How local authorities can build a competitive UK retrofit workforce

This insight, developed under Innovate UK’s Net Zero Living programme in partnership with Regen, outlines the challenges and considerations for local authorities to ensure a thriving retrofit industry capable of transforming the UK’s housing stock into warm, affordable, low-carbon homes.

Posted on: 08/12/2025

Insights for local authorities

Retrofitting the UK’s housing stock into warm, affordable, low-carbon homes is one of the most significant delivery challenges of the next decade, not least because the skills and workforce needed to do this are not available. Places have a pivotal role in shaping the conditions for a thriving retrofit supply chain. This report captures the scale of job and skills growth needed to meet these challenges, before setting out some actions that local authorities can take now to influence whether this nascent market can mature at the pace required.

The report highlights the complex reality: this is not simply a demand problem. Competing market signals, a busy wider construction sector, the risks SMEs face when upskilling, and historic policy uncertainty all impact the confidence needed for the sector to expand. The report shares that across heat pumps alone, the workforce must grow from around 7,000 full-time equivalent installers today to 40,000 by 2028. Fabric efficiency roles will need to triple by 2030. Demand for supportive roles, such as retrofit coordinators, is also rising sharply. Yet current training pathways, apprenticeship opportunities, and industry incentives are not keeping up.

Local authorities are uniquely positioned to help shift this story. With the right interventions, they can create stable demand, bring together a fragmented sector, and help people enter and progress within retrofit careers.

The report surfaces 7 high-impact areas where local authorities can support their local retrofit supply chain to scale. These include activities like promoting career opportunities, co-developing career pathways, facilitating a community of practice, and funding free training. The report also shares best practice case studies to illustrate the steps other councils have taken to promote growth in the retrofit sector and the outcomes they have had.

For local authorities already delivering retrofit, those preparing to scale, or those beginning to shape their strategy, the report reminds them that growing a retrofit workforce isn’t an isolated skills challenge but a whole-place opportunity. By helping to nurture local talent, de-risk employer investment and build trusted routes into retrofit, councils can strengthen local economies and accelerate the transition to warm, resilient homes.

Key findings

  • Workforce growth relies on wider market confidence, not just training availability, including stable demand and clear career pathways.
  • Local authorities can strongly influence supply-chain by bringing together key partners and by aligning procurement and local delivery efforts.
  • Integrated, place-based approaches that link skills development with community outreach and SME support are more effective than isolated interventions.

Related programme

Net Zero Living

Net Zero Living

A new wave of place-based innovation is transforming UK towns, cities and communities, today. Innovate UK’s £60 million programme is helping local authorities and businesses work together to deliver new solutions that improve local services and open markets for economic growth.

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