Apprenticeships pivotal to social value delivery, report shows

Apprenticeships have become one of the biggest drivers of social value generation in the UK construction industry, according to new research. 

The Social Value in Construction Benchmarking Report 2024 highlights how social value delivery is evolving and becoming more embedded across the construction industry.

Published by public sector procurement authority Scape, the report shows job creation measures account for 16.4% of the total social value generated in 2023, more than doubling since 2022 (8%). 

Across the UK, 329 contracts with a combined total value of £3.2bn (accounting for 10% of all public sector construction spend) were analysed to establish the national and regional trends in social value delivery.

Of the contracts analysed, 282 projects enabled skills and employment improvements, delivering more than 15,600 weeks of apprenticeship placements on site across the country. 

However, the data, which compares the number of apprenticeship weeks delivered per £1m of contract spend, shows that there is significant variation across regions.

Figures for the West Midlands show an average of 10 weeks delivered per £1m. This is closely followed by almost nine weeks in Wales, where clients procure in accordance with the Well-being of Future Generations (Wales) Act 2015 and where the national apprenticeship employment scheme Y-Prentis is in operation.

Despite representing the highest contract value of those analysed, London lagged behind at 4.5 weeks per £1m.

In light of the findings, the report calls for the government to support local authorities in delivering more consistent opportunities across the UK.

According to the report, if all regions achieved the same level of delivery as Wales and the West Midlands, an additional 13,810 apprenticeship weeks could have been created – representing an 88% increase. This would result in roughly 288 extra apprenticeships nationally.

Mark Robinson, group chief executive at SCAPE, said: “The Social Value in Construction Benchmarking Report highlights the positive impact the construction industry is having on communities up and down the country. 

“The increased value delivered by apprenticeships we have seen over the past year demonstrates the clear potential these programmes have for supporting the next generation – as well as the industry’s ability to drive positive economic growth.”

However, Robinson insisted that there is still more to be done: "With Labour’s mission to drive economic growth and jobs creation, it is evident that there is a real opportunity for government and industry to work together to ensure best practice is reflected consistently across the country.

“The findings of this report show a clear route for how this can be achieved and the benefits waiting to be realised.”

Overall, social value return on investment is on an upwards trajectory since Scape’s first report in 2020, increasing from 17% to 27%. 

The 2024 report indicates that social value delivery in most regions is increasing year-on-year, on average by 10-15%. The biggest jumps were in the North West and the South East, which is reflective of the high number of projects in major cities across these regions.

Commenting on the findings, Nathan Goode, chief strategy officer at Social Value Portal, said: “The construction sector has a pivotal part to play in building stronger, more resilient communities, and in progressing the wider social value movement. 

“We’re encouraged by insights in this report, particularly around the year-on-year growth of the sector’s social value return on investment.

“While there is always room for improvement, the construction industry is clearly embracing its role in creating positive social and environmental outcomes.”