Addressing the green skills gap

Attempts to decarbonise our housing stock will remain an uphill struggle due to a sufficient supply of green skills. As the social housing sector works towards ambitious targets of EPC C by 2030 and net zero by 2050 (or earlier), the demand for skilled retrofit operatives and clean heat installers has never been more pressing. However, a significant skills gap threatens to derail these efforts, posing challenges to both the housing sector and the broader economy.

The green skills gap refers to the shortage of workers equipped with the knowledge and expertise needed to support the energy transition. For housing this transition involves constructing energy-efficient homes and retrofitting existing homes to improve energy efficiency, installing renewable energy and storage and moving away from fossil fuelled heating.

The range of skills required for this transition includes retrofit assessors, retrofit coordinators, insulation installers, window and door fitters, solar PV and electric battery installers, heat pump installers. We need people skilled in maintenance for new systems and in repairing building components. Supporting the transition will also require administrative staff, project managers, data analysts, funding bid writers, communications experts, resident engagement specialists and many more.

Significant shortages

There are various estimates for the number of skilled workers require in the housing and retrofit sector.

The Heat and Buildings Strategy from 2021 identified a gap of 105,000 energy efficiency installers, as well as gaps of 15,000 for retrofit assessors and 10,000 for retrofit co-ordinators, and the need to train 30,000 people per year over the next five to ten years.[1]

Research from CITB suggests that an additional 350,000 full time workers will be needed by 2028 in the UK construction sector, an increase in 13% of the current workforce. They suggest that additional decarbonisation work will have created the demand for 86,000 construction project managers, 33,000 building envelope specialists and 59,000 plumbers and HVAC specialists.[2]

The Heat Pump Association estimates that, in total, 12,400 installers will be needed by 2025 to install 300,000 heat pumps per year and 50,200 will be needed by 2030 to install one million heat pumps in total.[3]

Currently, there are only 2,070 MCS (Microgeneration Certificate Scheme) certified heat pump installation companies. There are also 4,043 MCS certified solar PV installers in the UK.[4]

Retraining to plug the gap

As eighty per cent of the current workforce will still be active in 2030 there should be a focus on transferring existing skills and retraining to plug the green skills gap.[5]

There are over 150,000 registered gas engineers and, according to an installer survey in 2019, over 50% would be willing to retrain to install low carbon heating systems if there is sufficient demand.[6]

Currently, there is no single route for re-funneling current gas engineers into retraining. Unlike for gas engineers, there is no mandatory qualification on top of the minimum NVQ Level 2 qualification for general heat pump installations. This is despite the fact the government schemes require heat pump installers to be MCS certified to access funding.

The transition of the workforce should not be an opportunity for rogue traders who lack qualifications to enter the market taking advantage of pent-up demand - it should be an opportunity for a skilled workforce to retrain to the benefit of households. Notably, PAS 2035, the framework for delivering whole-house retrofit in the UK, has embedded a requirement for quality standards and processes to de-risk retrofit. It introduces the qualified roles of retrofit assessor and retrofit coordinator but without necessarily providing the corresponding support to deliver the accreditation of the workforce. Much more must be done to identify and up skill qualified retrofit professionals to ensure residents and their homes are protected.

An ageing workforce

There is also a challenge in terms of the ageing workforce. Currently, around a third of Sureserve’s workforce are over 45 and there is a clear need to attract young talent before a large wave of engineers retire. This is both to ensure that skills shortages do not hold back the delivery of efficiency measures, low carbon heat and deep retrofit, and so that experienced engineers can pass on their accumulated knowledge to those at the beginning of their careers. In practice, this means that government needs to draw up a training offer that is both entry-level and enables the transition of an ageing workforce.

Attracting new talent

Sureserve are investing heavily in attracting and training new talent. We are utilising 92% of the apprenticeship levy and 4% of our workforce are on apprenticeships. We are encouraging other organisations, both from within social housing providers and the retrofit supply chain, to maximise their use of apprentices.

Social housing retrofit presents an excellent opportunity for employment from under-represented groups, including people from the same communities that the sector is serving.

More diverse approaches to recruitment into the sector need to be sought, to attract young people entering the workforce looking for future-proof skilled employment that contributes to the climate agenda. By improving equality, diversity and inclusion of the retrofit workforce, we may help to reach more households that require retrofit interventions.

Additional recommendations for closing the skills gap

More touch points should be sought for retraining existing heating engineers. For example, Gas Safe “refresher” courses could be used to offer existing gas engineers funded modular training in certified renewables installations. The Department for Education (DfE) and Department for Energy Security and Net Zero (DESNZ) should work together with certified training providers and the Accredited Certification Scheme to assess and identify how “refreshers” could be used.

We also think that a cross-departmental strategy needs to be developed across DfE, DESNZ and Department for Work and Pensions, to scale up efforts to train more low carbon heat engineers and renewables installers. These departments should work together to assess where the need for engineers and installers is greatest as part of the previously promised net-zero skills strategy. By mapping the need for energy efficiency and low carbon heating measures against the skills required in those areas, and working with further and higher education colleges, more specific skills pathways could be targeted for the areas that need them the most.

The £5m Heat Training Grant is one policy solution,[7] but its offer of £500 discounts towards relevant training schemes should be expanded in terms of scope, ambition and funding.

Useful resources

The National Retrofit Hub has complied a list of courses available for varying levels of qualifications under different skills pathways, such as becoming a retrofit coordinator or a heat pump installer.[8] This might include funded courses from training bodies such as the Retrofit Academy,[9] or free masterclasses or courses from the likes of RISE[10] or Supply Chain Sustainability School.[11]

Conclusion

The green skills gap in the UK housing sector is a significant challenge, but it also presents an opportunity. By investing in education, attracting new talent, upskilling the current workforce, and implementing supportive policies, the UK can build a workforce capable of driving the green transition. This will not only help meet housing EPC and net zero targets but also create a more sustainable and resilient economy for the future.

[1] Heat and buildings strategy - GOV.UK

[2] Net Zero: 350,000 new construction roles to be created by 2028 - CITB

[3] Closing_the_UKs_green_skills_gap.pdf

[4] The MCS Data Dashboard - MCS

[5] Closing_the_UKs_green_skills_gap.pdf

[6] Gas Safe Register At A Glance, 2022/2023; Installer Survey Results October, 2019

[7] Apply for the Heat Training Grant: discounted heat pump training - GOV.UK

[8] Qualifications & Training Map - National Retrofit Hub

[9] Funding & Grants - Retrofit Academy | Training Courses

[10] Home | Retrofit Information, Support and Expertise

[11] Home - Supply Chain Sustainability School