Nearly 500 employers across the UK have been fined over £10 million for failing to pay their staff the National Minimum Wage — with around £6 million now repaid to 42,000 workers who
were short-changed.
The move is part of the Government’s Plan to Make Work Pay, a major overhaul of workers’ rights designed to ensure fair pay and better treatment at work. It also includes the creation of a new Fair Work Agency, which will have stronger powers to tackle companies that break employment laws or withhold pay, holiday, or sick leave.
Business Secretary Peter Kyle said: “Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short-change their staff.
“I know that no employer wants to end up on one of these lists. But our Plan to Make Work Pay cracks down on those not playing by the rules.
“This ensures a level playing field where all businesses pay what they owe whilst workers receive the boost to their living standards they deserve.”
The penalties announced today target almost 500 employers — including several well-known high street brands — who collectively failed to pay the legal minimum wage. In total, they’ve been hit with **£10.2 million in fines**, while affected workers have now received the wages they were owed.
Employment Rights Minister Kate Dearden said: “This government is taking direct action to ensure workers get every penny they’ve earned, and to put an end to bad businesses undercutting good ones.
“We are proud to have delivered a strong minimum wage and enforcing it thoroughly is crucial in our mission to put pounds back in your pocket.
“I know this news will be welcomed by brilliant businesses across the country, those who know that happy well-paid staff are at the heart of building a successful company.
“With our new Fair Work Agency and the coming Employment Rights Bill, this government is keeping our promise to Britain to make work pay again.”
The tougher enforcement comes as part of the Employment Rights Bill, due in April 2026, which will officially establish the Fair Work Agency. The government says the reforms will directly benefit around 15 million workers— about half of the UK workforce.
Earlier this year, the National Minimum Wage and National Living Wage were also increased. From April, full-time workers on the National Living Wage received a pay boost worth roughly £1,400 a year for their families.
Baroness Philippa Stroud, Low Pay Commission Chair, said: “We are pleased the Government is keeping up momentum with the publication of today’s naming round.
“It is vital that businesses understand the mistakes which can lead to underpayment, and that workers know where to go to enforce their rights.
“Continuing to raise the profile of the NMW enforcement system will give the Fair Work Agency a solid foundation when it comes into operation next year.”
Niall Mackenzie, Acas Chief Executive, said:“Not only is it important for employers to pay the correct minimum wage rates, it is also the law.
“Failing to do so can result in grievances and potentially legal action, including costly employment tribunals, as well as being named and shamed.
“Acas has advice on how employers can ensure they calculate the correct rate to pay their workers and what employees should do if they think they are not being paid the correct amount.” Photo by Phil Whitehouse, Wikimedia commons.