Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking (a) to increase the number of inspectors and (b) to raise the level of penalties to deal with employers who pay less than the minimum wage.

The budget for enforcing the National Minimum Wage (NMW) and National Living Wage (NLW) has increased from £13.2 million in 2015/16 to £25.3 million for 2017/18. The increase in HM Revenue and Customs’ enforcement resources has enabled an increase in the number of compliance officers available to investigate NMW abuses.

The penalty regime has been significantly strengthened in recent years. The Government raised the penalty calculation up to 200% in 2016; this was previously 50% and more recently 100%. We have also changed the penalty cap to apply on a ‘per worker’ rather than ‘per employer’ basis; this ensures that employers who break the law face a penalty equivalent to the arrears they owe their workers, up to £20,000 maximum per worker.