The renewable sector is facing a labour crisis. The recent report by the Engineering Construction Industry Training Board (ECITB) highlights that 81% of engineering and construction businesses in the renewables sector are expecting challenges hiring staff to fill shortages[1]. As the UK pushes towards the target of being Net Zero by 2050, the path ahead presents significant challenges – but could immigration offer part of the solution?
In the long term, UK businesses should prioritise recruiting and upskilling domestic workers for renewable energy roles – particularly those from the oil and gas sector. However, there is an immediate skills gap that must be addressed in the meantime.
In the past, many businesses have previously turned to overseas workers as a way to supplement the UK workforce while continuing efforts to recruit, train and upskill local staff. However, this is not a straightforward process as changes to immigration rules in 2024, aimed at reducing net migration, have significantly increased the costs and complexity involved. Notably, the minimum salary required to sponsor overseas workers has risen, and in some cases, the rules now demand salaries above the UK median for certain roles.
For example, the ECITB report highlighted that, among the most difficult roles to fill, were testing technicians. The most recent ONS Annual Survey of Earnings found the median salary for this type of work was £30,602 but in order to sponsor someone from abroad, an employer must pay £38,700 which would be in the top 25% of salaries for this type of role in the UK. Prior to April 2024, workers only had to be paid £26,200 to qualify for a visa for this type of work. These increases, combined with the shortage of talent readily available, could have long-term implications for the UK’s ability to meet the Net Zero target.
Alongside salary increases, businesses must navigate additional costs to recruit abroad, for example, when you consider licence applications fee, and the Immigration Skills Charge which charges small businesses over £2,000 to obtain and use a licence if they are hiring from abroad for the first time.
In a competitive talent market, businesses might also be required to cover visa costs, bringing the total expense for a three-year visa to more than £6,000 for a small business. For larger companies, these costs can quickly multiply, adding further financial pressure to an already stretched sector.
While the salary point could be addressed by the UK Government lowering the required threshold for the sector, there is a strong case for the introduction of a temporary visa to cover workers on renewable energy projects. Such a visa could require workers to be paid in line with UK averages for their specific role, offering a more cost-effective option for employers bringing in staff for short-term assignments. Ideally, this would serve only as a short-term solution, as businesses should continue prioritising the training and recruitment of local talent to support the sector’s long-term growth. A time-limited visa would also ensure there is no lasting impact on net migration figures.
The UK’s renewable energy sector faces an urgent skills shortage with no quick fix. While upskilling the domestic workforce must remain the long-term focus, immigration will need to help fill immediate gaps. Current visa rules pose challenges, but a targeted, temporary route for renewable workers could offer a practical solution – supporting growth without undermining long-term migration or employment goals. With Net Zero targets looming, a flexible and balanced approach is essential.
Stuart McWilliams, immigration lawyer and Partner in the Energy & Renewables team at MFMac
[1] https://www.ecitb.org.uk/news/ecitb-census-report-reveals-workforce-disparities/
