[UK] DBT’s minimum pay enforcement results published

In the UK, the Department for Business and Trade (DBT) has published the enforcement results of the National Minimum Wage (NMW) and the National Living Wage (NLW) during the 2022 to 2023 financial year, PAYadvice reports.

Significant increases to the NMW and NLW over recent years have led to a growing proportion of workers earning within a narrow range of the NMW/NLW rates. The rising numbers mean enforcement of the NMW and NLW is more important than ever. 

HMRC continues to enforce minimum wage legislation, considering all complaints and supporting employers with compliance.

The Low Pay Commission (LPC) reportedly makes regular recommendations to the government on NMW/NLW enforcement. In their 2023 enforcement report its focus was the persistence of underpayment for individuals from year to year. 

The LPC set out recommendations regarding:

• one-sided flexibility
• the frequency of the minimum wage Naming Scheme
• expansion of data collection on underpayment

The 2022 to 2023 enforcement results

Enforcement activity from 2022 to 2023 reportedly saw an increasing number of cases closed and a significant level of arrears identified:

• HMRC closed almost 3,200 cases with over 900 closed with arrears
• £13.66 million in arrears was identified for over 108,000 workers
• HMRC issued 750 penalties totalling £13.72 million
• nearly 12 million workers were reached by targeted communications campaigns
• targeted enforcement continued to be the primary method of identifying arrears, accounting for 74 per cent of closed cases, up from 71 per cent in 2021 to 2022

The DBT’s full report is available here.

Source: PAYadvice

In the UK, the Department for Business and Trade (DBT) has published the enforcement results of the National Minimum Wage (NMW) and the National Living Wage (NLW) during the 2022 to 2023 financial year, PAYadvice reports.

Significant increases to the NMW and NLW over recent years have led to a growing proportion of workers earning within a narrow range of the NMW/NLW rates. The rising numbers mean enforcement of the NMW and NLW is more important than ever. 

HMRC continues to enforce minimum wage legislation, considering all complaints and supporting employers with compliance.

The Low Pay Commission (LPC) reportedly makes regular recommendations to the government on NMW/NLW enforcement. In their 2023 enforcement report its focus was the persistence of underpayment for individuals from year to year. 

The LPC set out recommendations regarding:

• one-sided flexibility
• the frequency of the minimum wage Naming Scheme
• expansion of data collection on underpayment

The 2022 to 2023 enforcement results

Enforcement activity from 2022 to 2023 reportedly saw an increasing number of cases closed and a significant level of arrears identified:

• HMRC closed almost 3,200 cases with over 900 closed with arrears
• £13.66 million in arrears was identified for over 108,000 workers
• HMRC issued 750 penalties totalling £13.72 million
• nearly 12 million workers were reached by targeted communications campaigns
• targeted enforcement continued to be the primary method of identifying arrears, accounting for 74 per cent of closed cases, up from 71 per cent in 2021 to 2022

The DBT’s full report is available here.

Source: PAYadvice