£6 million repaid to workers as Government cracks down on employers underpaying staff

£6 million repaid to workers as Government cracks down on employers underpaying staff

Almost 500 employers have been fined more than £10 million for failing to pay the National Minimum Wage, the government has announced.

Around 42,000 workers will receive a total of £6 million in back pay after investigations revealed widespread underpayment, including by several well-known high street brands.

The announcement is part of the government’s Plan to Make Work Pay, which it says represents the biggest overhaul of workers’ rights in a generation.

Business Secretary Peter Kyle said the move was about ensuring fairness and accountability.

“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,” he said.

He added that stronger enforcement would help create “a level playing field” for businesses that follow the law.

Under the government’s new plans, a Fair Work Agency will be established from April 2026 to strengthen oversight and crack down on employers who fail to pay the minimum wage, holiday pay, or sick pay.

Officials said the action demonstrates a clear message that employers who break the rules will face “swift and tough penalties”.

The reforms are expected to benefit up to 15 million workers, or around half of the UK workforce.

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  • published this page in News 2026-07-02 11:18:18 +0100

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£6 million repaid to workers as Government cracks down on employers underpaying staff

£6 million repaid to workers as Government cracks down on employers underpaying staff