Question

To ask the Secretary of State for Business, Innovation and Skills, if the Government will make an assessment of the potential merits of increasing penalties levied on employers who do not pay staff at least the national minimum wage.

From April 2016, we are increasing the calculation of penalties from 100% to 200% of the arrears owed. The penalty is reduced by half if employers pay within 14 days.

By increasing the penalties for underpayment of the National Minimum Wage (NMW) we intend to deter employers from breaking the law so that working people receive the money they are legally due.

This new calculation ensures a tougher penalty for employers found to have underpaid the NMW.

The fast track Impact Assessment for increasing the penalties has been validated by the Regulatory Policy Committee and published here - http://www.legislation.gov.uk/ukia/2015/324