Oral Answers to Questions

Debate between Emma Hardy and Kelly Tolhurst

Tuesday 21st January 2020 Commons Chamber

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

10. What recent assessment she has made of the level of compliance of businesses with payment of the national living wage.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

The vast majority of jobs that are eligible to receive the national living wage are in compliance with the law, with only 1.5% of eligible jobs paid below in April 2019. Anyone entitled to be paid the national minimum wage should receive it. Last year, we ordered employers to pay a record £24.4 million in arrears and issued £17 million in penalties to non-compliant employers.

[Emma Hardy]

I thank the Minister for her answer but, as she is aware, the enforcement system is not working effectively at the moment, and hundreds of well-known companies are still getting away with not paying their workers the national living wage. I welcome the steps that the Government have already taken, but I hope that the Minister will respond by setting out additional actions that the Government will take to ensure that nobody gets away with paying their workers less than they are owed.

[Kelly Tolhurst]

I want to make it clear to the hon. Lady that this Government will enforce the national minimum wage and make sure that employers that are meant to be paying it do so. I think that is shown by the penalties and arrears that were recovered last year. We have doubled the enforcement budget. I remain committed to making sure that employers are able to easily comply with the law, but where there is any sign of breach, we are enforcing and making sure that people get the pay they are entitled to.