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National Minimum Wage Act 1998 (Amendment) Regulations 2007

I can reassure the noble Lord that all recommendations have been in accordance with the independent commission’s views. I am grateful to him for highlighting the success of the minimum wage policy, which this Government introduced. The noble Baroness, Lady Wilcox, asked about sanctions—to what extent the system is working well, and what is done if we discover that the minimum wage is not being adhered to. The Act entitles almost all workers in the UK to the national minimum wage. The Government have always made every effort to protect this entitlement and to restore arrears to workers who have been underpaid, helping tens of thousands to recover £25 million in unpaid wages since 1999. There are 16 compliance teams around the country which monitor, investigate, and, if necessary, take action. In January this year we announced that we would be issuing the penalty available to us in current legislation, a minimum fine of £224.70, in virtually all cases where an enforcement notice has not been complied with. The most serious wilful cases of non-compliance are and will be prosecuted, and there are many investigations under way right now. In the past year the Government helped restore over £3 million in arrears to over 14,000 workers. However, the best protection we can offer workers and compliant businesses is to strive to ensure that arrears do not arise in the first place. I hope I have managed to reassure the noble Baroness that the Government, through our compliance units, do everything we can to ensure that the minimum wage is paid. On Question, Motion agreed to.