The UK government agency responsible for overseeing a national register of companies has collected just £1,250 in fines after being given new powers to crack down on corruption, it has emerged.

Companies House is implementing a series of reforms, amid embarrassing revelations about fraudsters and jokers signing up to the corporate register with names such as “Darth Vader” and “Santa Claus”.

Measures include new identity verification checks for directors, after the agency admitted that up to 20% of the 4.9m companies on its database may have submitted false information.

Since last autumn, the agency has also had powers to impose financial penalties for failure to comply with its rules, such as the requirement to file ownership information on time.

In response to a parliamentary question from Liam Byrne, the chair of the business select committee, the government said 234 penalties had been issued since October last year, with a combined value of £58,500.

However, Justin Madders, a junior minister at the Department for Business and Trade, admitted that Companies House had only managed to collect £1,250, about 2% of the total.

“Action to collect penalties will accelerate during summer 2025. Outstanding penalties will be referred to debt collection and litigation where appropriate,” Madders said.

Byrne said the low level of fines contributed to wider concerns raised by his committee about the progress of reforms to Companies House, including a 20% vacancy rate for digital jobs at the agency.

“When up to 1m companies are built on lies, it’s time for Companies House to get tougher,” said Byrne.

“It’s no longer just a register – it’s the frontline in the war on economic crime.

“We won’t defeat fraud with warnings. We won’t clean up the system with good intentions. We need action. We need enforcement. And that means using the power to punish those trying to corrupt our economy, dodge sanctions or launder cash.”

A Companies House spokesperson said: “Financial penalties are one sanction that is available to Companies House and is an important part of our overall enforcement.

“Penalties are being implemented in a phased way to drive increased compliance. Volumes will increase over time to address non-compliance. We have robust processes to pursue the payment of penalties, including taking court action where necessary.”

Byrne wrote to Companies House last month with a litany of concerns, including that businesses on the register were being used for sanctions evasion and money-laundering, with the “alleged assistance of UK residents”.

He said a 20% vacancy rate for digital jobs at Companies House raised concerns that its digital transformation was not properly resourced.