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<p>HM Revenue and Customs (HMRC) is responsible for ensuring that employers comply
with National Minimum Wage (NMW) regulations. The Government has increased its enforcement
budget to £25.3 million for 2017/18, up from £13.2 million in 2015/16.</p><p>HMRC
conducts risk-based enforcement in sectors or areas where there is perceived to be
a higher risk of workers not getting paid the legal minimum wage. It also considers
every worker complaint received and has set up a dedicated team focused on tackling
the most serious cases of wilful non-compliance.</p><p>Since HMRC began enforcing
the minimum wage in April 1999, it has identified almost £79 million in arrears. In
2016/17, HMRC took action against 1,134 businesses, identifying £10.9 million for
98,000 workers who had been illegally underpaid.</p><p>The Government has increased
the deterrence against non-compliance, increasing penalties from 100% to 200% of the
arrears owed, up to £20,000 maximum per worker and revising the naming criteria, with
over 1,500 non-compliant employers named to date.</p><p>In January, the Government
appointed Sir David Metcalfe as the first Director of Labour Market Enforcement. He
is responsible for producing an annual strategy setting the strategic direction of
the three existing labour market enforcement bodies, HMRC’s NMW team, to ensure that
enforcement efforts are coordinated and targeted.</p>
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