Nearly 400 Employers Ordered to Repay Over £7.3m for Minimum Wage Violations
Almost 400 employers have been instructed to repay more than £7.3 million to approximately 60,000 workers who were not compensated with the correct minimum wage.
The official minimum wage rates are set to increase for 2.7 million workers in April 2026.
The wage rate for workers aged 21 and over is known as the National Living Wage, while those aged 18 to 20 receive the National Minimum Wage.
What is the National Living Wage, and How Much Is It Worth?
Since April 2025, the National Living Wage has been £12.21 per hour for workers aged 21 and over.
This rate is scheduled to rise to £12.71 per hour in April 2026.
For a full-time worker (37.5 hours per week), this equates to an annual salary of £24,784.50, representing an increase of £900.
What is the National Minimum Wage and How Much Is It Worth?
The minimum wage rate for 18 to 20-year-olds is currently £10 per hour, which is a 16% increase from the previous rate of £8.60.
In April 2026, this will increase by 8.5% to £10.85 per hour.
For a full-time worker, this amounts to an annual increase of £1,500.
The government has stated its intention to eventually eliminate this separate rate for 18 to 20-year-olds and establish a single rate for all adults.
The minimum wage for 16 and 17-year-olds is presently £7.55 per hour and will rise by 6% to £8 per hour in April 2026.
What is the Apprentice Rate and How Much Is It Worth?
Apprentices' pay rates vary depending on their age and the stage of their apprenticeship.
Apprentices aged 16 to 18 are entitled to the National Minimum Wage rate for their age group, currently £7.55 per hour, which will increase to £8 in April 2026.
Those aged 19 or in the first year of their apprenticeship receive the same rate.
Apprentices over 19, or those who have completed their first year, are entitled to the appropriate National Minimum Wage or National Living Wage rate for their age.
Who Does Not Qualify for the National Minimum Wage and National Living Wage?
Certain groups are excluded from eligibility for the National Minimum Wage and National Living Wage.
This includes the self-employed, company directors, volunteers, members of the armed forces, and prisoners.
Individuals with disabilities or those in long-term unemployment participating in government work programmes receive fixed payments at different stages of the scheme, which are lower than the equivalent National Minimum or Living Wage rates.
Are Employers Required to Pay the National Minimum Wage and National Living Wage?
Yes, it is a criminal offence for employers to fail to pay the correct National Minimum and Living Wages to eligible workers.
These rates apply even if employees are not paid by the hour.
If workers believe they are being underpaid, they can file a complaint through the HM Revenue and Customs (HMRC) website.
Additionally, workplace advisory services such as Acas provide guidance.
Consequences for Employers Not Paying the Correct Wage
Employers who do not pay the correct wage can face penalties imposed by HMRC.
In March 2026, the government reported that 389 employers had been fined approximately £12.6 million for failing to pay staff properly, in addition to repaying the £7.3 million owed.
Notable firms fined include the nursery chain Busy Bees, Norwich City Football Club, Hays Travel, and Costa Coffee.
What is the Real Living Wage and How Much Is It?
The Real Living Wage is an unofficial hourly wage rate overseen by the Living Wage Foundation charity.
It targets UK workers aged 18 and over but is voluntary; employers may choose whether to pay it.
The wage rate is updated annually every October.
According to the Living Wage Foundation, nearly 500,000 employees working for over 16,500 firms receive this voluntary wage.
Since October 2025, workers in London have earned at least £14.80 per hour—the London Living Wage—an increase of 95p or 5.3%.
Elsewhere in the UK, the rate increased by 85p to £13.45, a 6.7% rise.
The Living Wage Foundation states that this rate is worth £2,418 more per year than the legal minimum wage in the UK and £5,050 more in London.
