Restaurants are set to see the current loophole in the minimum wage that allows them to use tips to make up staff pay closed. The government is expected to announce the change to regulations on tips on Thursday, on the tenth anniversary of the National Minimum Wage. John Hutton, the business secretary, said that the minimum wage law would be tightened to prevent the current situation. Hutton said: “I am really pleased to announce we have decided to change the law so tips received by staff must be paid on top of the national minimum age, not as part of it. “Customers who leave a tip want it to go to staff. They don't expect it to be used to subsidise owners paying the minimum wage.” At present, a loophole left under the 1998 Act has meant that tips processed through the payroll can count towards the minimum wage. The expected change in policy follows mounting pressure from various fair tips campaigns, backed by several restaurant groups and top chefs. Ministers however have decided against meeting campaigners full demands to legislate on a tips and service charge policy, which would have required restaurants to display their tipping policy on their menus. As part of the reforms, the national minimum wage is also set to be extended to 21-year olds, who currently get a minimum of £4.60 an hour.