Chair of beam association, Louisa Watson, discusses the topic of service charges in the industry.
Few topics in our membership and across UK meetings and events currently generate as much debate as service charges. Long established in restaurants and hotels, the practice only recently appeared in corporate events, with a handful of venues introducing them. While the principle may seem simple, the reality is anything but. UK service charges and tips remain discretionary payments from customers.
Since the introduction of the Employment (Allocation of Tips) Act 2023, the transparent distribution of tips to staff is a legal obligation, and a Statutory Code of Practice sets clear policy expectations. In a sector where recruitment and retention are ongoing challenges, ensuring staff are properly recognised and rewarded is essential to sustaining a motivated and committed workforce.
From the client side, however, the picture is less straightforward. For corporate buyers already managing tight budgets, added service charges can feel unwelcome. Man argue that fair pay should be factored into the price from the start, with excellent service assumed rather than something to be ‘topped up’.
There are also practicalities to consider. Event costs are negotiated and pre-approved, with purchase orders issued so agencies can consolidate invoices. Discretionary post-event charges disrupt this process, adding challenges for the finance team and risks of late-stage friction between clients and venues.
Planners who see the impact of motivated staff first-hand may take a different view. Service charges can be a way of protecting the delegate experience by ensuring staff feel supported. In a people-driven industry, this investment may be seen as fair and commercially sensible.
To date, the lack of clear sector-specific guidance has left venues, agencies, and clients navigating these tensions alone.
Should service charges be integrated into core pricing for simplicity, or remain a visible supplement, aligned with legislation? There’s a clear need for alignment on what this should look like. Recognising this, beam has worked with experts and members on official guidance that will be launched after our All Members Meeting on 13th November. It doesn’t endorse or oppose charges, but sets out best practice principles for fair, transparent handling where they’re applied.
The debate reflects a bigger truth – the need to balance commercial realities with retaining the people who define great events and remain central to our sector’s success.