Jim Cunningham – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Jim Cunningham on 2016-01-12.

To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the number of companies issued fines for underpayment of the minimum wage in each of the last five years; what the total value of such fines issued is; and if he will make a statement.

Mr David Gauke

The Government is committed to increasing compliance with minimum wage legislation and effective enforcement of it. Everyone who is entitled to the minimum wage should receive it.

Employers who pay workers less than the minimum wage not only have to pay back arrears of wages at current minimum wage rates but also face financial penalties of up to £20,000 per underpaid worker. A further increase in penalties will come into force in April 2016 and will increase the penalty percentage from 100% to 200% of the underpayments owed to each worker, up to the existing maximum.

I refer the honourable member to the answers provided at UIN 18487 and UIN 205613 for the information on penalties charged on employers.