Self-employed tradespeople earned an average of £1,000 per week in January, according to analysis by Hudson Contract, which manages the industry’s largest payroll for subcontractors.
That figure was down 7.7 per cent on December. However, it remained 1.5 per cent higher than the £985 average recorded in January 2025.
The seasonal downturn was most visible in external trades, where site activity is heavily weather-dependent. Bricklaying earnings fell 15.9 per cent month on month. Scaffolding was down 15.4 per cent. Demolition dropped 12.9 per cent.
Regional picture
Earnings varied across England and Wales:
Private housing was the only sector to decline, with orders falling 10.4 per cent year on year.
A report in the Financial Times said construction starts on homes in London were 94 per cent below target, the lowest figure for any major city in the developed world this century.
‘Darker clouds’ ahead
Ian Anfield, managing director of Hudson Contract, described the dip in earnings as predictable for this time of year.
He said external trades typically see work disrupted during winter and expects activity to recover as conditions improve.
However, he warned that the sector faces mounting structural pressures.
Construction firms, he said, are being squeezed by rising finance and insurance costs, higher employer National Insurance contributions, increased national minimum wage bills, disruption linked to the Employment Rights Act, the VAT domestic reverse charge and growing regulatory complexity.
He added that these pressures are making it harder and more expensive for firms to recruit and train new workers.
On housebuilding, Anfield said the sector risks stalling.
He compared it to a tanker that, once stopped, takes significant time to restart. Without intervention, he warned that when demand returns, there may not be enough firms or workers left to meet housing needs.
Hudson Contract tracks pay across 17 trades in 10 regions and supplies labour market data to the Bank of England to inform policy decisions on skilled labour demand. The Bridlington-based firm serves around 2,600 construction SMEs across England and Wales.
