Thousands of UK workers are receiving long-overdue pay packets totalling over £7.4 million after investigations revealed widespread underpayment of the National Minimum Wage.
The revelation follows a series of enforcement actions by His Majesty’s Revenue and Customs (HMRC), covering breaches committed between 2015 and 2022. A total of 518 employers and businesses were found to have short-changed nearly 60,000 UK workers across multiple sectors.
In a decisive move, HMRC has imposed financial penalties of up to 200% of the original underpayment on the offending employers, all of whom have now been compelled to repay the arrears owed to staff.
Stronger wage enforcement arrives amid rising minimum wage levels
The timing of this action comes as the National Minimum and Living Wage experienced one of the most significant uplifts in recent history. In April this year, new rates came into effect, offering increased protection for the lowest-paid workers:
- Workers aged 21 and over now receive £12.21 per hour (up from £11.44)
- Those aged 18 to 20 see their hourly pay increase from £8.60 to £10.00
- Under-18s and apprentices now earn £7.55 per hour, up from £6.40
These adjustments put approximately £1,400 extra annually into the pockets of full-time UK workers on the National Living Wage, forming part of a broader governmental strategy to combat low pay and enhance workplace rights through the Employment Rights Bill.
Minister for Employment Rights, Justin Madders, emphasised the importance of upholding workers’ legal entitlements.
“There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don’t pay their employees what they are owed,” he stated.
“Ensuring workers have the support they need and making sure they receive a fair day’s pay for a fair day’s work is a key commitment in our Plan for Change. This will put more money in working people’s pockets, helping to boost productivity and ending low pay.”
A wake-up call for employers
Baroness Philippa Stroud, Chair of the Low Pay Commission, welcomed the publication of the findings, underlining the broader economic consequences of wage underpayment.
“Underpayment leaves workers out of pocket and disadvantages the majority of employers who do abide by the rules,” she said.
“These naming rounds play an important part in ensuring that all workers receive their full wages and that they are aware there is support for them to ensure that they do.”
With the government taking a harder line on enforcement, these revelations serve as a stark reminder to businesses of all sizes that failing to meet minimum wage requirements carries both financial and reputational consequences.
What to do if you think you’ve been underpaid
Workers are being urged to review their payslips and cross-reference their earnings against the updated statutory wage rates. If any discrepancies are discovered:
- Speak directly with your employer to raise the issue.
- If the issue remains unresolved, submit a complaint via GOV.UK, or contact your workers’ support network.
- HMRC will investigate and, if appropriate, require employers to pay any owed wages along with a financial penalty.
The Workers Union Says…
“For workers uncertain about their rights or needing help understanding their wage entitlements, independent support services and organisations such as The Workers Union are available to assist.”
