Theresa May is set to unveil legislation today banning employers from making any deductions from workers’ tips.

The Prime Minister will belatedly reply to a consultation on the matter, which was launched in 2016.

Details of the legislation are still unclear but the Government is set to pledge that all tips must go direct staff.

May will say: “The unemployment rate under this government is now the lowest since the 1970s - but we want to ensure that everyone is treated fairly in the workplace.

“That’s why we will introduce tough new legislation to ensure that workers get to keep all of their tips - banning employers from making any deductions. It’s another way we are building an economy that works for everyone.”

A Government source told Sky News: “The change is part of the government’s drive to back businesses to create good jobs while making sure the system works for ordinary people.

“It is in addition to the introduction of the National Living Wage, which when it was introduced increased the wages for roughly a quarter of the workers in the hospitality industry.”