Live-in workers will not have to pay more for accommodation

Hotel workers who get free accommodation from their employers are unlikely to have any more money deducted from their wages under the Government's review of minimum wage legislation.

Hoteliers are allowed to deduct a maximum of £19.95 a week to offset against the cost of providing accommodation. But the British Hospitality Association (BHA) has been lobbying hard for this to be raised to about £40.

BHA deputy chief executive Martin Couchman said indications were that "we probably haven't made much progress on that".

Some 7% of employers in the hotel industry provide staff accommodation.

The amount they can deduct for accommodation was probably of more concern to hoteliers than whether the minimum wage would be raised in April, said Couchman.

Newspaper reports last week suggested the Government was planning to freeze the minimum wage at £3.60 for another year.

"It was always made clear to me that the Government saw £3.60 as the rate for the length of this parliament," Couchman said. "I don't think there ever was any suggestion it would increase."