Restaurants: Service Charge

Lord Stevenson of Balmacara Excerpts

Monday 30th November 2015 Lords Chamber

[The Earl of Courtown]

My Lords, as the noble Lord knows only too well, if one has a pleasing experience at any restaurant, whether in your Lordships’ House or elsewhere, it is only fair to tip at the right time.

[Lord Stevenson of Balmacara (Lab)]

My Lords, the issue is really one of fairness in overall pay rather than just in tipping. Can the Minister explain how to protect the requirement that everyone in the country benefits from a living wage without dilution from other factors, in particular tipping?

[The Earl of Courtown]

My Lords, sticking initially to the national minimum wage, when the Labour Government brought in the voluntary code of practice in 2008-09, they made it clear that tips and gratuities should not be used to uprate wages to meet the national minimum wage. The living wage will be coming in this year and will help many of the lower paid.