Triodos Bank: Ethical Investing Increases
It was pleasing to see the news this morning that Triodos, the environmental & social investment bank, are doing well.
According to Third Sector, the charities, voluntary organisations and social enterprise website, Triodos Bank has increased lending & investment by 73% over the last year.
In 2008 Triodos Bank lent just over £200 million whilst in 2009 that had increased to nearly £250 million. The bank has increased future loans from an expected £30 million to around £150 million.
Triodos Bank’s customer base has grown by about 15% over the last year as greater numbers of clients have sought to invest in environmental and socially-beneficial causes (not to mention ethical and sustainable investments too).
Triodos Bank’s growth areas have included offshore wind projects and waste processing facilities plus organic farming and food projects. Scotland and Wales have seen the greatest increases in the amount of lending.
Personally, I’ve been mulling over getting an account with Triodos Bank for a number of years, but I think now is the time to get started 
1000th Tesla
Tesla motors, the makers of the Lotus-based Tesla Roadster electric sports car, are currently showing at the North American International Auto Show in Detroit.
On display at the Tesla Motors stand is their 1000th production car, a one-off custom Roadster Sport, and their 750th production car still covered in the road dirt from its 2,700 mile drive from Los Angeles to the motor city.
The 750th roadster was driven from LA to Detroit to demonstrate its range and drivability. The 1000th roadster is to be sold for $175,000 and the full amount will be donated to charity including a children’s charity, a food & waste charity and two environmental charities: the Sierra Club and the National Wildlife Federation.
If you’re in the area go see the Tesla stand and show your support for electric vehicles. The show runs until the 24th of January and the amount of gas-guzzlers on show seems to be diminishing as car-makers focus on more economical and zero-emission cars.
YoGen Charger for Free Energy
A friend has just come back from CES 2010, the Consumer Electronics Show in Las Vegas. Now whilst the green in all of us asks why should we be interested in MORE gadgets to make last year’s model obsolete and thus generate more waste, CES 2010 had quite a green theme this year.
But apart from the show being carbon neutral I wanted to say how impressed I am with YoGen.
YoGen is a hand-held device with a pull-string that, when drawn, it turns a mini flywheel alternator, thus producing power. Apparently about 1 minute of pulling the string is enough to charge a mobile phone.
YoGen comes in two styles: black and clear. YoGen is also available for either the universal LG/Nokia/Sony Ericsson Micro-USB or Apple 1-3 Mini-USB. Unfortunately (for me anyway) the YoGen isn’t yet available for the iPhone 3GS but it *is* compatible with iPhone 3G.
If you want yourself a YoGen for free power then visit the YoGen store and pick up a YoGen for $39.99
International Year of Biodiversity
Whilst Governments bicker over reducing CO2 emissions and take too long to consider giving away money to poorer countries to help them in the fight against climate change, the world is changing, and not for the better either.
For years the term biodiversity has been bandied around as an important factor in identifying the richness of the environments on this planet and the flora and fauna supported within each connected ecosystem. But now the United Nations has decided that 2010 is the International Year of Biodiversity.
For environmentalists, green people and nature lovers everywhere, every year should be a year of biodiversity but the UN campaign aims to create an awareness of the threat to the world’s dwindling natural populations.
UN chief Ban Ki-moon has stated that species are being destroyed at about 1000 times the natural rate and is quoted as saying that
“business as usual is not an option”
which fits nicely in with not only biodiversity but the sustainability message too.
As usual, it’s human activity that’s encroaching upon the natural world with city-building and agricultural practices mainly to blame for the decline in biodiversity. I’d also throw in the lack of knowledge and education on sustainable practices plus the west’s greedy demand for the use of ever more natural resources plus the willingness of people to sacrifice nature for the sake of trade and money without the slightest thought for the consequences.
There will be plenty of material available after the launch of the International Year of Biodiversity today, so keep your eyes open for some incredible work in the fight to slow down man’s destruction of the natural world.
And think about the portent from some biologists who believe that if we don’t do anything this could be the earth’s sixth “great extinction” where the previous five were all caused by natural disasters such as asteroid strikes!
Banning Inorganic Phosphates in DLCPs
The Department for the Environment, Food and Rural Affairs (DEFRA) has been running a consultation for the regulation of inorganic phosphates in domestic laundry and cleaning products (DLCPs) since October 2009. The closing date of the consultation is 21st January 2010.
The consultation by DEFRA’s Water Quality Division seeks to gather comments on the banning of inorganic phosphates for forthcoming regulation.
In their own words, DEFRA states that:
Many rivers do not meet EU standards for phosphorous content. Phosphorous reduces the oxygen content of water and harms aquatic life. A ban will help to reduce inorganic phosphate pollution and mean the water industry has to use less energy and chemicals to remove phosphorous from sewage effluent.
So, by banning inorganic phosphates:
- Britain’s rivers will be cleaner as the water quality improves, meeting EU targets at the same time.
- Our aquatic life will no longer be harmed and
- By not adding additional chemicals to DCLPs the water companies will not need to purchase and use further chemicals in order to treat waste water to remove the chemicals that were added to it elsewhere in the first place!
Banning inorganic phosphates from DCLPs looks like a win-win-win situation from here. Not only do we clean up our rivers & environment and help our wildlife but we also make huge efficiencies by banning inorganic phosphates. With the water industry using “less energy and chemicals to remove phosphorous from sewage effluent” you would expect their costs to decrease; they would be more energy-efficient, they would have less overhead in having to not purchase and use additional chemicals and their treatment methodologies would be simplified with less processes.
In addition the water industry would be taking another step toward their corporate social responsibility which is good for their conscience and good for their public image. Efficient, clean and green; what could be better?
The only losers in this equation would be the manufacturers of inorganic phosphates but with demand for phosphates increasing, particularly due to the increase in world population and the demand for meat & crops, phosphates will continue to be used in artificial fertilisers. However, as phosphates are a finite resource prices have increased massively, so discontinuing their use is an economic benefit for manufacturers of DLCPs.
The alternatives are plant-based environmentally-friendly products such as the excellent Ecover range of cleaning products (such as their lemon & aloe vera washing-up liquid or non-biological washing powder) which have minimal impact upon the environment.
So, if you have any thoughts on banning inorganic phosphates from domestic laundry and cleaning products then head over to theNetregs “Detergent regulations consultation”, read the details of the consultation and tell them your thoughts on the matter before the 21st January 2010.
The deadline of 1st January 2015 for the complete “ban” (with it being an offence to market DLCPs with more than 0.4% inorganic phosphates) has been set up to allow the industries concerned time to change their products and packaging, although with the speed at which they can launch products, this seems far too generous (five years to remove inorganic phosphates and “redesign” the packaging?!)
For further reading about see the Wikipedia entry for phosphates or the excellent SNB phosphate recovery website.
Whether You Believe in Climate Change or Not
I’ve just been reading the article Stolen e-mails embolden climate change skeptics regarding the Climategate affair where scientists at the University of East Anglia’s Climate Research Unit had their emails hacked. Now I’m all for “leaks” of information that may be of public interest but that “thousands of e-mails and other documents made over the course of 13 years” are available is a considerable breach. I just hope it was perpetrated by Americans who hacked into the UEA CRU’s system so that we can horse-trade for Gary McKinnon, although I suspect this is a far cry. But I digress…
The article about the stolen emails pits Sarah Palin, the next Republican Presidential hopeful, versus President Barack Obama and the fact that he is going to Copenhagen to possibly get some sort of deal on the climate talks and that she doesn’t want him to go. This is yet another typical polarisation of opinion that we seem to see everywhere these days; you’re either with us or against us. Agree or disagree. Black or white. Hot or cold? Deal or no deal?
Let’s all, please, STOP FUCKING AROUND by being either red or blue, green or not green and just DO SOMETHING about the environment WHETHER WE BELIEVE IN CLIMATE CHANGE OR NOT.
Now this doesn’t apply so much to the hippies and the tree-huggers who are already well on their way to a sustainable lifestyle, but mainly to the middle and the far right of the spectrum;
This planet we live on is an ecosystem. You hear that? Eco SYSTEM – A system that has developed and evolved over millions of years and has found its own balance. We humans are upsetting that balance. We have chopped down millions of acres of rainforest. We are polluting our seas. Many species are in danger of extinction. We are pumping crap into the air, crap into our rivers and oceans and we’re eating crap, selling crap and consuming crap. Despite our technological breakthroughs and our many human achievements we are still a pretty fucking stupid bunch of primates aren’t we? When I was a kid I laughed at the phrase “Don’t shit on your own doorstep”, but we do, don’t we? All the time.
Now, do yourself, and the rest of us, a favour and start thinking about what’s actually going on and then do something about it. Even something as simple as having this ridiculous “touch effects technology” bullshit and having your clothes smell “nice” every time you brush against stuff is NOT good for the planet. By thinking the latest “fabric softener” is wonderful is a fallacy: it’s just chemicals and advertising. Go out into the countryside and take a deep breath… THAT is fresh. Chemicals with the scent of pine is NOT FRESH.
So, whether you believe in climate change or not…
- Ditch the gas guzzler
- Drive less
- Walk
- Cycle
- Take public transport, the train, the bus
- Share a car, car pool
- Stay at home, work from home
- Turn the thermostat down
- Insulate your loft
- Get a new efficient gas boiler
- Wear a hat or a jumper rather than crank the heat up
- Buy organic
- Ask for less packaging
- Buy local
- Visit the farmers’ market
- Eat less meat
- Consume less
- Turn off the TV
- Don’t believe the hype
- Reconsider that widescreen TV purchase – do you really actually need it?
- Wake up, open your mind
- Talk
- Discuss
- Listen
- Learn
- Get involved
- Care about your local environment
- Don’t buy nasty chemicals, use environmentally-friendly stuff
- Remind yourself what nature’s really like
- Respect wildlife, take an interest
- Use sustainable materials
- Invest ethically, use an ethical bank
- etc
- ad verbatim
- …
I could go on, there is SO MUCH we can all do and we CAN ALL DO these things. Demand ethics, sustainability and environmentally-friendly goods, services and practices and then they will become the DE FACTO services – all the old unsustainable ways will go the way of the dinosaurs when there is no demand for them and organic will naturally be cheaper than non-organic.
I’ll say it one last time: Whether you believe in climate change or not, whether you think it’s man-made or not, just use your brain and stop being a trash human, stop being so selfish, drop the ego and start being more considerate and work out where you fit in the grand scheme of things.
As the Native American saying goes:
“We do not inherit the Earth from our Ancestors, we borrow it from our Children.”
The Wave
The Wave in London, on Saturday, seemed to be a great success. It started with a train ride up to Waterloo and a tube trip to Bond Street where I stepped out into the busy London streets filled with Christmas shoppers.
Grosvenor Square was the starting point of the march where crowds gathered to see guest speakers on the stage from a number of organisations with the crazy beatbox style of Beardyman to gee the crowds up.
Organised by the Stop Climate Chaos Coalition over 50,000 people gathered to make their voices heard and everybody wore blue to create a wave as they marched to and surrounded Parliament. Ed Milliband, the Secretary of State for Energy and Climate Change, and Peter Mandelson were in attendance for a short while and Gordon Brown even invited 24 people in at the end of the march for a discussion.
For me it was good to be part of a great bunch of people all aiming for the same thing – to get some action on climate change rather than the meagre proposals that timid governments are currently putting forward. It’s big business and shareholders that are the problem here , thinking that their profit is more important than using some of their gains to reduce emissions, cut carbon, stop pollution and quit destroying the environment. The obvious question for big business here is where will their profit come from once they’ve depleted the planet?
But I digress. The Wave was great, everyone was friendly and the police did a good job, even the scowling chief officers keeping a watchful eye on the photographers. The Hare Krishnas, complete with mobile drumkit, bass and electric mandolin (all amped up) put a smile on many people’s faces, as did the guy dressed as a polar bear protesting at the tar sands extraction outside the Canadian Embassy on the rout of the march.
Here are all the photos from The Wave on flickr and here are my photos.
Rome Food Summit
Less than 1% of funds spent to prop up financial system could help prevent future global food crises
Many millions of people in poor countries will go hungry when future global food crises strike unless the world’s half a billion small-scale farms receive urgent funding and support from the UK and other governments, says development agency Progressio on the first day of a crucial global food security summit in Rome (Nov 16th-18th).
In a new report, Fertile Ground, Progressio warns that decades of neglect by governments of small scale farmers who feed 2 billion people worldwide, a third of humanity, have stretched poor farming communities to breaking point, requiring urgent action. The report notes that last year’s global food crisis:
- Added 44 million people to those already undernourished
- Drove 110 million more people into poverty
- Pushed up the price of some commodities by 200%
States Fertile Ground:
“Our global food system is in crisis. The number of hungry people on our planet is rising steadily and for the first time in history has now passed the 1 billion mark… Governments must face the facts and take action now in order to be confident of feeding the estimated 9.2 billion people who will share our planet by 2050.”
Fertile Ground reports a dramatic decline in the amount of aid spent on agriculture, which has fallen by 83% in the past 30 years, as government and other donors favoured intensive, large-scale solutions to the modern challenges of food production. In the process, small-scale farmers have been left behind. The report cites many threats and trials facing small-scale farmers:
- Climate change will leave 40 per cent of sub-Saharan African countries facing the risk of significant declines in crop and pasture production
- 2.6 billion people are already affected by significant levels of land degradation
- 80% of farmers in Africa and 40% in Latin America and Asia still rely on their own labour and hand tools. Many lack access to technical expertise which could help boost production.
Says Petra Kjell, Progressio’s Environment Policy Officer:
“The UN’s Food and Agriculture Organisation (FAO) suggests that governments spend $44 billion per year in support of agriculture, which is less than 1 per cent of what they spent to prop up the global financial system. If a significant proportion of that investment went towards assisting small-scale farmers around the world, then a vital step will have been taken to cushion the impact of future food crises.”
The report, which is informed by Progressio’s work with small-scale farmers in countries like Malawi and Ecuador, states that for centuries small-scale farmers have provided a food security buffer against outside shocks, supplying poor communities with local food at local prices. By growing produce in harmony with the environment – or ‘agroecologically’ – farmers are also able to better protect their land and crops from erratic weather linked to climate change, the report notes. It calls for urgent action by governments and policy-makers to ensure these practices continue, through:
- More investment and support for small-scale farmers through international aid and national budgets
- A greater voice for small-scale farmers in national and global decision-making processes which affect the way they live and work
The Rome Food Summit, which is being hosted by the FAO, will bring together leaders and high-ranking officials from around the world. Its main purpose is to address mechanisms to tackle the rising threat of global hunger.
Petra Kjell concludes:
“Small-scale farmers make a huge contribution to our planet. Yet they have been hopelessly under-supported for decades. Unless they are now prioritised by governments, future food crises will be much worse, with dire consequences for millions of people. We must act now to make sure small-scale farmers receive the support they so desperately need.”
Are you Green or Mean?
Test your green credentials and discover how environmentally friendly you really are.
Life is full of little challenges. Anyone who aspires to live in a greener way will have experienced those moments when a little devil suddenly appears on your shoulder.
“Go on, buy a gas-guzzling SUV,” it says. “So what if you live in Chipping Norton, not the Australian Outback? You’ll be able to park on top of other vehicles – it’s practical.”
The way we respond to these ethical temptations defines who we are. Friends of the Earth is an organisation that knows a lot about being green: It is the most influential environmental network in the world, with more than 2 million supporters in 77 countries. That’s why Friends of the Earth has launched a new website to help you work out how green you really are on a range of issues from food and fashion to charities and holidays.
There’s no doubt that we’re all getting better at being kind to the planet – recycling and using low-energy light bulbs is now part of the daily routine for people across the country. That’s great news, but many of the things that are most harmful to the planet are still not widely publicised. That means it’s harder for you to make an informed choice.
So how environmentally friendly are you? Taking the test will not only give you an insight into how environmentally friendly you really are, but also help you beat climate change.
So don’t waste another minute – visit www.meanorgreen.com
<h2>Introduction</h2>
<p>There are some 165,000 businesses in the hospitality, leisure and service sectors where tipping is common. These sectors are an important part of our economy employing some 1.3 million workers. Restaurants, hotels and bars make up the largest proportion of the sector (about 80%), but tipping is also an important feature in industries such as hairdressing, casinos and private car hire.</p>
<p>From 1<sup>st</sup> October 2009, service charges, tips, gratuities and cover charges can no longer be used to make up <strong><a href=”http://www.is4profit.com/business-advice/employment/national-minimum-wage.html” title=”national minimum wage” target=”_blank”>national minimum wage</a></strong> pay. This means that all eligible workers must receive at least national minimum wage in base pay with any tips they receive being paid on top.</p>
<p>All workers must receive the statutory national minimum wage. The <strong><a href=”http://www.bis.gov.uk/” title=”Department for Business, Innovation and Skills (BIS)” target=”_blank”>Department for Business, Innovation and Skills (BIS)</a></strong> aims to empower consumers through clear information on what happens to the service charge, tip or gratuity they leave. The customer should know what is happening with his/her money and be able to make a judgement on its fairness.</p>
<p>Additional voluntary measures are being introduced through this <strong>Code of Best Practice</strong> to improve the information available to consumers and workers about service charges, tips, gratuities and cover charges. The Code provides businesses with practical guidance on how to operate in a fair and transparent way and should ensure consumers have sufficient information to make an informed choice before they leave a tip or gratuity or pay a service charge.</p>
<p>The Code applies to all tipping sectors including:</p>
<ul>
<li>hotels and restaurants</li>
<li>gambling and betting outlets</li>
<li>hairdressing and other beauty therapy businesses</li>
<li>taxi operations</li>
</ul>
<p>This guidance has been developed by trade unions, business representatives and consumer groups to provide a mechanism by which individual businesses can demonstrate their intention to operate a fair tips policy. It has been endorsed by the following organisations who will promote it to their members:</p>
<ul>
<li><strong><a href=”http://www.cbi.org.uk/” target=”_blank”>Confederation of British Industry</a></strong> (CBI)</li>
<li><strong><a href=”http://www.bha.org.uk/” target=”_blank”>British Hospitality Association</a></strong> (BHA)</li>
<li><strong><a href=”http://www.gmb.org.uk/” target=”_blank”>GMB</a></strong></li>
<li><strong><a href=”http://www.tuc.org.uk/” target=”_blank”>Trades Union Congress</a></strong> (TUC)</li>
<li><strong><a href=”http://www.unitetheunion.com/” target=”_blank”>Unite the union</a></strong></li>
</ul>
<p>This article sets out the four principles of the Code of Best Practice and provides guidance on ways in which businesses can make information available to consumers and workers. Businesses signing up to the code accept the principles in their entirety.</p>
<p class=”footnote”>© 2009 Crown Copyright</p>
<hr class=”system-pagebreak” title=”Code of Best Practice Principles of Transparency” />
<h1>Tipping: Code of Best Practice</h1>
<h2>Code of Best Practice Principles of Transparency</h2>
<p>Businesses participating in this Code acknowledge that the following four principles represent best practice in ensuring transparency in relation to service charges, tips, gratuities and cover charges:</p>
<ul>
<li>Businesses will clearly display on their premises prior to the point of purchase or choice their policy relating to mandatory and discretionary service charges, tips, gratuities and cover charges, and make this accessible.</li>
<li>Businesses will have a process in place to deal with requests from customers about how and to whom all service charges, tips, gratuities and cover charges are distributed, and the level and purpose of deductions.</li>
<li>Businesses should ensure that workers understand and are able to confidently explain the business’ policy on service charges, tips, gratuities and cover charges to customers, or know where to direct customers for further information, and without risk of detriment.</li>
<li>All workers should be fully informed on the distribution and breakdown of service charges, tips, gratuities and cover charges and the level and purpose of any deductions. Businesses should seek to reach agreement with workers on any change of policy.</li>
</ul>
<p class=”footnote”>© 2009 Crown Copyright</p>
<hr class=”system-pagebreak” title=”Guidance on Transparency for Consumers” />
<h1>Tipping: Code of Best Practice</h1>
<h2>Guidance on Transparency for Consumers</h2>
<span style=”background: #f5f5f5;”>
<p><strong>The Code states that:</strong></p>
<ul>
<li>Businesses will clearly display on their premises prior to the point of purchase or choice their policy relating to mandatory and discretionary service charges, tips, gratuities and cover charges, and make this accessible.</li>
<li>Businesses will have a process in place to deal with requests from customers about how and to whom all service charges, tips, gratuities and cover charges are distributed, and the level and purpose of deductions.</li>
</ul>
<p>Businesses must apply these principles in line with legal requirements of the Consumer Protection from Unfair Trading Regulations. Information provided about service charges, tips, gratuities and cover charges must not be misleading under the terms of these Regulations. Enforcement of the Regulations is the responsibility of the Office of Fair Trading. All complaints from either consumers or others relating to misinformation can be made to the <strong>Consumer Direct Helpline</strong> on <strong>08454 040506</strong>.</p>
</span>
<p><strong>When?</strong></p>
<p>Businesses should ensure that information about service charges, tips, gratuities and cover charges is made available to consumers on the premises and before they make the decision to make any discretionary additional payment.</p>
<p><strong>What?</strong></p>
<p>The information should cover:</p>
<ul>
<li>whether a charge is mandatory or discretionary</li>
<li>whether an amount is deducted by the business to cover costs incurred in handling these charges (deductions could be credit card and banking charges,
and/or payroll processing costs)</li>
<li>whether cash tips and card tips are distributed differently</li>
<li>how the remainder is shared between the business and the workers</li>
</ul>
<h3>Where?</h3>
<p>There are a variety of ways for the business to make the information easily available on the premises to consumers, for example:</p>
<ul>
<li>clear and easily visible written information available on door stickers or wall notices or on menus displayed outside the venue</li>
<li>on the menu in the case of restaurants</li>
<li>in the reception area and/or at the gaming table in the case of casinos</li>
<li>information on the bill presented to the customer</li>
<li>information made available to customers in the bill folder in leaflet form or on the `tips’ tray</li>
</ul>
<p>In addition, businesses should ensure that workers can direct consumers to further information, for example a written statement setting out the business’ policy on service charges, tips, gratuities and cover charges. Businesses may wish to make further information available through their websites or on promotional material.</p>
<h3>Examples of disclosures that businesses may wish to consider using:</h3>
<h4>Example A</h4>
<span style=”background: #fff8dc;>
<p><em>We are committed to the Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges.</em></p>
<p><em>This restaurant adds a discretionary service charge to customers’ bills.</em></p>
<p><em>Ten per cent of any discretionary service charge or card tip which you choose to pay is retained by the business to cover the charges we incur in processing your payment, card fraud losses and administration costs in distributing sums to staff</em></p>
<p><em>Twenty per cent of the discretionary service charge or card tip is retained by the business [this includes deductions for breakages, till shortages and walk-outs] and 70% is shared between the staff</em></p>
<p><strong><em>All cash tips go to the staff</em></strong></p>
<p><em>The amount available for staff in the restaurant is shared out through a system controlled by a staff representative.</em></p>
</span>
<p><strong>Or</strong></p>
<span style=”background: #fff8dc;>
<p><em>We are committed to the Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges</em></p>
<p><em>For every £1 received in card tips, the staff keep 70p, 10p covers business costs and administration and 20p goes to the business [this includes deductions for breakages, till shortages and walk-outs]. All cash tips go to the staff</em></p>
</span>
<h4>Example B</h4>
<span style=”background: #fff8dc;”>
<p><em>We are committed to the Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges.</em></p>
<p><em>If you choose to leave a tip through a card, we will retain 10% to cover the charges we incur in processing your payment, card fraud losses and administration costs in distributing sums to staff and business costs [this also includes deductions for breakages, till shortages and walk-outs].</em></p>
<p><em>The remaining 90% is allocated to the staff in the business and is shared out through a system controlled by a staff representative.</em></p>
<p><strong><em>All cash tips go to the staff.</em></strong></p>
</span>
<p><strong>Or</strong></p>
<span style=”background: #fff8dc;”>
<p><em>For every £1 received in card tips, 90p is shared amongst the staff and 10p covers administration, processing and business costs [this also includes deductions for breakages, till shortages and walk-outs]. All cash tips go to the staff.</em></p>
</span>
<p><strong>Example C</strong></p>
<span style=”background: #fff8dc;”>
<p><em>We do not add a service charge to your bill.</em></p>
<p><em>100% of the tips you leave are distributed amongst the staff according to their wishes.</em><strong><em><br clear=”all” />
</em></strong></p>
</span>
<p class=”footnote”>© 2009 Crown Copyright</p>
<hr class=”system-pagebreak” title=”Guidance on Transparency for Workers” />
<h1>Tipping: Code of Best Practice</h1>
<h2>Guidance on Transparency for Workers</h2>
<span style=”background: #f5f5f5;”>
<p><strong>The Code states that:</strong></p>
<ul>
<li>Businesses should ensure that workers understand and are able to confidently explain the business’ policy on service charges, tips, gratuities and cover charges to customers, or know where to direct customers for further information, and without risk of detriment.</li>
<li>All workers should be fully informed on the distribution and breakdown of service charges, tips, gratuities and cover charges and the level and purpose of any deductions. Business should seek to reach agreement with workers on any change of policy.</li>
</ul>
<p>Businesses must comply with national minimum wage legislation including the 2009 amendment: this means that regardless of how they are paid no service charges, tips, gratuities or cover charges can be used to make up national minimum wage pay. Businesses must also ensure that they comply with current employment law more generally.</p>
<ul>
<li>Complaints from workers relating to their rights as employees can be made to the <strong>Pay and Work Rights Helpline</strong> on <strong>0800 917 2368</strong>.</li>
<li>Any complaints about accurate information on a business’ policy on service charges, tips, gratuities and cover charges can be made to the <strong>Consumer Direct Helpline</strong> on <strong>08454 040506</strong>.</li>
</ul>
</span>
<p>Businesses that comply with the Code should ensure that their employees understand the policy relating to service charges, tips, gratuities and cover charges. This means that businesses should ensure that all workers:</p>
<ul>
<li>understand the process for the distribution of service charges, tips, gratuities and cover charges between the business and the workers, and between the workers themselves (for example, workers should be told if a tronc operates and who the tronc master is)</li>
<li>are aware of the amount and purpose of any deductions from service charges, tips, gratuities or cover charges, and seek to reach agreement with workers on any policy change</li>
<li>have access to a written statement setting out the business’ policies on service charges, tips, gratuities and cover charges which can be provided to consumers</li>
<li>are aware of the level of deductions from tips, service charges and gratuities made to cover breakages, till shortages or customer walk-outs</li>
<li> are aware of the business’ grievance procedure</li>
</ul>
<p> Businesses should give information to workers in the form of a written statement. Where the business employs a cohort of workers where English is not the workers first language the business should consider making information available in other languages.</p>
<p>This statement should include:</p>
<ul type=”disc”>
<li>how tips are distributed and, if applicable, if this is done through a tronc</li>
<li>if cash and card tips are treated differently</li>
<li>the name of the tronc master if appropriate</li>
<li>how much might be deducted for administration and what this covers</li>
<li>any other deductions</li>
<li>what happens during holidays, sick leave, parental leave and other forms of leave</li>
</ul>
<p><strong>Where tips are passed to workers without national insurance deductions, workers should be informed that this may have implications for entitlement to certain social security benefits.</strong></p>
<p class=”footnote”>© 2009 Crown Copyright</p>
<hr class=”system-pagebreak” title=”Further Information” />
<h1>Tipping: Code of Best Practice</h1>
<h2>Further Information</h2>
<h3>Enquires or complaints</h3>
<ul>
<li>
Pay and Work Rights Helpline: <strong>0800 917 2368</strong></li>
<li>Consumer Direct Helpline: <strong>0845 404 0 506</strong></li>
<li><a href=”http://www.tradingstandards.gov.uk/” target=”_blank”>Trading standards</a></li>
<li><a href=”http://www.acas.org.uk/” target=”_blank”>Acas</a> (Advisory, Conciliation and Arbitration Service): <strong>08457 474 747</strong></li>
</ul>
<h3>Relevant advisory web links</h3>
<ul>
<li><a href=”http://www.businesslink.gov.uk/” target=”_blank”>Business Link</a></li>
<li><a href=”http://www.citizensadvice.org.uk/” target=”_blank”>Citizen’s Advice Bureau</a></li>
<li><a href=”http://www.consumerdirect.gov.uk/”>Consumer Direct</a></li>
<li><a href=”http://www.consumerfocus.org.uk/” target=”_blank”>Consumer Focus</a></li>
<li><a href=”http://www.direct.gov.uk/” target=”_blank”>Directgov</a></li>
<li><a href=”http://www.oft.gov.uk/” target=”_blank”>Office of Fair Trading</a></li>
</ul>
<h3>Relevant tipping sector web links</h3>
<ul>
<li><a href=”http://www.businesslink.gov.uk/” target=”_blank”> British Hospitality Association</a></li>
<li><a href=”http://www.nhf.biz/” target=”_blank”>National Hairdressers’ Federation</a></li>
<li><a href=”http://www.casinooperatorsassociation.org.uk/” target=”_blank”>Casino Operators’ Association</a></li>
<li><a href=”http://www.britishcasinoassociation.org.uk/”>National Casino Industry Forum</a> (formerly the British Casino Association)<br />
</li>
<li><a href=”http://www.fourthhospitalitv.com/” target=”_blank”>Fourth Hospitality</a></li>
</ul>
<h3>Relevant workers web links</h3>
<ul>
<li><a href=”http://www.unitetheunion.com/” target=”_blank”>Unite the Union </a><a href=”http://www.unitetheunion.com/”></a></li>
<li><a href=”http://www.gmb.org.uk/” target=”_blank”>GMB</a><a href=”http://www.qmb.org.uk/”></a><br />
</li>
<li><a href=”http://www.tuc.org.uk/” target=”_blank”>TUC</a></li>
</ul>
<h3>References</h3>
<ul>
<li>HMRC guidance – <a href=”http://www.hmrc.gov.uk/helpsheets/e24.pdf” target=”_blank”>Tips, Gratuities, Service Charges & Troncs</a> (80k PDF)</li>
<li><a href=”http://www.opsi.gov.uk/si/si2008/pdf/uksi_20081277_en.pdf” target=”_blank”>Consumer Protection from Unfair Trading Regulations 2008</a> (224k PDF)</li>
<li><a href=”http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904″ target=”_blank”>The National Minimum Wage Regulations 1999 (Amendment) Regulations 2009</a></li>
<li><a href=”http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904″ target=”_blank”>National Insurance guidance</a></li>
<li><a href=”http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10027201″ target=”_blank”>National Minimum Wage rates</a></li>
<li><a href=”http://www.hmrc.gov.uklquidance/cwq2.pdf” target=”_blank”>HMRC employers further guide to PAYE and NIC</a></li>
<li><a href=”http://www.opsi.gov.uk/SI/si1993/Uksi 19930744 en_1.htm” target=”_blank”>Income Tax (Employment) Regulations 1993</a></li>
</ul>
<p class=”footnote”>© 2009 Crown Copyright</p>
<hr class=”system-pagebreak” title=”Model Statement for Workers” />
<h1>Tipping: Code of Best Practice</h1>
<h2>Model Statement for Workers</h2>
<span style=”background: #f5f5f5;”>
<p>We make a discretionary service charge of <em>[xx]</em>% to customer bills for service. Customers are free to amend or remove the service charge when their bills are settled.</p>
<p>Service charges together with any non-cash tips or gratuities added by customers are distributed to workers through a tronc. The business will retain [xx] <em>%[this covers</em> <em>overheads / administration of the tronc / card handling charges].</em></p>
<p><em>[Name]</em>is the tronc master responsible for the administration of the collection and distribution of service charges, tips, and gratuities paid through the tronc.</p>
<p>By using this system, service charges and any other pooled tips and gratuities, are able to be distributed to you without any value added tax (VAT) having first to be deducted. Payments are then made to you with any income tax due having been deducted – but without any national insurance contributions (NICs) having to be deducted.</p>
<p><strong>You pay NICs to build up your entitlement to certain social security benefits, including the state pension.</strong>The type and level of NICs you pay depends on how much you earn and whether you are employed or self-employed. You stop paying NICs in the year you reach state pension age. You should be aware that if you do not make minimum payments for NICs this may impact upon your entitlement to these benefits. You can find out more about national insurance by visiting the <strong>Directgov</strong> website <u>(<a href=”http://www.direct.gov.uk/”>www.direct.gov.uk</a>).</u></p>
<p>If you receive cash directly from customers or cash tips have been left on the table these belong to you and it is up to you to decided with other members of staff if you retain or pool them. Cash tips are counted as earnings for income tax purposes and it is <strong>your responsibility to</strong> make proper disclosure to HM Revenue & Customs (HMRC) in respect of these earnings.</p>
<p>During periods of leave (including annual leave, sick and all other forms of paid leave) you will be paid your basic wage.</p>
<p><em>[For businesses with a tronc: The tronc master will inform you about the arrangements for the distribution of service charges, tips and gratuities during periods of leave.]</em></p>
<p><em>[For businesses without a tronc: The arrangements for the distribution of service charges, tips and gratuities during periods of leave are (business to insert).]</em></p>
<p>Our basic pay rates will always be at least the national minimum wage level. The current national minimum wage rates can be found by visiting <a href=”http://www.direct.gov.uk/”>www.direct.gov.uk</a></p>
</span>
<p class=”footnote”>© 2009 Crown Copyright</p>
<hr class=”system-pagebreak” title=”Definitions” />
<h1>Tipping: Code of Best Practice</h1>
<h2>Definitions</h2>
<p>Consumers are often confused by the distinction between service charges, tips, gratuities and cover charges. The Code uses the following definitions:</p>
<h3>Service Charge</h3>
<p>An amount added to the customer’s bill before it is presented to the customer. A service charge is almost always based on a percentage of the bill. If it is `discretionary’ or ’suggested’ the customer is totally free to make payment or not.</p>
<h3>Tips and Gratuities</h3>
<p>Tips and gratuities are voluntary payments given by the customer, over and above the amount of the bill (and any service charge) and being of the nature of a personal reward from the customer to the worker. Usually, tips are monies left in cash, whereas gratuities (or card tips) are payments made electronically through a card terminal.</p>
<h3><strong>Cover Charge</strong></h3>
<p>A fixed charge per customer which is usually mandatory. Mandatory charges must be stated on tariffs or, in the case of restaurants, menus.</p>
<h3><strong>Tronc</strong></h3>
<p>A tronc is an arrangement for the pooling and distribution of service charges, tips and gratuities to workers. Troncs are commonly used in the hotel and catering industry and are increasingly used in the casino sector. A tronc has a special status for the purpose of <strong><a href=”http://www.hmrc.gov.uk/” target=”_blank”>HM Revenue & Customs</a></strong> (HMRC) regulations relating to income tax and National Insurance (NI).</p>
<p>For a tronc to comply with HMRC regulations, it is an essential requirement that workers decide who participates in the tronc and how distributions are made, <strong>not</strong> the employer.</p>
<p>Regulations allow for payments made to employees which come from discretionary service charges and or tips, to be left out of earnings when calculating NI. If an organised arrangement exists for a person to act entirely independently of the employer to decide:</p>
<ul>
<li>which employees will get a share of discretionary service charges, tips and/or gratuities, and</li>
<li>how much those employees should get</li>
</ul>
<p>then there will be no NI liability.</p>
<p>Formal guidance on NI and PAYE income tax is set out in <strong><a href=”http://www.hmrc.gov.uk/helpsheets/e24.pdf” target=”_blank”>HMRC guide E24</a></strong>.</p>
<h3>Tronc master</h3>
<p>The person who distributes monies from the tronc is known as the tronc master and is normally a worker or committee representative. The tronc master is responsible for operating PAYE (income tax) on payments distributed through the tronc.</p>
<h3>HM Revenue & Customs E24 Guide</h3>
<p>The <strong><a href=”http://www.hmrc.gov.uk/helpsheets/E24.pdf” title=”HMRC E24″ target=”_blank”>HMRC E24</a></strong> is a guide to income tax, National Insurance, national minimum wage and VAT and how they apply to service charges, tips, gratuities and troncs.</p>
<p class=”footnote”>© 2009 Crown Copyright</p>
<hr class=”system-pagebreak” title=”List of Stakeholders” />
<h1>Tipping: Code of Best Practice</h1>
<h2>List of Stakeholders</h2>
<p>The following businesses and organisations were consulted in developing the principles of this Code:</p>
<ul>
<li><a href=”http://www.allbarone.co.uk/” target=”_blank”>All Bar One</a></li>
<li><a href=”http://www.bdo.uk.com/” target=”_blank”>BDO Stoy Hayward</a></li>
<li><a href=”http://www.baha-uk.org/” target=”_blank”>British Association of Hospitality Accountants</a></li>
<li><a href=”http://www.bha.org.uk/” target=”_blank”>British Hospitality Association</a></li>
<li><a href=”http://www.bisl.org/” target=”_blank”>Business in Sports and Leisure</a></li>
<li><a href=”http://www.birminghamchamber.com/” target=”_blank”>Birmingham Chambers of Commerce</a></li>
<li><a href=”http://www.britishchambers.org.uk/” target=”_blank”>British Chambers of Commence</a></li>
<li><a href=”http://www.carluccios.com/” target=”_blank”>Carluccio’s plc</a></li>
<li><a href=”http://www.cbi.org.uk/” target=”_blank”>CBI</a></li>
<li><a href=”http://www.consumerfocus.org.uk/” target=”_blank”>Consumer Focus</a></li>
<li><a href=”http://www.flva.co.uk/” target=”_blank”>Federation of Licensed Victuallers Association</a></li>
<li><a href=”http://www.fsb.org.uk/” target=”_blank”>FSB</a></li>
<li><a href=”http://www.fourthhospitality.com/” target=”_blank”>Fourth Hospitality</a></li>
<li><a href=”http://www.gmb.org.uk/” target=”_blank”>GMB</a></li>
<li><a href=”http://www.metrorest.com/” target=”_blank”>Metropolitan Restaurants</a></li>
<li><a href=”http://www.nhf.biz/” target=”_blank”>National Hairdressers’ Federation</a></li>
<li><a href=”http://www.oft.gov.uk/” target=”_blank”>OFT</a></li>
<li><a href=”http://www.paramountrestaurants.co.uk/” target=”_blank”>Paramount Restaurants</a></li>
<li><a href=”http://www.ransomesdock.co.uk/” target=”_blank”>Ransome’s Dock</a></li>
<li><a href=”http://www.tuc.org.uk/” target=”_blank”>TUC</a></li>
<li><a href=”http://www.unitetheunion.com/” target=”_blank”>Unite the union</a></li>
</ul>
<p class=”footnote”>© 2009 Crown Copyright</p>