Hospitality's Hidden Crisis: Economic Powerhouse, Wage Underdog

Despite being one of the UK’s most economically significant sectors, new research reveals a troubling truth about the state of pay in hospitality. According to data from the Office for National Statistics (ONS), analysed by money.co.uk’s business bank accounts team, the hospitality industry now offers the lowest median hourly wage of any UK sector, just £12.39 per hour, a mere 18 pence above the national living wage.

This is an especially jarring statistic when considered against the industry’s overall impact. In 2023, hospitality contributed a staggering £93 billion to the UK economy, with forecasts suggesting this will rise by a further £29 billion by 2027. Yet, despite this upward economic trajectory, those powering the sector; the chefs, baristas, servers, and hotel staff—are seeing their real wages fall, with a 10% year-on-year decline reported.

A Passion-Fuelled Industry Struggling to Pay

Hospitality has long been driven by passion. For many, it’s more than just a job—it’s a craft, a calling, a culture. In a nation that prizes pub lunches, afternoon teas, and restaurant culture, this sector is deeply embedded in everyday life. But rising costs, inflation, and structural weaknesses exposed during the pandemic are leaving many workers underpaid and overworked.

The average hospitality working week now stands at just 26 hours, forcing many to rely on unpredictable overtime—an average of 2.8 hours per week—just to stay afloat. For workers trying to meet basic living costs, this model is unsustainable.

The Broader Wage Picture: Who’s Winning?

When placed alongside other industries, the disparity becomes more glaring. Energy sector workers earn a median hourly wage of £26.89, more than twice that of hospitality professionals. Even traditionally underpaid sectors like education fare better, with hourly rates at £18.35.

This gap is more than just numbers... it’s a reflection of shifting employee expectations. As Joe Phelan from money.co.uk puts it, “Today’s employees are more willing to walk away from roles that don’t offer a healthy work-life balance or prioritise wellbeing. That means businesses need to offer more than just pay.”

Industries that have adapted—offering flexible hours, mental health support, and career development, are now attracting and retaining the best talent. Hospitality, with its long hours, low pay, and unstable schedules, is at risk of losing not just staff, but future generations of workers.

Bottom Line:

While the hospitality industry continues to deliver substantial economic gains, it's clear that its internal structure needs rethinking. Workers deserve a slice of the success they help create. Investing in fair pay, wellbeing, and long-term stability isn’t just a moral imperative, it’s essential for the survival of the sector.

At AGS Group, we understand the pressures hospitality businesses face. That’s why we partner with restaurants, hotels, and venues across the UK to provide reliable, efficient facilities management (FM) solutions. From maintenance to compliance and safety, we help you focus on what matters most... your staff, your guests, and your growth.

Let’s build a hospitality industry where success is shared, top to bottom.