The boss of Fuller's, Simon Emeny, has warned that hospitality firms no longer have an incentive to hire inexperienced under-21s as the minimum wage for that age group continues to rise. He told the Press Association that Government policy aimed at improving pay is having the 'opposite effect,' leading businesses to hire fewer young workers.
Rising Wages and Youth Unemployment
Mr Emeny, executive chairman of the pub chain, said: 'There has always been an incentive for businesses like ours to employ lots of young people who are raw, inexperienced and untrained. 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.' He added that businesses are now gravitating towards experienced workers, leaving 15% of young adults unable to find work.
The national minimum wage increased in April to £12.71 an hour for those aged 21 and over, and £10.85 for those aged 18-20. The Government has pledged to scrap lower rates for under-21s, calling them 'discriminatory.' Mr Emeny warned that fully equalising wages would worsen the situation for young people.
Government Response
A Treasury spokesman defended the policy, stating: 'Increasing the national minimum wage boosts pay for over 200,000 young workers, and employer NICs are lower when hiring under-21s.' The Government also highlighted support for hospitality, including VAT cuts on family attractions and business rates relief.
Staff Retention and Market Trends
Mr Emeny noted that staff turnover at Fuller's, which operates 337 pubs and hotels, is at its lowest ever, partly due to employees becoming more loyal in a tightening economy. 'It's clearly an employers' market when it comes to hiring,' he said.
Fuller's reported increased sales driven by food, drink, and staycations. Mr Emeny cited concerns about flying due to higher prices and uncertainty, leading to 'double-digit growth in domestic vacations' in locations like the Cotswolds and New Forest. The chain also saw bookings for the 2026 FIFA World Cup, with England and Scotland participating.
