Foundation apprenticeships extended to hospitality sector

The government has announced a series of measures to help young people into work and support businesses with the cost of doing so.

The package includes:

1. Youth Jobs Grant

   Employers hiring young people will be eligible for a £3,000 Youth Jobs Grant. This support acts similarly to an employer National Insurance Contribution (NICs) holiday, helping to reduce the cost of employing young workers at a time when labour costs are increasing.

2. Apprenticeship incentive

   A £2,000 payment for every apprentice under 24 taken on by an SME, directly reducing the costs of hiring.

3. Foundation apprenticeships

   Hospitality now included in foundation apprenticeships. This creates a new supported pathway into the sector and allows employers to recruit and train new entrants with financial backing that helps offset employment and training costs. Importantly, staff studying for apprenticeships are exempted from NICs which will directly reduce the costs of hiring early career workers.

4. Supported apprenticeship pathways

   The government has confirmed that sector-specific apprenticeship standards across catering and hospitality will be retained. This ensures employers can continue to access training programmes tailored to the needs of hospitality businesses. 

   
   

   They will also introduce new ‘apprenticeship unit short courses which will support skills like electrical fitting and AI leadership, which will support developing skills in the sector.

Kate Nicholls, Chair of UKHospitality, said: “Hospitality is the sector best placed to help people back into work, and these are important measures that remove barriers for businesses employing more people.

“The government’s £3,000 Youth Jobs Grant is modelled on proposals UKHospitality submitted and I’m pleased that this has been taken forward. Acting as the equivalent to an employer NICs holiday for businesses employing young people, the grant helps to address a major cost challenge for hospitality businesses.

“Including hospitality in foundation apprenticeships delivers on another of UKHospitality’s key asks and means there are now several supported pathways into work where employers are financially supported to reduce their costs.

“With employment costs rapidly increasing, engaging with the government to introduce these incentives has been one of our priorities and can genuinely support businesses to reduce the cost of employment.

“With some management apprenticeships streamlined, it’s positive that our calls to retain sector-specific standards across catering and hospitality have been acted upon and those apprenticeships saved.

“These announcements show the benefit of working closely with business groups to design measures and policies that are practical, cost-saving and work for businesses. It’s crucial this approach continues and that the government ensures that people of all ages have routes to learn and develop skills in hospitality.”