A cafe worker says she will be able to treat her grandmother to extra gifts this Christmas thanks to a new law which means staff will receive all tips left by customers. Leah Williams is one of thousands of workers in cafes, restaurants and beauty salons across Wales who will benefit from the legislation change. Companies currently have the choice whether to keep tips made via card or pass them on to employees, while cash tips belong to staff.
According to the UK government, millions of workers in the UK are expected to take home a total of £200m more. Ms Williams said: “My nan’s really important to me, I feel like I want to give her the world but I can’t.” The 25-year-old, who lives with her grandmother, works at Greedy Fellas cafe in Swansea indoor market and said the tips she received were “really important” to her since she started working there after leaving school at 16.
“It helps me a lot with my bills because the cost of living is going up. I run my own car, I need to pay my insurance, tax and my phone bill,” she said. In 2021, the UK government said 80% of all tipping was taking place with a card, suggesting it had become easier for businesses to keep the money.
The law, which will come into force across Wales, England and Scotland in October, will make it illegal for businesses not to pass the tips on to their staff. Under the new regime, a statutory code of conduct on fair and transparent tipping will also come into force, aimed at giving employees.