The boss of Fuller's, a major UK pub chain, has warned that hospitality firms no longer have an incentive to hire inexperienced under-21s as the minimum wage for this age group increases. Simon Emeny, executive chairman of Fuller's, told the Press Association that Government policy aimed at improving pay is having the 'opposite effect' by reducing hiring opportunities for young people.
Impact of Minimum Wage Changes
Mr Emeny explained that the narrowing gap between the national living wage for over-21s and the rate for 18-21 year olds has removed the traditional incentive for businesses to hire young, inexperienced staff. 'There has always been an incentive for businesses like ours to employ lots of young people who are raw, inexperienced and untrained,' he said. 'By reducing the differential between the national living wage and the national living wage for 18 to 21-year-olds, that incentive has gone away.'
The national minimum wage rose to £12.71 per hour for those aged 21 and over in April, while the rate for 18-20 year olds is £10.85. The Government has pledged to scrap lower minimum wage rates for under-21s, labelling them as 'discriminatory' and aiming to equalise them with the national rate. Mr Emeny warned that such a move would worsen the situation for young people struggling to find work.
Staff Retention and Economic Trends
Mr Emeny also noted that staff turnover at Fuller's, which operates 337 pubs and hotels, is at its lowest ever, partly due to fewer people leaving their jobs. 'So we don't need to hire as many people as we would at other stages of the cycle,' he said. 'It's clearly, at the moment, an employers' market when it comes to hiring.' He attributed this to both efforts to keep staff 'happy and motivated' and a broader economic trend where people are becoming more loyal to their employers in a tightening economy.
The comments come as Fuller's reported increased sales over the past year, driven by higher food and drink sales and demand for staycations. Mr Emeny noted that people are being cautious about flying due to higher prices and uncertainty over travel during the Iran war, leading to 'double-digit growth in domestic vacations' in locations like the Cotswolds and the New Forest. Additionally, Fuller's revealed that customers have been booking pubs ahead of time to watch the 2026 Fifa World Cup, featuring England and Scotland.
