Asked by: Caroline Dinenage (Conservative - Gosport)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment she has made of the potential implications for her policies on apprenticeship of the British Hair Consortium’s report entitled Securing the future of UK hairdressing and beauty: The economic, fiscal & societal case for VAT reform, published in February 2025.
Answered by Janet Daby
The hair and beauty sector have developed several high-quality apprenticeships, including the level 2 hairdressing professional standard, and the department continues to encourage employers in the sector to use apprenticeships to develop the skilled workforces they need.
To support smaller employers to access apprenticeships, the government pays the full training costs for young apprentices aged 16 to 21, and for apprentices aged 22 to 24 who have an education, health and care (EHC) plan or have been in local authority care. Employers can also benefit from £1000 payments when they take on apprentices aged 16 to 18, or apprentices aged 19 to 24 who have an EHC plan or have been in local authority care. Employers can choose how they spend these payments.
As the report highlights, we recognise that the increase to employer National Insurance contributions will have a varying impact across all sectors. Employers are not required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25, where they earn less than £50,270 a year.
This government also remains committed to ensuring that apprentice wages support the attraction of talented individuals into apprenticeships and remain fair for employers.
Asked by: Caroline Dinenage (Conservative - Gosport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential implications for his policies on workers rights of the British Hair Consortium’s report entitled Securing the future of UK hairdressing and beauty: The economic, fiscal & societal case for VAT reform, published in February 2025.
Answered by Justin Madders
The industry plays an important economic and social role across the UK, which is why we are creating a fairer business rates system, increasing the Employment Allowance and transforming the apprenticeship levy.
We are committed to tackling false self-employment and will investigate evidence suggesting businesses have misclassified individuals for tax purposes. The Employment Rights Bill will make widescale changes to employment law that will support growth in the UK, bringing greater security at work, greater pay, better staff retention, making jobs more secure and supporting women in work in every stage of life.
Asked by: Caroline Dinenage (Conservative - Gosport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential implications for her policies on VAT of the British Hair Consortium’s report entitled Securing the future of UK hairdressing and beauty: The economic, fiscal & societal case for VAT reform, published in February 2025.
Answered by James Murray - Chief Secretary to the Treasury
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is also the UK’s second largest tax, forecast to raise £171 billion in 2024/25. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Changes to the VAT threshold have to be carefully balanced considering the potential benefits to small businesses, the economy as a whole and tax revenues.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential implications for his policies of the British Hair Consortium commissioned CBI Economics report entitled Securing the future of UK hairdressing and beauty: the economic, fiscal and societal case for VAT reform, published on 19 February 2025.
Answered by James Murray - Chief Secretary to the Treasury
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Changes to the VAT threshold have to be carefully balanced considering the potential benefits to small businesses, the economy as a whole and tax revenues.
Asked by: Oliver Dowden (Conservative - Hertsmere)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential implications for her Department's policies of the British Hair Consortium's report entitled Securing the future of UK hairdressing and beauty: the economic, fiscal and societal case for VAT reform, published in February 2025.
Answered by James Murray - Chief Secretary to the Treasury
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £171 billion in 2024/25. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations.
Changes to the VAT threshold have to be carefully balanced considering the potential benefits to small businesses, the economy as a whole and tax revenues.
Asked by: Marie Goldman (Liberal Democrat - Chelmsford)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps her Department is taking to increase the number of apprenticeship opportunities within the hairdressing industry; and what support her Department provides salons to help them hire apprentices.
Answered by Janet Daby
Apprenticeships are a great way for individuals to begin, or progress in, a successful career in hairdressing. Employers in the sector have developed a level 2 Hairdressing Professional apprenticeship and a level 2 Barbering Professional apprenticeship to help them develop their workforces.
The department continues to promote the benefits that apprenticeships offer, to students in schools and colleges through the Apprenticeship Support and Knowledge programme, as part of the Skills for Life campaign.
Employers who do not pay the apprenticeship levy, that are usually small to medium-sized enterprises (SMEs), are important to the economy and to apprenticeships. SMEs are more likely to employ younger apprentices and apprentices from disadvantaged areas.
To support non-levy paying employers to access apprenticeships, the government pays full training costs for young apprentices aged 16 to 21, and for apprentices aged 22 to 24 who have an education, health and care (EHC) plan or have been in local authority care. Employers of all sizes, including SMEs, can also benefit from £1000 payments when they take on apprentices aged 16 to 18, or apprentices aged 19 to 24 who have an EHC plan or have been in local authority care.
Employers also benefit from not being required to pay anything towards employees’ National Insurance for all apprentices aged up to age 25 where they earn less than £967 a week, or £50,270 a year.
Asked by: Simon Opher (Labour - Stroud)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing regulations to enhance financial transparency within the hairdressing industry.
Answered by Tulip Siddiq
Financial transparency is key to ensuring cash-based businesses meet their legal obligations, such as registering with HMRC and paying taxes promptly.
However, these benefits must be balanced against the burdens on business created by new regulation.
While cash-based businesses such as hairdressers are not regulated for money laundering purposes, they will regularly interact with regulated financial businesses, such as banks. These regulated entities are required to report any suspicious financial activity by their customers.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what assessment they have made of the cost in time and resources to schools and colleges in preparing for the aborted T- levels in hairdressing and barbering.
Answered by Baroness Barran - Shadow Minister (Education)
The department wrote to all T Level providers in January informing them that a combined T Level in Hairdressing, Barbering and Beauty Therapy (HBBT) would no longer be introduced. This decision was taken following discussions with employers and representatives of the hair and beauty sector.
The time and resources spent in preparing for the introduction of this T Level will vary from provider to provider. To minimise any impacts, the department is allowing providers who have received capital funding for specialist equipment and/or buildings and facilities improvement relating to HBBT, to retain these grants to be used for future courses in this subject area.
Providers will receive the normal 16-19 funding for their students, and this can be used to support those who switch to alternative Level 3 courses.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government how much they have spent on the development and management of the proposed T-levels in hairdressing and barbering.
Answered by Baroness Barran - Shadow Minister (Education)
The decision to no longer introduce a combined T Level in Hairdressing, Barbering and Beauty Therapy was taken following discussions with employers and representatives of the hair and beauty sector. The feedback the department has had from the hair sector representatives has led the department to the conclusion that the best route is for learners to progress into their industry through completion of an existing level 2 or level 3 apprenticeship or a level 2 classroom-based qualification.
The beauty sector has fed back that a good quality level 3 classroom-based progression route is desirable. Therefore, the department has decided to explore introducing a T Level which focuses on the beauty sector, with the expectation that this could be introduced after 2025. The department will update stakeholders in due course following scoping work and engagement with the beauty sector and T Level providers.
Payment of the development charge made to the Awarding Organisation to date is £450,990 (excluding VAT). This is for the development of the originally scoped Hairdressing, Barbering and Beauty Therapy T Level. The department anticipates that a substantial proportion of that content will remain relevant in any future T Level focussed on beauty.
Asked by: Lord Hunt of Kings Heath (Labour - Life peer)
Question to the Department for Education:
To ask His Majesty's Government what are their reasons for scrapping plans to introduce T-levels in hairdressing and barbering.
Answered by Baroness Barran - Shadow Minister (Education)
The decision to no longer introduce a combined T Level in Hairdressing, Barbering and Beauty Therapy was taken following discussions with employers and representatives of the hair and beauty sector. The feedback the department has had from the hair sector representatives has led the department to the conclusion that the best route is for learners to progress into their industry through completion of an existing level 2 or level 3 apprenticeship or a level 2 classroom-based qualification.
The beauty sector has fed back that a good quality level 3 classroom-based progression route is desirable. Therefore, the department has decided to explore introducing a T Level which focuses on the beauty sector, with the expectation that this could be introduced after 2025. The department will update stakeholders in due course following scoping work and engagement with the beauty sector and T Level providers.
Payment of the development charge made to the Awarding Organisation to date is £450,990 (excluding VAT). This is for the development of the originally scoped Hairdressing, Barbering and Beauty Therapy T Level. The department anticipates that a substantial proportion of that content will remain relevant in any future T Level focussed on beauty.