Construction Sector: Skills Shortage

Lord McLoughlin Excerpts

Monday 29th June 2026 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The noble Lord is right. What is more, of course, small businesses are often the businesses that offer apprenticeships to young people and to people from disadvantaged backgrounds. That is why Skills England is focused on engaging with small businesses to help them understand the range of opportunities there. It is why we are introducing a new apprenticeship hiring payment of £2,000 for small businesses that take on 16 to 24 year-old apprentices. It is why, from August this year, we will also fully fund apprenticeship training for small businesses for eligible people aged 16 to 24. It is why no employer is required to pay employer national insurance contributions for employees under 21 or apprentices under 25, and it is why the Construction Industry Training Board’s new entrant support team is working to provide practical support to employers, particularly SMEs, who are recruiting apprentices.

[Lord McLoughlin (Con)]

My Lords, what role will the Government take in directing the infrastructure projects that they are responsible for to ensure that the companies participating in those projects take enough apprenticeships and give the proper training via the longer opportunities which those companies can naturally provide?

[Baroness Smith of Malvern (Lab)]

The noble Lord makes a really important point about the power of government procurement. Many of those contracts already require support for training, and particularly apprenticeships. For example, in the estates strategy in the Department for Education, we expect, if I remember rightly, 8,000 additional training places to be provided as a result of the investment that we are putting into maintaining and rebuilding schools.