Hospitality pay slips behind as UK sector posts lowest hourly rate
New research reveals that the hospitality sector now has the lowest hourly pay of any UK industry. Despite contributing £93 billion to the economy in 2023, hospitality wages have fallen 10% in the past year.
According to the latest ONS data analysed by money.co.uk’s business bank accounts team, the sector has slipped to the bottom of the national wage ladder, offering a median hourly pay of just £12.39, a mere 18 pence above the national living wage.
In a country where eating out is not just a pastime but a culture, and where the sector’s economic contribution reached a formidable £93 billion in 2023, such figures should provoke concern. The situation becomes even more galling when you consider this is the same sector that is projected to add another £29 billion to the economy by 2027.
The trade’s structural fragility, brutally exposed by the pandemic and compounded by rising National Insurance contributions, continues to hamper efforts to offer competitive pay. The average working week in hospitality now clocks in at a paltry 26 hours, leaving many staff relying on unpredictable overtime, 2.8 hours weekly on average, simply to make ends meet.
Economic juggernaut, but workers left behind
While the top echelons of hospitality may look outwardly robust, these headline figures obscure a stark internal imbalance. The industry may be buoyed by growth projections and consumer demand, yet its workers remain among the most poorly paid across all sectors.
Joe Phelan of money.co.uk explains that remuneration alone is no longer enough to attract or retain skilled staff: “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.”
The evidence supports him. Sectors like financial services and energy, where median hourly pay exceeds £25, are also adapting working patterns to better suit modern expectations and are far better placed to retain top talent.
The wider wage context: passion vs pay
It’s not only hospitality that’s feeling the pinch. Other low-paying sectors include retail, arts and agriculture; industries often sustained by passion, family tradition, or lifestyle choice rather than financial incentive. Yet with inflation and living costs continuing to bite, these motivations may no longer be enough.
At the opposite end, energy supply workers earn £26.89 per hour, more than double that of their hospitality peers. Even in education, long considered an underpaid profession, the median hourly wage is still £18.35, for a slightly longer working week.
Partner Content
For those in sectors like food service, where tipping can sometimes fill the gap, these findings still suggest a deeper issue: you cannot rely on gratuities to make up for structural underpayment.
Younger workers are better off, but mid-career stagnation raises alarm
There are generational nuances too. Workers aged 16–21 have seen significant pay growth over the last 20 years, driven largely by increases in the national minimum wage. Yet for core working-age groups, particularly those aged 30–39, wages have in fact fallen by 4.5% in real terms since 2004.
This group represents the heart of the UK’s labour force, experienced, often family-bearing and in need of financial stability. Their dwindling earnings raise questions not just about fairness, but about the sustainability of a workforce expected to shoulder economic recovery.
Interestingly, those aged 60 and over have seen their pay rise over the same period, possibly due to delayed retirement or the premium placed on experienced professionals in certain roles.
Workload weighs on workers as overtime soars
Burnout is another pressing concern. While hospitality sits mid-table for overtime worked, other sectors such as transport and agriculture are seeing dangerously high levels, over five hours of overtime a week in some cases. Overtime may offer short-term flexibility, but in the long run it leads to staff churn, ill health and reduced productivity.
Phelan adds, “When companies get this right, they typically see lower staff turnover, higher engagement, and more consistent productivity.” But right now, too many in hospitality are simply running to stand still.
The hospitality industry has long thrived on intangibles, passion, resilience and the sheer magnetism of a perfectly crafted experience. Yet none of these can substitute for fair pay. If the sector is to continue its economic ascent, it must bring its workforce along for the journey.
For now, though, it remains an industry where dedication is plentiful, but financial recognition is painfully rare.
Related news
Drinks sector sounds alarm as UK spending review snubs hospitality
UKHospitality switches up its top team to 'turbocharge' growth
