UK to train 120,000 local workers under new training policy

As the United Kingdom navigates a politically charged debate over migration, the government has launched a major training initiative aimed at addressing domestic skill shortages while reducing reliance on foreign workers.

But this strategy, which aligns with Labour’s broader economic revival plans faces a key dilemma: can local labour be upskilled fast enough to match soaring demand, or will Britain’s growth ambitions falter under worker shortfalls?

With a record investment in housing and infrastructure planned, the pressure is mounting to ensure that Britain’s workforce is ready. Experts warn that while the political optics of reducing migration may appeal to voters, economic timelines tell a different story.

UK’s new training policy: building skills, facing bottlenecks

According to Bloomberg, the UK government is committing £3 billion ($4.1 billion) to train 120,000 British workers in sectors such as construction, engineering, and social care. The policy includes the creation of 30,000 new apprenticeships and funding support for adult learners across the country.

This effort will be partially funded through a 32 per cent increase in the Immigration Skills Charge, a fee employers pay when they sponsor foreign skilled workers. The move is expected to support an additional 45,000 training placements, helping Britain pivot away from its reliance on overseas labour.

Education Secretary Bridget Phillipson stated, “We’re taking our responsibility seriously by providing more routes into employment.”

However, this training plan comes at a time when Britain’s infrastructure ambitions are at an all-time high. According to a Boston Consulting Group report cited by Bloomberg, the UK is poised to receive £900 billion ($1.2 trillion) in combined public and private infrastructure investment by the end of 2029. Labour’s promise to build 1.5 million homes is at the centre of this economic vision.

Yet, construction, the sector expected to deliver much of this growth and is already battling a shortfall in skilled workers. Many left the country after Brexit, and domestic labour is ageing. Industry leaders argue that the current training pipeline may not be fast or large enough to bridge the gap in time.

“You can’t train bricklayers or care workers overnight,” warned a business executive quoted by Bloomberg. “We’ll see bottlenecks, wage inflation, and project delays.”

Apprenticeships typically take two to five years before workers become job-ready, while housing and infrastructure targets are already on tight timelines.

The Office for Budget Responsibility (OBR) has warned that if migration is cut faster than skills can be developed, the UK could see its GDP growth fall by up to 0.5 percentage points annually.

In light of this, the British Chambers of Commerce is calling for a dual-track approach: continue building domestic capability, but also keep migration pathways open for priority sectors. It has recommended updating the shortage occupation list and streamlining visa access for essential foreign workers in construction, health, and social care.

Migrants and the UK economy

While the political debate often casts migration as a challenge, migrants have historically been a pillar of the UK economy. According to the Office for National Statistics (ONS), 18 per cent of the UK workforce is foreign-born, but their contribution to GDP exceeds 23 per cent.

Migrants are particularly vital in sectors such as construction, hospitality, logistics, and health and social care.

The Institute for Fiscal Studies reports that over 40 per cent of adult social care workers in London and the South East are migrants. In the construction sector, foreign-born workers filled critical gaps for years, a dynamic that has shifted dramatically post-Brexit, resulting in persistent labour shortages.

Labour’s recent moves to tighten English-language requirements and make visa extensions more difficult have raised concerns among employers.

While politically popular among certain voter bases, these measures risk shrinking the available talent pool at a time when Britain is trying to scale up national development.

As the UK transitions to a new labour strategy, policymakers will have to balance domestic training timelines with economic urgency. For now, it appears that migrants remain an essential if politically contentious part of the solution.