Oral Answers to Questions

Debate between Andy Sawford and Jenny Willott

Thursday 26th June 2014 Commons Chamber

[Andy Sawford (Corby) (Lab/Co-op)]

13. What resources have been allocated for enforcement action against employers who do not pay the national minimum wage.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jenny Willott)]

The Government are committed to increasing compliance with minimum wage legislation. Everyone who is entitled to the minimum wage should receive it. Her Majesty’s Revenue and Customs has 173 staff dedicated to enforcing the national minimum wage, and the Government are already taking tougher action on employers who break the law. We have made it simpler to name and shame employers who do not pay the national minimum wage and have increased the financial penalties for breaking the law.

[Andy Sawford]

I thank the Minister for her response, but in Corby HMRC found that £120,000 was owed to local workers, and that was just on a three-day visit, so it was the tip of the iceberg and we need to do much more. Will she, in her last days in her role, leave a present for her successor by beginning a review into how local authorities could take a much stronger enforcement role? They currently enforce on planning, parking and environmental health, so why can they not have a role in making the local labour market work for people?

[Jenny Willott]

Clearly we feel very strongly that employers should pay the national minimum wage. People working on the minimum wage are, by definition, on the lowest incomes in society, so it is critical that everything is done to ensure that they are paid it. Every complaint that is made to the pay and work rights helpline is investigated, and where arrears are found they are paid back and employers pay a significant penalty. We are happy to work with any part of Government and any organisations that are keen to ensure that the minimum wage is paid. We will ensure that any complaints reported to the pay and work rights helpline are investigated.