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<p>The Government is clear that National Minimum Wage (NMW) enforcement is a priority
and we take tough action against the minority of employers who underpay. We have more
than doubled the budget for NMW compliance and enforcement since 2015, to a record
high of £27.4 million. The 2018/19 financial year was a record year for NMW enforcement;
HMRC identified £24.4 million in arrears across 3,018 cases – a record number since
the introduction of the National Living Wage in 2016.</p><p> </p><p>HMRC issued seven
labour market undertakings in 2018/19 and there are currently seven cases at various
stages of the criminal investigation process. We strike a careful balance with our
enforcement; working with and educating employers to make sure they pay their workers
correctly whilst tackling the most serious cases of wilful non-compliance. Prosecution
is reserved for the most egregious breaches of minimum wage law and, in most cases,
it is not the best approach to help workers. Criminal sanctions against companies
can mean that workers end up waiting considerably longer for their lost earnings to
be repaid.</p><p> </p><p>In 2018/19 the Government named 239 employers as part of
the NMW Naming Scheme, covering over £1.4 million in arrears for 22,361 workers. The
scheme is currently under review to ensure that it best fulfils its purpose, and we
will conclude this work during the summer.</p>
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