This means that EU citizens will no longer have to pay the £65 fee (adults) to remain in the UK after Brexit.
Both UKHospitality and the Food and Drink Federation said they ‘welcome’ the news, agreeing that EU workers make a ‘vital’ contribution to the UK hospitality industry.
They do however warn that more work needs to be done regarding Brexit in general, to help food and drink businesses prepare for the future.
UKHospitality chief executive Kate Nicholls said: “Scrapping the fee for settled status is a welcome and positive Government decision, providing peace of mind for many EU citizens working in the UK’s hospitality sector planning for their futures.
“It will save the hospitality sector, workers and their families an estimated £20 million and is a gesture that rightly highlights the hugely valuable contribution EU workers make to the UK economy, particularly in hospitality.
“It is encouraging that the Government has heard our concerns.
“Now we need the Government to outline its course of action, to find a solution that minimises disruption to businesses, which need a better idea of what lies ahead.
“Parliament needs to settle on a decision, preferably avoiding a no deal Brexit, and give UK businesses a chance to prepare for the future.”
Ian Wright, FDF chief executive, added: “(FDF) welcomes the announcement that the Government is planning on scrapping the fee associated with the EU Settlement Scheme.
“The food and drink manufacturing industry employs 117,000 highly valued EU workers, making up almost a third of our workforce, and their contribution to our sector is vital.
“FDF was one of the first trade organisations to call for certainty for EU nationals and this is an encouraging development.
“Further work is now needed to make sure the right to stay and the Settlement Scheme is swiftly and effectively communicated to eligible EU citizens wishing to stay in the UK, and that employers are provided with the tools needed to support their workforce. UKHospitality chief executive Kate Nicholls
“While elements of the Prime Minister’s statement are to be welcomed, the on-going lack of certainty for business about our immediate and longer-term relationship with our nearest and biggest trading partner continues to undermine business confidence.”