Employers who refuse to pay the minimum wage could face a £200 fine for every worker they had underpaid, trade and industry secretary Alistair Darling announced today.
Employers already have to pay back arrears they owe to the worker and now those who refuse to pay up will be penalised.
Darling said: "Workers have the right to a decent minimum wage and we are determined they get it. To those employers avoiding the minimum wage the message is don't pay it and you'll pay the fine. In the last yearalone the government's enforcement teams across the UK helped over 25,000 workers get more than £3m back in unpaid wages.
"The vast majority of good employers need to know they are operating on a level playing field. These measures will help deliver that."
Speaking on behalf of Her Majesty's Revenue and Customs (HMRC), paymaster general, Dawn Primarolo added: "We are determined that every worker should earn a fair wage for a day's work. HMRC enforcement teams work across the UK to educate employers and employees about their rights and responsibilities with the minimum wage and where necessary take enforcement action.
"The vast majority of employers are honest and scrupulous but this new measure will put further pressure on those rogue employers who continue to flout the law."
Employers who fail to pay the minimum wage can also face prosecution, risking a criminal record and a £5,000 fine.