£7.4m Returned to UK Workers by Employers

UK employers must repay over £7.4 million to nearly 60,000 underpaid employees, following HMRC investigations. The government reinforces its commitment to fair pay and worker protection.
June 9, 2025
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Jamie O'Connor
June 9, 2025
7

Over £7.4 Million Returned to Underpaid Workers

The UK government has announced that nearly 60,000 employees will receive over £7.4 million in unpaid wages after employers failed to meet the National Living Wage and National Minimum Wage requirements. This enforcement move forms part of the government’s larger effort to improve workers' rights and ensure financial security for employees across the country.

Key Points at a Glance

  • 60,000 workers to receive back pay totalling more than £7.4 million
  • 518 businesses named and penalised for wage breaches
  • Enforcement aligns with the recent significant rise in minimum wage rates
  • National Living Wage: Stronger Protections

    This latest action follows an uplift to the National Living Wage and National Minimum Wage, now ensuring an extra £1,400 a year for full-time minimum wage workers. The move highlights the UK government’s Plan for Change, aiming to raise living standards and drive economic growth by promoting fair treatment in the workplace.

    The businesses identified failed to pay correct wages between 2015 and 2022. While all have since made restitution and paid financial penalties as high as 200% of the shortfall, the government’s public naming scheme intends to strengthen accountability across all sectors.

    Recent National Minimum Wage Rates

    Category 2024 Rate 2025 Rate
    National Living Wage (21 and over) £11.44 £12.21
    18 to 20 £8.60 £10.00
    Under 18 £6.40 £7.55
    Apprentice £6.40 £7.55

    Notable Employers

    Some of the employers with the largest shortfalls include:
  • Capita Business Services Ltd (City of London): Owed over £1.15 million to 5,543 employees
  • Pizzaexpress (Restaurants) Ltd (Croydon): Owed £760,701 to 8,470 workers
  • Lidl Great Britain Ltd (Merton): Owed £286,437 to 3,423 workers
  • A full list is available on the [government’s official website](https://www.gov.uk/government/news/over-74-million-put-back-in-working-peoples-pockets-by-employers).

    Expert Commentary

    Minister for Employment Rights, Justin Madders, stated:

    “There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don’t pay their employees what they are owed.”

    Baroness Philippa Stroud, Chair of the Low Pay Commission, commented:

    “Underpayment leaves workers out of pocket and disadvantages the majority of employers who do abide by the rules. These naming rounds play an important part in ensuring that all workers receive their full wages.”

    Protecting Workers and Supporting Employers

    The government’s commitment extends beyond enforcement. An educational bulletin has been published to help employers better understand minimum wage legislation and avoid future violations.

    If you suspect you have been underpaid, take action:

  • Visit [Check Your Pay](https://checkyourpay.campaign.gov.uk/)
  • Contact the Acas helpline at 0300 123 1100 for confidential advice
  • Use official [guidance on minimum wage calculations](https://www.gov.uk/guidance/calculating-the-minimum-wage)

Looking Ahead: Building a Fairer Economy

By putting more money into the pockets of the lowest paid, the government aims to deliver financial security, reduce staff turnover, and lower recruitment costs for businesses. With further tax reliefs and support planned for the retail, hospitality, and leisure sectors, along with frozen business rates multipliers, the focus remains on lasting, positive change for workers and companies alike.

Employers are strongly advised to ensure ongoing compliance with wage laws and to stay up to date with guidance as minimum wage rates continue to rise.

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