National Minimum Wage

Justin Tomlinson Excerpts

Wednesday 15th January 2014 Commons Chamber

[Mr Newmark]

I thank my hon. Friend for that intervention. I will go into that matter in a little more detail in a minute.

The Government are taking strong action to deal with the last Labour Government’s failure to have a robust system of enforcement for the national minimum wage. I welcome this week’s announcement that tougher financial penalties will be brought in to crack down on those who do not play by the rules.

[Justin Tomlinson (North Swindon) (Con)]

I support everything that my hon. Friend has said. When I was an employer, I always recognised that I would get what I paid for. When a business is successful, that success should be shared with its employees. I welcome the fact that the Government are increasing the fines and are naming and shaming businesses, but I want to see the naming and shaming of the decision makers who disgracefully choose to exploit their staff.

[Mr Newmark]

My hon. Friend is right that there should be more publicity about those who abuse the system. Naming and shaming is a good idea.

To put some numbers on what has been said about penalties, in 2012-13 HMRC identified 736 employers who had failed to pay the national minimum wage, which led to the recovery of £3.9 million in unpaid wages for more than 26,000 workers. This week’s announcement will see the penalty for rogue employers raised to up to £20,000. The Government are taking punitive, robust action.

We should not forget that the last Labour Government left us with the biggest recession in recent history. This Government are helping some of the lowest-paid people in our society by raising the tax threshold and taking more than 2.7 million people out of tax altogether.