The task of decarbonizing the UK’s residential housing stock to achieve an EPC band C rating by 2035 presents a monumental challenge, especially considering the current shortage of skilled workers in the construction industry. The Construction Leadership Council has reported that the industry currently has fewer than 2% of the necessary workforce required to meet this target. This is particularly concerning given that approximately 29 million homes need upgrades, with the majority being owner-occupied and serviced by small businesses, and the rest split between social housing and private rentals.

Current Situation

The UK construction sector is woefully underprepared to meet the government’s ambitious decarbonization goals. The skills gap is stark, with a significant shortage of trained workers in key areas such as retrofit design, insulation installation, and heat pump installation. The West of England Combined Authority noted that there needs to be a 48-fold increase in solid wall insulation jobs to meet the 2030 net-zero target. The issue is further complicated by the diverse needs across different housing tenures—owner-occupied, social housing, and private rentals—which require different skill sets, funding models, and market dynamics.

Where Are the Shortages?

The industry faces a shortage of over 250,000 new construction-related roles specifically needed for retrofit projects by 2035. Additionally, more than 230,000 current workers need retraining to acquire the necessary retrofit skills, and another 230,000 roles are needed in retrofit-related supply chains. The most critical shortages are in retrofit design and project coordination roles, PAS 2030 accredited workers for external and internal wall insulation (EWI/IWI), and heat pump installers, where an additional 30,000 installers are needed by 2028.

Meeting the Shortages

Addressing these shortages will require a multifaceted approach. Main contractors are beginning to promote PAS 2030 accreditation within their supply chains, but broader industry engagement is needed, particularly among smaller builders. Attracting new talent to the industry is also crucial, and this will likely require repositioning the construction sector as a solution provider to modern challenges, such as the climate crisis. However, this transition will not be simple, as it requires new training programs, updated curricula in schools and colleges, and overcoming the current challenges in recruiting even for traditional roles.

Funding and Challenges

The UK government has allocated some funds towards decarbonization efforts, such as the Social Housing Decarbonisation Fund (SHDF) and Green Home Grants, but these are not sufficient to cover the scale of investment needed, particularly in training and certification. The SHDF, for example, creates demand for retrofitting but does little to address the workforce shortages. Moreover, the process of recruiting and training new workers is slow, and the construction industry is hesitant to invest in training without assurance of long-term demand, which depends on consistent government policy.

Challenges

The main challenge is the sheer scale of the workforce shortage and the time required to develop a sufficiently skilled workforce. This issue is exacerbated by inconsistent government policies and the need to convince homeowners of the economic benefits of retrofitting. Without clear, long-term support and messaging, both from the government and the media, the necessary investment in training and recruitment may not materialize.

Opportunities

Despite these challenges, there is a growing recognition of the need for this work, which could generate significant business opportunities for the construction industry. Those companies that invest in retrofit training now will likely be well-positioned to capitalize on future demand. Collaboration between government and industry is crucial to ensure that the UK meets its net zero carbon goals, turning this massive challenge into a significant opportunity for economic growth and environmental sustainability.