The hospitality sector is set to benefit significantly from Labour's major overhaul of the Apprenticeship Levy, replaced now by a new 'Growth and Skills Levy', designed to tackle chronic skills shortages and support recruitment within the industry.
Under the revised levy scheme, hospitality employers will gain greater flexibility, allowing up to 50% of their levy payments to be spent on non-apprenticeship training courses. This includes shorter, industry-specific training programmes, targeting essential skills such as customer service excellence, digital reservation systems, sustainability practices, and advanced culinary techniques.
The introduction of 'Skills England', a new centralised body, aims to align hospitality training programmes directly with labour market demands. Working closely with hotels, restaurants, caterers, unions, and training providers, Skills England will ensure funded training meets the urgent skills needs of hospitality businesses, particularly given ongoing staff shortages post-pandemic and post-Brexit.
From August 2025, new foundation apprenticeships will offer shorter, more flexible routes into hospitality careers, with the minimum apprenticeship length reduced from 12 months to 8 months. This reform is expected to increase the number of qualified apprentices entering hospitality each year, quickly equipping workers with practical skills and easing acute recruitment pressures.
Additionally, Labour plans to relax mandatory Level 2 English and maths qualifications for hospitality apprentices aged over 19, giving employers greater discretion. This change aims to remove unnecessary barriers to apprenticeship completion, helping to streamline training for positions in hotels, pubs, restaurants, and catering services.
The government also intends to restrict levy funding for Level 7 apprenticeships (equivalent to master's degrees), redirecting funds toward entry-level hospitality training. This will enable businesses to invest in younger, entry-level staff, fostering greater social mobility and addressing critical staffing shortages at the front line.
Collectively, these reforms promise a more responsive, practical, and supportive apprenticeship system, tailored to meet the unique challenges and opportunities within the hospitality industry.
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