National Minimum Wage: Sports Direct

Alan Mak Excerpts

Monday 14th December 2015 Commons Chamber

[Nick Boles]

I am happy to acknowledge that the national minimum wage was one of the great achievements of the Government led by Tony Blair. I note simply that there are more supporters of that Government’s achievements on this side of the House than on the hon. Gentleman’s side. I look forward to receiving the same acknowledgement from Opposition Members when, next April, we introduce the national living wage, which is significantly higher than any increase in the national minimum wage he and his colleagues proposed during the last election campaign.

The hon. Gentleman asked some good and proper questions about enforcement, but he glided over the fact that the budget for enforcement has gone up by more than 50% since his party was in government and that we have increased the arrears penalties, increased the powers and stepped up the programme of naming and shaming companies, large and small.

In 2014-15, 705 employers received penalties, totalling more than £934,000. We are setting up a new dedicated team to focus on tackling the most serious breaches, and to consider whether directors of employers that persistently breach legislation should be disqualified. In 2014-15 we identified £3.29 million arrears for 26,318 workers, we conducted 735 successful investigations, and we charged 705 penalties, worth £934,000. We successfully defended 17 of the 23 appeals against enforcement notices. If, from the luxury of opposition, the hon. Member for Cardiff West wants to suggest further activity that we could carry out, I am always happy to hear about it. Fortunately, we are doing a lot more than the Government he was part of to defend one of the only achievements that Labour Members are still willing to talk about.

[Mr Alan Mak (Havant) (Con)]

There are reports that some large retail businesses have already increased their hourly salary for employees to a level above the national living wage, following the Government’s announcement. Will the Minister update the House on his understanding of that?

[Nick Boles]

I have heard such reports, and while I do not have the list of major retailers that have announced that measure on the tip of my tongue, that extremely welcome news underlines the point made earlier: we expect more than just obedience to the law; we expect social responsibility and for employers to see benefits from the improved morale and retention that come from paying people better wages.