Nearly 500 employers have been fined more than £10 million after failing to pay staff the National Minimum Wage, as the Government intensifies its crackdown on underpayment in

the workplace.

Around £6 million has now been repaid to approximately 42,000 workers who were short-changed by their employers, including staff working for well-known high street brands. The penalties, totalling £10.2 million, were issued following enforcement action designed to ensure workers receive the pay they are legally owed.

The Government said the action sends a clear signal that it will not tolerate employers who break minimum wage laws, while also protecting responsible businesses from being undercut by competitors who ignore the rules.

The announcement comes as part of the Government’s wider Plan to Make Work Pay, described as the biggest overhaul of workers’ rights in a generation. Central to the reforms is the creation of a new Fair Work Agency, due to be established under the Employment Rights Bill from April 2026. The agency will have enhanced powers to tackle underpayment, as well as failures to provide holiday and sick pay.

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 Government estimates that the wider reforms could directly benefit around 15 million workers across the UK.

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 latest action follows significant increases to minimum wage rates earlier this year. From April, full-time workers on the National Living Wage saw their annual income rise by around £1,400, providing extra support to household budgets during a period of high living costs.

Workers who think they may not be receiving the correct pay can check their rights online at the Government’s “Check your pay” service, seek confidential advice from Acas, or report concerns to HM Revenue and Customs.

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”.

Current national minimum and living wage rates

National Living Wage (21 and over): £11.44 (2024) → £12.21 (2025)

Ages 18–20: £8.60 → £10.00

Under 18: £6.40 → £7.55

Apprentice rate: £6.40 → £7.55