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Almost 500 UK employers have been fined a total of £10.2 million for failing to pay the National Minimum Wage (NMW), with £6 million returned to 42,000 workers.
The list of named employers includes well-known high-street brands, indicating that businesses of all sizes can have difficulties in applying the minimum wage rules correctly.
Implications for employers
For businesses, this latest naming round highlights the ongoing scrutiny there is on minimum wage compliance.
The NMW and National Living Wage rates increased earlier this year, with a further rise planned from 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 lead not only to fines but also risks harm to the business’s reputation.
With employees being encouraged to obtain advice from Acas or complain to HM Revenue & Customs (HMRC), it is an important area to get right.
Strengthening enforcement
The government plans to expand oversight of labour standards in 2026 with the creation of a Fair Work Agency as part of the new Employment Rights Bill. The agency will have powers to address employers who underpay workers and fail to pay holiday and sick pay.
If you need help with your payroll and ensuring that your staff are paid correctly, please get in touch. We would be happy to help you!
