Free apprenticeship training ‘won’t be enough’, operators warn

UKHospitality (UKH) said the measures would help create more opportunities for young people, with hospitality well placed to deliver as one of the UK’s biggest youth employers.

UKH CEO Allen Simpson said: “It is great to see the Government act to give young people more opportunities and, as the biggest youth employer in the UK, hospitality businesses are key to delivering.

“The plan for free apprenticeship training for all eligible under 25s is particularly welcome and reflects the value of in place work experience and training, something hospitality does brilliantly.

“However, to really move the dial, the unfair tax burden on hospitality needs to be reduced. A 10% VAT rate for hospitality will free operators to invest, create jobs, and drive economic growth.”

Not a long term fix

Ardent managing director Dom Jacobs told The Morning Advertiser (MA) that the measure was welcome, but argued hospitality had “never had an issue employing young people”.

He said the sector had long been an “incredibly welcoming place” for young workers, but warned job creation had been hit by policies that had stacked costs onto employers.

Jacobs said: “Will we utilise it? Yeah, absolutely. It looks like a great step, and it’s something that we can use.

“I certainly wouldn’t confuse it with something that’s going to fix the problem long term, but I welcome any step towards improving the current situation.”

He added apprenticeships could be harder to deliver than simply hiring young workers into entry level roles due to “red tape and documentation”, but said Ardent had previously had “great success” with apprenticeship support after Covid.

JW Lees managing director William Lees-Jones told the MA that the announcement was encouraging and reinforced the value of apprenticeships as a route into hospitality.

He said: “At JW Lees, we already have a strong commitment to apprenticeships, so the funding is more likely to help us expand opportunities than fundamentally change our recruitment strategy.”

Lees-Jones said reducing training costs would allow businesses to invest more in developing people, particularly in a sector where skills were built through experience as well as formal learning.

He added: “Over time, increasing participation in apprenticeships should help address skills shortages by creating a stronger pipeline of talented team members who can progress into supervisory and management roles.”

However, he warned funding was “only one part of the equation”, with operators still facing significant employment costs, the challenge of releasing apprentices for training during service, and administrative requirements.

Attracting young people

Cheshire Cat Pubs and Bars people and culture manager Jenny Gresty told the MA that the funding change would help, particularly when recruiting 22 to 24 year olds.

However, she said the biggest challenge was not a lack of opportunities, but getting young people interested in hospitality and helping younger team members understand the value of apprenticeships.

She said: “Removing the training costs will make it easier for us to offer places to a wider range of candidates, but funding places doesn’t automatically fill them.

“We need schools, colleges, careers services and government employment programmes to do much more to promote hospitality apprenticeships.”

Gresty added hospitality was too often presented as a temporary or first time job, despite offering routes into senior kitchen, management and business ownership roles.

She said: “Until young people can see the industry as successful and sustainable, funding apprenticeships alone won’t be enough.”

Multi-site London pub operator Tim Skinner also welcomed the announcement, but said free training was not the biggest barrier facing businesses.

He said: “The cost of the training itself has never really been the problem. The real investment is employing someone, coaching them, mentoring them and giving them the time and experience to develop.

“Hospitality is learnt on the job. You can’t become a great publican, chef or manager from a classroom alone.”

Skinner said the measures risked being undermined by proposals in the Employment Rights Bill, particularly around guaranteed hours and reduced flexibility for casual and part time workers.

He warned policies designed to increase employment could make businesses more cautious about recruitment.

He added: “Hospitality doesn’t need more intervention. It needs breathing space.

“It needs meaningful tax reform that gives businesses the confidence to invest, employ and grow.”