The government has identified a record £15.6 million in underpayments of the National Minimum Wage (NMW).
More than 200,000 workers were found to have been underpaid this year, leading to employers being fined an unprecedented £14 million for not meeting their legal obligations.
The number of underpaid workers identified is already double that seen in 2016/17 and is largely attributed to HMRC’s tough stance on enforcing the NMW, as well as its efforts to increase awareness and promote compliance.
“We are dedicated to stopping underpayment of the minimum wage. Employers must recognise their responsibilities and pay their workers the money they are entitled to,” said Business Minister Kelly Tolhurst.
“The UK’s lowest paid workers have had the fastest wage growth in 20 years thanks to the National Living Wage and today’s figures serve as a reminder to all employers to check they are getting their workers’ pay right.”
This year, HMRC has focused its effort on the social care, retail, commercial warehousing and gig economy sectors, alongside employment agencies, apprentices and migrant workers. It is believed that these sectors are where non-compliance with the NMW is more widespread.
“All workers are entitled to be paid at least the minimum wage, so it is good to see an increased focus on enforcement bearing fruit and securing more arrears for more workers,” commented Low Pay Commission Chairman Bryan Sanderson.
“Awareness of the minimum wage is vital for workers and employers alike, and strong enforcement is critical to its success.”
Funding for minimum wage enforcement has reached record levels, rising to £26.3 million in 2018/19 from £20 million in 2016/17. In addition, a pilot scheme where employers are encouraged to come forward outside of an investigation saw 56 employers contact HMRC. This resulted in nearly £250,000 in arrears being declared for just under 700 workers.
