‘Green collar’ construction workers earning £134,000

Aaron Morby 6 months ago
Share

A lack of ‘green collar’ construction workers is seeing wages spiral and could threaten the country’s energy efficiency drive to net zero.

Wage rates over-heating for insulation workers
Wage rates over-heating for insulation workers

According to a new report by cost consultant Turner & Townsend, insulation specialists and solar and heat pump installers in London now typically earn £70 per hour, after wages soared by 22% in the last 12 months.

The cost consultant said this means some in-demand trades could now command annual salaries of over £134,000 in the capital based on a 48-hour working week.

These trades, which are on the front line of the energy transition, are now paid two and a half times more than construction labourers who typically earn £28 per hour in the capital.

Turner & Townsend UK hourly wage cost estimates
City Cost per
m2
2024
inflation (%)
Overall
wages/hour
Green worker
wages/hour
Labourer
wages/hour
London £3,545 2.0 £47 £70 £28
Manchester £2,622 3.5 £41 £52 £30
Bristol £2,493 3.5 £37 £45 £26
Leeds £2,455 3.0 £41 £47 £30
Edinburgh £2,432 3.5 £37 £45 £27
Birmingham £2,394 3.5 £38 £47 £28
Glasgow £2,389 3.5 £37 £45 £27
Newcastle £2,333 3.5 £38 £47 £27
Belfast £2,329 2.0 £39 £45 £22
Regional average £2,555 3.1 £39 £49 £27

T&T warns that all UK regions are suffering from an acute shortage of skilled construction workers which is  driving wage inflation to record levels.

Even outside of London, the average UK wage for these specialists has hit £47 per hour.

All nine regions of the country surveyed reported skills shortages, with most surveyed (78%) saying it is already impacting  programmes.

Labour cost inflation and the impact of skills shortages is not limited to low carbon development.

Overall, average construction wages have increased by 13% since 2023 – rising from £36 per hour to £42 in 2024.

London now ranks as the 10th most expensive construction market globally, rising from 14th in 2023.

This has seen average construction costs in the capital across a broad swathe of 11 building types have risen to £3,503 per m2 compared to 2023 when costs were £3,024 per m2.

Chris Sargent, managing director of UK real estate, at Turner & Townsend, said: “Hundreds of thousands of new trained specialists are required to give the sector the capacity it needs for the green transition.

“High wages may make the role more appealing to many, and attract these much-needed skills.

“But green construction cannot afford to be in a separate tier of costs from traditional work.

“We need to help make net zero achievable and affordable by investing now in building and training the pipeline of skilled workers we need, and by adopting innovative digital tools to improve productivity and outcomes.”

 

Latest news

Go-ahead for City of London’s tallest tower

1 Undershaft building will equal the Shard in height
21 hours ago

Construction T Level scrapped due to lack of demand

Courses canned after less than 100 sign-up for latest round
2 days ago

Five firms clinch £300m Greenwich Uni framework deal

McLaren, Wates, Morgan Sindall, Vinci and Willmott Dixon secure places
1 day ago

Hill Group strikes first Build to Rent deal

House builder agrees finance with Lloyds Living to start Stevenage scheme
1 day ago

Construction output hit by fall in repair and maintenance

Industrial and commercial new work grows despite wider fall in activity
1 day ago

Wates transfers pension scheme to “superfund”

Pension management specialist Clara to take charge of £210m fund
1 day ago

Muse hires new development director for North West

Tom Darby joins from developer Bruntwood
1 day ago

Bid rigging probe launched into school repair work

Firms raided this week with focus on roofing contracts
3 days ago

McLaren hires ex-ISG regional boss for north east expansion

Andrew Beaumont becomes MD of new Yorkshire and North East business
2 days ago

Government commits to four new prisons in seven years

£2.3bn pledged for new prison build programme
3 days ago

Road and rail delays hit revenue at Van Elle

Turnover drops 5% as markets remain challenging for piling specialist
2 days ago

Boot reports ‘noticeable improvement’ in planning system

Government planning reforms already unblocking council planning
2 days ago

Go-ahead to revamp former London city hall

Project will straighten the building's leaning profile with terraces to every level
2 days ago

United Living to divert Midlands gas pipeline

600m pipeline diversion clears way for M54 to M6 link road construction
2 days ago

Credit insurance saves Billington from ISG hit

Steel specialist puts on extra shifts at its plants to cope with demand
3 days ago

M&E specialist Dodd doubles profit on retrofit surge

Family-owned Telford specialist delivers record revenue of nearly £250m
3 days ago

Go-ahead for 800-home Croydon dual towers

One Lansdowne Road build to rent scheme to cost £260m to build
3 days ago

Construction inflation set to return raising tender prices

End of 2024 to mark the bottom of present inflationary trough
3 days ago

Start date for vast Balfour and Costain carbon capture power job

£4bn Teesside project to start construction next year creating 3,000 jobs
4 days ago

Plans go in to start revamp of North Finchley town centre

Developer Regal unveils first details of Barnet masterplan
3 days ago

Glencar bags £18m Big Yellow London store

Six-storey stoarage centre to be built at Staples Corner
3 days ago

Plan unveiled for 31-storey London Fenchurch Street tower

Demolition work to start in 2026 for new office tower
4 days ago

Vinci Building buys tower cranes for first time

Contractor invests in two WOLFFKRAN all-electric cranes at £138m Sheffield site
4 days ago

30 local firms land United Utilities £500m framework

Minor works deal win for North West civils and M&E specialists
4 days ago

Restructure pays off as Higgins returns to profit

Housing contractor recovers from £25.9m loss last year
4 days ago

Former Heathrow boss joins Mace in board rejig

Firm completes string NED appointments to expanded group board
5 days ago

Planning officers to get powers to bypass committee stage for housing

Rayner reform plan to cut out local council planning committees
5 days ago

National Insurance hike to delay construction recovery

Arcadis paints varied picture with full recovery delayed until 2026
5 days ago

Gratte Bros rides out cost rises with profit increase

M&E specialist warns of further upward pressure on wage costs
5 days ago

Sellar’s 36-storey London City office tower approved

Demolition work to start in 2026 at 60 Gracechurch Street site
7 days ago

Contractor services