20.01.2026

Workers repaid £6 million as Government cracks down on employers underpaying their staff

Almost 500 employers who failed to pay the minimum wage have been named as the Government takes direct action to Make Work Pay.

Around 42,000 workers have been repaid by their employers, including well-known high street brands, with employers receiving fines totalling £10.2 million for breaking the rules.

This strong enforcement doesn’t just protect workers; it protects those businesses who do right by their staff from being undercut. By taking swift action against these employers, the Government is sending a clear message that it will not tolerate those who short-change their workers, regardless of their size or sector.

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."

This action comes as the Government introduces the biggest upgrade to workers’ rights and enforcement for a generation through its Plan to Make Work Pay, which is set to directly benefit around 15 million, or half of all UK, workers.

As well as ensuring hard work is properly rewarded with fair treatment and decent pay, from April 2026 the Employment Rights Bill will also establish a new Fair Work Agency with more powers to tackle employers underpaying workers and failing to pay holiday and sick pay.

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 announcement follows significant increases to National Minimum Wage rates earlier this year. From April, millions got a pay rise with those on the National Living Wage who work full-time seeing their families supported by an extra £1,400 per 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."

Posted by: FMJ 0 comment(s)