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Beauty and Wellbeing Sector Workforce
23 June 2021
Lead MP
Carolyn Harris
Neath and Swansea East
Lab
Responding Minister
Paul Scully
Tags
EconomyTaxationEmploymentForeign AffairsBusiness & Trade
Word Count: 12830
Other Contributors: 6
At a Glance
Carolyn Harris raised concerns about beauty and wellbeing sector workforce in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government must provide support for businesses as long as social distancing measures are in place. Promotion is needed to encourage young people to enter the industry and ensure a full skill base. The beauty and wellbeing sector needs help now to support jobs, boost customer wellbeing, and contribute to the UK economy.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The beauty and wellbeing sector has faced significant challenges during the pandemic, including long closures and inadequate financial support. Businesses have lost an average of £40,000 in revenue by the end of this year, leading to job losses and reduced staff hours. Employment in the industry is down by 21% from pre-pandemic levels. The workforce has been undervalued and overlooked for financial assistance, with only 11% of salons planning to recruit new apprentices.
Caroline Nokes
Con
Romsey and Southampton North
Pays tribute to the hon. Member for Swansea East for her work highlighting the hair and beauty sector's challenges during the pandemic; emphasizes that the sector is not 'just' anything but a thriving industry providing training, employment, and opportunities for women to become entrepreneurs; mentions £28 billion value of the sector and its role in giving women confidence to return to the workplace; calls for a separate VAT code for the beauty sector similar to hospitality's; highlights need for better regulation and accreditation within the industry. Quickly responded that promoting apprenticeships is important, and asked for specifics on the work being done with the Department for Education to promote them in the sector.
Jessica Morden
Lab
Newport East
Jessica Morden paid tribute to the hair, beauty and therapeutic businesses in Newport East that have been hit hard during the pandemic. She mentioned specific challenges faced by these businesses, including reduced turnover of 45% compared to 2019 and an average cash loss of £17,000 per business over the VAT threshold. Morden highlighted the importance of the beauty sector as a significant contributor to the economy with over £30 billion in contribution and over 500,000 employees.
Jim Shannon
DUP
Strangford
Mr. Shannon highlighted the importance of the beauty and wellbeing sector, noting its economic contribution of £9.2 billion annually in Britain. He shared personal experiences from his constituency where many businesses struggled due to covid-19 restrictions, with some closing down despite government support. The speaker emphasised the need for continued financial assistance beyond furlough's end, particularly addressing recruitment challenges and apprenticeships. Asked if the Government intends to support hair and beauty salons in employing apprentices as part of workforce development initiatives.
John McNally
SNP
Falkirk
Mr. McNally highlighted the financial and mental strain experienced by beauty sector workers during the pandemic, citing inadequate government support and delayed financial announcements as major issues. He emphasized the importance of employer pastoral care roles in supporting staff wellbeing amidst high stress levels. Additionally, he noted that the lack of certainty regarding furlough regulations contributed to increased anxiety among both employers and employees.
Judith Cummins
Lab
Bradford South
Ms Cummins highlighted the importance of the beauty and wellbeing sector, especially for women-owned businesses in her constituency. She noted that despite contributing up to £30 billion to the economy, the industry faced significant challenges during the pandemic, with business closures and a decline in newly qualified professionals joining the field. She emphasised the need for better regulation to ensure consistent training standards across all practitioners.
Seema Malhotra
Lab Co-op
Feltham and Heston
Discussed the importance of the beauty and wellbeing sector, noting its economic contribution to GDP and tax revenues. Highlighted challenges faced by the industry during the pandemic, including permanent closures and job losses among self-employed workers. Raised concerns about future financial stability for salon owners and the need for flexible debt repayment plans. The Minister has not explained why furlough support has not been extended in line with public health measures despite the extension of restrictions. This mismatch leaves vulnerable businesses paying more than their revenues can cover, which is a matter of concern for employers across constituencies.
Government Response
Paul Scully
Government Response
It is a pleasure to see you back in the chair, Sir Roger, and to serve under your chairmanship. I congratulate the hon. Member for Swansea East on securing today's important debate, and I commend others on their work in support of this sector. The beauty and wellbeing industry employs around 561,000 people and contributes £21 billion to the economy; over 95% of businesses are small or medium-sized enterprises (SMEs). During the pandemic, a dedicated personal care sector support team was established, resulting in an unprecedented financial package worth £382 million, including furlough, self-employment income support, restart grants up to £18,000, and loans. The minister also highlighted the importance of social distancing measures until further vaccinated individuals are reached, ensuring safe business operations. He noted that different sectors have varying views on extending the furlough scheme beyond September but emphasised the need for a macroeconomic approach while considering personal impacts. Regarding VAT reduction, the Chancellor considered it less effective due to many small businesses not being registered for VAT. The minister also discussed apprenticeships and workforce upskilling initiatives like L'Oréal's Access platform which 54,000 hair professionals have utilised. He highlighted efforts to address barriers faced by female entrepreneurs, such as access to finance and peer-to-peer networking, aiming for a more diverse investment landscape. In conclusion, the minister pledged continued support for the sector as it reopens and addressed long-term challenges.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.