MD3493 London Construction Skills Package

1.1.    The government wants to build 1.5 million homes over this Parliament. It also wants to build new transport and energy infrastructure both central to long-term economic growth and good jobs. This aligns with the Mayor’s target of building 88,000 new homes a year and the London Growth Plan’s (LGP) ambition to increase investment in London’s infrastructure, from clean energy to better public transport.  

1.2.    This decision form sets out the approach to delivering an expanded Construction Skills Package (CSP), alongside other interventions such as new Construction Technical Excellence Colleges (CTECs)  in London, that will help meet demand and a more employer-led system in the capital. The approach is proposed to maximise employer impact, coordinate strands, reduce duplication, and enable an overarching CSP offer to be described to employers and Londoners. This includes a possibility of establishing a brokerage that builds a single relationship with employers and grows participation, especially for small-to-medium sized enterprises (SMEs) and the self-employed supply chain working with the new Talent board and the pan London sector hub.

1.3.    The Construction and Built Environment (C&BE) sector is central to delivering London’s housing and wider infrastructure but faces key challenges in meeting this demand. The C&BE workforce faces a recruitment crunch. A large share of the current workforce is nearing retirement, and the sector does not reflect London’s population. Young people, women, and Black and minority ethnic Londoners remain underrepresented. For example, only 17 per cent of construction workers are aged under 30.  

1.4.    Employer investment in training is also a challenge and linked to recruitment. Construction apprenticeships make up a smaller share of total achievements compared with other UK regions (7.4 per cent against 16.1 per cent). There is an increasing shift towards higher level apprenticeships (Level Four and above) with these making up around four in ten construction apprenticeship achievements in 2024-25.  However, a majority of skilled construction trade roles are Level Two to Three.

1.5.    The growing demand in green skills will also require increased upskilling across the C&BE workforce, from technical installation like heat pumps, through to a broad understanding of retrofit and sustainability. An apprenticeship can bring in these skills;  however, a growing number of already qualified construction workers will need to train (upskill), to gain new green skills and knowledge. At present, there is limited provision of training and upskilling. 

1.6.    Micro-enterprise (zero-nine employees) make up 96.5 per cent of construction businesses and 44 per cent of construction workers are self-employed, both considerably higher than in other London industries.  This trend reflects high levels of self-employment and small-scale contracting. The extended use of sub-contracting in construction projects moves the relevant employer delivering work ‘on the ground’ further down the supply chain. Smaller firms have more limited capacity to engage with the skills system and take on an apprentice. This is a reason for London having the lowest number of apprenticeship starts in construction of any English region.

1.7.    The CSP aligns with the Supporting Londoners to Benefit from Growth (SLBG) programme to realise the Mayor’s vision outlined in the Inclusive Talent Strategy (ITS). The Strategy, developed by the Mayor and London Councils, responds to challenges faced by London’s growth sectors. The ITS aims to meet the ambitions of the LGP by ensuring London has the pipeline of talent for growth. To achieve this, the ITS sets out three key actions: establish an employer-led skills system with the Mayor’s Sector Talent Boards (STBs) playing a central role in making sure training delivers the skills they need; develop a more integrated skills and employment system so Londoners can access the training, careers advice and work opportunities to move into good jobs; addressing barriers to retaining talent – from building the housing and public transport systems a growing workforce needs, through to supporting employers to recruit from a wider talent pool. 

1.8.    The CSP funding allocated to London will provide additional resource to addressing these challenges and support the aims of the ITS, supporting the Mayor’s employer-led approach to the capital’s skills system. Addressing this culture will require a coordinated employer approach across the CSP. There is a strategic risk to the CSP if the different strands lead to an uncoordinated offer and limited promotion of the whole programme. This would miss the opportunity to build partnerships with employers, tailoring the approach to both large and small to medium sized enterprises (SME)-micro businesses and using the funding more efficiently. The Mayor’s interim and permanent C&BE Talent Board will play an important strategic role in shaping the CSP’s delivery priorities in London.

1.9.    It is proposed, to maximise the efficient administration of the programme that the commissioning documentation, grant and contract recommendations for the CSP, be approved by the Assistant Directors - Skills and Employment and as part of the local management arrangements without a further decision form. Similarly, management costs (excluding salaries and GLA overhead costs which are fixed as part of GLA processes) will require the approval in the same way. Any further approvals required for the ASF funding will require approvals via the ASF decision-making processes, which currently cannot be delegated. It should be noted that ASF governance arrangements are shortly expected to change with the introduction of the Integrated Settlement and any decisions made after this point will be subject to the new arrangements.

1.10.    Some funding for the CSP has already received approval or is pending approval. Details of these are out in Section Two. This Decision form brings together all elements of the CSP programme.
 

2.1.    Through the CSP, we are aiming to achieve the following key outcomes which align with the ambitions set out in the Inclusive Talent Strategy:

•    addressing labour shortages and skills gaps in major GLA and borough-level construction schemes by increasing the number of skilled construction workers
•    supporting construction employers, particularly SMEs and micro-business, to recruit and upskill their workforces, including in green skills and increases their influence over London’s construction training 
•    creating clear and accessible pathways into construction for Londoners, supporting in work training through apprenticeships, and other work-based training, and career development 
•    increasing diversity in construction through targeted strategies to provide training that prepares Londoners to be work-ready, including through structured work placement, support for young people who are not in education, employment or training (NEET)

•    building the capacity of London’s further education (FE) sector to deliver high quality construction training that meets employer demand.

2.2.    The CSP brings an additional circa £88.6m of funding to London to between 2025-26 to 2029-30. A significant portion of the funding forms part of the GLA’s Integrated Settlement with government from 2026-27. CSP in London is made up of six strands. The funding and outcomes for each strand are set out below.

2.3.    The GLA has agreed with government the CSP outcomes to be included in the Integrated Settlement Outcomes Framework (ISOF). These are: Number of additional construction enrolments; Number of construction course achievements; Number of teaching days delivered by industry professionals within FE settings; Number of industry placements completed. There are ongoing discussions to review the targets for these outcomes. The final agreed targets will be set out in the ISOF. Therefore, target figures included below are provisional.

Strand One: Adult Skills Fund (SLBG project: Essential Skills and progression pathways)

2.4.    An additional £19,054,328 Adult Skills Fund (ASF) investment to increase the number of construction courses delivered in London and growing the number of Londoners with construction skills. £4,763,582 of this funding was received in 2025-26 and is covered by Mayoral Decision (MD)3409. 

2.5.    The £4,763,582 of CSP ASF funding for the 2026-27 academic year is covered through MD3481 – 2026-27 Adult Skills Fund (ASF) Final Allocations and 2025-26 ASF Funding Adjustments. This allocates around £3.1m across grantees based on delivery in 2025-26 academic year and interim report updates from providers. Up to £1m of the remaining funding will be competitively commissioned following the C&BE Talent Board recommendations.

Strand Two: Skills Bootcamps (SLBG project: Talent Pipelines for London’s key sectors)

2.6.    An additional £11,347,428 Skills Bootcamps funding will increase the number of construction Bootcamps delivered in London and Londoners with construction skills employers need. This includes green construction training, such as Air Source Heat Pump installation and retrofit assessment. £2,965,329 of this funding was received in 2025-26 and is covered by MD3409. 

2.7.    The £8,382,099 of Skills Bootcamps CSP funding during the Integrated Settlement period (2026-27 to 2028-29) is covered by Director Decision (DD)2786. 

2.8.    Strand One and Strand Two: Both the CSP ASF and Skills Bootcamp will contribute directly to the GLA’s ISOF targets for enrolments (19,140) and achievements (14,400). These targets are pending final agreement with Government.

2.9.    The CSP ASF and Skills Bootcamps funding will grow the number of constructions learning aims being delivered in London and the talent pipelines for London. These will be shaped by the C&BE Talent Board and London’s Local Skills Improvement Plan (LSIP) priorities. 

2.10.    The additional funding, and flexibility through the inclusion in the Integrated Settlement, will allow the GLA to develop new approaches to ASF and Bootcamp commissioning.

Strand Three: Industry Placements (SLBG Project: Talent Pipelines for Londoners key sectors)

2.11.    An additional £13,721,911 (between 2026-27 to 2028-29 only) for Industry Placements (IP). This funding will deliver the 14,180 Industry Placements ISOF outcomes during this period, pending agreement of targets with Government.

2.12.    The IPs will provide Londoners on construction qualifications with a minimum of three weeks of work experience in the C&BE sector. The placements will support learners to gain practical experience and knowledge of the sector. This will strengthen their employability through having a better understanding of the sector or sub-sectors, recruitment and career opportunities and developing job-ready skills needed by employers. 

2.13.    The GLA expects the IP strand to include 16-18 year olds and adult learners who are on construction courses. The placements are expected to be with C&BE employers, last for a minimum of three weeks, although can be delivered in more than one block. This is subject to final guidance being received from Government. The GLA will work with the C&BE Talent Board in developing the IP strand. In doing so, the GLA will also identify where the IP strand can support employer engagement across the CSP programme.

2.14.    A separate Director Decision may be required to seek approval for the detailed approach and cover expenditure of the Industry Placement budget once further guidance is available from DfE which is expected later in March 2026. This will take place in line with the delegations granted to the Executive Director – Communities and Skills under MD3395 as Senior Responsible Officer for the SLBG programme.  Where the approach to commissioning is direct open competition, then this will be done in line with the GLA Contracts and Funding Code. 

Strand Four: Further Education Teacher Industry Exchange (SLBG Project: Boosting teaching capacity and capability for London’s FE sector)

2.15.    The Further Education Teacher Industry Exchange (FE TIE) strand provides £1,293,275.97 from 2025-26 to 2028-29 and will deliver 2,760 teacher days delivered by construction industry professional in London’s FE sector, pending agreement of target with Government. The funding and outcomes for 2025-26 are covered in separate Director’s Decision.

2.16.    FETIE aims to improve the quality of construction teaching in FE and in its capacity to deliver industry-level training. It will do this through building partnerships with industry to provide skilled and experienced workers in the C&BE sector to boost the capacity of London FE to deliver high quality, industry relevant construction training. Examples of activity can include running masterclasses, the co-design and delivery of specialist content in the curriculum and providing careers workshops. 

 
2.17.    The £223,211.97 mobilisation funding allocated in 2025-26 (Phase One) is proposed to be delivered through the Pan-London Construction and Built Environment sector Hub where governance approvals permit, as the Hub is specifically designed to broker employer engagement, match employers with FE providers, and coordinate sector-wide activity. Interim human resource will support brokerage administration as required.

2.18.    Phase one has an estimated target of 90 teaching days delivered by construction industry professionals in adult education settings agreed with DfE and it will inform delivery of FE TIE during the Integrated Settlement period. The GLA will assess the potential for a single employer brokerage service for the CSP during this period, including to provide direct support to employers across the FE TIE, Industry Placements and Capital strands.

Capital Strand Five and Strand Six: Project-based and Construction Technical Excellence College (SLBG Project: Boosting teaching capacity and capability for London’s FE sector)

2.19.    The CSP brings an additional £43,148,769 of capital funding between 2025-26 to 2029-30 through the Project-based (£22,127,573) and Construction Technical Excellence College (£21,021,196) strands of the CSP. The total investment will expand the capacity in statutory FE providers (i.e. FE colleges, designated institutions, Sixth Form Colleges and 16-19 academies) to increase the number of construction training places available in London to meet demand. The funding will create suitable facilities equipped to deliver current and future construction skills.

 
2.20.    The Project-based capital strand (five) will support investment in construction training that has been identified by employers. It will look to attract employer co-investment, both cash and in-kind, where possible. 

2.21.    The CTEC strand (six) will support London’s CTEC, New City College (NCC), and its spokes to build its capacity to deliver high quality construction training. The GLA will work with NCC in developing the CTEC strand. The GLA will draw on previous skills capital investment in shaping targets as part of reaching agreement with the DfE. 

2.22.    The GLA will agree targets with the DfE for the following outcomes:

•    number of additional construction skills learning places created by the funding (Capital strands)
•    level of employer investment secured (Project-based only)
•    number of employers participating (Project-based only).

2.23.    The GLA will look to commission activity from early 2026-27, combining the CTEC and Project-based strands into a single prospectus with submissions managed by GLA OPS. Further consideration is being given to whether to schedule this across more than one round.

2.24.    Initial funding will prioritise high-readiness equipment, refurbishment and build projects, which expand capacity and enable high‑quality training delivery. Suitable facilities will be equipped to deliver current and future construction skills aligned with the needs of employers. Projects should offer good value for money and to support the Government’s target of achieving net zero carbon emissions.

2.25.    Project delivery is anticipated to be one to three years from award to practical completion with timelines dependent on project scale and complexity. Lessons learned from previous capital delivery are being incorporated into new design to improve risk management and deliverability.

2.26.    The GLA will allocate funding via a combination of routes including possibly directly to London’s CTEC and any proposed ‘super spokes’ selected by London’s CTEC and through open competition to suitable providers. A separate Director Decision may be required to seek further approval should further DfE guidance necessitate a change of approach. Where required this will take place in line with the delegations granted to the Executive Director – Communities and Skills under MD3395 as Senior Responsible Officer for the SLBG programme.  

2.27.    The GLA is requesting approval to convert up to 10 per cent of the Integrated Settlement capital funding into revenue to cover management and administration activities including programme management staff salaries and overheads, any employer and provider brokerage services, programme evaluation and GLA contract management system (if required). About 10 per cent of the 2026-27 capital strands only (£1m) will be requested as revenue in the first instance whilst further requests will be subject to internal approvals based on need as the programme develops. It may be case that no further revenue funding will be required for further years once the model of delivery is established and mature.        

Other CSP activity

2.28.    The GLA will identify opportunities for CSP strands to share resources where this can reduce duplication and improve overall efficiency and impact. This may include shared functions such as programme management, administration, communication and promotion and employer engagement. For example, the GLA is exploring the potential for shared employer brokerage activity across the FE TIE, Industry Placements and Capital strands. The GLA is exploring to design CSP funding mechanisms to ensure the efficiency and effectiveness of each strand and overall programme.

2.29.    The GLA will endeavour to communicate the CSP strands as a whole programme. This will engage employers, providers and other stakeholders in the overall ambition of the CSP and opportunities to be involved across two or more strands.

2.30.    Expenditure on management and administration (M&A) of the workstream will be based on an average of 10 per cent of the total funding available in each financial year. M&A spend will be managed in line with business needs and to support programme delivery. Commissioning of any external resources will be approved by the Assistant Directors - Skills and Employment via a contract award recommendation. Procurement of services will be completed competitively in line with GLA Contracts and Funding Code.

2.31.    The expenditure of any additional funding for CSP activity will be subject to SLBG governance processes and the GLA’s Contracts and Funding Code.

2.32.    Where making decisions in exercise of the delegation proposed in this decision form, the Assistant Directors – Skills & Employment will ensure compliance with the obligations set out in The Openness of Local Government Bodies Regulations 2014 which describe when written records of decisions and their content need to be published. Assistant Director Decisions will be required where appropriate to meet these transparency requirements, including in instances where GLA funds are paid to external organisations. Decisions as appropriate will be discussed with the Senior Responsible Owner for the SLBG programme which has overarching responsibility of delivery of the programme. 
 

3.1.    Under section 149 of the Equality Act 2010, as a public authority, the GLA (including the Mayor of London) must comply with the Public Sector Equality Duty (PSED) when exercising its functions. The PSED is a duty to have due regard to: 

•    the need to eliminate unlawful discrimination, harassment and victimisation, and any conduct that is prohibited by or under the Equality Act 2010
•    advance equality of opportunity, and foster good relations, between people who share a ‘protected characteristic’ as defined in the Equality Act 2010 and those who do not. 

3.2.    The protected characteristics under section 149 of the Equality Act are: age, disability, gender reassignment, pregnancy and maternity, marital or civil partnership status, race, religion or belief, sex, and sexual orientation. Compliance with the duty may involve ensuring people with a protected characteristic are provided with all the opportunities that those without the characteristic would have. 

3.3.    This involves having due regard to the need to remove or minimise any disadvantage suffered by those who share a relevant protected characteristic that is connected to that characteristic; taking steps to meet the different needs of such people; and encouraging them to participate in public life or in any other activity where their participation is disproportionately low. 

3.4.    The expanded construction skills package will prioritise the inclusion of underrepresented groups, particularly women, and minoritised Londoners, through targeted outreach and tailored support pathways.

3.5.    The GLA will work with employers, training providers, and unions to ensure more accessible recruitment and workplace practices, including through inclusive curriculum design and alignment with apprenticeship and training delivery. 

3.6.    Existing Skills and Employment programmes have carried out Equalities Impact Assessment (EQIA).  An EQIA will be conducted where any new approach is developed to allocate funding to innovative approaches.
 

Key risks and issues

4.1.    The key risks and issues arising are laid out below:

Links to Mayoral strategies and priorities

4.2.    As set out in the Building More Homes Programme Delivery Plan (as approved under MD3378), the Mayor’s target is to build 87,992 new homes a year in London from 2026, part of the government’s target of 1.5 new homes nationally. The Mayor is committed to building 40,000 new council homes by 2030, which is included in the London new homes target.

4.3.    The LGP sets out an ambition for investment to decarbonise London’s infrastructure. This is based on the Mayor’s preferred pathway to net zero by 2030 which estimates £75bn of investment is needed. This will create thousands of jobs, many of which will be in construction and the wider built environment. The LGP sets out a priority for the Inclusive Talent Strategy to coordinate training that focuses on filling these jobs.

4.4.    The CSP will support the Mayor’s Equality, Diversity and Inclusion Strategy’s objective to help increase the diversity of workforces in vital sectors, including construction, by focus training and employment opportunities on minoritised Londoners. 

4.5.    The SLBG programme aims to establish sector-focused pipelines into construction, building an employer-led Inclusive Talent System working closely with the C&BE Talent Board in shaping the programme and boosting teaching capacity and capability for London’s adult education sector.  

Conflicts of interest

4.6.    There are no conflicts of interest to note from those involved in the drafting or clearance of this decision form.

5.1.    Approval is sought for the GLA’s receipt and expenditure of funding for the Construction Skills Package (CSP) in London of £88,565,712 from 2025-26 to 2029-30.

5.2.    The Government has allocated £88,565,712 (a mixture of revenue and capital funding) to the Mayor for construction skills between 2025‑26 and 2029‑30 as part of its Construction Skills Package (CSP). £54,369,619 of the package is covered under the integrated settlement period of 2026-27 to 2028-29 and £8,747,990 is indicated funding for 2029-30 subject to Spending Review confirmation, whilst the remaining of the funding will be released in 2025-26 to be spent in the future years

5.3.    Breakdown of funding across the financial years is shown in the table below:

5.4.    Any budget commitments for future years are subject to the annual budget setting process and available funds.

5.5.    Any contracts that commit the GLA in future years will be subject to appropriate break clauses.

5.6.    There are no additional financial implications as a result of this decision.

6.1    The foregoing sections of this report indicate that certain of the decisions requested of the Mayor concern the exercise of the:

•    GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation, social development or the promotion of the improvement of the environment in Greater London and in formulating the proposals in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to:

o    pay due regard to the principle that there should be equality of opportunity for all people
o    consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom
o    consult with appropriate bodies

•    ministerial functions delegated, by the Secretary of State for Education, to the Mayor pursuant to pursuant to section 39A of the Greater London Authority Act 1999.

6.2    In taking the decisions requested, the Mayor must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity and foster good relations between persons who share a relevant protected characteristic (age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation) and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section three (above) of this report.

6.3    The Mayor may delegate the exercise of the GLA’s powers to each of the Assistant Directors – Skills & Employment as proposed pursuant to s.38 of the of Greater London Authority Act 1999.

6.4    If the Mayor makes the decisions sought, officers must ensure that:

•    no reliance is placed, nor commitments made which rely upon the availability of future years budgets, or any third-party funding (whether Integrated Settlement, ASF or otherwise) which is not yet secured either by definitive GLA approval or in the case of third-party funding, binding legal commitments from the funders
•    any award of grant funding is made:

o    in accordance with any specific conditions of third party funders including (without limitation)  those set out in Integrated Settlement Outcomes Framework  
o    fairly, transparently, in accordance with the GLA’s equalities requirements and with the requirements of GLA’s Contracts and Funding Code and funding agreements are put in place between and/or varied (as applicable) and executed by the GLA and recipients before any commitment to fund is made
o    in compliance with the principles set out in the Subsidy Control Act 2022; and, where the total of such funding to any one recipient exceeds £100,000 in aggregate (whether approved under cover of this or any other approval paper), they register the grant on the Department for Business, Energy, and Industrial Strategy’s Transparency Database

•    all services, supplies or works required are procured in liaison with TfL Procurement and in accordance with the GLA’s Contracts and Funding Code; and contracts are put in place between and executed by the GLA and contractors before commencement of such services.

6.5    To the extent to which proposals in respect of which decisions are sought involve the making of commitments which extend beyond the current Mayoral term, officers must ensure that the terms of all agreements entered into in respect of the expenditure do not have the effect of fettering the discretion of any successor administration, considering in particular the London elections taking place in May 2028. Accordingly, officers must ensure that all agreements which involve making such commitments include a GLA right to terminate at any point for convenience and all such agreements are managed in such a manner, and any services, supplies, works deliverables, milestones and/or output requirements are structured so as to mitigate risks of the GLA incurring abortive expenditure (which might be reasonably be taken to fetter, practically, the exercise of such discretion).