Restaurants: Service Charge

Baroness Burt of Solihull Excerpts

Monday 30th November 2015 Lords Chamber

[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.

[Baroness Burt of Solihull (LD)]

My Lords, the Autumn Statement last week referred to lower productivity in the UK than in other countries. I imagine that one’s desire to work hard may be diminished by the knowledge that one’s employer is hanging on to one’s tips. I think that the voluntary code introduced in the other place clearly is not working. Would the Minister please ensure that, following the evidence review, steps are taken to ensure that employers who hold on to tips are named and shamed?

[The Earl of Courtown]

My Lords, this was drawn to the attention of my right honourable friend the Secretary of State in the other place. We will look at all the issues when it comes to the report being made.