Conservatives get tough on rogue employers

The Prime Minister, David Cameron, has announced tough new measures to crack down on employers who do not pay their staff the statutory minimum wage. The plans will be roled out ahead of the introduction of the national living wage next year.

The current minimum wage is set to rise to £6.70 next month and next year a new national living wage will replace the minimum wage for workers aged over 25. The living wage will start at £7.20 per hour and increase to £9 per hour by 2020. This week the Prime Minister revealed a new set of measures to ensure that workers are getting the wages they are legally entitled too. These measures include:

  • Doubling the fine companies pay if they are not paying the wage to 200% of the wage arrears
  • Setting up a new team at HMRC to persue criminal charges against employers deliberately not paying the wage
  • Banning employers deliberately not paying the wage from being company directors
  • Doubling the budget for enforcement of the wage

Leader of Greenwich Conservatives, Councillor Matt Hartley, who successfully campaigned for Living Wage Incentive Scheme in Greenwich this year, welcomed the announcement saying "The UK is set to have one of the most generous wage guarantees in the world thanks to this Conservative Government but the policy will only work of the enforcement is there to support it".