Will rates relief cuts undermine IfATE’s hospitality skills plan?
Participation from employers in defining apprenticeship standards has surged, showing a renewed commitment to quality training tailored to industry needs
The hospitality industry is essential to the UK’s national economy and culture, and as such, apprenticeships have emerged as one of the vital ways to best equip workers with the skills they need in a sector where practical experience and a person’s attitude mean everything.
A recent report by the Institute for Apprenticeships and Technical Education (IfATE) has detailed new upgrades in apprenticeship schemes that intend to support a steady, well-trained workforce to address the fall-out from both Brexit and the pandemic. These two events have put significant pressure on the industry and highlighted the critical need for a skilled, multi-functional workforce.
However, impending government policy decisions – especially around business rates relief – could impact the effectiveness and reach of these programmes.
IfATE’s report emphasised key updates that focus on entry-level career apprenticeships, which are particularly important for younger people entering the field. The Level 2 Hospitality Team Member apprenticeship, traditionally limited in scope, is being updated to offer multi-functional training. This means that apprentices can now rotate between departments in order to gain experience in roles like bar work, dining, housekeeping, and guest services. This broader exposure not only enhances the apprentices’ skills; it also positions them for quicker progression and promotion opportunities.
These changes are in response to employer feedback, which underscored the need for multi-skilled workers who are able to adapt to different roles within hospitality. By gaining experience across departments, apprentices are more versatile and valuable to employers, who can then deploy them where they are needed most. This multi-skilling aligns well with the reality of many hospitality businesses, especially smaller establishments that benefit from flexible staff who can handle multiple responsibilities.
IfATE’s recent Hospitality Symposium has played a role in re-engaging the sector, catalysing the number of employers in government organisations that help define the skills and knowledge needed for various roles. As a result, participation from employers in defining apprenticeship standards has surged from fewer than 10 to over 80, showing a renewed commitment to quality training tailored to industry needs.
The report also provided insight into the state of the catering and hospitality industries, both of which have faced high labour shortages since the pandemic. For instance, the ONS reported peak vacancies at 176,000 in spring 2022, with numbers recently falling to 95,000. Though a positive trend, it is still reflective of a persistent shortage. Certain roles remain particularly hard to fill, such as skilled chefs, front-of-house waitstaff, housekeeping, and management. Addressing these shortages with tailored apprenticeships offers a hopeful pathway for developing a skilled, stable workforce to fill these gaps.
Despite the improvements to apprenticeship programs, the sector faces financial headwinds, notably in the form of rising operational costs and potential changes in business rates relief. A joint survey by the British Beer and Pub Association, British Institute of Innkeeping, and UKH recently warned that removing business rates relief, set to end in April, could have drastic effects on hospitality businesses. According to the survey, 54% would reduce employment levels and over 50% would cut planned investments. Without intervention, many establishments, particularly small pubs and restaurants, may face closures or staff reductions.
The end of business rates relief could directly impact the viability of apprenticeships. With potential closures or scaled-back investment, businesses may struggle to justify the time and resources necessary to train apprentices. The situation underscores the need for continued government support – either through extended relief or a permanent reduction in business rates – as a bridge to a more sustainable financial framework. Trade bodies have collectively appealed to the chancellor, urging her to preserve business rates support to protect jobs and prevent closures.
The outcome of government policy decisions in the coming months will likely shape the future of apprenticeships in hospitality for years to come. As the report has shown, with the right support the sector has the potential to drive economic recovery, create jobs, and offer rewarding careers to thousands.
