Oral Answers to Questions Debate

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Department: Department for Education

Oral Answers to Questions

William Bain Excerpts
Thursday 20th November 2014

(9 years, 5 months ago)

Commons Chamber
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Diana Johnson Portrait Diana Johnson (Kingston upon Hull North) (Lab)
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5. What steps the Government are taking to (a) enforce payment of the minimum wage and (b) encourage firms to pay the living wage.

William Bain Portrait Mr William Bain (Glasgow North East) (Lab)
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9. What steps the Government are taking to (a) enforce payment of the minimum wage and (b) encourage firms to pay the living wage.

Ann McKechin Portrait Ann McKechin (Glasgow North) (Lab)
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16. What steps the Government are taking to (a) enforce payment of the minimum wage and (b) encourage firms to pay the living wage.

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Jo Swinson Portrait Jo Swinson
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The hon. Lady is right to highlight the importance of businesses and employers paying the national minimum wage properly. We absolutely agree. We have invested extra money in enforcement and are helping more employees. Indeed, last year, £4.6 million of arrears was secured for workers who had not been properly paid. We have also increased the penalties and the resources to enforce the penalties, and we are now naming and shaming companies that offend.

William Bain Portrait Mr Bain
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Two weeks ago while campaigning in my own constituency for the living wage, I met a mother who told me that her son had been offered part-time work paying just over £2 an hour. With the Office for National Statistics showing yesterday that the proportion of jobs not paying the minimum wage has increased under this Government, does the Minister not regret failing to adopt the proposal from the Opposition to increase the fine for non-payment to £50,000 so that we could have proper enforcement of the minimum wage in this country?

Jo Swinson Portrait Jo Swinson
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The key is not only increasing the fine to £20,000, but enabling that fine to be levied per worker rather than per employer. The fine, which is of course linked to the amount of arrears, covers all but three cases found over the last year. None of the others would have reached the £20,000 maximum. We will be fining employers more when they break the law, because those responsible employers who abide by the law deserve to know that those who break the law will be properly punished.