National Minimum Wage Naming Scheme

Countess of Mar Excerpts

Wednesday 5th June 2019 Lords Chamber

[Lord Henley]

My Lords, again, I cannot answer that. However, one would hope that naming and shaming has been effective, and that we will know that in due course. As I made clear in some of my earlier responses, one also has to understand that naming and shaming is quite a draconian power and can have a major effect on any individual company. We therefore want to look at just how useful it is as part of the overall toolkit that is available to ensure that we can get all employers to meet the minimum wage.

[The Countess of Mar (CB)]

My Lords, for many years, gangmasters have taken people out of cities to work in rural communities and have been known to pay them below the minimum wage. Are they regarded as employers or is the farmer who uses these men and women regarded as the employer, and if so, how many farmers have been named and shamed?

[Lord Henley]

My Lords, I am afraid that I cannot answer the noble Countess’s question, but if I have any further information, I will certainly write to her. However, as I made clear in the Statement, we have increased the resources available to HMRC, more or less doubling them. I am told that last year it completed some 3,000 investigations and issued £17 million in financial penalties to more than 1,000 non-compliant employers. Obviously, more can be done, and we will do as much as we can to make sure that where there is legislation—which has had all-party support—it is effective with regard to the employers concerned.