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Why are Tradespeople so Expensive?
- oxoncarpenter
- Jun 3
- 5 min read
Updated: Jun 4
A question that I have never been asked but after reading experiences on trade forums is quite often asked. This is coupled with “I have a degree (or two) and you earn twice as much as me, how can that be right.”
Of course this depends on the degree, an accountant’s wage is many times that of an archeologist, but you see my point.
Trades wages are dependent on two main variables:
1. Supply and demand
The #Blair government with their mantra “#Education, education, education” (and to some extent the previous Conservative government) had an aim of sending 50% of school leavers to university and renaming former polytechnics as universities to varying degrees of success.
Now, I am not saying that every bricklayer or roofer would have achieved a first in PPE from Christchurch, Oxford but Higher Education rising from circa 10% of school leavers in the 1980’s to 37.5% in 2022 (1) must have made some difference to construction recruitment.
At the time that more school leavers attending universities investment in construction training dropped along with the employment of apprentices. Both teachers, schools and parents were pushing pupils to aim for university – good for the OFSTED reports and a photo on the chiffonier of a proud mum and dad with their mortarboard clad child.
The Blair government realized a shortage of blue-collar workers and offered freedom of movement to EU workers three years before required to plug the labour shortage in the UK.
This policy worked to a point for the consumer as EU labour could undercut UK workers due to lower personal overheads, the black economy and lower wages etc.
On the 23rd June 2016 the UK voted to leave the UK, #Brexit and most of the EU immigrant workers voted with their feet and started to return home. With supply down and the same demand construction wages increased all over the country but mostly reconised in domestic work in the South, before long £100.00 a day was £150.00 a day and rising.
As of June 2025, the Labour government are offering new apprenticeships with at least a year’s training. A year’s training is of no use at all and the fact that a Level 2 carpentry qualification can be completed in just eight weeks (2) displays a lack of understanding from the relevant government body. If this carries on all we will have in 20 years’ time is a trade of fitters on the new home building sites. The dovetail and tusk-tenon will be dead.
The government seriously needs to address this problem, the average of a carpenter is 54, those of us around this age are starting to feel the wear and tear on our bodies and we need replacing sooner rather than later.
Supply and demand – In conclusion there are not enough tradespeople in the UK for the work required. The government are offering poor training and a large % of the workforce will be retiring in the next ten years. The only solution I can suggest is skilled immigration, but trades will be needed to rebuild Ukraine and the skills shortage is international – would you rather your child was a bricklayer or lawyer?
Construction labour costs will only rise in the near future.
2. Overheads
Overheads for a tradesperson are added to their hourly labour rate, the same as any business. We have turnover (all the money received) minus the cost of sales (materials) which gives a gross profit, from this we deduct the overheads, this gives us a net profit (wage) wage before taxation. You may not think that many overheads are involved but take a look:
Vehicle. Purchase payments, fuel, road tax, commercial insurance, commercial breakdown cover, servicing, any ULEZ and congestion charges (£27.50 a day if working in central London) (3), sign writing. Car parking which can be £15.00 + in cities.
Tools. Purchasing new tools – nothing lasts for ever and batteries need replacing every three years or so @ £70.00 each, I have five. Replacing plant – a good chop saw will cost £1000.00, in addition most carpenters will have multiple drills, compressors, nail guns, Lazer levels, transformers, routers, router tool collections (a router bit averages at £40.00, we may carry 50), access systems, radar tools for locating pipes, moisture content meters, stains, fixings, dust sheets etc etc. Rent for storage of tools. Tool insurance, very expensive if even available in some areas. Tool servicing & sharpening.
Clothing and Personal Protective Equipment. Boots, hard hats, ear defenders, googles, dust masks (mine cost £550.00), industrial trousers with thicker fabric and built in knee pads.
Public Liability Insurance. Just in case someone drops glue on the carpet
Public Holidays and Holidays. In full time employment the employer adds a % to the weekly rate to cover holidays, self employed people need to do the same. In addition, self-employed need to add a % to cover any sick days.
Pension. 5% of income?
Office costs. Stationary, out of hours labour to look at jobs and produce a quotation, internet expenses, telephones, printer ink. Purchasing of books – Building Regulations for example.
Advertising. Website development and rental costs, business cards, flyers, local magazine adverts, site boards
Trade organisations Institute of carpenters etc (4)
All the above is for a tradesman working on their own, if he employ’s others we have to add Employers National Insurance, higher Public Liability Insurance, training, maternity / paternity leave, office space etc to the daily rate.
These overheads are not divided by 365 days of the year, only working days, say 47 weeks at 5 days a week, 235 days a year (a lot less for outdoor trades due to the weather) to allow for holidays, any sick days and time with no work.
Taking the above into consideration if you can find a carpenter working for £200.00 a day do everything you can to keep him, after overheads he is working very close to the national minimum wage and there is no point working for yourself with all the risk if you are working for that sort of money. This is why companies like Pimlico Plumbers charge over £100.00 an hour for carpenters. (5)
As with most businesses the costs of goods and services are mostly determined by overheads and with inflation these fluctulate.
It also must be remembered that Income Tax and National Insurance has to be deducted from the bottom line.
On reflection a carpenter charging £120.00 to fit a new British Standard front door dead lock is not really such a bad deal.
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