The Government has released its report on the enforcement of the National Minimum Wage and the National Living Wage during the 2023/24 financial year.
What does the report tell us?
According to the report, enforcement activity in this period saw an increasing number of cases closed and a significant level of arrears identified. The summary of enforcement results shows that there were £7.6 million in arrears identified for over 52,000 workers, resulting in HMRC issuing 720 penalties totalling £5.2 million.
A change in approach by HMRC to shift its focus more onto smaller employers who have less access to specialist services to help them comply is attributed to a record high of cases opening. In 2023/24, HMRC opened 5101 cases compared to 3267 cases the previous year. The most serious cases of non-compliance can result in criminal prosecution. In 2023/24, HMRC successfully prosecuted 10 employers for underpaying the minimum wage.
The report highlights that the budget for minimum wage enforcement and compliance increased in 2023/24 allowing HMRC to hire and retain more compliance officers to investigate worker complaints, undertake enforcement activity and promote compliance.
The National Minimum Wage Naming Scheme remains a key deterrent, with 524 employers being named in 2023/24 for £15.8 million in arrears to 172,000 workers. The Government intends to continue with its latest approach of increasing the number of employers named in line with the Low Pay Commission’s recommendations.
Unpaid internships, and other roles paid below the National Minimum Wage
Additionally, as part of its Plan for Change, the Government is seeking views from stakeholders on unpaid internships, internships paid below the National Minimum Wage (NMW) and other roles that may be unpaid or paid below the NMW.
The Government says it will ‘continue to crack down on non-compliance of the National Minimum Wage legislation, including instances where interns are not paid the correct amount they are due” and the call for evidence is the first step to stamping out these non-compliant practices.
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Who is exempt from national minimum wage?
The “Making Work Pay: Call for evidence on unpaid internships” focuses on:
- Unpaid internships and internships paid below the NMW
- Unpaid work trials and work trials paid below the NMW
- Voluntary workers
- Volunteers
- Work shadowing.
The call for evidence highlights that some employers who engage interns are not paying them correctly or in some cases not paying them at all.
The Government has committed to banning unpaid internships, unless they are part of an educational or training course, however it acknowledges that it has limited evidence in this area and will therefore use the call for evidence to gather data to inform future policy decisions.
The call for evidence closes at 11.59pm on 9 October 2025 and the Government will publish its response in January/February 2026.
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