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Clampdown promised on minimum wage evasion

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A new HM Revenue and Customs team has been set up to tackle the problem of employers who breach the rules on the national minimum wage.

HMRC’s Dynamic Response Team will be tasked with investigating the most high profile and complicated national minimum wage cases.

Particular areas to be targeted are those in which employers use migrant labour to undercut competitors by paying employees less than the minimum wage.

The team, which will comprise highly-trained specialist officers, is to be backed by £70 million of government funding.

Pat McFadden, the Business Minister, said: “The government and HMRC are doing more than ever to make sure that those entitled to the minimum wage are receiving it.

“Evasion hurts both workers and responsible employers who play by the rules, so we are stepping up our fight against non payment of the minimum wage.”

Stephen Timms, the Financial Secretary to the Treasury, added: “The government’s priority is to ensure that all workers are paid at least the national minimum wage.

“This new Dynamic Response Team will respond quickly and effectively to national minimum wage non-compliance, making sure that employees are paid what they are legally entitled to.”

On 1 October 2009, the national minimum wage for those aged 22 and over rose to £5.80; to £4.83 for those aged 18-21; and to £3.57 for those aged 16-17.