Cuts to funding for apprenticeships in Wales will see 565 fewer people join the construction workforce, a report has claimed.
Centre for Enterprise and Business Research (Cebr) analysis for ColegauCymru (CollegesWales) and the National Training Federation for Wales (NTFW) said the sector’s skills shortage will be made worse by the Welsh Government budget cuts.
The analysis estimated a reduction of 565 apprentices in the construction industry, down 25 per cent from 2,255 in Wales in 2022/23.
The analysis said this will cost the Welsh construction sector up to £42.5m in economic output.
It noted that, according to the Construction Industry Training Board, Wales currently experiences a net loss of 300 workers per year, but that meeting industry demand would require it to recruit an extra 2,200 workers annually until 2028.
“Funding cuts to apprenticeships would exacerbate these shortages, limiting the industry’s ability to keep pace with infrastructure and development needs,” it says.
The budget of the Welsh Government’s flagship Apprenticeship Programme was cut by 14 per cent in 2024/25, though it is still worth £143m.
NTFW and ColegauCymru are calling for the apprenticeships budget to be increased to levels seen before European funding was removed.
ColegauCymru chief executive David Hagendyk said: “The data is deeply concerning and underlines the devastating impact of apprenticeship funding cuts on Wales’ economy and our most vulnerable communities. A strong apprenticeships programme is critical for Wales’ economic recovery, equipping individuals and businesses with the skills they need for success.”
NTFW strategic director Lisa Mytton added: “The findings are a stark warning. Without urgent action, we risk long-term damage to Wales’ workforce and economy. Apprenticeships must remain a priority in government funding to secure our future.”
A Welsh government spokesperson said in a statement to Construction News: “We remain committed to degree apprenticeships, maintaining funding for 2024-25 and expanding into new sectors including a rail engineering programme starting this year and new construction programmes which started in September.
“Our shared apprenticeship scheme also continues to support the construction sector. Y Prentis is funded by Welsh government and the Construction Industry Training Board (CITB) and employs apprentices across a range of construction trades. It has helped train more than 500 apprentices to date.”
Last week, the UK Government announced plans to invest £140m to create 5,000 more construction apprenticeships in England, through the creation of “up to” 32 new Homebuilding Skills Hubs.
