Government publishes 2023 report on National Living Wage and Minimum Wage enforcement
The government’s latest report highlights increased enforcement of the National Living Wage (NLW) and National Minimum Wage (NMW), with a renewed focus on the 'name and shame' policy.
Summary
The 2023 report details the government's NLW and NMW enforcement activities. During 2022-2023, HMRC closed nearly 3,200 cases and uncovered £13.66 million in unpaid wages affecting over 108,000 workers. Non-compliant employers were issued penalties totalling £13.72 million, and targeted communication campaigns reached nearly 12 million workers.
A significant feature of the report is the government’s renewed commitment to the National Minimum Wage Naming Scheme, which had previously been paused. This policy, designed to "name and shame" employers who breach NMW regulations, will now be implemented more regularly to deter underpayment. Employers must ensure compliance with wage laws to avoid being publicly listed.
The report also outlines other enforcement strategies, such as the Geographical Compliance Approach (GCA), which targets specific areas with education and enforcement actions.
Importance of keeping up to date
It is crucial for employers to stay informed about the latest NMW and NLW rates to avoid inadvertent breaches. Regularly reviewing pay practices and adjusting wages in line with current rates will help ensure compliance and prevent costly penalties or reputational damage.
For more details on broader changes to the National Living Wage, read our previous article here.
For more information or advice, please contact Ellen Netto in our Employment team on 07384 812 798. Alternatively, you can fill out the form below.