Removing the roadblocks to net zero skills

Head of Policy and Research Sarah Welfare takes a look at the role that Reed in Partnership is playing in supporting the green skills transition – and new Social Market Foundation research on apprenticeships.

There is now no question that having some form of “green” skills on your CV is a clear market advantage. Analysis of LinkedIn data for the World Economic Forum’s 2025 Future of Jobs Report found significantly higher hiring rates worldwide amongst people with green skills compared to others. The latest PwC Green Jobs Barometer found a 9% increase in green job adverts in 2024, despite an overall 22.5% contraction in the overall UK job market. Around one in five jobs are expected to be significantly affected by the transition, but it is likely that few people will be unaffected by the need to learn new skills and ways of working.

For that reason, upskilling and supporting new people into roles that are key to decarbonising the UK’s energy system and infrastructure is recognised by the Government as a priority - both as an opportunity and a risk to the UK meeting its Net Zero targets. But as the work becomes more urgent, we now have a much clearer picture of what needs to be done – and the gaps and barriers we need to close and overcome.

One of the clearest roadblocks is that we don’t have enough skilled trades people, such as electricians and heating engineers. Electrical skills are needed across a whole range of clean energy sectors, while plumbers and heating engineers are also critical when it comes to retrofitting homes and fitting heat pumps. What’s more, these roles represent great opportunities for both school leavers and potential career changers, with excellent pay and progression prospects.

That is why Reed in Partnership is working with our training partner, OEA, to support people to do electrical and plumbing apprenticeships at our two energy academies. Apprenticeships are essential in plugging the skills gap in these trades, because it is important that people are fully qualified to ensure safety and quality. As the Electrical Contractors Association puts it: “England’s electrical circuit has been broken by a shortage of apprenticeship opportunities.”

The vast majority of businesses in the skilled trades are sole traders or very small firms - and we see firsthand how challenging it can be for them to take on and support an apprentice, even though the enthusiasm is there. That is why we worked with the Social Market Foundation think tank to support them to carry out some research on what needs to happen to grow the number of school-leavers taken on as apprentices by skilled trades firms.

The research - based on in-depth interviews with tradespeople and input from a panel of businesses registered with Trustmark, the government-endorsed quality scheme - has produced some very implementable recommendations that we think would increase support for SMEs in recruiting and supporting apprentices. These include:

• building up a local intermediary system for SMEs to support them and link them up with training providers;
• doubling the apprenticeship incentive payment for recruiting under-19 apprentices to £3,000; and
• launching a national campaign to promote the benefits of recruiting young apprentices.

These may be exactly the kind of ideas that the Combined Authorities selected to deliver Youth Guarantee Trailblazers, launched in the recent Get Britain Working White Paper, might want to trial to drive up the numbers of young people starting apprenticeships in their region. In fact, it is exciting to see that the Tees Valley Combined Authority has just launched its new Apprenticeship Levy Matching Service, channelling unspent funds from major firms to SMEs in the region. With high demand amongst young people for apprenticeship places - plus a strong appetite amongst SMEs to offer them - let’s work together to match them up to decarbonise our homes and create good jobs.

Read the full report here: https://www.smf.co.uk/publications/apprenticeships-and-skilled-trades/