Bars and restaurants in the UK will no longer be allowed to keep tips meant for staff when customers pay by card.
Business secretary Kwasi Kwarteng is set to announce plans on stopping businesses from keeping the service charge.
Whilst the current legislation bans businesses from keeping cash tips meant for staff, it doesn’t ban them from keeping the tips that are paid by card.
Speaking to the Mail on Sunday, a source from the government said: “Workers going above and beyond for their customers can now rest assured that their hard-earned tips will be going directly in their pockets and nobody else’s.
“We’re putting an end to dodgy tipping practices and making sure that hard work pays off.”