HC Deb 26 April 2004 vol 420 cc737-9W
Malcolm Bruce

To ask the Secretary of State for Trade and Industry how many inspections have been undertaken where no complaint has been made about an employer to ensure that they are complying with the National Minimum Wage provisions in each year since the introduction of the National Minimum Wage; and what level of underpayment was identified as a result of each of these inspections. [165826]

Mr. Sutcliffe

The number of cases completed and arrears identified since the introduction of the minimum wage, where a complaint had not been received, are provided in the following table:

Number of cases Arrears identified (£)
1999–2000 2,532 158,839
2000–01 4,742 1,025,333
2001–02 3,655 1,206,898
2002–03 4,284 1,043,706
2003–04 3,655 1,205,674

Malcolm Bruce

To ask the Secretary of State for Trade and Industry what targets have been set for the national minimum wage compliance teams with regard to the investigation of complaints; and whether these have been met for each year since the introduction of the minimum wage. [166739]

Mr. Sutcliffe

Our Service Level Agreement with the Inland Revenue requires them to investigate every complaint made to the National Minimum Wage helpline each year and they do so.

Malcolm Bruce

To ask the Secretary of State for Trade and Industry for what reason there has been no systematic evaluation of the use and efficacy of the formal powers available to national minimum wage compliance officers in response to the recommendations of the fourth report of the Low Pay Commission. [166740]

Mr. Sutcliffe

The assumption underlying this question is incorrect. The Government are currently reviewing the enforcement powers available to them and will cover this point in future evidence to the Low Pay Commission.

Malcolm Bruce

To ask the Secretary of State for Trade and Industry if she will make a statement on the progress being made by, and conclusions drawn from, the local enforcement pilot projects for the national minimum wage. [166741]

Mr. Sutcliffe

Following recommendations made in the Low Pay Commission's second report seven local enforcement projects were launched between March and September 2001. Three of these met with limited success and it was decided with our partners that they should close.

Four of the projects are still running; we will be evaluating their effectiveness over the coming months and will cover this issue in future evidence to the Low Pay Commission.

Malcolm Bruce

To ask the Secretary of State for Trade and Industry if she will break down those employees affected by cases of underpayment of the national minimum wage brought to the attention of the Inland Revenue by(a) sex, (b) age group, (c) ethnicity and (d) region for each year since the introduction of the minimum wage. [166742]

Mr. Sutcliffe

The following table provides details of the number of workers that were found to be paid below the minimum wage following an Inland Revenue investigation.

Number of workers
2001–02 10,378
2002–03 7,373
2003–04 9,431

No information on the number of workers in this category was held prior to 2001–02. The Inland Revenue only holds information relating to workers being underpaid by sex, age group and region in connection with cases that originated with a workers' complaint. This information is set out in the joint DTI/Revenue Annual Reports on the minimum wage; copies of recent reports can be found on www.dti.gov.uk/er/nmw. No information is held in relation to ethnicity of the workers concerned.

Malcolm Bruce

To ask the Secretary of State for Trade and Industry if she will break down by industry the employers found to be not complying with the national minimum wage provisions by industry for each year since the introduction of the minimum wage. [166743]

Mr. Sutcliffe

The following table provides details of the number of employers investigated by the Inland Revenue where non-compliance with the minimum wage was found.

Number of employers
1999–2000 1,280
2000–01 2,119
2001–02 1,937
2002–03 1,996
2003–04 2,211

Further information on the breakdown by industry in connection with cases that originated with a worker's complaint is set out in the joint DTI/Revenue Annual Reports.

Malcolm Bruce

To ask the Secretary of State for Trade and Industry if she will make a statement on the prevalence of re-offending in relation to employer non-compliance with the National Minimum Wage Act 1998. [166744]

Mr. Sutcliffe

As part of the post evaluation assurance programme, officers re-visit a number of employers to ensure continued compliance with the national minimum wage.

As part of the first evaluation undertaken in August 2002, 87 cases were selected for revisiting. Of these 71 employers were found to be complying (82 per cent.). As part of a second evaluation undertaken in March 2003, 95 per cent. Where appropriate the Revenue take formal enforcement action at an early stage where an employer has re-offended.

DTI and Inland Revenue are presently working on a strategy to use the prosecution powers, contained in the National Minimum Wage Act 1998 to tackle, among others, any employers that are found to repeatedly re-offend.