The British Hair Consortium (BHC) is launching a campaign to address significant challenges within the hairdressing sector. Key issues include rising operational costs and a severe decline in apprenticeships, which the BHC argues require a united industry response. Historically, the sector has struggled to present a unified voice to government due to its fragmented nature.
The BHC highlights that staffing accounts for roughly 60% of salon operating costs. Recent increases in the National Minimum Wage, Employer National Insurance contributions, and statutory benefits have amplified financial pressures. Apprenticeship wages alone have seen a 93% rise since 2020. This rapid cost escalation is making it difficult for salons to invest in new talent.
A critical consequence of these financial strains is a reported 70% drop in apprenticeships. This trend poses a substantial risk to the future supply of skilled professionals in hairdressing and barbering.
Furthermore, the Consortium is advocating for reform of the VAT system. Current regulations place a full VAT burden on hairdressing services, which are labour-intensive. The BHC proposes a reduced VAT rate of 10% on services. They frame this change as essential for enabling salon reinvestment, fostering job creation, and ensuring long-term business sustainability.
Concerns are also raised about the impact of unregulated business models and a decline in traditional employment. The BHC supports the Hairdressing Council's call for State Registration. This would introduce mandatory qualification requirements, enhance accountability, and professionalise the sector.
Despite hairdressing contributing an estimated £6.1 billion to the UK economy, the sector is dominated by small businesses lacking collective influence. The BHC emphasizes that collaboration among salon owners, educators, and industry professionals is vital to drive meaningful change and secure a more prosperous future for the profession.
