Nando’s, McDonald’s and Wagamama have backed the government’s 100,000 jobs pledge, but can small venues with tight margins afford to hire too?
- The Government and UKHospitality plan to create 100,000 jobs for young people not in education, employment or training, backed by chains including Nando’s, McDonald’s and Wagamama.
- The pledge is built around big employers, and hospitality leaders say employment costs are the biggest barrier for smaller venues.
- Independents can still claim a £3,000 Youth Jobs Grant per eligible hire and a £2,000 payment for each new apprentice.
The Government has announced a new partnership with UKHospitality to create 100,000 jobs for unemployed young people, with major employers including Nando’s, McDonald’s and Wagamama already signed up.
But the announcement lands at a tricky time for the sector. Hospitality leaders say higher payroll costs have already cost the industry around 100,000 jobs over two years, leaving many small venues wary of taking on staff.
So what does the pledge mean for independent pubs, cafés and restaurants, and what help can you claim if you do want to hire?
The 100,000 job promise from the government and UKHospitality
The partnership, announced on 15 October, forms part of the Government’s wider Youth Guarantee, which aims to give every 16-to 24-year-old a route into work, education or training.
Under the deal, major hospitality employers have committed to 100,000 paid jobs over three years for 18-to-24-year-olds classed as NEET – meaning not in education, employment or training – alongside work experience and training.
The Government says it will also expand support for the Hospitality Skills Passport, an industry scheme that helps young people gain the skills and qualifications to start a career in the sector.
Big names are already signing up. Merlin Entertainments has committed to creating 300 roles for young people over the next three years, joining a long list of household names including Whitbread, McDonald’s, Nando’s, Wagamama, and Burger King.
Work and Pensions Secretary Pat McFadden said hospitality has long been a route into work for young people, and the numbers back that up. UKHospitality says the sector accounts for 31% of first jobs for 16-to-24-year-olds and creates around 300,000 roles for young workers each year.
Yet, the need for action is growing. Almost a million young people are classified as NEET, and the Government says nearly six in 10 of them have never had a job. An interim review by Alan Milburn, commissioned by the Government, warned of an “entire generation” being left behind, a problem the hospitality industry feels acutely.
Are independent venues getting left behind?
The Government hasn’t said how independent pubs, cafés and restaurants will take part, and for many, the barrier isn’t a lack of willing young people but the cost of hiring them.
New FSB research found that 28% of small employers would take on more staff if the Small Business Rates Relief threshold was raised, while 26% would put the savings into pay or benefits. Business rates also sit alongside employer National Insurance, pension contributions and a minimum wage that rises every April.
To ease the pressure, the FBS is calling for the SBRR threshold to be lifted to £25,000, and UKHospitality wants the employer National Insurance threshold for hospitality raised to £10,000 ahead of the 28 October Budget.
Until then, independents can claim a £3,000 Youth Jobs Grant for each eligible hire, and a new £2,000 apprenticeship payment for SMEs launched this month.
Ultimately, the 100,000 jobs pledge is a welcome signal, but with independent venues excluded, the question is whether the corner pub or café can afford to make hires of their own.
For businesses already working to tight margins, that will come down to how much help they can claim and what the Budget brings. With the October announcement two weeks away, here’s what small venues can do now to make hiring more manageable.
- Claim the Youth Jobs Grant – Employers of any size can get up to £3,000 per job, paid in two instalments, for hiring an 18-to-24-year-old who has been on Universal Credit for at least six months.
- Consider an apprentice – SMEs get a £2,000 payment for each new apprentice aged 16 to 24, training is fully funded for eligible apprentices at non-levy employers, and you don’t pay employer National Insurance on apprentices under 25 up to a pay threshold.
- Register with the Youth Guarantee – Sign up for funded training and incentives, and ask your local delivery partner whether the Jobs Guarantee, which covers employment costs for six months, runs in your area.
