PARLIAMENTARY WRITTEN QUESTION
Minimum Wage (2 July 2014)

To ask Mr Chancellor of the Exchequer, what the 10 largest amounts of unpaid arrears were that were imposed in the last five years against employers who paid one or more employees less than the minimum wage; and whether any of those employers were prosecuted.

Asked by:
Emily Thornberry (Labour)

The Government takes the enforcement of National Minimum Wage (NMW) very seriously and HM Revenue and Customs (HMRC) review every complaint that is referred to them, investigating the complaint and, in addition, carrying out targeted enforcement where they identify a high risk of non-payment of NMW.

The following table shows the 10 largest amounts of arrears identified. The majority of employers identified as paying below the NMW will pay arrears on receipt of a formal Notice of Underpayment, i.e. civil enforcement action. The 1998 Act makes provision for criminal proceedings to be brought for offences under section 31 of that Act, and those offences cover a range of possible non-compliant behaviours. Criminal proceedings were not commenced in the 10 cases listed.

Large arrears identified between 2009 to present
£724,445
£690,980
£653,491
£400,761
£297,361
£211,065
£203,769
£193,436
£187,573
£168,592

For the cases above that occurred after April 2009, the maximum penalty was charged.

This Government has increased the financial penalty percentage that employers pay for breaking minimum wage law from 50% to 100% and the maximum penalty has increased from £5,000 to £20,000. The revised penalty is calculated as 100% of the total underpayment for all of the workers specified in a Notice of Underpayment relating to pay reference periods that commence on or after 7 March 2014.

Answered by:
Mr David Gauke (Independent)
23 July 2014