London Daily

Focus on the big picture.
Tuesday, Jul 07, 2026

New bill guaranteeing tips for hospitality workers moves closer to becoming law

New bill guaranteeing tips for hospitality workers moves closer to becoming law

The issue was first highlighted in 2015 when it was revealed some chains were adding service charges and using some of this money to top up managers' salaries.
A bill to ensure hospitality workers and others receive their tips in full has moved closer to becoming law after gaining cross-party support in the House of Commons.

Plans to legislate in this area have been delayed since 2015 when a government consultation found restaurant customers were overwhelmingly in favour of the tips they paid going to the people who served them.

Further research the same year found that many owners of restaurants, bars, and cafes add discretionary service charges to customers' bills but then keep some of the money themselves.

Under the Employment (Allocation of Tips) Bill, employers would have a legal obligation on employers to ensure all tips, gratuities and service charges are paid to workers in full.

Employees will be able to request tipping records and take employers to a tribunal if they feel tips have been withheld.

The long-delayed legislation would also enable the government to create a code of practice intended to ensure fairness and transparency in how the money is allocated among staff, and introduce an enforcement mechanism for employees to make complaints and seek redress.

In October 2018, then prime minister Theresa May announced plans to deal with tips but Brexit turmoil prevented the legislation from going ahead.

Similarly Boris Johnson, when he was in the top job, also looked to make the change when in October 2019 the Queen's Speech committed to bringing forward the Employment (Allocation of Tips) Bill.

Following the snap general election that year, the Queen's Speech incorporated the measures into a proposed Employment Bill - but it did not materialise in the last parliamentary session.

The Queen's Speech in May 2021 did not list an Employment Bill or a specific tips bill.

Law will 'create confidence for consumers'

Now, Tory MP Virginia Crosbie has sponsored the bill - and on Friday it cleared its final hurdle in the Commons and will progress to the House of Lords for further scrutiny.

Speaking during the bill's third reading on Friday, Ms Crosbie told MPs: "The tipping bill has a simple message: to promote fairness and to promote transparency, to ensure that workers receive the tips they earn.

"This will create a level playing field for businesses who are already passing on tips to workers in a fair and transparent way.

"It will create confidence for consumers, who will know that the full value of the tip that they give will go to the workers."

She added: "It is estimated that this bill will benefit around one million workers in the sector, with a financial benefit of around £200 each year.

"With the cost of living at the front of a lot of people's minds, this bill will help those workers who are wrongly not receiving the money that they are due from the tips that they have earned."

Business minister Kevin Hollinrake said the bill will protect workers from "bad bosses" and give them an avenue to seek remedies.

He said: "Businesses will be assured they are not being undercut by companies where bosses are keeping tips for themselves.

"Consumers will have increased confidence that their tips are going to the workers they are intended for."
Newsletter

Related Articles

0:00
0:00
Close
UK Met Office Issues Heatwave Alerts for London and Southern England
Keir Starmer Blocks Earlier World Cup Kick-Off Time for England Match Against Mexico
NHS Digital Transformation and Media Consolidation Highlight UK Policy Priorities
UK Government Pushes Digital Trade Rules to Cut Export Costs for Businesses
Bank of England Plans Leverage Rule Changes to Support Government Bond Market
UK Police Operation Targets Organised Immigration Crime Networks With Hundreds of Arrests
Yvette Cooper Calls for Global AI Rules to Prevent Security Risks
NHS Begins Major AI Expansion Through £10 Billion Digital Investment Programme
UK Government Tightens Rules on Political Donations to Limit Foreign Influence
Keir Starmer Defends UK Defence Spending Plan at NATO Summit in Turkey
Comcast’s Sky Agrees £1.6 Billion Deal to Acquire ITV Media and Entertainment Division
Senior NHS Doctors Vote in Favour of Renewed Strike Action Over Pay Dispute
Andy Burnham Set to Succeed Keir Starmer as Labour Leadership Nominations Open
Microsoft Lays Off 4,800 Employees and Xbox Suffers the Hardest Blow
Deep Purple Has Released Its Best Album in Decades
Office for National Statistics Updates Historical Investment Data Review to Improve Accuracy
Department for Science, Innovation and Technology Highlights Economic Gains From Digital Inclusion
Debate Intensifies Over UK Defence Strategy and Domestic Security Priorities
Report Warns Full Transport Accessibility Could Add £176 Billion to UK Economy Annually
Medicines Regulator Approves First Targeted Treatment for Advanced Merkel Cell Skin Cancer
Government Commits £22 Million to Brighton Seafront Infrastructure Renewal and Transport Safety
National Security Bill Returns to House of Commons Amid Calls to Protect Humanitarian Work
Government Tightens Overseas Political Donation Rules to Strengthen Safeguards Against Foreign Influence
NHS Maternity Reform Expands Central Oversight After Critical National Review
Dover Border Warnings Highlight Post-Brexit Pressure on Cross-Channel Trade
Private Nuclear Consortium Advances £35 Billion Small Reactor Strategy in UK
UK Labour Leadership Signals Shift Toward Reindustrialisation and Regional Power
House of Lords Debates Rail Nationalisation Bill to Create Great British Railways
Scottish Affairs Committee Expands Inquiry Into SNP Financial Conduct
Evri Launches £1.2 Million Defamation Case Against BBC Over Panorama Investigation
Port of Dover Warns of Border Delays as EU Entry-Exit System Looms
Nigel Farage Referred to Standards Watchdog Over Alleged Undeclared Benefits
UK Government Faces Scrutiny Over Claimed AI Datacentre Investment After FOI Findings
UK and India Finalise Trade Agreement Rules Ahead of Mid-July Implementation
UK Government Establishes National Maternity Commissioner After Major Review of NHS Care Failures
Private Consortium Plans £35 Billion UK Nuclear Programme Targeting Small Modular Reactor Rollout
Andy Burnham Sets Out Ten-Year Reindustrialisation and Devolution Plan as Leadership Transition to UK Premiership Advances
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
×