The Government takes the enforcement of minimum wage laws very seriously and I welcome that it has increased the enforcement budget from £8.1 million in 2010 to £13.2 million in 2015-16. From April 2016, the penalty for breaches of minimum wage legislation will also double from 100 to 200 per cent of arrears, so that employers comply with the law and working people receive the money they are due.
I also welcome that a new team of compliance officers will be established within HMRC to investigate the most serious cases of employers not paying the relevant minimum wage. The team will have the power to use all available sanctions, including penalties and criminal investigation. The Government will also continue to name and shame employers who do not pay their workers what they are entitled to.
I expect employers to pay working people at least a decent legal minimum wage and from next April, a National Living Wage for workers aged 25 and over will be introduced.
By Patrick McLoughlin on January 06, 2016