PARLIAMENTARY WRITTEN QUESTION
Minimum Wage (4 November 2014)

To ask Mr Chancellor of the Exchequer, pursuant to the Answer of 12 September 2014 to Question 205614, what proportion of the penalties imposed in each year have been successfully enforced; and how much of the amount of penalty imposed is outstanding.

Asked by:
Emily Thornberry (Labour)

The Government takes the enforcement of National Minimum Wage very seriously and has increased the financial penalty percentage from 50% to 100% of the unpaid wages owed to workers, and the maximum penalty from £5,000 to £20,000. These new limits are now in force where arrears are identified in pay reference periods on or after 7 March 2014. The Government will also bring in primary legislation as soon as possible so that the maximum £20,000 penalty can apply to each underpaid worker.

The vast majority of employers pay penalties upon being issued with a Notice of Underpayment. Where they do not, HM Revenue and Customs (HMRC) will seek to recover through debt management processes. In the period 2009/10 - 2013/14 HMRC issued over 3,500 penalties totalling nearly £3m. Of these, 2 per cent are currently being pursued through debt management processes..

Answered by:
Mr David Gauke (Independent)
11 November 2014