Half of Consumers Don’t Trust Restaurants to Pass on Tips as a Quarter of Employers Admit No Changes a Year After the Tipping Act, New Research Finds

Survey Exposes Gaps in Compliance, Staff and Leadership Awareness, and Customer Trust One Year after the Allocation of Tips Act Came into Force

LONDON, October 1, 2025  – New research released today by URocked, the market-leading digital tipping platform, has found that 54% of UK consumers don’t trust that restaurants are passing on 100% of tips to staff, a year after the Allocation of Tips Act 2023 came into effect.

The study reveals significant implementation gaps, with 25% of employers admitting to making no changes since the law came into effect in October 2024, and among restaurant staff, 24% report seeing no changes in how their employers handle tips. Only 20% say they have received more tips since the legislation was introduced, while 23% report receiving fewer.

Understanding of the law remains mixed. While 53% of decision-makers correctly stated that 100% pass-through is required, 45% still believe deductions or exemptions are permitted or that they are free to distribute as they see fit. Additionally, 14% of staff don’t think their employer is complying with the law.

The research suggests potential for increased customer tipping, with 60% of staff believing customers would tip more if they better understood the legal requirements. Currently, 22% of staff across the sector rely significantly on tips as part of their income.

“While nearly nine out of ten respondents say the new law has made things fairer for staff, our research shows there’s still work to be done in building consumer trust and ensuring universal employer compliance,” said URocked CEO, David Dillon. “Too many businesses in the sector are either unclear on the rules or have failed to make the changes required, and that leaves both staff and customers questioning whether tips are being handled fairly. Transparency and education are now key to improving confidence across the sector.”

Additional research findings include:

• While 20% of staff report receiving more tips since the law took effect, 23% say they actually receive fewer tips.
• 14% of staff don’t think their employer is complying with the law.
• Among decision makers who incorrectly describe the law’s requirements, 21% believe the law applies only to full-time staff, that businesses can retain flexibility over tips if they print a policy on receipts (15%), while 9% believe they can still deduct admin fees from staff tips.
• 60% of staff think customers would be inclined to tip more if they understand the law.
• 85% of respondents say the new law has made things fairer for staff.
• 65% of surveyed staff rely on tips/service charge income to some degree

*Research conducted in September 2025 among 250 sector employees and 150 decision makers working in UK full-service hospitality venues that take tips or add a service charge. Consumer research was conducted among 1000 UK consumers.

About URocked

URocked is an award-winning, powerful digital tipping platform making the giving, receiving and distribution of gratuity fair, seamless and transparent. For customers, URocked offers a secure way of showing gratitude for a service well received, and guarantees that 100% of their tips will be sent to the intended recipients. For staff registered on the platform, URocked offers an easy and convenient means to accept cashless tips, distribute them fairly within the team with a free mobile application and receive them directly to their bank accounts. For businesses using URocked, the service offers a tip distribution service that keeps their staff happy and their business fully compliant with the Tipping Law.