Awareness and Enforcement

3.56 Some organisations responding to our consultation registered a concern that awareness of the minimum wage among 16-17 year olds was low, and that those who were aware of its existence did not know the actual rate, nor where to go to for help if they thought they were being underpaid. The Children's Rights Alliance and the British Youth Council advised that there was still considerable ignorance among this age group about their entitlement and suggested a campaign to increase awareness.

3.57 As well as the need to improve awareness among young people, a few of our stakeholders thought that awareness among employers was not as good as it should be. Citizens Advice commented that many employers either were not aware of their obligation to pay the rate to young workers or were deliberately not complying with this obligation. It called for more enforcement activity. Other organisations also made this point.

3.58 The DTI commissioned a research survey in early 2005 (Continental Research, 2005) to ascertain levels of awareness of the minimum wage among 16-17 year olds and employers. The results showed that all 207 employers in the survey were aware of there being a National Minimum Wage, as were 89 per cent of the 216 16-17 year old workers who participated. However, significantly fewer participants in both groups were aware that there were different minimum wage rates for different age groups - 85 per cent of employers and 53 per cent of 16-17 year old workers. Two-thirds of employers were aware that there was a 16-17 year old minimum wage rate, rising to 74 per cent among those who employed 16-17 year olds. There was no single widely recognised source of information and advice on the minimum wage. Employers reported advertising (e.g. press and television) as a key source of information, whereas 16-17 year old workers relied predominantly on word of mouth, particularly family and friends. Employers' and workers' awareness of the HM Revenue and Customs (HMRC) Minimum Wage Helpline was extremely low.

3.59 We are encouraged that general awareness of the minimum wage is high for both employers and 16-17 year old workers, but more needs to be done to raise awareness of the rates, and a much greater effort is needed to ensure that both young people and employers are aware of the role of the HMRC Minimum Wage Helpline as a source of advice and as a means to report non-compliance. We continue to encourage the Government to promote awareness of the minimum wage and the HMRC Minimum Wage Helpline and to seek effective ways to reach young people.

3.60 We now turn to consider trainees and the minimum wage exemptions that apply to this group.