'Perfect storm' could see end of salon apprenticeships

Facing financial pressures, British hair salon owners are warning they may not be able to take on any new apprentices in the next two years. This dire situation has sparked concerns within the industry regarding the future of talent development. Moreover, salon owners are actively seeking ways to mitigate these financial burdens to ensure the continuity of apprenticeship programs.

The British Hair Consortium, representing 50,000 hair professionals, is calling on the government to revise tax policies, stating that the current system poses an "existential crisis." The consortium argues that because the hairdressing industry is labor-intensive, salons find it more difficult to recoup the 20% VAT costs compared to businesses selling products. Therefore, the alliance is advocating for tax reforms that acknowledge the unique operational challenges faced by salons.

Apprentices told BBC Newsbeat that apprenticeship schemes are a vital opportunity for those who do not wish to pursue further education. However, a report by CBI Economics found that an increasing number of salons are opting to rent out seats rather than employ stylists to avoid taxes, which could have a knock-on effect on apprentice opportunities. The report estimates that "new apprenticeship opportunities may not be offered by 2027, and direct employment could plummet by 93% by 2030." This trend highlights a concerning shift in employment models within the industry and its potential long-term impact.

Alex Ritchie, a 22-year-old apprentice, said: "It's really worrying to think that people won't be able to get the opportunities that we've had." She is training in Darlington and dreams of owning her own salon one day, but she fears that without apprentices, the industry will face a real struggle. "You can't run a salon without apprentices," she said. "They are your main support when you're serving clients. It will have a massive impact on the amount of salons and the amount of customers they can take."

Jezz Ellis, operations director at Saks salon chain, said that unless things change, the attractiveness of hairdressing apprenticeships will decline. Salons are facing a "perfect storm" that will affect the number of apprentice training positions they can afford. "The VAT issue has always been tricky." In addition, there is a growing problem of insecure or "disguised" employment due to fewer formal employee positions being offered. This means that although they may work according to the salon's rules and be treated like employees, they are effectively self-employed and therefore miss out on benefits such as sick pay, maternity pay, and pensions. "Add to that the rise in National Insurance and the increase in the National Minimum Wage, it makes it very difficult for salons to put their prices up to cope with the extra costs. All of these factors together are really hitting many salons hard," Jezz said.

For Adam Hussain, who is working hard to obtain his Level Two hairdressing apprenticeship, the apprenticeship scheme offers tremendous benefits for people like him. "I wouldn't be where I am today without the apprenticeship scheme," he said. "I'd probably be doing God knows what. Apprenticeships are really good - you get paid to learn, you learn on the job, and it's a very hands-on profession." The opportunity to gain practical skills and earn a wage simultaneously makes apprenticeships an invaluable pathway for many aspiring hairdressers.

The British Hair Consortium hopes the government will act swiftly before Chancellor Rachel Reeves unveils future economic plans in the Spring Statement on March 26. While the government did not respond to Newsbeat's request for comment, the Department for Education has previously stated that now is the time to take apprenticeships seriously. Last week, the Department for Education announced a reform allowing employers to decide whether maths and English qualifications are required to apply for certain apprenticeship schemes. These reforms signal a potential shift towards greater flexibility and employer involvement in apprenticeship programs.