National Minimum Wage Enforcement

Opened the debate

MP Andrew Selous raised concerns about the national living wage and minimum wage enforcement, focusing on a case of underpayment affecting carers. He highlighted that his constituent, Mrs Wright, was owed £62,961 in unpaid wages below the legal requirements due to ineffective enforcement mechanisms for care workers. Despite efforts by HMRC and local authorities to address this issue, no effective remedy has been provided. Selous called on the Government to remedy flaws in current legislation to protect carers' rights.

Government Response

The Minister congratulated Mr. Selous on his tenacity in raising important issues regarding minimum wage enforcement, particularly concerning carers under personal budget arrangements. He noted that the Government is committed to ensuring fair payment for low-wage workers through the national living and minimum wage policies. HMRC has doubled its budget since 2015 to enforce these regulations and issued over £16.7 million in arrears to more than 155,000 workers in 2020-21. The Minister acknowledged specific challenges faced by social care workers under the current system but emphasised that enforcement action is limited due to existing legislation which defines employer responsibility narrowly. He urged carers and local authorities to cooperate effectively to ensure worker rights are protected, while expressing no plans for legislative changes despite the identified gaps in enforcement against personal budget holders.