To ask the Secretary of State for Business, Enterprise and Regulatory Reform what steps his Department takes against employers who offer housing to immigrant workers and deduct more than the legally permissible offset from their salaries as payment. (200081)

Under the national minimum wage legislation, accommodation is the only benefit in kind which can count against the minimum wage. The amount that can count towards minimum wage pay is set by Government, and is currently £4.30 per day, rising to £4.46 in October 2008.

Arrears are due when an employer has not paid minimum wage as a result of a failure to properly apply the accommodation offset. We are strengthening our enforcement provisions through the Employment Bill, including providing for a penalty for all employers found to have underpaid their workers and a fairer system of calculating arrears.