The Government will only meet its clean energy 2030 or 2050 decarbonised building targets if there is significant new intervention in the UK workforce, says the Commons Energy Security and Net Zero Committee in a report today. It says targeting consumer demand is necessary but not sufficient, and public funding to address the supply of skills directly is needed now.
The Committee calls for ‘local skilled labour’ conditions in Contracts for Difference, an expanded skills passport scheme, a leading role for local authorities, and greater clarity for industry on levies, EPC ratings and the Warm Homes Plan.
The UK needs an estimated 250,000 additional workers just to meet new housing targets, and many more for retrofit. After shocking failures in previous Government-backed retrofit and insulation schemes, the Committee calls for a new, nationally recognised, industry-backed construction and retrofit skills programme.
The energy transition offers substantial opportunity. The Climate Change Committee estimates net employment gains from the energy transition of between 135,000 and 725,000 jobs in the next four years . But the vast majority of these workers will have to train or reskill. The UK may need to import some specific skilled workers from overseas, at least in the short term, to meet its targets.
With up to 70% of those embarking on construction-related FE qualifications not completing or not entering the sector, the Committee says Government should expand and formalise 'try-before-you-buy' training opportunities. SMEs, the backbone of the construction and retrofit supply chain, will need support in taking on inexperienced trainees.
Chair comment
Bill Esterson MP, Chair of the Committee, said:
“It is essential that we build the workforce for the energy transition so that the Government can hit its clean energy targets and, importantly, ensure that the UK makes the most of the growth opportunity of the century.
“The Committee has found that market forces alone cannot overcome the skills gap. We need policy certainty for the long-term, locally directed investment in training, and policies that make clean energy careers attractive and accessible.
“For British workers this isn’t about hitting deadlines; it’s about securing good jobs, driving innovation, and ensuring Britain leads in the global race for clean energy.”
The Committee calls on Government to:
- Put commitments to transition the existing local skilled labour supply into Contracts for Difference, leveraging UK manufacturing content requirements where possible.
- By the end of 2026, set out the options for conditionality that can leverage more skilled immigration in the short-term and crucially boost support for home-grown talent longer-term.
- Empower devolved government across the UK to lead on approaches tailored to local and regional strengths or weaknesses – and facilitate a greater role for local authorities to accelerate the roll-out of retrofit.
- Give the Office for Clean Energy Jobs and Skills England the authority and resources to ensure the necessary consistency that will make skills portable across the country, in both the clean energy and the retrofit workforces.
- Accelerate the adoption of clean energy and retrofit skills policies in the Spending Review, with a ten-year horizon for initiatives and funding which is revised and extended every five years. -Identify how new technologies can bring increases in productivity to help meet the scale of labour demand identified in this inquiry.
- Launch new initiatives to promote clean energy and retrofit careers among under-represented groups and those outside the existing workforce.
- Clarify its stance on how environmental levies will be paid for in future and what role they will play in electricity and gas bills, after welcome moves on the costs in electricity bills in the Budget.
- Clarify its position on revisions to the EPC regime and the role of hydrogen in heating.
- Promptly bring forward the Warm Homes Plan, setting out its estimate of workforce needs and how those needs will be met.