Tip deductions cost UK workers £200m a year, says Labour

Labour estimates staff may have lost over £1bn in tips since the government first promised action six years ago. Photograph: Alicia Canter/The Guardian

Hospitality and leisure sector workers are missing out on about £200m in tips every year according to Labour figures, with the party pledging to “stamp out” unfair deductions for good.

Angela Rayner, Labour’s deputy leader, will set out plans this week to ensure employers allocate all tips, gratuities and service charge payments to workers in full, without any deductions apart from statutory taxes, by the end of the following month.