Government warned on clean energy skills gap

A new report from the House of Commons Energy Security and Net Zero Committee (ESNZ) warns that the UK will miss its 2030 and 2050 clean energy and decarbonised building targets without a major overhaul of workforce policy. The Committee argues that consumer-focused incentives alone will not deliver the scale of change required. Instead, immediate public investment in developing the clean energy workforce, construction skills pipeline, and national retrofit capability is essential.

Clear message

At the centre of the Committee’s findings is a clear message: the UK faces a substantial skills shortage across both new-build and retrofit. An estimated 250,000 additional workers are needed to meet housing delivery targets, and many more will be required to support national retrofit programmes. Past failures in Government-backed insulation and retrofit schemes underline the need for a stable, nationally recognised training framework that can support long-term delivery.

Coordinated approach

The Committee calls for a coordinated approach that links clean energy skills development, construction workforce planning, and long-term decarbonisation policy. This includes embedding ‘local skilled labour’ requirements into Contracts for Difference, expanding the clean energy skills passport scheme, and enabling local authorities to take a more active role in retrofit delivery. Industry also needs greater clarity on environmental levies, EPC reform, and the Government’s long-awaited Warm Homes Plan.

Energy transition

The energy transition is expected to generate substantial employment opportunities. The Climate Change Committee projects net gains of between 135,000 and 725,000 jobs over the next four years. However, most of these roles will require training or reskilling. The Committee acknowledges that the UK may need to draw on specialist overseas labour in the short term, but emphasises that long-term success depends on developing home-grown talent.

Persistent challenge

One persistent challenge is the high drop-out rate across construction-related further education courses. Up to 70% of learners do not complete or do not enter the sector. To address this, the Committee recommends expanding ‘try-before-you-buy’ training pathways that give learners practical exposure before committing to a career. Support for SMEs, central to the UK construction and retrofit supply chain, will also be crucial, especially when taking on inexperienced trainees.

Energy workforce

Bill Esterson MP, Chair of the ESNZ Committee, stresses that a robust clean energy workforce is fundamental to meeting national targets and unlocking economic opportunity. Market forces alone, he argues, will not close the construction skills gap. Long-term policy certainty, targeted investment, and accessible career pathways are necessary to build a workforce capable of delivering the UK’s clean energy transition and retrofit programmes at scale.

Addressing skills shortage

To address the clean energy skills shortage and accelerate progress towards decarbonised buildings, the Committee urges the Government to:

Embed commitments to local labour supply within Contracts for Difference.
Outline options for targeted skilled immigration by 2026 while strengthening domestic training.
Empower devolved governments and local authorities to drive region-specific retrofit strategies.
Equip the Office for Clean Energy Jobs and Skills England with the authority to ensure consistent, portable skills standards.
Adopt long-term clean energy and retrofit workforce policies within the Spending Review.
Identify productivity benefits from emerging construction and clean energy technologies.
Promote clean energy and retrofit careers to underrepresented groups.
Clarify future environmental levy arrangements and their impact on energy bills.
Clarify the future of EPCs and the role of hydrogen in heating.
Publish the Warm Homes Plan with clear workforce projections.

The ESNZ Committee’s report sets out a direct challenge: without immediate intervention, the UK risks falling behind its clean energy and decarbonised building goals. Addressing the construction skills gap, expanding the retrofit workforce, and providing the industry with policy clarity are now central to delivering a resilient, future-ready energy system.

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