Overview

This bill mandates that public authorities in the UK, when awarding major construction contracts (over £50 million), require contractors to provide apprenticeships and extensive skills training for their workforce, promoting local employment and skill development.

Description

The Major Capital Contracts (Skills Training Requirements) Bill aims to boost skills and apprenticeships within the construction industry. Key aspects include:

• Apprenticeship Requirement: Contractors must maintain a minimum average of 2% apprentices or advanced apprentices within their workforce on major capital projects.
• Skills Training Mandate: Contractors must provide continuous skills training to all workforce members (full-time, part-time, casual, directly employed, and subcontracted) for the duration of the contract, equating to at least one hour per week per worker. This training must be nationally accredited.
• Ongoing Training Fund: Contractors must fund a minimum of 1% of the contract's total value for skills training for their workforce and local residents (defined as those in the project's local authority area or a neighboring one), delivered by local providers, for ten years after the project's completion.
• Job Advertisement Requirement: All workforce vacancies must be advertised in local job centers to promote local hiring.
• Definition of "Major Capital Contract": This is defined as a contract exceeding £50 million, issued by a public authority, and encompassing projects such as power station construction.

Government Spending

The bill is not expected to directly increase government spending. Instead, it aims to leverage existing funding through contract stipulations, ensuring contractors allocate resources for skills training and apprenticeship programs. The 1% and 2% stipulations represent a redistribution of contract funds, not additional public expenditure.

Groups Affected

• Public Authorities: Will be responsible for incorporating the bill's requirements into major capital contracts.
• Contractors: Will face increased obligations regarding apprenticeships, skills training, and job advertisement, potentially impacting project budgets and management.
• Construction Workers: Will benefit from increased training opportunities and potential job creation through apprenticeship schemes.
• Local Communities: Will potentially benefit from increased local employment and skills development due to the focus on local providers and recruitment.
• Training Providers: May see an increase in demand for their services.

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