the construction, home improvements, and repairs sector by Capital Economics, calculates that ˛˛ˡ̇˙˙˙ apprentices will be needed to address a shortfall of labour due to an ageing workforce and the loss of European skilled workers. It is estimated that just under two thirds (˟˚%) of those apprentices will need to be key trades, such as plumbers, heating engineers and electricians. A fifth of the construction workforce is aged ˞˞ or over and most of these tradespeople will have retired by ˛˙˜˙. The findings make it clear that a failure to address the trade skills gap could lead to the UK lagging behind government targets for new homes and its plans for domestic decarbonisation. “The shortfall will seriously hamper government house
building targets and threaten its ambitious ten-point plan for a new ‘green industrial revolution’,” says Helen Booth, director of the HomeServe Foundation. “If this is not tackled now – by making it simpler for trade businesses to grow and by scaling up the training and recruitment of apprentices in time – the consequences will be bleak, not just for the industry but for the government’s plan to kick-start the economy postpandemic.” The Index suggests the trades skills gap is compounded by the slump in construction output of around ˚˛% during Covid-hit ˛˙˛˙, which has accelerated an alreadyhigh expected rate of retirements, staff turnover and the permanent return home of overseas workers. An estimated ˛˙̇˙˙˙-plus EU construction workers left Britain in ˛˙˛˙ and the report predicts another ˛˛% drop by ˛˙˜˙. “Left unchecked, our report calculates the skills shortage would impact the cost of hiring skilled workers, leading directly to an increase in house prices and the cost of home repairs and improvements,” adds Booth. “˟˙% of the home improvement
and repairs sector’s output is from firms with nine or fewer workers, therefore, the bulk of the responsibility for recruiting additional, skilled workers to cope with the increased demands will fall on smaller firms, recruiting apprentices from the existing UK population. “We therefore need to make it simple for smaller construction and trade firms to grow and provide better advice, support and incentives. And we need the vision, commitment and financial backing of government to realise the possibilities here.” The HomeServe Foundation aims to plug the apprenticeship gap by helping companies create up to ˛˞̇˙˙˙ new apprenticeships over the next three years.
Revenue boost The report also points out that the government has a lot to gain by boosting apprenticeship numbers, leading to a potential increase in revenue of £˚̍˞ billion. However, despite recent government pledges to address the issue, there has not been any significant growth in the number of youngsters looking to take up an apprenticeship.
A YouGov survey commissioned by national training provider JTL last year revealed that there had only been a ˜% increase since its last survey in ˛˙˚ˠ, when just ˡ% of ˚˞ to ˚ˡ-year-olds had been encouraged towards apprenticeships, compared to ˚˚% in ˛˙˚ˢ. “There is a continuing lack of information shared with learners in school regarding apprenticeships, and understanding of apprenticeships as a career opportunity is still very low,” says JTL chief executive Jon Graham. JTL argues that more needs to be done to address the specific needs of the building services sector, where the incentives being offered to employers are not enough to cover costs. The government currently offers employers an incremental incentive to take on an apprentice of £˜˙˙˙ for ˚˟ to ˚ˡ-year olds, £˛˙˙˙ for ˚ˢ to ˛˝-year olds, and £˚˞˙˙ for over ˛˞s. “The incentives for employers taking on apprentices cannot be one-size-fits-all, as the costs falling on employers for running a four-year apprenticeship in the BSE sector versus a one-year apprenticeship, for example, vary enormously,” says Graham. “To further encourage employers to hire apprentices, the government needs to reconsider the incentives currently being offered.” Plumbing apprenticeship numbers have been particularly hit by the Covid pandemic, but a new industry scheme has recently been unveiled which hopes to attract new talent to the sector. See news story on page ˝ for further details.
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