Emma Reynolds MP, Labour’s Shadow Housing Minister, in a speech to the Home Builders Federation Conference in London, will argue that Labour’s plans to increase house building to at least 200,000 homes a year by 2020 should create up to 230,000 jobs, as well as apprenticeship and training opportunities for young people.
But, with a moderate recovery underway in house building, she will highlight the fact that we are already seeing warnings of looming skill shortages amid expectation that vacancies are most likely to be filled by migrants from other European countries.
Emma Reynolds will argue that it is simply unacceptable that a big increase in house building would not increase training, apprenticeships and employment opportunities when youth unemployment remains stubbornly and unacceptably high.
Reynolds will say that the industry should work in partnership with a Labour Government to tackle the skills gap:
“With over 900,000 of our young people unemployed – we need to do better.
"I believe that an active partnership between the industry and a future Labour Government, can work to turn an emerging issue on skills, into a huge opportunity.”
Reynolds will outline Labour’s plans to increase the quantity and quality of apprenticeships:
“We will offer house building and construction employers a something-for-something deal.
"We will give employers greater control of money for training and powers to set training standards that genuinely meet your interests and those of young people, but in return we ask that you work to increase the number of high quality apprenticeships in the industry and through your supply chains.
"We are also determined to protect the apprenticeship ‘brand’ from being devalued by low quality courses.
"We want to work with you towards a system in which all the house building and construction apprenticeships are level 3 qualifications and last a minimum of two years.”
Reynolds will say that the public sector must take a lead to drive up the quantity and quality of apprenticeships:
“We want to see Local Authorities use procurement to create more opportunities by requiring all major contracts to offer a level of training and employment of young people.
"And central government must do the same. It was a mistake to remove the Homes and Communities Agency guidance for introducing and monitoring employment commitments in housing contracts for projects that were partly funded using social housing grant.
"As a consequence, since 2011, the HCA has had no national target on apprenticeships.
"I want to see that guidance restored so that there are minimum training standards for any organisation in receipt of social housing grant.”
Reynolds will argue that the industry should be more innovative in how it recruits talent and will point to the armed forces as a potential source:
“As well as boosting the apprenticeship opportunities for young people, there is also an urgent need here and now.
"That’s why we also need to recruit those with experience or knowledge from other industries – one such source of talent is the armed forces.
Many of our ex-armed forces have the right skills such as leadership, team-work and logistics, as well as many who are trained in the trades, to make a big contribution the industry.”
Reynolds will say the industry lacks diversity from the building site to the board room and will call on the industry to widen its talent pool as part of a future skills strategy:
“And there is a clear lack of diversity.
"But the problem is not just on building sites – it is also in the boardroom.
"If the industry is serious about bringing new talent into the industry, it must widen the talent pool and overhaul its image.
"It is essential that as part of any skills strategy, the need to boost diversity amongst women and ethnic minority groups is taken seriously.”
1. Apprenticeships: Ms Reynolds will highlight new figures on apprenticeships from the House of Commons Library which show:
• Starts in construction apprenticeships have fallen by 460 from 14,070 to 13,610 since 2009/10 (-3.3 per cent).
• Completions in construction apprenticeships have fallen by 8,030 from 11,790 to 3,760 since 2009/10 (-68.1 per cent)
• Starts in construction, planning and the build environment have fallen by 6,820 from 20,550 to 13,730 since 2009/10 (-33.2 per cent)
• Completions in construction, planning and the build environment have fallen by 7,830 from 16,890 to 9,060 since 2009/10 (-46.4 per cent)
2. Diversity: Ms Reynolds will highlight new and existing figures which show the lack of diversity in the industry:
• Research by Labour shows that of the top nine house builders boards there are 86 board members, only 15 of which are women – less than 18 percent. Of those 15 women, 13 are non-executive directors. And not one female Chief Executive or Chairman.
• Separate research shows that fewer than 2 per cent of employees at trade level are female, and women make up only 13 per cent of the workforce overall. Ethnic minorities are similarly unrepresented.
3. The Skills Gap:
• Hundreds of thousands of jobs are likely to be created as a result of Labour’s plans to increase housebuilding to at least 200,000 a year by 2020.
• But with thousands of jobs lost in the downturn and with an aging workforce – 450,000 are expected to retire from construction over the next ten years – skills gaps are already emerging despite only a modest increase in house building.
• Over a third of respondents to a recent industry survey said that labour shortages are already restricting building with skills shortages increasing across all trades.
• In another survey one in twenty of those contractors asked said they were at risk of collapsing due to a lack of talent joining the industry.
4. Armed Forces:
• 30,000 armed forces personnel including soldiers, sailors and will be cut in total in the UK by 2020.
• This is in addition to the 18,500 service leavers that come in to the civilian job market every year, many with transferable skills in project management or logistics.
5. House building:
• House building is at the lowest level in peacetime since the 1920s.
• Over the past year, only 109,370 homes were completed in England – less than half the number we need to keep up with demand.
• Labour has committed to getting 200,000 homes built a year by 2020 which could create up to 230,000 jobs.