Stephen Timms, the MP for East Ham, has welcomed new Government proposals to ensure that workers are paid fairly.  The Labour Government has announced that it intends to change the current minimum wage rules on tipping so that, in future, customer tips cannot count towards the payment of the National Minimum Wage.

The National Minimum Wage legislation received Royal Assent on 31 July 1998 and came into force in 1999.  The present hourly rate for adult workers is £5.73, for 18-21 year olds is £4.77 and for 16-17 year olds is £3.53.  In April 2009 tough new penalties will come into force for employers who underpay their staff.  There could be unlimited fines for the most serious cases rather than the current maximum of £5,000.  And a fairer method of dealing with arrears will be introduced so that workers do not lose out.

Under certain circumstances it is currently possible for customer tips to be paid to the worker as part of the National Minimum Wage.  The Government proposes to change the regulations so that in future all tips, whether paid in cash or by credit card, may not count towards the National Minimum Wage.

Stephen Timms said: "I strongly support the new proposals to ensure that tips do not count towards the National Minimum Wage.  When I go to a restaurant and leave a tip, I expect it to go to the staff on top of their pay.  With the costs of living rising and many families struggling to make ends meet, it is more important than ever to have the National Minimum Wage.  I am proud to be a member of the Government that introduced the Minimum Wage – against the wishes of the Tories – and that is continuing to strengthen it".

Those who are worried that they may not be receiving the National Minimum Wage can call the NMW helpline on 0845 6000 678.  Support is offered in more than 100 languages and callers can remain anonymous if they wish.