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Thousands of workers repaid £6m after minimum wage crackdown

Around 42,000 workers received repayments.

3 min read
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Thousands of workers repaid £6m after minimum wage crackdown
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£6m has been repaid to workers after the Government cracked down on employers who failed to pay the national minimum wage. 

Nearly 500 employers, including well-known high street brands, were fined a total of £10.2m for breaking minimum wage rules. 

Around 42,000 workers received repayments.

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.”

The Government’s plan to Make Work Pay is expected to benefit around 15 million workers. 

The Employment Rights Bill, which takes effect from April 2026, will set up a fair work agency with more powers to tackle underpayment and issues with holiday and sick pay.

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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.”

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Dearden added: “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 minimum wage rates went up this April, giving full-time workers on the national living wage an extra £1,400 a year.

Baroness Philippa Stroud, Low Pay Commission Chair, said: “We are pleased the Government is keeping up momentum with the publication of today’s naming round. 

“It is vital that businesses understand the mistakes which can lead to underpayment, and that workers know where to go to enforce their rights. 

“Continuing to raise the profile of the NMW enforcement system will give the Fair Work Agency a solid foundation when it comes into operation next year.”

Niall Mackenzie, CEO of Acas, 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.”

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