On the 10th anniversary of the minimum wage legislation receiving royal assent, business secretary John Hutton revealed plans to amend the regulations on tipping, and to introduce more transparency about how tips are distributed. The changes would come into effect in 2009.

Hutton said: "Under the current law, all workers are already entitled to receive the minimum wage. The changes we're proposing will mean that in the future, tips cannot count towards payment of the minimum wage.

"We also want to encourage employers to make it clear how tips are distributed so that customers know where their money is going and whether or not the establishment operates a fair tipping policy."

The announcement was welcomed by unions. Brendan Barber, TUC general secretary, said: "The government is right to make sure that workers can keep their tips and that the responsibility to pay the minimum wage rests squarely with employers."

The rate of the national minimum wage for workers aged 22 and over is to increase on 1 October 2008 to £5.73 an hour from the current rate of £5.52.

Our sister site Personnel Today has also reported that unions have won a commitment from the government to reduce the age at which workers are entitled to be paid the adult minimum wage. The Low Pay Commission has repeatedly proposed reducing this age from 22 to 21, but the government has in the past rejected this, arguing that the change would reduce the employment rate for 21-year-olds.

However, at Labour's National Policy Forum on 25-27 July, it was agreed that the threshold for the adult minimum wage would be reduced if the Low Pay Commission makes this recommendation again. Many unions have argued that workers should receive the adult rate from the age of 18.