The National Audit Office (NAO) has warned that up to 755,000 new construction workers could be needed to deliver 1.5 million homes and associated infrastructure works by 2030.

For its latest report, the watchdog examined the government’s progress in delivering its £625m construction skills package, announced in March 2025.

According to the NAO, the package, made to support up to 60,000 more construction workers by 2029, is not designed to meet all future workforce needs, with government estimates showing between 201,000 and 755,000 extra workers are required by 2030.

This is before accounting for those who leave the sector for other jobs, with the report arguing that the construction sector has the highest rate of “hard-to-fill vacancies” due to skills shortages, at 45%, compared with a national average of 27%.

It also reveals that foundation apprenticeships, intended to help young people move into entry-level construction jobs, saw just 74 young people start by April 2026, compared with the Department for Work and Pensions’ (DWP’s) assumption of 1,000 in 2025-26.

Gareth Davies, head of the NAO, said: “The government is taking action to address the shortage of skilled construction workers as part of its ambitious commitments for housing, infrastructure and energy efficiency.

“Success will depend on employers having the confidence and capability to offer placements, apprenticeships and jobs.”

While the report welcomes the government’s skills package as a “positive step”, the NAO now recommends the various departments involved in estimating construction worker demand improve how they predict future workforce needs and create a new framework for delivery.

The NAO also recommends that DWP and the Department for Education work together to consider adapting the funding package where initiatives are not delivering as expected.

David Campbell, chief operating officer at the National House Building Council, said: “The report confirms what many across the housebuilding industry have been saying for some time: if we don’t fix the skills shortage, we won’t fix the housing shortage.

“The NAO is right to highlight the importance of employer confidence. Builders will only continue investing in apprentices if they have confidence in future workloads and access to high-quality, flexible training that delivers skilled people quickly.

“No single organisation can solve the construction skills challenge on its own. Government, industry and training providers all have a role to play, and by working together we can create the skilled workforce needed to deliver the high-quality homes the UK urgently needs.”