Labour shortages to worsen with new immigration plan, says UKH

Labour shortages in the hospitality sector are set to worsen as a result of the Government’s new immigration plans according to UKHospitality.

While three quarters of the hospitality workforce are made up of UK nationals, around a quarter of the workforce is made up of overseas workers according to UKH.

The trade body stated that there were 8,500 hospitality visas issued last year 95% of which would no longer be eligible under the new proposals.

Under new proposals the minimum salary needed for skilled overseas workers will rise from £26,200 to £38,700 from spring 2024.

Kate Nicholls, UKH chief executive, said: “The Government seem to be running out of answers to fix the UK’s long-running labour market shortages. These changes will further shrink the talent pool that the entire economy will be recruiting from, and only worsen the shortages hospitality businesses are facing.

“We urgently need to see an immigration system that is fit-for-purpose and reflects both the needs of business and the labour market. The system at the moment does none of that.”

Ed Godwin, director of Hospitality Talent UK, added: Since 2022 the number of chefs being paid over £50,000 has increased by over 350% as operators race to secure limited talent. Wage increases for skilled roles is in some ways a good thing, but don’t be fooled into thinking that businesses will simply absorb these costs. They can’t. Customers will be expected to pay through increased prices whilst simultaneously observing reduced service levels caused by staffing issues.

“Reliance on overseas workers in hospitality is not a new thing. In fact, the diversity of its workforce has been a sector strength for years, bringing together a multitude of experiences, cultures and outlooks. It is in part what makes our sector so resilient. I have no doubt that the sector will survive, but just now and then, it would be nice to feel as though there wasn’t a foot on its neck.”