London Daily

Focus on the big picture.
Wednesday, Jun 24, 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 Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
Department for Environment, Food and Rural Affairs Unveils £53 Million Investment in Farming Innovation
Foreign Secretary Announces Medical Evacuations and University Support for Palestinians in Gaza
Government-Commissioned Report Highlights Economic Exposure to Climate-Driven Fossil Fuel Price Shocks
Climate Change Committee Warns UK Is Off Track on Emissions Cuts and Calls for Faster Decarbonisation
Prime Minister Keir Starmer Calls for Deeper UK-EU Defence and Industrial Cooperation in Berlin Address
Met Office Issues Red Extreme Heat Warning as Temperatures Set to Surpass 37°C in England and Wales
Bank of England Holds Interest Rates at 3.75% as Inflation Outlook Remains Uncertain
UK Announces New Military Infrastructure at Catterick to Support Engineer Regiment Relocation
University of Reading Ranked Among Top 100 Globally for Sustainability Impact
UK Launches Counter-Fraud Taskforce to Investigate Covid Loan Scams
UK Government Introduces Customs and Tax Reforms to Support High Street Retailers
Jonathan Haskel Nominated as Chair of the UK Office for Budget Responsibility
UK Government Expands Powers to Recover Benefit Debt and Tackle Welfare Fraud
Labour Party Leadership Contest Intensifies as Andy Burnham and Ed Miliband Clash Over Economic Direction
Rail Operators Urge Essential Travel Only as Extreme Heat Threatens UK Network Stability
United Kingdom Issues Red Extreme Heat Warning as Temperatures Forecast to Reach 38°C
Keir Starmer Announces Resignation as UK Prime Minister Amid Deepening Political Instability
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
UK Economy Sees Unexpected Rise in Business Investment in Second Quarter, ONS Data Shows
Scottish Government Unveils Multi-Billion Pound Investment Plan for Renewable Energy and Grid Expansion
UK and EU Agree Enhanced Defence Cooperation Pact Covering Intelligence and North Sea Security
Prime Minister Orders Independent Review of NHS Performance After Record Waiting Lists
Bank of England Holds Interest Rates at 5 Percent as Services Inflation Remains Persistent
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
×