Chronic shortage of trades could hike up repair bills and house prices - report

A chronic shortage of plumbers, electricians and carpenters could hamper economic growth over the next ten years and stoke up home repair bills and house prices, a new HomeServe Foundation report has revealed.

According to the Homeserve Foundation 's UK Trades Skills Index, the UK must urgently expand its apprenticeship schemes, with new construction trades apprentices needed to fill the void left behind by an ageing workforce, Covid-hit skills shortage and a drain of European skilled labour.

A fifth of construction workers are aged 55 or over and will retire before 2030, an estimated 20,000-plus EU construction workers left Britain in 2020 and the report predicts another 22 per cent drop by 2030.

Within the construction sector, the report reveals a need to recruit 228,000 key trades apprentices. Just under two thirds (61 per cent) of those are plumbers, electricians and joiners.

Without plugging a 1.25million recruitment gap for construction workers, and a projected 305,000 shortfall in construction sector apprenticeship numbers, over the next decade, home repair bills and house prices could rocket, as demand for home improvements looks set to significantly outstrip capacity, the report says.

The report calculated that investment required to plug the gap (based on current spending levels), would eventually pay off, netting a cumulative £1.5billion for the Exchequer through taxes paid and benefits saved and lower Government borrowing. This was calculated under the assumption that the increase in apprenticeship recruitment begins this year.

Without a plan to tackle the projected chronic lack of trade skill apprenticeships, the HomeServe Foundation say that the shortfall could “seriously hamper ” economic recovery after the pandemic.

Helen Booth, director of the HomeServe Foundation, said: “Through this new index of trades skills we can clearly see the industry faces a perfect storm.

“We have an ageing workforce; a chronic trades skills shortage made worse by the impacts of Covid; and a European skilled labour drain which will, if unchecked, deplete the UK 's trades skills base to crisis levels and seriously hamper our nation 's economic recovery.

“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 and reach its Net Zero milestones over the next decade. ”

The HomeServe Foundation, the not-for-profit arm of FTSE 250-listed HomeServe PLC, is now calling on the construction and trade industry to back its call for the Government to do more in boosting apprenticeships to close the skills gap.

“Apprenticeships are the most common route of entry into the trades sector; the majority tend to be younger, ” Helen added. “We hear a lot about incentives to install boilers using renewable energy and decarbonising our homes, but the workforce isn 't there to do it - or service and repair it further down the line.

“Investment now in skills for young people must be a priority, even despite pandemic spending restraints. ”

Paul Faulkner (pictured), chief executive of Greater Birmingham Chambers of Commerce, echoed HomeServe Foundation 's calls for further action in order to avoid long-term, negative impacts on the economy as a result of skills shortfalls.

He said: “Apprenticeships are crucial to up- and re-skilling our local population to meet the needs of employers. Alongside skills shortfalls brought about by ageing workforces and Brexit, we have seen a drastic decline in apprenticeship starts due to the economic impact of the coronavirus pandemic.

“There will be significant, long term negative impacts to both individuals and our economy if further actions are not taken by the Government to help boost apprenticeship numbers.

“Beyond this National Apprenticeship Week, attracting and engaging talent - through mechanisms such as apprenticeships - will be a key theme throughout our upcoming Growth Through People campaign. Growth Through People seeks to help local leaders and people managers enact best practice advice in tackling key challenges, including many brought about by the ongoing pandemic. I encourage any readers interested in exploring subjects such as on boarding talent and maintaining staff engagement remotely to register to attend the campaign webinars and digital conference. ”

The UK Domestic Trade Skills Index was commissioned by the HomeServe Foundation from Capital Economics, and will be produced quarterly to report on the nation 's progress on trade skills.

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