Kevin Brennan – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Kevin Brennan on 2016-03-18.

To ask Mr Chancellor of the Exchequer, what the average penalty awarded against employers who failed to pay the national minimum wage was in each year since 2012.

Mr David Gauke

The Government is determined that everyone who is entitled to the National Minimum Wage (NMW) receives it. Anyone who feels they have been underpaid NMW should contact the Acas helpline on 0300 123 1100. HM Revenue and Customs (HMRC) reviews all complaints that are referred to them.

Employers who pay workers less than the minimum wage not only have to pay 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.

In 2014/15, HMRC issued 705 penalties totalling £934,660. I refer the honourable member to the answer provided at UIN 205613 for information on previous years.