HM Revenue and Customs (HMRC) has created a new group to prevent employers from underpaying staff, particularly in the hospitality industry.

The Dynamic Response Team will work on the most high profile and complicated National Minimum Wage (NMW) cases faced by HMRC, particularly where employers are using migrant labour to undercut competitors by paying below the minimum wage – something relatively commonplace in the hospitality industry.

In fact, the hospitality industry was singled out in HMRC’s press release regarding the scheme. Since last April, the HMRC has helped around 14,000 workers recoup more than £3m in wage arrears, and £640,000 of this was in the hospitality sector alone.

Financial secretary to the Treasury, Stephen Timms, said: “The government’s priority is to ensure that all workers are paid at least the NMW, and HMRC enforce this robustly.

“This new Dynamic Response Team will respond quickly and effectively to NMW non-compliance, making sure that employees are paid what they are legally entitled to.”

The team is funded by a £70m government fund, paid for by a levy on migrant workers, and will be made up of specialist officers who are “committed to providing a rapid response to cases across the UK ensuring that everyone is entitled to the minimum wage receives it”.