Manufacturing Industries: Leicester

(asked on 15th March 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the finding by the British Retail Consortium that workers in Leicester's apparel manufacturing industry are underpaid by over £2.1 million a week, whether he plans to take steps to help ensure that those workers receive backdated pay in line with the National Minimum Wage.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 23rd March 2021

Exploiting vulnerable workers for commercial gain is despicable and the Government will not stand for it. 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; and consequences for not complying with paying NMW can include fines of 200% of the arrears, public naming and, for the worst offences, criminal prosecution.

HMRC take seriously and review all complaints from workers referred by the Acas helpline, or received via the online complaints form, and investigate as appropriate. If anyone thinks they are not receiving at least the minimum wage, they can contact Acas, in confidence, on 0300 123 1100 or submit a query online using the link: https://www.gov.uk/government/publications/pay-and-work-rights-complaints(opens in a new tab) .

HMRC NMW has undertaken joint operations with partner agencies in Leicester for a number of years and have historically investigated more than 150 textile businesses, including multiple employers operating in Leicester; recovering over £215,000 in wage arrears for over 400 workers and issued over £325,000 in penalties. HMRC NMW has also opened a significant number of investigations in Leicester since 1 July 2020.

HMRC continues to take proactive steps in this industry: we have written to over 18,000 workers in the textile sector flagging their entitlement to minimum wage, common causes of underpayment and encouraging confidential reporting of employers, and have written to over 2,500 employers in the sector highlighting the main risks which lead to NMW underpayment.

The British Retail Consortium has alleged that workers in the Leicester textile sector are underpaid by £2.1m per week. Previous and ongoing HMRC investigations have not identified non-compliance with NMW on this scale.

We continue to work closely with industry bodies and would welcome any evidence they have in support of the findings by the British Retail Consortium.

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