Asked by: Stephen Kinnock (Labour - Aberafan Maesteg)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the total (a) annual budget and (b) full time equivalent workforce allocated to HMRC's National Minimum Wage teams was in each year since 2015.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
HMRC’s National Minimum Wage (NMW) compliance work is funded by the Department for Business, Energy and Industrial Strategy, who are responsible for NMW legislation and policy. The funding for HMRC’s work on NMW has increased from £13.2 million in 2015-16, to £26.4 million in 2021-22.
The following table provides a yearly breakdown of the NMW budget and Full Time Equivalent (FTE) staff numbers from 2015-16 up to 2021-22.
Year | Budget | FTE |
2015-2016 | £13.2 million | 251 |
2016-2017 | £20 million | 352 |
2017-2018 | 25.3 million | 413 |
2018-2019 | 25.2 million | 429 |
2019-2020 | 26.3 million | 442 |
2020-2021 | 26.4 million | 420 |
2021-2022 | 26.4 million | 390 |
To note, there are also additional staff across HMRC who contribute to enforcing the NMW including lawyers, technical advisers, and those specialising in criminal investigations, who have not been included in the FTE figures provided in the table.
Asked by: Stephen Kinnock (Labour - Aberafan Maesteg)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many employers were issued with a financial penalty for non-compliance with the National Minimum Wage Act 1998 and related legislation; and what the total value of those penalties was in each year since 2015.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The Government is determined that everyone who is entitled to the National Minimum Wage (NMW) receives it.
HMRC balances recovering NMW arrears for workers as quickly as possible along with a robust approach to enforcement using a range of tools, including civil sanctions and the issuing of Labour Market Enforcement Undertakings (LMEUs), and Labour Market Enforcement Orders (LMEOs).
HMRC’s approach to compliance means they go beyond undertaking investigations and issuing penalties. HMRC also works with businesses to help them understand their obligations. Ultimately, HMRC want employers to get it right. It is far better for businesses and workers if an investigation is never needed.
The use of criminal prosecutions is reserved for the most serious of cases.
The outbreak of COVID-19 meant HMRC had to adapt and take pragmatic decisions about where and how to deploy resource in the most effective manner to ensure both customers and staff were protected whilst still ensuring that workers were receiving the money they were due. HMRC continued to consider all worker complaints and take enforcement action as appropriate.
The below table provides numbers for investigations, penalties, value of penalties, prosecutions, and employers from 2015-16 up to 2021-22.
Year | Number of Investigations | Investigations where arrears enforced | Investigations where a penalty was charged | Value of penalties issued | Number of prosecutions | Number of LMEUs | Number of LMEOs |
2015/16 | 2,667 | 958 | 815 | £1,780,467 | 0 | 0 | 0 |
2016/17 | 2,674 | 1,134 | 822 | £3,892,976 | 4 | 0 | 0 |
2017/18 | 2,402 | 1,016 | 810 | £14,070,621 | 1 | 0 | 0 |
2018/19 | 3,018 | 1,357 | 1,008 | £17,134,737 | 0 | 8 | 0 |
2019/20 | 3,376 | 1,260 | 992 | £18,453,289 | 1 | 19 | 0 |
2020/21 | 2,740 | 994 | 575 | £14,064,688 | 0 | 5 | 0 |
2021/22 | 2,835 | 898 | 696 | £13,173,062 | 3 | 40 | 1 |
Asked by: Stephen Kinnock (Labour - Aberafan Maesteg)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many investigations involving suspected non-compliance by employers with the National Minimum Wage Act 1998 and related legislation were carried out by HMRC in each year since 2015; and how many and what proportion of those investigations led to (a) financial penalties, (b) criminal prosecutions and (c) other enforcement action.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
The Government is determined that everyone who is entitled to the National Minimum Wage (NMW) receives it.
HMRC balances recovering NMW arrears for workers as quickly as possible along with a robust approach to enforcement using a range of tools, including civil sanctions and the issuing of Labour Market Enforcement Undertakings (LMEUs), and Labour Market Enforcement Orders (LMEOs).
HMRC’s approach to compliance means they go beyond undertaking investigations and issuing penalties. HMRC also works with businesses to help them understand their obligations. Ultimately, HMRC want employers to get it right. It is far better for businesses and workers if an investigation is never needed.
The use of criminal prosecutions is reserved for the most serious of cases.
The outbreak of COVID-19 meant HMRC had to adapt and take pragmatic decisions about where and how to deploy resource in the most effective manner to ensure both customers and staff were protected whilst still ensuring that workers were receiving the money they were due. HMRC continued to consider all worker complaints and take enforcement action as appropriate.
The below table provides numbers for investigations, penalties, value of penalties, prosecutions, and employers from 2015-16 up to 2021-22.
Year | Number of Investigations | Investigations where arrears enforced | Investigations where a penalty was charged | Value of penalties issued | Number of prosecutions | Number of LMEUs | Number of LMEOs |
2015/16 | 2,667 | 958 | 815 | £1,780,467 | 0 | 0 | 0 |
2016/17 | 2,674 | 1,134 | 822 | £3,892,976 | 4 | 0 | 0 |
2017/18 | 2,402 | 1,016 | 810 | £14,070,621 | 1 | 0 | 0 |
2018/19 | 3,018 | 1,357 | 1,008 | £17,134,737 | 0 | 8 | 0 |
2019/20 | 3,376 | 1,260 | 992 | £18,453,289 | 1 | 19 | 0 |
2020/21 | 2,740 | 994 | 575 | £14,064,688 | 0 | 5 | 0 |
2021/22 | 2,835 | 898 | 696 | £13,173,062 | 3 | 40 | 1 |
Asked by: Stephen Kinnock (Labour - Aberafan Maesteg)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many reports from (a) employees and (b) third parties involving suspected non-compliance of employers with the National Minimum Wage Act 1998 and related legislation were received by HMRC in each year since 2015.
Answered by Richard Fuller - Shadow Chief Secretary to the Treasury
HMRC considers all complaints from workers, conducts a program of proactive compliance activities, and delivers a program of educational activities to support employers to get it right.
Anyone not being paid what they are entitled to can complain online at: https://www.gov.uk/minimum-wage-complaint or can contact the Advisory, Conciliation and Arbitration Service on 0300 123 1100. HMRC will not tell an employer who complained without the person’s consent.
Year | Worker complaints | Third party information |
2015/16 | 1,516 | 418 |
2016/17 | 2,573 | 789 |
2017/18 | 6,027 | 2,154 |
2018/19 | 4,924 | 2,351 |
2019/20 | 3,332 | 2,413 |
2020/21 | 2,771 | 2,286 |
2021/22 | 3,310 | 2,944 |