Oral Answers to Questions

Graeme Morrice Excerpts

Thursday 5th December 2013 Commons Chamber

[Michael Fallon]

The EU business taskforce, which I chair, identified 30 regulations that should be repealed. We continue to press the Commission to lighten the rules for small businesses and to exempt the very smallest businesses altogether.

[Graeme Morrice (Livingston) (Lab)]

6. What recent estimate he has made of the number of apprentices being paid below the apprenticeship minimum wage.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

The Government have overseen one of the most successful expansions of apprenticeships, with about 1.5 million apprenticeship starts since 2010. However, we are concerned that the level of non-compliance with national minimum wage rules, which the 2012 apprenticeships survey shows to be 27%, remains too high. The Government have zero tolerance for employers who break the law. That is why we have introduced a range of enhanced enforcement measures to crack down on such rogue employers.

[Graeme Morrice]

I thank the Minister for her answer. It is certainly worrying that the proportion of apprentices who are not receiving the apprenticeship minimum wage has increased and that one in four apprentices do not receive it. What firm and decisive action is she taking to clamp down on the rising non-compliance of employers with the apprenticeship minimum wage, especially given that the number of young people aged 16 to 18 who are starting apprenticeships has fallen?

[Jo Swinson]

The hon. Gentleman raises an issue that the Government are concerned about and are acting on. From 1 July, Her Majesty’s Revenue and Customs has prioritised complaints about the apprenticeship minimum wage to ensure that it brings proper enforcement against employers who are not paying it. Further, we have made it much easier to name and shame employers who do not pay the minimum wage. We have also announced that we will increase the maximum penalty fine to £20,000. That tough programme of enforcement action should help to ensure that businesses pay their workers properly. That is what the public expect and it is what most responsible businesses already do.