Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the National minimum wage: Low Pay Commission autumn 2016 report, published in November 2016, what measures are being taken to address the findings of the Apprentice Pay Survey that some apprentices are being paid less than the £3.40 minimum set by the Government.
The Government takes the enforcement of National Minimum Wage (NMW) and National Living Wage (NLW) very seriously. HM Revenue and Customs (HMRC) respond to every complaint they receive and proactively target high-risk sectors to improve compliance. The HMRC enforcement budget has increased from £13m in 2015/16 to £25m for 2017/18.
In 2015/16, HMRC closed 263 investigations involving apprentices. NMW underpayment was found in 75% of these cases and arrears of £558,618 were found for 632 workers.
The Skills Funding Agency (SFA) will specifically target apprentices and their employers with information from the £1.7m National Minimum Wage communications campaign, which is designed to improve awareness ahead of the new rates in April 2017.
The SFA continue to rigorously check that the advertised rates of pay of all apprenticeship vacancies on the gov.uk site are compliant with the national minimum wage. Additionally, my hon Friend the Minister for Skills writes to every Level 2 and 3 apprentice in England, congratulating them on beginning an apprenticeship and informing them of their NMW entitlements.
Any apprentice who believes they are underpaid the NMW should call the ACAS helpline on 0300 123 1100 for expert and confidential advice.