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UK government moves to ensure tips are not counted as wages

It may seem rather unnecessary to those not in the services, entertainment and food industry but an announcement by Lord Mandelson this regarding tips received by those in the hospitality sector could have far reaching effects. It turns out that many businesses were actually taking these tips and including them as payment (i.e. wages) to their employees when in fact they were the possession of employees from the beginning.

It turns out that many companies were using these customer tips to bring up often substandard wages to the minimum level dictated in the UK. However, all tips will now be paid out "on top of" wages and will finally become something of a bonus to employees. This is a practice which has been ongoing for over 10 years and seen employees literally robbed of millions of pounds.

The government appears to have started a programme of assistance for the low income classes in the UK which should culminate in the £15 billion-£30 million tax giveaway expected before Christmas. There are real concerns that home repossession numbers are set to mushroom unless substantial inroads are made into poverty in low-income families.

Gordon Brown must feel like something of a firefighter at the moment with new challenges appearing on a daily basis.

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