Minimum Wage: Enforcement

Department for Business, Energy and Industrial Strategy written question – answered on 19th June 2019.

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Photo of Stephanie Peacock Stephanie Peacock Labour, Barnsley East

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 10 June 2019 to Question 260713 on Minimum Wage, whether the Director of Labour Market Enforcement recommended that the naming of non-compliant employers be suspended for the duration of the review of the National Minimum Wage Naming Scheme.

Photo of Kelly Tolhurst Kelly Tolhurst Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy)

The Government remains committed to enforcing the National Minimum Wage (NMW). We have more than doubled HMRC’s budget for NMW compliance and enforcement since 2015 to £27.4 million for 2019/20.

The Director of Labour Market Enforcement recommended evaluation of the National Minimum Wage Naming Scheme in his 2018/19 Strategy. The Director’s consultation revealed mixed views from stakeholders about naming; some were strongly supportive, whilst others proposed ideas for increasing its effectiveness as a deterrent to underpayment of the minimum wage.

The Government decided to pause the naming of non-compliant employers while we determine what changes are needed to make sure the scheme continues to have resonance and acts as a tool to drive compliance.

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