Asked by: Andy McDonald (Labour - Middlesbrough)
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 recommendations in the Low Pay Commission's May 2020 report, Non-compliance and enforcement of the National Minimum Wage, what steps he has taken to (a) evaluate what data are recorded in non-compliance investigations, (b) make an assessment of how that data can be used to improve cost-effectiveness, (c) monitor the effect of the increase in the threshold for naming employers found to have underpaid workers, (d) take responsibility for the delivery of the new higher NLW target in the sectors where it is the main source of funding, (e) use targeted communications to both apprentices and their employers to highlight underpayment risks and the non-payment of training hours, (f) instruct HMRC to (i) review how it records apprentice underpayment, (ii) publish the number and profile of the apprentices identified as having been underpaid and (iii)) review its approach to investigations involving apprentices and whether such investigations would identify non-payment of training hours and (g) review the regulations on records to be kept by an employer to set out the minimum requirements needed to keep sufficient records; and if he will make a statement.
Answered by Paul Scully
The Government is committed to tackling minimum wage non-compliance. Anyone entitled to be paid the National Minimum Wage (NMW) should receive it. The last financial year (2019/20) was another strong year for NMW enforcement. HMRC completed over 3,300 investigations and found arrears in just over 1,200 of them. They identified £20.8 million in arrears for over 263,000 workers and issued just under 1,000 penalties, totalling £18.5 million to non-compliant employers.
We have noted the Low Pay Commission’s (LPC) recommendations made in their 2020 report on non-compliance and enforcement of the NMW. We responded to the LPC’s last (2019) set of enforcement recommendations in the 2018/19 edition of BEIS’ annual report on NMW Enforcement and Compliance[1].
We have already acted on the recommendations made by the LPC following the publication of their report in May 2020. We have drawn up plans for evaluative work across the 2020-21 financial year, started research to assess the impact of HMRC’s promote activity and engaged with both the Department for Education and HMRC to tackle the underpayment of apprentices. We will respond in full to the LPC’s 2020 enforcement recommendations in due course. We will also provide more detailed statistics on enforcement in 2019/20 as part of the 2019/20 edition of BEIS’ annual report on NMW Enforcement and Compliance.
[1] National Living Wage and National Minimum Wage: Government evidence on compliance and enforcement, 2019 (BEIS, 2020)
Asked by: Andy McDonald (Labour - Middlesbrough)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of trends in the number of prosecutions for non-payment of the national minimum wage by region (a) in total and (b) in each year since the financial year 2009-10.
Answered by Paul Scully
The Government is determined that everyone who is entitled to the National Minimum Wage (NMW) receives it. All businesses, irrespective of size or business sector, are responsible for paying the correct minimum wage to their staff. Our priority is to ensure that workers receive the money they are owed as quickly as possible. For this reason, in the vast majority of cases, HMRC pursue civil enforcement, which is the quickest way of ensuring workers receive their arrears.
Labour Market Enforcement Undertakings and Orders provide a further tool for cases that involve high levels of arrears per worker and/or NMW non-compliance over an extended period of time. These can result in a two-year custodial sentence and/or an unlimited fine.
HMRC investigates all complaints from workers; and if anyone thinks they are not receiving at least the minimum wage they can contact Acas, in confidence, on 0300 123 1100 or via the online complaints form using the link:
https://www.gov.uk/government/publications/pay-and-work-rights-complaints
HMRC will prosecute where it finds the most serious cases of non-compliance and since the financial year 2009-10 HMRC NMW investigations have led to 8 successful prosecutions of employers for NMW related offences.
Total prosecutions since the financial year 2009-10:
Number | Region | Date |
1 | Manchester | 23/06/2010 |
2 | London | 26/02/2013 |
3 | Birmingham | 11/05/2016 |
4 | Weymouth | 13/05/2016 |
5 | Oldham | 04/08/2016 |
6 | Southampton | 08/12/2016 |
7 | Birmingham | 17/08/2017 |
8* | - | November 2019 |
Government compliance and enforcement 18/19 link:
*The eighth case was successfully prosecuted in November 2019. As this case falls outside the 2018/19 reporting period, it will be detailed in next year’s (19/20) report.
Asked by: Andy McDonald (Labour - Middlesbrough)
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 has taken in response to the recommendations set out in paragraph 50 of the Sixteenth Report of the 2017-19 Session of the Environmental Audit Committee entitled Fixing Fashion: clothing consumption and sustainability, HC1952, to (a) pursue a more proactive approach to the enforcement of the national minimum wage and (b) provide HMRC’s National Minimum Wage team with greater resourcing to increase their inspection and detection work with regard to workers in the garment industry receiving less than the minimum wage and suffering serious breaches of health and safety law in their workplace.
Answered by Paul Scully
The Government is deeply concerned by the reports of illegal and unsafe working conditions for textile workers in Leicester, especially in light of the recent increase in COVID-19 infections.
The main labour market enforcement bodies (the HMRC National Minimum Wage team and the Gangmasters Labour Abuse Authority), as well as the Police and the Health & Safety Executive, have been working closely with Leicester Council to set up the Leicester Compliance Task Force. The key aims of the taskforce is to address broader labour market and health and safety issues by using local knowledge to improve understanding of the exploitation risks, increase awareness, support victims and ensure compliance.
Since 2017, a number of operations have been undertaken in the Leicester area linked to potential exploitation, including underpayment of the minimum wage. Where breaches have been found appropriate enforcement action has been taken, including warning letters, recovery of unpaid wages, penalties, and director disqualifications.
The Government has more than doubled the budget for National Minimum Wage compliance and enforcement to £27.5 million for 2020/21, up from £13.2 million in 2015/16. Increasing the budget allows HMRC to focus on tackling the most serious cases of wilful non-compliance. It also increases the number of compliance officers available to investigate minimum wage complaints and conduct risk-based enforcement in sectors where non-compliance is most likely.
Asked by: Andy McDonald (Labour - Middlesbrough)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the Government has contributed to international research on working conditions during covid-19 similar to the report of the European Foundation for the Improvement of Living and Working Conditions entitled, Living, working and COVID-19, published on 6 May 2020.
Answered by Paul Scully
The Department continues to monitor the impact of Covid-19 on working conditions in the UK and internationally. We are currently contributing to domestic research on changes to working practices in the UK which will be published in due course.
Asked by: Andy McDonald (Labour - Middlesbrough)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the Government plans to maintain participation in the European Foundation for the Improvement of Living and Working Conditions.
Answered by Paul Scully
As the UK has left the European Union, the UK is no longer a member of the European Foundation for the Improvement of Living and Working Conditions. Only Member States of the EU can be members of the Foundation. The UK will continue to have access to the research produced by the Foundation, and if the Foundation or the EU wish the UK to be involved in any discussions, meetings or research, the UK Government will consider any such request on its merits.
Asked by: Andy McDonald (Labour - Middlesbrough)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 8 June 2020 to Question 54118, on Industrial Health and Safety: Coronavirus, what plans his Department has to monitor the recommendation that employers with over 50 workers publish risk assessments online as announced in his statement on 12 May 2020.
Answered by Paul Scully
We worked closely with the Health and Safety Executive to develop this guidance, including the risk assessment content. Existing health and safety legislation requires risk assessments to be carried out, and our guidance does not change this.
We are asking companies to consider publishing the results of their risk assessments whenever possible, although publishing risk assessments is not a legal obligation. The Government expects larger organisations – those with over 50 workers – to publish the results of their risk assessments.
We think businesses will want to do this to help build the confidence of their workers and their customers.
In order to help with this, the Government has provided a new notice which employers can display to show they have followed the guidance on managing the risks of COVID-19.
Asked by: Andy McDonald (Labour - Middlesbrough)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 2 June 2020 to Question 49014, what estimate his Department has made of the number of businesses with (a) less than and (b) more than 50 employees that have (i) carried out and (ii) made publicly available their covid-19 risk assessments; and if he will publish a register of those businesses that have carried out risk assessments.
Answered by Paul Scully
The Department for Business, Energy and Industrial Strategy is not compiling a list of businesses that have carried out risk assessments.
As stated in the Answer of 2 June 2020 to Question 49014, existing health and safety legislation requires risk assessments. The safer working guidance does not change this.
Publishing risk assessments is not a legal obligation, but we are asking companies to consider publishing the results of their risk assessments whenever possible. We recommend that larger companies – those with over 50 workers – publish the results of their risk assessments.
We think employers will want to do this to help build the confidence of their workers and their customers.
Asked by: Andy McDonald (Labour - Middlesbrough)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, how many covid-19 risk assessments have been (a) carried out and (b) made publicly available at businesses with (i) less than and (ii) more than 50 employees.
Answered by Paul Scully
Existing health and safety legislation requires risk assessments. The safer working guidance does not change this.
Employers have a duty to consult their employees, and unions where applicable, as part of their risk assessment. Involving workers in this will help build trust and confidence that all reasonably practicable steps are being taken to reduce risks of COVID-19, so that people can return to work safely.
All businesses should share the results of their risk assessment with their employees. The Government is asking employers to publish the results of these assessments on their websites whenever possible. The Government expects larger organisations – those with over 50 workers – to publish the results of their risk assessments.
In order to help with this, the Government has provided a new notice which employers can download and display to show they have followed the guidance on managing the risks of COVID-19.
Asked by: Andy McDonald (Labour - Middlesbrough)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the adequacy of section 44 of the Employment Rights Act 1996 in relation to workplace health and safety during the covid-19 crisis; if he will update the Government's covid-19-secure workplace guidance to include that assessment; and if he will make a statement.
Answered by Paul Scully
Under the law, employers are responsible for health and safety management and should take the necessary steps to ensure safe workplaces. During the Covid-19 crisis, the Government has worked with a wide range of businesses, trade unions and representative organisations to issue guidance on safe return to work. Public Health England and the Health and Safety Executive have also issued guidance on how to ensure social distancing and hygiene measures in the workplace.
In line with employment and health and safety law, this guidance sets out that where employees have health and safety concerns, they should raise this with their employee representative, trade union, or the Health & Safety Executive. Where HSE identifies employers who are not taking action to comply with the relevant PHE guidance to control public health risks they will consider taking a range of enforcement action. The Government recently announced an additional £14 million of funding for HSE to support this work.
Asked by: Andy McDonald (Labour - Middlesbrough)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment she has made of the effect of Boeing's decision to stop production of the 737 Max aircraft on the UK's aviation and aerospace industries.
Answered by Nadhim Zahawi
We are in close contact with Boeing as well as key UK suppliers. Boeing has confirmed that their decision to temporarily suspend 737 production is the least disruptive to the long-term health of their production system and supply chain. Due to the diversification of the UK supplier base, we would not anticipate this stop in production to have a significant impact on the UK aerospace industry overall but will consider the potential impact on individual companies. Boeing is working with its suppliers in the UK to minimise operational disruption and provide as much certainty as possible. We will continue to maintain close dialogue with Boeing and suppliers to monitor the situation as they continue to assess the appropriate duration of the suspension.