Nearly 500 employers fined over National Minimum Wage breaches
Almost 500 UK employers have been fined £10.2 million for National Minimum Wage breaches.
Nearly 500 UK employers were fined £10.2 million for failing to pay the National Minimum Wage, with £6 million repaid to about 42,000 workers.
The list of named employers includes several well-known high-street brands, underlining that businesses of all sizes can struggle to apply minimum wage rules correctly, particularly where working patterns, deductions, or different pay rates apply.
Implications for employers
For businesses, this latest naming round highlights the continued and increasing scrutiny on minimum wage compliance.
Both the National Minimum Wage and the National Living Wage increased earlier this year, with a further rise planned for April 2026. As a reminder, the rates are:
| 2025 rate | 2026 rate | |
|---|---|---|
| National Living Wage (21+) | £12.21 | £12.71 |
| 18-20 | £10.00 | £10.85 |
| Under 18 | £7.55 | £8.00 |
| Apprentice | £7.55 | £8.00 |
Failing to pay workers correctly can result not only in financial penalties but also in significant reputational damage. HMRC has the power to publicly name non-compliant employers, which can affect staff morale, recruitment, and customer trust.
Employees are also increasingly encouraged to seek advice from Acas or raise concerns directly with HMRC, making it even more important for businesses to ensure pay is calculated accurately.
Strengthening enforcement
The government has announced plans to expand oversight of labour standards from 2026 with the creation of a new Fair Work Agency, as part of the proposed Employment Rights Bill.
The agency is expected to have enhanced powers to tackle employers who:
- Underpay the National Minimum or Living Wage
- Fail to pay holiday pay correctly.
- Do not meet statutory sick pay obligations.
This signals agencies’ increased enforcement powers and underscores the need for employers to regularly review payroll processes.
How can we help
Review your payroll, pay structures, and working arrangements now to ensure you fully comply with minimum wage rules. Regularly check calculations and processes for accuracy.
Book a free consultation with Naseems Accountants today for expert help with payroll, wage calculations, or compliance checks. Let us help you minimise risk, ensure compliance, and avoid penalties.
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