Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the oral contribution of the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, of 4 June 2019, Official Report, column 47, if he will publish the findings of the further analysis that his Department conducted on the potential effect of changes to the National Minimum Wage Naming Scheme on the number of employers named; and when the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy last met the Director of Labour Market Enforcement to discuss the Naming Scheme.
Answered by Kelly Tolhurst
The Government is committed to enforcing the National Minimum Wage (NMW). In 2018/19, HM Revenue & Customs (HMRC) identified a record £24.4 million in arrears for over 220,000 workers and issued over £17 million in penalties to non-compliant employers. We have more than doubled HMRC’s budget for NMW compliance and enforcement since 2015 to £27.4 million for 2019/20.
The Government will resume naming employers found underpaying the NMW. We are reviewing the Naming Scheme to ensure that it continues to effectively support NMW compliance. We will conclude the review during the summer and publish any resulting effects on the operation of the Naming Scheme through the NMW Enforcement policy documents.
We are reviewing the Naming Scheme in response to recommendations made by the Director of Labour Market Enforcement (DLME), Professor Sir David Metcalf
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to respond to the Low Pay Commission's report entitled Non-compliance and enforcement of the national minimum wage, published April 2019.
Answered by Kelly Tolhurst
Enforcement of the National Minimum and National Living Wage (NMW) is a priority for the Government. Since 2015 we have doubled the budget to enforce the NMW and we are taking tough action against the minority of employers who underpay. In 2018/19 HM Revenue & Customs (HMRC) identified a record £24.4 million in arrears for over 220,000 workers and issued over £17 million in penalties to non-compliant employers.
Later this year, we will publish a NMW enforcement and compliance report. This report will discuss the state of NMW non-compliance for 2018/19; the recommendations made by the LPC in their April 2019 report; and plans for NMW enforcement over the coming year.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 16 May 2019 to Question 252048, Living Wage and Minimum Wage: Non-payment, whether his Department has begun drafting the review of the National Minimum Wage Naming Scheme; and by what date he plans to publish that review.
Answered by Kelly Tolhurst
The review of the National Minimum Wage and National Living Wage Naming Scheme has begun and work remains ongoing; there is currently no set date for completion. Any changes resulting from this will be communicated through an update of our published enforcement policy document.
The current version of this document can be found online at the below address:
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 7 May 2019 to Question 248059, when the review of the NMW Naming Scheme began; and whether it his policy to suspend naming non-compliant employers until that review has concluded.
Answered by Kelly Tolhurst
As announced in the Government response of December 2018, the review of the National Minimum Wage and National Living Wage (NMW) Naming Scheme commenced in response to recommendations made by the Director of Labour Market Enforcement in his 2018/2019 Labour Market Enforcement Strategy. No further naming of employers for NMW breaches will take place until the review has been completed.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what plans he has to publish the names of employers who do not pay the national minimum or national living wage.
Answered by Kelly Tolhurst
Enforcement of the National Minimum and National Living Wage (NMW) is a priority for the Government. We are taking tough action against the minority of employers who underpay; in 2018/19 HM Revenue & Customs NMW identified a record £24.4 million in arrears for over 220,000 workers and issued over £17 million in penalties to non-compliant employers. Since 2015 we have doubled our budget to enforce the NMW.
To date, we have named almost 2,000 employers who underpaid through the NMW Naming Scheme. As a result of recommendations made by the Director of Labour Market Enforcement, we have now begun a review of the Scheme to ensure it continues to effectively deliver our policy objective of ensuring workers are paid fairly for the work they do. This work is ongoing and will be completed in due course.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to his oral contribution of 6 March 2019, Official Report, column 994, on the Swedish derogation, whether he has finished reflecting upon the representations he has received from the trade unions on the timing of the abolition of the Swedish derogation; and what the outcome has been of his reflections.
Answered by Kelly Tolhurst
Through the Good Work Plan, published in December 2018, the Government has committed to upgrading workers’ rights and protecting the most vulnerable workers. This represents the biggest upgrade to workers’ rights in over 20 years. The Government has considered all representations made to it about the Swedish derogation and is committed to its repeal. Secondary legislation repealing the Swedish Derogation has already been approved by the House of Commons’ Seventh Delegated Legislation Committee on 6 March 2019. Subject to approval from the House of Lords, from April 2020 all agency workers will be entitled to the same pay as permanent staff after 12 weeks in an assignment. This timeframe allows businesses to realign their contractual arrangements, both with their workers and the end hirers.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to his oral contribution of 6 March 2019, Official Report, column 994, on the Swedish derogation, what representations he has received on the timing of the abolition of the Swedish derogation; and when he plans to respond to those representations.
Answered by Kelly Tolhurst
The Government is committed to upgrading workers’ rights as we leave the EU, not reduce them. The Good Work Plan represents a large part of this commitment and is the biggest upgrade in a generation. The Department regularly engages with stakeholders on the reforms announced in the Good Work Plan. Secondary legislation repealing the Swedish Derogation was laid on 17 December 2018 and approved by the House of Commons’ Seventh Delegated Legislation Committee on 6 March 2019. Subject to approval from the House of Lords, all agency workers will be entitled to the same pay as permanent staff after 12 weeks in an assignment from 6 April 2020. This will allow time for businesses to realign their contractual arrangements, both with their workers and the end hirers.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what information his Department holds on how any surplus taken by the Government from the Mineworkers' Pension Scheme since 2010 has been used by his Department.
Answered by Claire Perry
Surplus payments from the Mineworkers Pension Scheme are paid into the Exchequer, which forms part of wider Government expenditure.
The Government guarantee has enabled an investment strategy that has resulted in scheme members receiving payments 33% higher than they would have been if they received only their actual earned pension up to privatisation.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, how any surplus taken by the Government from the Mineworkers' Pension Scheme since 2010 has been spent.
Answered by Claire Perry
Surplus payments from the Mineworkers Pension Scheme are paid into the Exchequer, which forms part of wider Government expenditure.
The Government guarantee has enabled an investment strategy that has resulted in scheme members receiving payments 33% higher than they would have been if they received only their actual earned pension up to privatisation.
Asked by: Stephanie Peacock (Labour - Barnsley East)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 17 October 2018 to Question 178527 on Gratuities, when the Government plans to publish a response to the consultation on tips, gratuities, cover and service charges which closed on 27 June 2016.
Answered by Kelly Tolhurst
The Government has announced its intention to legislate to ensure that all tips left to workers are kept by them in full. In some sectors, tips are a significant part of staff income. It is only right that workers keep the full value of tips left in recognition of good service and hard work.
This commitment was published as part of the Government’s Good Work Plan, which represents the largest upgrade to workplace rights in a generation. Full details of legislation on tips and a response to the 2016 consultation on tips, gratuities, cover and service charges will be published in due course.