Commons Sense

House of Commons · Ministers' Questions

National Minimum Wage Enforcement

Thursday 7 March 2024 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • Christian Wakeford inquired about the effectiveness of publicly naming employers who fail to enforce the national minimum wage, noting that since 2011, around 3,200 employers have repaid over 41 million to over 460,000 workers.
  • Christian Wakeford suggested that stronger penalties, including fines, should be considered for persistent offenders to better balance employer and employee interests.
  • Justin Madders highlighted the issue of persistent underpayment in the social care sector, noting that only 17 employers in social care were named in the latest list, and urged for better measures to address non-compliance.

Topics (select to filter)

Questions & Answers

Q1 Christian Wakeford Lab Bury South
Employment
Context

The question arises from the ongoing debate on ensuring compliance with the national minimum wage. Publicly naming non-compliant employers has been a strategy since 2011.

Question

I am concerned about the effectiveness of publicly naming employers who fail to enforce the national minimum wage. Since 2011, we have published press releases naming around 3,200 employers that repaid over £41 million in arrears to over 460,000 workers.

Answer from Kevin Hollinrake

Since 2011, we have published press releases and named around 3,200 employers that repaid over £41 million in arrears to over 460,000 workers. We know that naming and shaming is a significant deterrent against underpayment of the national minimum wage, and we are very keen to ensure that naming continues.

Answered
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Q2 Christian Wakeford Lab Bury South
Employment
Context

The question follows up on the effectiveness of naming and shaming employers who fail to pay the national minimum wage, suggesting that stronger measures are needed.

Question

Naming and shaming serves as a deterrent but should we not go further with persistent offenders? Stronger penalties including fines proportional to violation severity would level the balance between employers and employees. Will the Minister commit to exploring these measures?

Answer from Kevin Hollinrake

The hon. Gentleman is right to point to this measure. We know that naming and shaming is a significant deterrent against underpayment of the national minimum wage, and we are very keen to ensure that naming continues. Alas, in the most recent naming and shaming round, 2,800 minimum wage investigations returned more than £16.3 million in arrears to over 120,000 workers.

Partly answered

Not addressed: The questioner sought a commitment to exploring stronger penalties but the answer only reiterates the effectiveness of naming and shaming.

How: Alas

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Q3 Justin Madders Lab Ellesmere Port and Bromborough
Social Care Employment
Context

The question addresses concerns about underpayment of the national minimum wage in the social care sector, citing evidence of record-keeping issues, exploitation of migrant workers, and non-payment for travel time.

Question

My hon. Friend is right that too many employers still think they can opt out of paying the minimum wage. The Low Pay Commission's 2023 report says compliance appears persistent in social care. I found only 17 employers classed as being within social care on the latest naming and shaming list, less than 0.1% of total sector employers. What will the Minister do to ensure everyone working in social care gets at least the minimum wage?

Answer from Kevin Hollinrake

The hon. Gentleman is right to raise this issue, on which we do much. We make sure that people can anonymously report underpayment through HMRC or ACAS. As of April 2022, 40 employers were on labour market enforcement undertakings and 18 have been prosecuted.

Partly answered

Not addressed: The questioner asked for specific measures to ensure compliance in social care but the answer provided general tools available to all sectors without specifics for social care.

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