Waiters in London: "We don't earn a lot for what we do"

Documents leaked from the government's Low Pay Commission reveal that the body charged with recommending the hourly rate has proposed that where staff receive tips or bonuses through their payroll it should count as part of the suggested £3.60 level.

If the government accepts the proposal, it could provoke a major row with trade unionists who are already angered that the commission has proposed a wage under £4 an hour.

They had been arguing for hourly rates of £4.61 with one union, Unison, attacking the current proposals as "sweated labour".

'Wage roll' tips could be part of minimum wage

Director of the Low Pay Unit, Bharti Patel, who campaigns on wage issues, said the proposals to include tips would hit some of the lowest paid workers in the UK economy.

She accused the proposals of making a "mockery" of the principle of a minimum wage, a Labour party manifesto pledge.

"It will clearly undermine the principle of the national minimum wage and reduce the benefit to those people it is supposed to help," she said.

"It represents a step backwards for millions of workers in the hotel and catering sector.

Donna Covey: "A subsidy for employers"

"(They) will effectively be denied a basic rate and will have to rely on the generosity of their customers."

Union leaders have already stepped up pressure on the government before ministers agree the rate.

They fear that continued arguments over the rate will allow ministers proposing a lower level and exclusion of more workers to gain ground.

General Secretary of the Trades Union Congress, John Monks, has written to the Prime Minister, urging him not to water down the commission's recommendations when legislation is put before Parliament.

Donna Covey: GMB wants 'unambiguous wage'

Donna Covey of the GMB union attacked the leaked proposals as a subsidy for employers.

She said: "We believe very strongly that there should be a clear, unambiguous national minimum wage that applies to everybody.

"The tip is something that a customer leaves for exceptional service.

"If I go into a restaurant and the service is exceptional and I leave a tip I want to think that person is taking home a little bit more at the end of the week.

"It is being used to allow the employer to say I can pay them less this week."