The National Hair & Beauty Federation (NHBF) welcomes the Government’s announcement of a £900 million expansion of the Youth Guarantee and wide-ranging reforms to the apprenticeship system changes that should prove positive for the hair, beauty, barbering and aesthetics sector across the UK.
Announced on 16th March 2026, the package represents the most significant reshaping of youth employment and skills policy in recent years. For a sector that has long championed entry-level employment, on-the-job learning, and entrepreneurship, the NHBF believes these reforms could help unlock substantial new talent for businesses, if implemented effectively.
Youth Guarantee and Jobs Incentives
The expansion of the Jobs Guarantee Scheme to include 22 to 24 year olds is particularly welcome news. Hair & beauty businesses, the majority of which are small or micro-enterprises, frequently say the cost and risk of taking on young staff is a barrier to recruitment. New hiring incentives for employers recruiting young people on Universal Credit who are at risk of long-term unemployment could make a real difference for salon, barbershop and clinic owners willing to invest in the next generation.
Caroline Larissey, Chief Executive of the NHBF, commented:
“Hair & beauty is one of the most powerful vehicles we have for getting young people into skilled, fulfilling work. We welcome any policy that lowers the barrier for businesses to say yes to a young person who is ready to learn. The expanded Youth Guarantee, combined with incentives for smaller employers, is a step in the right direction and we look forward to working with Government to ensure our sector can access every benefit available.”
Hair & Beauty has a workforce which is more than 85% female, so any support given to the sector benefits a population who have been historically underserved by the Government.
Apprenticeship Reform: What It Means for Hair and Beauty
The Growth and Skills Levy reforms bring both opportunity and challenge for the sector. From April 2026, the Government will introduce further incentives for non-levy paying employers, which accounts for the vast majority of hair & beauty businesses, who recruit 16 to 24 year old apprentices. This is a direct response to longstanding calls from the NHBF and the sector for a system that works for small employers.
More than 80% of hair & beauty businesses employ fewer than five people, and 95% employ fewer than ten.
However, the latest State of the Sector Survey report from the NHBF shows that 69% of businesses said it was more difficult to find staff than 12 months earlier, so there’s a clear need for Government support.
Key changes relevant to hair & beauty employers include:
- Additional financial incentives for non-levy* employers hiring 16–24 year old apprentices, launching from April 2026. (*those with an annual wage bill of less than £3 million – so the majority of the sector).
- Foundation Apprenticeships expanding into hospitality and retail sectors from April 2026 — sectors that share the workforce pipeline with hair and beauty and offer comparable entry-level pathways.
- A new Level 2 Administrative Assistant Apprenticeship aimed at 16–24 year olds, available for starts from 1st August 2026, creating additional opportunities for young career starters in salon and clinic support roles (such as receptionist)
- Streamlining of the apprenticeship offer, reducing over 700 standards to focus funding on young people and critical skills. Hair and beauty apprenticeship standards are not among those being withdrawn.
- Apprenticeship Units launching from April 2026, allowing employers to use levy funding for flexible workforce training for the first time. The initial seven units focus on engineering and digital sectors, but the NHBF will engage with Skills England on future units relevant to hair and beauty.
Important Information fo Levy Funding Employers (ie those paying over £3 million in wages)
While welcoming the investment, the NHBF draws the sector’s attention to changes that will affect how levy funds are managed from August 2026:
- The expiry period for new levy funds will reduce from 24 months to 12 months (applying only to funds entering accounts from 1st August 2026).
- The 10% monthly top-up on levy accounts will be removed for new funds from 1 August 2026.
- The employer co-investment rate, once levy funds are exhausted, will change from 95%/5% to 75%/25% from August 2026 for new apprentices. Existing apprentices on programme retain the 95% government contribution.
The NHBF strongly encourages levy-paying members to review their current apprenticeship plans in light of these changes and to seek guidance before August 2026.
NHBF Response and Next Steps
The NHBF will be monitoring implementation closely and engaging with Skills England and the Department for Education to ensure that hair, beauty, barbering and aesthetics businesses are able to access the full range of support available.
We will publish guidance for members and the wider sector as further details emerge, including on funding rates for Apprenticeship Units (expected April 2026) and on training provider conditions (confirmed 30thMarch 2026).
Members with questions about how these changes affect their business are encouraged to contact the NHBF membership team or visit nhbf.co.uk for the latest guidance.