MORE than a year has passed since the government announced it would be reviewing the practice of service charges in the hospitality industry.

In May 2016 business secretary Sajid Javid said he would consult those within the industry to address the issue of hidden fees and so-called 'second tipping'.

Ambiguity over what a service charge was, and whether or not it was given to waiting staff led to a demand for greater clarity.

At the time Mr Javid said: "I’m setting out our proposals to make tipping fairer, clamping down on unfair practices and securing a better deal for the millions of workers in the service industry."

Hundreds of thousands of tourists flock to the Lake District every summer, filling our restaurants, bars and cafes.

With an economy so reliant on tourism the service industry, The Mail spoke to one of the area's most popular culinary destinations about its views on service charges.

Managing director of Windermere's Gilpin Hotel and Lakehouse, Barney Cunliffe, said: "Our policy is that we don't automatically collect a service charge, we're quite rare in that. Particularly at a five-star level it is unreasonable to automatically add it."

He felt spontaneous tipping was an important way of recognising excellent service. He continued: "I think tipping is important and there should be a method of rewarding people who go out of their way to make service special."

Ufi Ibrahim, CEO of The British Hospitality Association said: "Transparency is precisely what we asked the government to consider. Customers should be able to reward good service and know where their money ends up and how much of it goes to the staff."

The government is now analysing responses from the consultation and will be releasing its findings in the coming months.

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Falling foul of service charges

Leaving a tip and what happens to service charges can get even the most well-known figures into a spot of bother.

Model and member of the most famous family in America, Kendall Jenner was called out by a bar after failing to leave a tip.

A picture of a receipt was posted online by bar staff who took umbrage at the model - who is worth an estimated $80m - for failing to leave any tip for a $24 bill.

This is a serious faux pas considering the importance placed on tipping across the Atlantic. In large parts of the US hospitality industry tipping can be counted towards an employee's minimum wage. This means that if tips are taken away, wages can be as low as $2 an hour.

In this climate a good tip can make the difference when it comes to paying bills.

It is customary for 15 to 20 per cent to be tipped for anything from a cup of coffee to a meal in a five-star restaurant.

The UK is not immune from the pitfalls of tipping and service charges.

In December last year, high-profile celebrity chef Michel Roux Jr scrapped service charges at his restaurants after it emerged it was taken as a profit, rather than shared out to staff.

The chef added 13 per cent onto meals at his two Michelin star London restaurant, La Gavroche.

With a fixed-price menu and wine costing more than £200, this is a substantial sum.

After the discrepancy was uncovered Mr Roux Jr dropped the service charge, and raised the price of items on the menu.

This revelation came at a bad time for the chef, having recently weathered a PR storm after it was found out chefs at the restaurant were being paid below the minimum wage.

Earlier in 2016 restaurant chains Giraffe, Zizzi, Pizza Express, Strada and Ask Italian came under fire over allegations they were withholding money taken as a service charge from their waiting staff.

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