What the Skilled Visa Shake-Up Means
The UK’s hospitality sector has weathered Brexit, lockdowns, labour shortages, and inflation. But 2025’s latest immigration whitepaper may be one of the biggest stress tests yet.
New government restrictions on the Skilled Worker visa threaten to deepen an already critical staffing crisis in the sector—and the ripple effects may extend far beyond pubs and restaurants.
If you’re running a hospitality brand, managing operations at scale, or supporting a portfolio business that relies on international labour, here’s what you need to know about the Skilled Visa —and what you can do about it.
What’s Changing (and Why It Matters)
Last year’s salary threshold increase (£26,200 – £38,700) already dealt a blow to hospitality businesses reliant on international workers.
Now, the bar is being raised again:
- New qualifications requirement: workers must now hold the equivalent of a degree (not just A-levels)
- Tougher English language standards
- Stricter visa routes for international students (many of whom work part-time in hospitality)
According to UKHospitality, 8,500 visas were issued for the sector in 2023—vital lifelines for pubs, restaurants, and hotels across the UK. But in the same year, the sector saw 170,000 open roles go unfilled.
In an industry that already operates on tight margins and high turnover, further limiting access to international talent is not just a policy change—it’s an existential risk.
Why This Isn’t Just a Hospitality Issue
While it’s tempting to file this under “not our sector,” the knock-on effects are real—especially for operators, investors, and founders in:
- Food & drink manufacturing
- Hotel chains and serviced accommodation
- Events, entertainment, and tourism
- Regional high streets and community venues
The UK’s service economy is deeply interlinked. If hospitality businesses can’t staff their venues, local supply chains contract. Talent leaves the sector. Investment dries up.
And for private equity firms with hospitality in their portfolio? Hiring limitations may now need to be factored into growth projections, valuation, and exit planning.
The Government’s Proposed Fix: Is It Enough?
In parallel to restrictions, the Government has introduced SWAP—the Sector-based Work Academy Programme, to train 100,000 unemployed people into hospitality jobs.
It’s free and structured. And on paper, it sounds like a win-win.
But here’s the problem:
Training takes time. Retention is uncertain. And the appeal of hospitality—low wages, unsociable hours, and low job security—isn’t exactly rising.
SWAP may be a helpful supplement, but it’s not a replacement for experienced, qualified talent already equipped to hit the ground running.
What Can Businesses Do Now?
If your business is facing a growing hiring gap, here’s how to respond—strategically, not reactively:
1. Invest in Process Over People Power
Smart businesses are rethinking operational models. Could tech streamline bookings, orders, or inventory? Could flexible staffing pools replace fixed headcounts?
This isn’t just about cost-saving—it’s about resilience.
2. Audit Your Employer Brand
Would you apply to your own job ad?
In a market where the same talent is being courted by retail, delivery apps, and customer service roles, your EVP (employee value proposition) has never mattered more. Local workers aren’t going to choose you if the offer feels generic.
3. Accelerate Training, Not Just Hiring
If you can’t hire fully qualified talent, you need to train them faster. Front-load onboarding. Build in buddy systems. Create a 30-day roadmap that turns first-timers into high performers. Don’t let new hires sink or swim.
4. Engage with Policy—Not Just in Crisis
If you’re a founder or operator, make your voice heard. Join local business forums. Feed into consultations. And if you’re backed by investors, leverage their influence too. Policy only shifts when there’s consistent, collective pressure.
How The Small Consultancy Supports Talent Strategy in a Changing Landscape
We’re not just a recruiter. We’re a partner in growth.
Whether you’re a national venue group, a scale-up F&B brand, or a PE-backed business planning for headcount change, we help you build a resilient, scalable people strategy.
We work across:
- Operational hiring audits and workforce planning
- EVP development and recruitment marketing
- Rethinking roles to reduce dependence on hard-to-fill talent
- Employee engagement and retention strategy
- Advising on compliance, contract structures, and long-term talent planning
If you’re facing increased uncertainty in your hiring pipeline, we’ll help you create a plan that works now—and still works six months from now. Find out more today.