This Serving the Future policy briefing explores the issue of in-work poverty in Scotland’s hospitality and tourism sector. Conducted by the Fraser of Allander Institute and the Poverty Alliance, as part of Serving the Future, the research highlights the experiences of hospitality workers and employers, and outlines practical steps that government and industry can take to improve working conditions and reduce poverty in the sector.
Hospitality plays a vital role in Scotland’s economy and culture, yet workers in the sector face some of the lowest wages and most insecure working conditions in the country. The research shows that many employees are on zero-hours contracts, experience unpredictable schedules, and face challenges such as lack of access to childcare and public transport. These issues are particularly harmful to women and younger workers, who are over-represented in the industry.
While some employers are trying to improve conditions, many face significant financial pressures due to rising costs and labour shortages. Employers expressed a willingness to offer fairer work but often lack the resources and support needed to make lasting changes. Key barriers include limited training access, a lack of guidance on best practices, and gaps in public services that affect both businesses and workers.
The report recommends coordinated government action to support fair work standards, including better enforcement of employment laws, funding to help businesses improve working conditions, and reforms to employment rights that provide greater stability for workers. A focus on affordable housing, accessible transport, and flexible childcare—especially in rural areas—would also help address the root causes of in-work poverty. The newly developed Tourism & Hospitality Toolkit aims to support employers and employees with practical resources to navigate these challenges.
Tackling in-work poverty in hospitality requires a joined-up approach that combines employer commitment with targeted government support. By making fair work practices more sustainable and accessible, the sector can become a stronger, more inclusive part of Scotland’s economy.
Authors
Chirsty is a Knowledge Exchange Associate at the Fraser of Allander Institute where she primarily works on projects related to employment and inequality.
Brodie is a Knowledge Exchange Associate at the Fraser of Allander Institute.
Ralph Hartley
Ralph is a Policy Officer at the Poverty Alliance.
Laura Robertson
Research Manager, Poverty Alliance
Lauren Wilks
Lauren is a Senior Research Officer at the Poverty Alliance. She is part of the Serving the Future research team.
Anna Hirvonen
Anna is a Learning and Engagement Officer at the Poverty Alliance. She is part of the Serving the Future research team.