Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to increase prosecution and conviction rates for non-payment of the minimum wage.

The enforcement of the National Minimum Wage and National Living Wage (NMW) is a top priority for the Government; we have increased HMRC’s enforcement budget to a record high of £26.3 million for 2018-19.

Last year, HMRC identified a record £15.6 million in arrears of wages for over 200,000 workers. In addition, HMRC issued £14.1 million in financial penalties to employers who breached NMW rules; the highest amount ever.

In addition to civil penalties, since April 2016 Labour Market Enforcement Agencies have been making use of new powers to issue Labour Market Enforcement Undertakings and Orders. A two year custodial sentence and/or unlimited fine is available where a business breaches an LME order.

Prosecution is reserved for the most egregious breaches of NMW law. In most cases it is not the best approach to help workers. Criminal sanctions against employers can mean that workers must wait considerably longer for their lost earnings to be paid back.