The Government is planning a fresh crackdown on bosses who fail to pay the national minimum wage, ministers announced as the latest increase in the statutory rate came into effect.
The hourly rate for adult workers increases from £5.52 to £5.73, while for 18- to 22-year-olds it will increase from £4.60 to £4.77 an hour and for 16- and 17-year-olds from £3.40 to £3.53.
The Government said tough new penalties will come into force next April, including fines for employers who genuinely forget to increase wages when a worker turns 22.
Employment relations minister Pat McFadden said: "Ten years ago, the national minimum wage was born, marking the start of a hard-fought campaign to introduce a basic standard of employment rights that every worker could be protected by. The minimum wage has made a lasting and significant difference to the low paid, with around a million workers benefiting from the increase each year.
"It's vital that we safeguard this right with effective enforcement, which is why we're bringing in tough new penalties for those who flout the law.
"The vast majority of employers treat their workers fairly and have nothing to fear from these changes. In fact, stronger enforcement will help prevent rogue bosses from undercutting honest competitors."
The Employment Bill, currently before Parliament, will introduce an automatic fine of up to £5,000 for businesses found underpaying their workers. The most serious cases will be tried in a Crown Court, which will have the power to impose unlimited penalties.
The Bill also includes a fairer method for dealing with minimum wage arrears, calculated so that workers do not lose out as a result of underpayment.
In the last year, enforcement officers investigated more than 4,100 employers and secured almost £3.9 million in arrears for more than 19,000 workers. Since the minimum wage was introduced in April 1999, over £30 million unpaid wages has been returned to more than 100,000 workers.
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Dave Prentis, general secretary of Unison, said: "With rogue employers constantly seeking new ways to evade paying the minimum wage, the Government must be vigilant in enforcing it. The rise to £5.73 is a welcome cushion, however, a more realistic figure would be £6.75 an hour."
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