Over £7.4 million has been returned to workers underpaid through minimum wage dodges by employers showcasing HMRC’s enforcement muscle in action.
518 employers were named and shamed with £7.4 million repaid to nearly 60,000 workers. Investigations concluded between 2015-2022 with employers facing penalties of up to 200% of the wage underpayment.
The list of offenders includes several well-known household names and major UK brands:
Major Retail & High Street Brands
- PizzaExpress - £760,701.61 to 8,470 workers (2nd largest underpayment)
- Lidl Great Britain Limited - £286,437.18 to 3,423 workers
- Halfords Ltd - £140,829.79 to 4,341 workers
- Halfords Autocentres Limited - £38,470.94 to 760 workers
- Prezzo Limited - £163,702.67 to 2,550 workers
- Thorntons Limited - £16,449.00 to 444 workers
- J D Wetherspoon Plc - £7,000.00 to 282 workers
Airlines & Travel
- British Airways PLC - £231,276.10 to 2,165 workers
- BA Cityflyer Limited - £17,988.39 to 102 workers
- TUI UK Retail Limited - £107,611.04 to 2,044 workers
Hotels & Hospitality
- Hilton UK Hotels Limited - £18,924.07 to 20 workers
- Moto Hospitality Limited - £13,164.96 to 734 workers
Supermarkets & Co-operatives
- Scottish Midland Co-operative Society Limited - £186,883.56 to 1,795 workers
- The Southern Co-Operative Limited - £126,739.33 to 2,300 workers
- Heart Of England Co-Operative Society Limited - £90,870.95 to 1,017 workers
Other Notable Names
- Capita Business Services Ltd - £1,154,461.97 to 5,543 workers (largest underpayment)
- Day Lewis PLC (pharmacy chain) - £82,819.47 to 604 workers
- Baxters Food Group Limited - £19,765.00 to 62 workers
- Oscar Mayer Limited - £18,830.92 to 172 workers
Sectors Most Affected
- Hospitality & Restaurants (PizzaExpress, Prezzo, Wetherspoons)
- Retail (Lidl, Halfords, co-operatives)
- Travel & Aviation (British Airways, TUI)
- Business Services (Capita leading with largest underpayment)
The violations span across various industries, suggesting systemic issues with:
- Payroll administration errors.
- Failure to account for age-related minimum wage rates.
- Incorrect calculation of working time.
- Deductions that brought pay below minimum wage.
The origin of wage regulation in the UK can be traced back to the early 20th century. The Trade Boards Act of 1909 was one of our nation’s first forays into wage protection. Under this act, specialised bodies called Trade Boards were established to set minimum wages in industries where low pay and exploitation were rampant, such as tailoring and chain-making.
Following the upheavals of the war years and during the postwar reconstruction, the concept of wage regulation gradually expanded. Wages Councils replaced Trade Boards and at their height in the 1950s, regulated the pay of millions of workers. However, the council model eventually fell out of favour, and by 1993, most of these bodies were abolished. The critical gap in worker protection was bridged with the advent of the National Minimum Wage Act in 1998; a legislative watershed moment that laid the groundwork for a modern system of wage regulation and led to the establishment of the Low Pay Commission. Fast forward to 2025 and last month saw a major increase to minimum wage.
HMRC's minimum wage investigation shows enforcement is multifaceted. The Taxman undertakes rigorous inspections and audits, intervenes through worker complaints, and uses public naming as a deterrent against non-compliance. Employers not only face the obligation to repay underpaid wages but also risk financial penalties that can amount to 200% of the underpayment, alongside potential criminal prosecution for deliberate or persistent breaches of the law.
Critics have argued that while the minimum wage boosts workers' incomes, it can also strain small businesses that operate on thin profit margins. Faced with increased wage bills, some employers argue that the burden may lead to reduced hiring, cuts in employee hours, or even closures of vulnerable businesses. Additionally, it is feared that steep increases to the minimum wage might spur inflationary pressures that could offset the gains in worker income.
As HMRC cracks down harder and the minimum wage continues to rise, the battle between fair pay and business sustainability is far from over.