Written evidence submitted by UKHospitality (ESD0038)
Introduction
Hospitality is the cornerstone of the UK economy, generating £140 billion in economic activity, employing 3.5 million people, training 2 million annually, contributing £54 billion in taxes, and investing £7 billion in local communities each year.
UKHospitality is the national trade body for the hospitality sector, representing 750 members with over 123,000 venues - from pubs, bars and restaurants to hotels, indoor leisure and contract catering. We’re submitting evidence to this inquiry as people are at the heart of what makes our businesses thrive and we build vibrant communities where people want to live, work and invest. We also want to use our voice to represent the brilliant disabled workers in our sector. We also want to ensure there is a strong future pipeline of hospitality work so that the next generation of disabled workers have access to a source of work where they feel valued. Our Chair, Kate Nicholls, previously served as one of the Cabinet Office’s Disability and Access Ambassadors, showing our commitment to both raising concerns to the heart of Government as well as sharing best practice within the hospitality sector. We want to be part of improving the journey for disabled people accessing work, so they don’t continue to experience the same barriers they do today.
We have answered the majority on the inquiry’s questions to the best of our ability within our remit.
UKHospitality recently published a Social Productivity Index, which is a new, innovative way of measuring growth. The index highlights hospitality as the most socially productive sector. Not only does the sector account for 3.5 million jobs, but with the supply chain this climbs to 6.5 million. We create jobs everywhere and for everyone.
The Department for Work and Pensions’ Family Resources Survey indicates that 16.1 million people in the UK had a disability in the 2022/23 financial year. This represents 24% of the total population. The increasing number of people in the UK with a disability means there is a growing demand for jobs that are accessible and flexible to meet the unique circumstance and needs of disabled workers.
Hospitality jobs are ubiquitous. We are not just based in large cities, but coastal and rural towns as well. We exist in every high street in the country. We share the Government’s ambition to get Britain working, grow the economy, and revitalise high streets. The sector can offer a unique experience for customers and workers alike while also being a community catalyst and an important safety net for disabled people wanting to move from welfare into work.
We’re proud to be an incredibly diverse sector with little to no barriers to entry meaning we provide an accessible route to work for many different groups of people, who traditionally find it harder to access and retain work from prison leavers to those with disabilities as well as those struggling with homelessness.
Hospitality is a force for good and a welcoming place for disabled workers and as a sector we have an unparalleled contribution by way of job creation. The diversity of our workforce is shown by the fact that according to ONS statistics more than 17% of the hospitality workforce is Equality Act disabled.
We have the ability to give everyone an equal start in life, and we can tell a positive story about the difference an accessible job can bring to a disabled worker and simultaneously the benefits a diverse workforce can bring to business culture. But we’re being held back from creating more stories of job creation by the 2024 Budget stalling the engine of inclusive employment.
Executive Summary
In our response to the inquiry, we have set out some of the contributing factors for the employment gap for disabled workers and made recommendations which, if taken forward, show how the hospitality sector can provide the answers for increasing the number of individuals moving from welfare into work and reduce the benefits bill. Using case studies of our members who actively participate in employing disabled workers, we illustrate some of the challenges businesses and disabled individuals face in accessing work and then staying in work.
We have set out how the hospitality sector is the most socially productive sector providing a source of work that is accessible to everyone everywhere. We’re in a unique position to work with the Government to fulfil their mission to Get Britian Working and achieve 80% employment, but we are being significantly held back by the 2024 Budget.
The 2024 Budget saw the sector hit with an extra £3.4 billion in annual costs, but most significantly the ENICs changes are having a lasting impact on our sector’s ability to employ, promote and retain staff. The cost of employment from the Budget is affecting hospitality businesses more acutely than others due to the nature of the work being flexible and more likely to be part-time. The engine of inclusive growth has been stalled, and the sector is still reeling from the hammer blow of the 2024 Budget.
We can continue to bridge the gap between welfare and work, if the significant financial challenges from the last budget are addressed via our recommendations and UKHospitality’s asks for the 2025 Budget.
To address the further challenges the sector has retaining disabled workers, we have proposed Government further rolls out Sector-based Work Academy pilots and the Hospitality Skills Passport with as well as the hospitality sector being removed from the waiting list to have access to foundational apprenticeships.
In addition to this, whilst analysing the effectiveness of Government programmes aimed at supporting disabled workers we have commented on areas for improving disability employment advisors, the mobility scheme, disability confident scheme and access to work. Most significantly are the issues around delay in payment for the access to work scheme creating financial strain and emotional burden to businesses participating which can be a deterrent for both current users of the schemes as well as discouraging future use of the scheme.
By implementing these measures, the Government can work with businesses to ease the fiscally difficult operating environment which would enable the hospitality sector to continue to act as the most efficient mechanism for social mobility and bring people into work no matter their disability, background or qualifications.
Case Study contributions
Rosie Radwell, Managing Director of Marsham Court Hotel and R & R Leisure Ltd.
Marsham Court Hotel is an independent family run hotel in East Cliff, Bournemouth with 95 bedrooms, of which 5 are accessible bedrooms, 2 apartments and 8 function rooms. Employing 85-90 staff of which 15% have declared a disability. They are a Disability Confident Level 3 Employer. Rosie is also the Chair of BH Area Hospitality Association.
Beverly Flint, Group People Manager at Starboard Hotels. Starboard Hotels has 21 sites and employs 501 people. Alison, who is registered blind has worked in the role of Finance Assistant at the Windermere Manor Hotel (part of Starboard Hotels) for 20 years. Over the last few years Alison has been more reception based.
We are grateful to all our members for sharing their views which have helped inform this submission.
The 2024 Budget
Hospitality is an incredibly resilient sector and over the past decade has had to absorb many high intensity shocks from Brexit, Covid and the cost-of-living crisis to the current operating conditions following on from last year’s budget. The 2024 budget was a hammer blow for the hospitality sector. Since the 2024 Budget, the sector has lost 84,000 jobs (Oct 24-Aug 25) - over half of all UK job losses in that period. This is three times higher than OBR’s initial forecasts. This also represents 1 in 25 jobs in the sector. Without a fundamental change at the next Budget, these job losses will only be exacerbated with expected job losses to potentially reach 111,000 by the 2025 Budget. This impact on the most socially productive sector will be a marked stain on the employment market.
In light of the 2024 Budget, a joint industry survey with UKHospitality members and other industry trade bodies revealed that one-third of businesses are operating at a loss and 79% of hospitality businesses have had to increase prices.
Hospitality work remains accessible for disabled workers due to its flexibility and the part-time nature of the work meaning individuals can complete a reduced or shorter shift. This provides meaningful work, taking people out of welfare and into work while giving structure and socialisation to lives. However, the changes to Employer NICs in the last Budget directly impact those that benefit from the wide-ranging flexible work hospitality has to offer. NICs changes will cost the hospitality sector £1 billion annually and the changing of the threshold has brought 779,000 new hospitality workers to be eligible for businesses paying NICs, as hospitality work is often part-time such as waiting and bar work. For example, employer NICs for a part-time worker (15 hours) has increased by 73% and the total NICs bill for a full-time worker on minimum wage is now £2,900 - up over £1,000.
The positive stories, we as a sector have the power to tell, like that of Alison below, is what makes the sector unique and a powerful tool for growth. But we need a fundamental reset in the 2025 Budget. Subsequently, the sector’s ability to tell these stories and the means to use the tools at our disposal will be stalled as the cost of employing people climbs even higher.
Recommendation: The Government must take the necessary steps to fix NICs to boost job creation and prevent further job losses in the most socially productive sector. We recommend extension of the current NICs exemptions to include young people and people returning to work from welfare.
UKHospitality member, Fuller’s, has a pub called The Cabbage Patch in Twickenham, which is best known for its role as the world’s most famous rugby pub. As well as rugby, General Manager, Stuart Green, is also passionate about changing the lives of people with intellectual disabilities (IDs). He started an annual running event which raises thousands for charity each year, including for Clarendon School – which teaches young people aged 7-16 with complex or moderate learning needs. What started as a fundraiser, turned into work experience for Year 11 students – also helping them with writing skills and interview techniques.
Stuart has helped over 250 students with IDs to access work experience, and paid employment, at The Cabbage Patch. The Cabbage Patch is proud that there is at least one team member with an ID working on the vast majority of shifts. The Cabbage Patch also now has a weekly disco night for people with IDs – a safe, inclusive space for dancing and socialising – and has put on sensory screenings of rugby matches in his function room where the sound is lower to create a less hectic environment for those who prefer it to watch their favourite sport.
Hospitality Skills Passport
The Hospitality Skills Passport, designed by UKHospitality, is a nationally recognised digital credential that certifies an individual’s readiness to enter the hospitality industry. It is a formal confirmation that a learner has acquired a core set of knowledge, skills and behaviours (KSBs) essential for roles across front-of-house, kitchen, and service settings. It is also transferable across businesses, meaning it eliminates the need for duplicative training when joining a new company.
The Hospitality Skills Passport is designed for:
• Individuals new to the sector, including those who are unemployed or looking to reskill.
• Jobseekers, particularly those supported through employability programmes.
• Career changers or returners seeking accessible, structured pathways into hospitality.
• Employers and training providers who want a consistent benchmark for entry-level recruitment and progression.
It is suitable for delivery through various programme formats including:
• Sector-based Work Academy Programmes (SWAPs)
• Apprenticeships
• Skills Bootcamps
• In-house employer training programmes
There is a rollout currently across 26 regions in England of the new Hospitality SWAPs with the Hospitality Skills Passport integrated into the programme. Research showed the pilot schemes had an 85% completion rate, with 80% of those completing the course now employed in hospitality. This shows a significant retention on programme and overwhelming employer involvement to fill vacancies with people completing this sector specific employability programme largely due to its greatly improved accessibility and inclusive set up.
The content of the SWAP has been specifically designed to link to new foundation apprenticeships, which our industry has developed as a pathway and route for new starters into our industry.
This allows them to experience a supported programme which delivers the knowledge, skills and behaviours at level 1 that can lead onto level 2 apprenticeships, enabling progression and promotion for those individuals who have come from disadvantaged backgrounds or who have special educational needs.
With the Foundation Apprenticeships covered by the new Growth and Skills Levy, it is clear that our industry has been instrumental in joining the dots and setting out a socially productive route to employment, development and increase in earnings for those who bring the right attitude and commitment with them to work every day.
Recommendation: The Government to cement the work of SWAPs and the Hospitality Skills Passport with continued provision and further roll out especially to typically under-served areas.
Foundational apprenticeships
We are a sector built on equality and meritocracy, and taking a chance on people. We represent an industry where no matter your background or qualifications you can work your way up from bar to board within a few years.
To ensure our industry improves in terms of accessibility we propose the sector being moved off the waiting list to be included as a foundational apprenticeship. The apprenticeship levy is clunky, and not well suited to a sector where people move between different jobs within the sector, trying different career paths and the mechanism of the levy means it is not flexible for seasonal work. We’re ready to deliver a foundational apprenticeship now, but despite being the most socially productive sector, the sector is not included as one of the eight growth sectors identified in the Government’s Industrial Strategy. A foundational apprenticeship would be a quicker, 8-month programme, to give applicants key skills that allows you to access higher levels of apprenticeships.
UKHospitality member, Whitbread, offers apprenticeships and development programmes at every level from team member through to hotel manager, with over 750 apprentices in learning and 2,000 promotions each year. Whitbread offers 20 different apprenticeships, covering everything from Marketing and Data to Software Engineering Degree Apprenticeships (Levels 3-6).
Whitbread’s Rise & Shine programme includes offering work experience through partnerships with local schools and colleges, supporting care-experienced young people into employment through a partnership with Barnardo's and its Thrive Programme, a pioneering, employer-led initiative supporting young people with special education needs and disabilities (SEND) into work. Thrive offers a scalable, practical model for how businesses can help close the disability employment gap. Across the first 10 years of the partnership, Whitbread have had 30 students move into employment and last year agreed to extend the partnership model to reach our aspiration of 100 supported internships per year. As the Government seeks to reduce economic inactivity and improve employment outcomes for disabled people, Thrive aligns with national ambitions and demonstrates how inclusive employment can be both socially impactful and commercially viable — offering a model that other businesses can learn from and adopt.
Whitbread's apprenticeship and development programmes are an important part of Rise & Shine, offering apprenticeships at every level in Operations, from team member through to hotel manager, as well as in corporate functions to support technical skills development. Foundational Hospitality Apprenticeships would complement the existing initiatives to support young people into work, ensuring they are set up for success as they join the workforce and able to access Level 2 apprenticeship programmes, and continue to develop their career.
The hospitality sector can provide vocational and social skills as well as paid employment opportunities for young people with disabilities and additional needs, if supported by the Government with a less restrictive fiscal environment. The hospitality sector should be prioritised as a sector for foundational apprenticeships which has a proven track record of supporting individuals from welfare into work.
Recommendation: The hospitality sector is removed from the waiting list to have access to foundational apprenticeships alongside other sector so we can train more people and so more disabled people are able to access apprenticeships.
Why has progress with closing the disability employment gap slowed in recent years?
What barriers prevent disabled people who want to work, or to work more, from doing so? How do these vary for different disabilities? How do these vary across the country?
There has been little progress in closing the employment gap in recent years with disabled people being almost twice as likely to be unemployed. According to data from the Office for National Statistics, in 2023 the pay gap between disabled and non-disabled employees was 12.7%, with a median hourly pay of £15.69 for non-disabled employees and £13.69 for disabled employees. In 2014 the pay gap was 11.7%.
Men experienced a wider disability pay gap (15.5%) than women (9.6%) in 2023. People with autism faced the widest pay gap compared with other disabilities, at 27.9%; epilepsy (26.9%) and severe or specific learning disabilities (20.3%) were the second and third most impacted.
Why: There has been some progress, but it has been slow. Disabled people still face significant barriers in sourcing employment because of inaccessible recruitment processes and struggling to stay in the labour market due to challenges in the workplace from stigma to inflexible job structures.
There has also been an increased prevalence of those living with a disability, so despite the disability gap narrowing between 2014 and 2019, it has largely plateaued due to increased disability prevalence and reporting.
The support needed for disabled workers is wide ranging dependent on their disability and the best support is overarching and flexible to individuals as they grow and learn. This can range from transportation assistance, occupational therapy, adjusted working environments and assisted technology for both work and health care.
How effective is the support provided by Disability Employment Advisers? Are they able to support across all disabilities?
Rosie Radwell, (RR) from Marsham Court Hotel has two current employees with disabilities. Adaptations have been made for these employees who need a buddy system in place every shift. Businesses who have the right ethos and want to employ disabled workers are struggling with the financial decisions that comes with this, especially in the current operating environment.
The effectiveness of DEAs is limited by advisors not being able to cover the needs of all disabled workers especially those with complex disabilities. This means those with complex needs report feeling unsupported or report a lack of empathy from advisors and failure to understand specific needs due to lack of training or specialist support, advisors not being responsive, a lack of expertise or changes in personnel without notification.
Recommendation: For DEAs to have comprehensive and ongoing training on disability needs, staying up to date with the latest technology and specific communication needs of different individuals with special educational needs such as autism and training on assistive technology.
Recommendation: To establish expert DEAs who are referred for specific individuals with more complex communication needs. To set up a system to KPI the performance and quality assessment of the support and communication provided to disabled workers ensure it is consistent and effective.
The cost to employers can remain an issue for recruitment and retention of disabled staff. An improved Access to Work Scheme (AtW) would help reimburse employers with costs that go beyond reasonable adjustments. There needs to be a recognition of businesses who help ease the benefits burden with the responsibility being shared between the state, employer and the workforce. The Resolution Foundation puts forward a model where the Government bears the primary costs with staggered payments to employers when an employer takes someone on who was previously out of work due to ill health.
RR explained problems her business had experienced with AtW such as a 6-8 week wait times for support. Her business paid £1000 for sign language translation to enable a deaf Ukrainian employee to learn the ropes and have ongoing training when required. RR wanted her to be able to start work as soon as possible but as AtW couldn’t support quickly enough.
Similarly, Alison’s experience of AtW to receive specialist equipment to help make adaptations in the workplace ‘started as very good’ but today her experience is very different with a permanent message to inform callers there will be a 40-minute wait time to talk to an advisor with a further 30 weeks for their claim to be assessed and their equipment could take even longer to arrive. It is very expensive equipment and employers pay a contribution.
This process caused Alison to feel ‘anxious, stressed and like an extra burden every day’ and this is someone who ‘feels lucky to be where I am now, dealing with customers and making people happy. Other blind or partially sighted people consider our place as a home from home and I’m a part of that reason’.
While the ATW schemes has achieved some success, there have been several limitations, from low awareness to limited reach and the financial restraints felt by participating businesses.
The scheme has been successful in supporting individuals to gain and retain work but there is a significant gap between the number of disabled people in work and those receiving AtW. Lack of awareness feeds into low uptake and the gap between disabled people in work and those on AtW. The delays mentioned by RR and payment issues create financial strain and emotional burden to businesses participating which can be a deterrent for both future proofing the scheme.
How successful has the Disability Confident scheme been at improving employer practices? How could it be improved?
The Disability Confident scheme is an optional scheme for organisations to signal their best practice in creating an inclusive workforce more broadly. However, this is a starting point promoting intentions rather than performance. It also has a primary focus on recruitment, but retention, reintegration and reimbursement are also important. There are limits to assessing the success of the scheme and high volume of sign up have not transitioned to high uptake of disabled workers by organisations.
This could be improved by recognising and rewarding businesses who actively build on the commitments they pledge to as part of being Disability Confident. This can be via an extra accreditation or a monetary bonus by the Government. For example, VisitBritain has produced a toolkit focusing on the physical, digital and operational measures businesses can take to support those who identify as disabled or having accessibility requirements to improve access to hospitality venues.
What effect does the Motability scheme have on employment outcomes for disabled people?
RR spoke about a disabled worker who had experience using the Motability scheme who had taxis paid for the 2-hour daily commute to work, however, the taxis cost more than he earnt. RR raised limitations with local bus passes preventing disabled workers accessing work which is particularly acute in rural and coastal communities. Time restrictions on when bus passes can be used (i.e. not before 9am) mean that many local people cannot get through an interview stage because of these travel restrictions as could not work the shifts needed because of travel limitations. A pilot was suggested with the removal of travel limits for bus passes or flexi tickets having less limitations for disabled bus users.
According to Motability Operations News, for every £1 of disabled people's benefits used on the Motability scheme, there is an estimated £1.50 in economic benefit.
What should the Government prioritise with its additional employment support for disabled people arising from the Pathways to Work Green Paper?
The Pathways to Work Green Paper should be used by Government to enhance and improve the AtW programme both from both an employer perspective and a worker perspective. Alison from Starboard Hotels supported the idea of a change of approach from a more general one to one where the support is targeted and tailored to specific needs.
Since Covid there has been a higher waiting list for the AtW programme, and more staff are needed to expand and improve the offering, so the scheme is more accessible and effective for disabled people facing the prospect of unemployment. Alison reinforced this messaging by it being hard to get a response from an advisor at AtW meaning this can act as a deterrent for other disabled people accessing work. The programme should be enhanced by having a greater personalised approach with customised training, unique workplace adjustments and ongoing support which does not end at a fixed date as an individual’s needs can change over time.
What should be the focus of the 1,000 Pathway to Work advisors?
The focus of advisors should be to connect individuals with local services, educational colleges, trusted disability confident companies and other relevant health and safety organisations. Advisors should also seek to increase awareness amongst employers on the benefits of employing disabled workers and ways they can integrate inclusive hiring practises into their company. Importantly, advisors should help individuals to understand and navigate the benefits system, ensuring they are aware of their entitlements and how to access them. Advisors should conduct thorough assessments to understand each person's unique circumstances, skills, and career aspirations. Based on the assessment, advisors should provide personalised advice and support on career options, skills development, and job searching strategies
To what extent is the success of DWP’s plans to improve disability employment contingent on improvements made to other public services, in particular, health?
There is an established link between economic equity, heath and regional disparity. There is a known link between a good job and improving an individual’s physical and mental health outcomes, be that for disabled and non-disabled workers. A steady job has long been associated with improved physical health and mental wellbeing through routine and structure, increased social interaction and a sense of purpose and fulfilment and a reliable income. Hospitality is a particularly social workplace and in 2025 The Times hospitality companies were consistently billed as having the happiest workforces.
Part-time work
The Resolution foundations, recent paper, Opening Doors, identifies the main problem facing disabled workers accessing work being that there are too few suitable jobs, particularly in certain parts of the country, for disabled workers. While the ability to find work varies from region to region, the nature of a disability also affects the difficulty in getting a job.
Opening Doors pinpoints the ‘availability of suitable jobs’ being the crux of the problem and amongst ‘disabled workers not working and receiving incapacity or disability benefits, two thirds said they would need to work part-time’. Labour demand and the suitability of work plays a large factor in disabled workers not finding work that works for them. Hospitality work is often part-time and, as our Social Productivity Index shows, hospitality is the largest provider of part-time roles. Part-time work is socially important, providing routes into work for people who have commitments outside work or health conditions that prevent them accessing full-time work. It is discriminately used by younger and older people and people with varying responsibilities. This is why it is imperative Government acts to fix NICs and reforms business rates in the 2025 Budget. UKHospitality’s membership survey shows that as a direct result of the 2024 Budget a third of hospitality businesses are restricting opening hours and 63% have had to reduce hours available to staff.
The supply of the accessible hospitality jobs is crucial to reduce the employment gap for disabled workers. Despite hospitality not being included in the Government’s Industrial strategy as a ’high growth sector’ it provides growth in a myriad of ways as it directly supports the success of our ‘growth driving’ sectors. Socially productive growth is the key for unlocking growth in part of the country especially outside major cities and typically hard to reach groups such as disabled workers. Increasing the supply of part-time work is central to the solution to increasing the employment rate for disabled people.
The Government should enact a strategy to alter the employment gap for disabled workers and recognise the contribution made by businesses at the heart of our communities acknowledging the social impact of sectors not included in the Industrial Strategy.
Recommendation: The Government creates a strategy in parallel to the Industrial Strategy for businesses in the middle of our communities in tandem with traditional economically productive areas with a renewed focus on the foundational sectors which are the building blocks for a thriving, vibrant community.
Conclusion
Hospitality is the crucial missing piece of the puzzle to improve the employment gap for disabled workers. There is a moral imperative for the Government to work in partnership with businesses to move more disabled people from welfare into work.
Currently the hospitality sector is being taxed out of viability severely limiting the sector’s ability to create jobs, retain employees and promote them. New analysis of jobs data by UKHospitality reveals that hospitality has accounted for 53% of all job losses in the UK since the Budget, confirming the sector is the hardest hit by tax increases. Businesses are stuck in survival mode, unable to invest or grow. The sector should be a major driver of jobs, skills and local growth, but unless Government acts urgently, we risk losing thousands more businesses and hollowing out high streets across the UK.
However, people are the heart of our businesses, and the hospitality sector is passionate about seeing people from different backgrounds and experience thrive in the workplace. Economic analysis shows that with the right policies the hospitality sector can again outgrow the national economy – sixfold - at a rate of 6% per annum. Such growth would create 500,000 jobs by 2030, particularly in underdeveloped and under-served regions outside major economic hubs. These jobs would be accessible for disabled workers acting as vital first step to move more people from welfare to work. The sector is committed to working with Government on the above recommendations and with the right, targeted support we can see a hospitality sector that thrives and provides jobs for everyone, everywhere.
September 2025