Question

To ask Her Majesty’s Government what steps they are taking to ensure that workers in the United Kingdom currently earning below the minimum wage receive the minimum wage.

HMRC enforces the National Minimum Wage (NMW) and responds to every complaint it receives. It also conducts programmes of targeted enforcement in sectors of the economy which have a high risk of non-compliance with the NMW. The Government increased HMRC’s budget for enforcing the NMW by £4m for 2015/16 to £13.2m.

The Government announced in September an increase in HMRC’s enforcement funding for 2016/17, following the introduction of the National Living Wage in April 2016. The Government also announced a package of measures to strengthen NMW enforcement: increasing penalties from 100% to 200% of the arrears that employers owe; the setting up of a dedicated team in HMRC focused on tackling the most serious cases of wilful non-compliance; and the creation of a statutory Director of Labour Market Enforcement and Exploitation.