In this situation we have another worrying set of circumstances with regard to underpayment of the national minimum wage, a situation that we have protested about on numerous occasions. There have been only a pitiful number of prosecutions of people who have failed to pay the minimum wage, and even the naming and shaming has not exactly resulted in a large number of employers being brought to the attention of the public and their credibility, image and brand being exposed for failing to meet their obligations under the national minimum wage. That is why we have suggested that the penalty should be increased from £20,000 to £50,000.
As we say in Amendment 68ZQ, we believe that the Secretary of State should provide,
“an annual report to Parliament on the effectiveness of … enforcement of the national minimum wage”.
Does the current enforcement regime have the necessary resource to police the situation and go on to enforce it? As we then say:
“the level of the financial penalty for underpayment, including but not limited to its impact on compliance”;
should also be reported on, as should,
“changes in provisions relating to the national minimum wage improving other measures of pay in the labour market”,
as proposed subsection (c) says. In addition, having looked at how enforcement currently takes place, which is via HMRC, we believe that it would be more effective if it was enforced by local authorities. There are a number of examples where local authorities currently enforce at the local level, whether on environmental issues or food safety. It seems to us that they would be much more effective than HMRC is. I look forward to hearing the ministerial response to these amendments.