HMRC identified a record £15.6m of underpayments for workers on the minimum wage this year, which saw some 600 employers fined £14m not meeting legal obligations
More than 200,000 workers were not paid the correct amount in 2017/18, double the previous year’s figure and the highest number since the national minimum wage (NMW) came into force.
In addition, over the past year 56 employers took advantage of a HMRC pilot scheme where employers were encouraged to come forward outside of an investigation. This resulted in nearly £250,000 in arrears being declared for just under 700 workers.
This year, the social care, retail, commercial warehousing and gig economy sectors have been prioritised by HMRC for enforcement of the minimum wage. This is alongside employment agencies, apprentices and migrant workers. These sectors are where non-compliance with NMW is believed to be more widespread.
Penny Ciniewicz, HMRC director general of customer compliance, said: ‘HMRC is committed to ensuring that workers receive the wages they are legally entitled to, irrespective of their employer’s size or business sector, and today’s figures highlight our success over the last year.
‘If anyone thinks they are not receiving at least the minimum wage, they can contact the Acas helpline on 0300 123 1100 in confidence or submit a query online through our complaints form.’
The government said funding for minimum wage enforcement has reached record levels, rising to £26.3 m in 2018/19 from £20m in 2016/17.
Report by Pat Sweet
