Britain’s electricity, gas and water companies are being told to use their huge infrastructure programmes to support UK manufacturing, jobs and apprenticeships or face new legislation forcing them to do so.
The Government says utilities will be expected to put more of their procurement spending into domestic skills and manufacturing, as tens of billions of pounds are invested in networks and essential infrastructure over the coming years.
The move goes beyond simply encouraging companies to buy British.
Ministers have made clear that if electricity, gas and water infrastructure providers do not voluntarily follow the new approach, legislation will be introduced when parliamentary time allows to ensure they act.
The policy comes at a significant moment for the energy and water sectors.
Ofgem estimates around £70 billion of investment is needed in the electricity transmission grid between 2025 and 2031 as Britain connects more renewable generation and prepares for rising electricity demand.
At the same time, Ofwat has approved £104 billion of spending across the water sector between 2025 and 2030, including major investment in new reservoirs, water transfers, sewage infrastructure and supply resilience.
That creates a substantial pipeline of contracts for cables, substations, transformers, pipes, pumps, control systems and engineering work.
The Government wants more of that spending to translate directly into British manufacturing capacity and skilled employment rather than simply increasing imports of equipment from overseas.
Under the new approach, utility companies will be expected to use procurement decisions to support apprenticeships and skills as well as manufacturing jobs across the country.
It follows changes earlier this year requiring central government spending to take greater account of employment and skills benefits when contracts are awarded.
The utility measures form part of a wider package described by ministers as an attempt to put public and regulated spending more firmly in the national interest.
The policy also comes as Britain faces growing concern about the resilience of energy supply chains, particularly as investment accelerates in electricity networks, renewables, storage and other low-carbon infrastructure.
Recent National Audit Office analysis warned that grid expansion is already being challenged by supply-chain constraints alongside planning, skills and access problems.
For utilities, the message is therefore becoming increasingly clear: infrastructure investment will no longer be judged solely on whether projects are built and delivered efficiently.
The Government also wants the money spent upgrading Britain’s energy and water systems to help build the domestic factories, supply chains and workforce needed to support the next generation of infrastructure.
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