AN investigation has been launched by two East Lancashire MPs into claims that local employers are flouting the national minimum wage - less than a month after it was introduced.

Burnley's Peter Pike said a number of problems have already been reported to him involving small textiles, footwear and taxi businesses.

He has been told about firms dodging paying the £3.60 an hour basic rate.

And Pendle's Gordon Prentice has joined him in appealing for people to report companies refusing to pay the salary.

Mr Pike said: "I was approached by a number of people in the town centre at the weekend about employers dodging the national minimum wage. I am very concerned about this.

"Its less than a month since it was introduced and if people are already getting in touch with me, I fear there could be widespread abuse.

"There should be no cutting of hours or other tricks to try and avoid the effect of a minimum wage which covers thousands of people in my constituency.

"I am also concerned that some of these firms might not be paying tax.

"We are looking at small employers at the bottom of the pile in industrial sectors such as textiles, footwear and taxi driving. "The £3.60 rate is a very reasonable one and everyone should be paying it.

"I am going to investigate this and anyone who is not being paid the minimum wage or knows of firms which are cheating can either contact me in the Commons or at my surgeries or speak to staff at my office in Burnley.

"I will then take it up either with the enforcement authorities or if there is quite a large workforce involved, directly with the firm.

"This will be on an entirely confidential basis and no-one will be identified. If I contact the enforcement agencies they can turn up on the doorstep and do a spot-check."

Pendle Labour MP Mr Prentice said he had not had any approaches but believed Mr Pike was taking the right line.

He said: "I would be very concerned if employers were not paying the national minimum wage which affects a third of all part-time workers and eight per cent of full-timers in my constituency. That is some thousands of employees.

"If anyone knows of companies which are not paying the minimum wage, they should contact me and I will take the appropriate action."

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