Pubs employ more young people than ever before, but the Budget means many may have to make difficult decisions to save jobs, the British Beer and Pub Association has warned.
More than half (51%) of the overall pub sector’s workforce are aged 16 to 24, figures from 2024 Oxford Economics research reveal. That equates to pubs employing one in ten of all under-25-year-olds in the UK job market.
The data, commissioned by the BBPA, shows that pubs employ 350,000 under-25-year-olds, up from 281,770 in 2019. This is a dramatic increase of nearly a quarter (24%). This equates to one in ten of all under-25s in work.
Prior to the Budget, the National Insurance Contributions for 350,000 under 25-year-olds was equal to approximately £82 million. With the new NICs announced in the Budget, it will now cost £153m to maintain the same amount of under-25-year-old workers.
Pubs may now have to make tough decisions so they can afford to keep staff. This could mean halting recruitment or pushing up prices.
The BBPA is calling on government to reconsider the timing of the new employment costs so businesses can better plan and carry on employing staff they need, rather than staff they can afford.
“We know government acknowledged our industry, but they must be clear-eyed about the shattering effect new regulations will have on us,” said BBPA chief executive Emma McClarkin.
“Many will have worked behind a bar and know that it’s more than just a job. Our industry provides rewarding careers, helps younger people build skills, grow in confidence, and fund university education or driving lessons. Without this vital work many would struggle with rents, bills, and basic living.
“If we’re to keep people in work and put money in their pockets, business needs to be viable. We urge the government to reconsider the timings of the new employment costs and swiftly deliver meaningful business rate reforms. Only then can we continue to be the backbone of the UK job market and a cornerstone of the community.”
