Report: UK skills inadequate for low-carbon economy

The UK does not have the necessary skills to transition to a low-carbon economy without the help of foreign companies, according to a major new report from the Aldersgate Group to be released later today at an event in Westminster.

The green business think-tank will warn that the UK's emerging low-carbon industries are facing severe skills shortages and recommend that all major environmental policies, such as increased subsidies for offshore wind or the CRC Energy Efficiency Scheme, should be accompanied with a corresponding skills strategy.

For example, the report notes that the government has recently unveiled plans to build 10 new nuclear power plants over the coming years, but has no clear strategy for dealing with the fact that nuclear energy giant British Energy is expecting to see around a third of its staff retire in the next 10 years.

John Edmonds, former president of the TUC and project chair for the report, warned that instead of exporting clean technology as the government has envisaged, many of the UK's low-carbon industries could become reliant on imported workers.

"The skills gap in the UK economy is well documented, with one in three firms already hampered by a shortage of skilled staff, from those needed to install new technology to scientists and engineers," he said. "Investment in low-carbon skills is vital if the UK is to build a more resilient and sustainable economy. "

Specifically, the report urges the government to provide initial funding for in-house training programmes, improve the relevant teaching in training institutions, and aim wherever possible to enhance existing skills rather than create new skills.

Peter Young, chairman of the Aldersgate Group, said businesses are reluctant to make long-term investments in training until they see clearer commitments from the government that the low-carbon transition will accelerate over the next few years.

"They want to see more evidence of whole government action joining up capacity building, skills and regulatory policies to make the commitments and pace of change to a low-carbon economy credible to business," he said.

The government’s skills strategy was published last week, outlining a plan to create 35,000 new apprenticeships over the next two years. It also announced that it is to spend £100m to support around 160,000 training places in areas such as digital media, technology, advanced manufacturing, engineering, construction and low-carbon energy.

Speaking at the launch of the government's low-carbon transition plan in the summer, energy and climate change secretary Ed Miliband recognised the need to improve the UK's low-carbon skills base and promised that a number of new green skills initiatives were being investigated by government.