Hospitality skills council People 1st enters administration

By Sophie Witts contact

- Last updated on GMT

Hospitality skills council People 1st enters administration
Hospitality skills council People 1st has fallen in to administration, according to reports.

FE Week​ ​has reported that the company, which managed industry apprenticeship standards, is in the hands of administrators FRP Advisory.

It is believed that the ending of government funding for skills sector councils six years ago led to the group struggling to survive financially.

In accounts for the year to 31 March 2017 People 1st​ said the end of such funding meant it had to “rely on its reserves whilst transforming itself”.

Although revenues for the year were £4.3m it delivered a deficit of £465,000. The company had begun a three-year plan to replenish cash reserves by a net surplus of £500,000 by 2020.

Trade body UKHospitality said in a statement that it was ready to offer support in place of People 1st​ going forward.

UKHospitality said: “This is unfortunate news for the sector and everyone involved with People 1st. First and foremost, our sympathies are with everyone at People 1st and we appreciate the very valuable work they have been doing for the hospitality sector.

“UKHospitality is ready and able to step into the space and support in any way we can, to provide some continuity until a permanent solution is found. Above all, the Government needs to be aware of the issue and ensure that its future actions do not undermine the development of skills in the sector and put the country’s valuable hospitality businesses at a disadvantage.

“This now throws into sharp relief the extremely pressing need for skills to be prioritised as part of a sector deal for UK tourism, of which the hospitality sector is a crucial part. In the meantime, we need a Brexit immigration policy that will give the sector time to address its skills and labour needs."

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