Consumers back tipping bill with only 20% believing cash is passed on in full

The majority of consumers believe hospitality employees should receive 100% of tips, a survey has found.

RSM UK’s Consumer Outlook found that 80% of consumers believe employees should receive 100% of tips, but only 20% think that the entirety are passed on.

From 1 October the Employment (Allocation of Tips) Act 2023 will require businesses to pass on 100% of tips received to their employees.

The law will cover England, Scotland and Wales and will prevent employers from making deductions from tips or service charge.

The act was put forward by the previous Conservative government and was originally due to come into force on 1 July.

The Labour government has suggested further measures could follow the introduction of the bill.

Saxon Moseley, head of leisure and hospitality at RSM UK, said: "It’s encouraging to see consumers believe that hospitality staff should be rewarded for their hard work rather than losing out on their tips, and this new legislation will ensure that happens.  

“The leisure and hospitality sector has been plagued by labour shortages, resulting in fierce competition for the very best staff. With the fairer distribution of tips, combined with recent National Minimum Wage increases, this will hopefully help to make the leisure and hospitality industry a more attractive place to work.”

 The Caterer will be running a Tipping and Payment Summit offering advice for employers on 3 October.