The Government has gone further than ever before by introducing the NLW for workers aged 25 and over. This is expected to benefit 2.9 million low wage workers directly, and up to 6m in total could see their pay rise as a result of a ripple effect up the earnings distribution.
The Government has taken action to increase the financial penalties for employers who fail to adhere to comply with the NMW/NLW from £5,000 per employee to £20,000. It has also increased the budget for compliance of NMW/NLW by 50 per cent since 2010 and strengthened the naming and shaming provisions.
Ministers will not tolerate non-compliance with the NMW/NLW in the care sector. That is why the Government has taken measures to ensure businesses are properly supported in implementing the NMW/NLW, through measures such as increasing the employment allowance.