To ask the Secretary of State for Trade and Industry what assessment he has made of the deterrent effect on employers of the January 2007 increase in financial penalties for non-payment of the minimum wage. (139478)

It is too early to assess the deterrent effect on employers of the national minimum wage penalty policy announced in January 2007. Following on from the 2007 Low Pay Commission recommendation, we are currently consulting on a simple new penalty for any employer found to be underpaying the minimum wage. The Government are committed to stamping out non compliance with minimum wage legislation.