MPs from across political parties have supported calls for tronc, service charge and tips to be included in furlough pay and agreed to lobby chancellor Rishi Sunak to adapt the Coronavirus Job Retention Scheme (CJRS).
In total 26 MPs from across the Conservative, Labour and Liberal Democrat parties (see full list below) have given their support following reports that the exclusion is causing "real and serious hardship", having impacted some 750,000 hospitality employees.
Hospitality leaders have praised the CJRS, but argued that the decision to exclude what it has called "discretionary payments" is based on a mistaken understanding of how tronc systems operate.
The comments came after Beth Russell, director general of tax and welfare at the Treasury, told MPs: "The difficulty with tronc particularly is that in some cases tronc is notified to HMRC and in some cases it's not, so if we included it there would be unfairness in that approach as well."
A letter to the government, signed by more than 50 industry leaders, was spearheaded by WMT Troncmaster Services.
Managing director Peter Davies said: "It's really encouraging to see so many MPs from different parties coming together to support hospitality workers. Those workers are not seeking special treatment over furlough pay but equal treatment with staff in other sectors and the self employed.
"Tronc is money that is payrolled, taxed and declared to HMRC and it's wrong for the Treasury to exclude this simply because, as they told the Commons Select Committee, not all monies are correctly declared. We'd urge the chancellor to remedy this wrong at the earliest opportunity and to really stand behind hospitality workers"
MPs supporting industry calls
- Steve Baker (Wycombe)
- Stephen Hammond (Wimbledon)
- Sir David Evennett (Bexleyheath & Crayford)
- Chris Grayling (Epsom & Ewell)
- Chris Philp (Croydon South)
- Julia Lopez (Hornchurch & Upminster)
- Elliot Colburn (Carshalton & Wallington),
- Gareth Johnson (Dartford)
- Tom Tugendhat (Tonbridge & Malling),
- Dr Caroline Johnson (Sleaford & North Hykeham)
- Grant Shapps (Welwyn Hatfield and Secretary of State for Transport)
-Fleur Anderson (Putney)
- Jon Cruddas (Dagenham & Rainham)
- Rushanara Ali (Bethnal Green & Bow)
- Hilary Benn (Leeds Central)
- Dawn Butler (Brent Central)
- Matthew Pennycook (Greenwich & Woolwich)
- Andy Slaughter (Hammersmith)
- John Cryer (Leyton & Wanstead)
- Bell Ribeiro-Addy (Streatham)
- Lyn Brown (West Ham),
- Jeff Smith (Manchester Withington)
- Graham Stringer (Blackley & Broughton)
- Peter Dowd (Bootle)
- Sam Tarry (Ilford South)
- Sarah Olney (Richmond Park)