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Over 600 UK firms ordered to repay £4m in minimum wage arrears

The government has named 658 employers for failing to pay staff minimum wage, with £4 million returned to workers and £7 million in penalties issued. B&Q, Five Guys and several NHS trusts were among those identified.

By The UK Pulse Editorial Team··5 min read·How we work
A composite image of B&Q signage on the left and Five Guys signage on the right.

The government has publicly identified more than 600 employers across the United Kingdom for failing to pay staff the minimum wage, marking the first major enforcement action since the Fair Work Agency began operations in April. Affected workers have received £4 million in outstanding wages, while the named businesses face combined penalties of £7 million.

The list encompasses 658 organisations spanning retail, hospitality, healthcare, social care and childcare sectors. The underpayments span a period from 2013 to 2025, with the specific timeframe varying by employer. According to government enforcement guidance, employers are considered for public naming when total arrears reach at least £500.

Current minimum wage rates stand at £12.71 per hour for workers aged 21 and over, £10.85 for those aged 18 to 20, and £8 for under-18s and apprentices.

Which major retailers and chains were named?

DIY retailer B&Q topped the list, having underpaid 4,530 workers a combined total of £456,934.72. The company attributed the shortfalls to unintentional calculation errors involving geographical allowances paid alongside minimum hourly rates. B&Q stated that all affected employees received full payment in July 2025.

Fast food operator Five Guys was identified as owing £54,642.47 to 3,699 staff members. The company attributed the underpayments to technical differences in how payroll regulations were applied and said it worked transparently with the UK's revenue and tax authority, Her Majesty's Revenue and Customs (HMRC), to resolve the matter and make all required payments to current and former employees.

The top ten employers on the list, ranked by total arrears owed, also included Elysium Healthcare Holdings 3 Ltd in Borehamwood (£330,048.81 owed to 1,095 workers), Support Staff Services Limited in Slough (£119,715.13 owed to 323 workers), Forest Holidays Ltd in Moira (£100,308.68 owed to 598 workers), Lanes Group Limited in Leeds (£67,893.34 owed to 297 workers), UK Care Team Ltd in Leicester (£67,082.76 owed to 99 workers), and Merlin Cinemas Limited in Redruth (£50,198.75 owed to 181 workers).

What happened at NHS trusts and hospitals?

Two NHS organisations appeared among the top ten. Epsom and St George's Hospital Group failed to pay £123,331.97 to 75 workers, with the underpayments resulting from salary sacrifice schemes that have since been modified. St George's University Hospitals NHS Foundation Trust in Wandsworth, London, underpaid 55 workers by £77,498.91, a situation attributed to salary sacrifice arrangements and technical issues with London weighting allowances for certain staff members. The trust has since revised its processes following an HMRC review.

The trusts have disputed that any staff were actually underpaid, according to BBC understanding of their position. Norfolk Community Health and Care NHS Trust acknowledged that apprentices were inadvertently underpaid between 2019 and 2023 because meetings, handovers and time spent changing into uniform were not factored into their pay calculations, despite these activities being part of their working day. The trust has since updated its policies and practices to address this issue.

What do the companies say?

B&Q stated in response:

The shortfalls in payments were unintentional. They relate to calculations involving geographical allowances which are paid in addition to minimum hourly rates. All affected colleagues were quickly paid in full in July 2025.

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Five Guys said:

Technical differences in how payroll regulations were applied led to its underpayments, which were identified in a review by HMRC. We worked closely and transparently with HMRC throughout the process and have made all required payments to affected current and former employees.

What sectors were most affected?

Beyond the major retailers and hospitality chains, the list included numerous nursing homes, childcare providers, social care organisations and independent shops and restaurants. The breadth of the enforcement action demonstrates that minimum wage breaches occur across multiple industries and business sizes.

What are government officials saying?

Business Secretary Jonathan Reynolds commented on the enforcement action, stating:

The best businesses know that looking after your workers isn't just the right thing to do, it's the smart thing to do.
He emphasised the government's determination to eliminate what he termed
short-changing your staff
.

Kate Dearden, minister for the future of work, reinforced the legal obligation:

Underpaying your staff is illegal, and we will not let workers foot the bill for their boss failing to follow the rules.
She urged all employers to review their payroll systems and seek support from Acas, the workplace advisory service, if needed.

Matthew Taylor, chair of the Fair Work Agency's advisory board, stated:

Paying the minimum wage is not optional - it is the law.
He added:
Most employers want to do the right thing, and we will support them to comply, but those who fall short should expect robust enforcement to protect workers and maintain a fair playing field for responsible businesses.

What is the broader enforcement context?

This naming round represents the first major public enforcement action by the Fair Work Agency since its establishment in April under the Employment Rights Act. The agency's remit extends beyond minimum wage enforcement to include tackling practices such as denial of holiday pay and sick pay.

The enforcement action is part of a sustained government programme. According to the government's enforcement report for 2024–2025, employers named under the scheme have cumulatively repaid over £55 million in arrears to more than 560,000 workers. A March 2026 government release indicated that around 660 employers were named in that earlier round, demonstrating that this is an ongoing enforcement programme rather than an isolated action.

The current naming round also reflects regional enforcement activity. Thirty-six Northern Ireland businesses and fifty Scottish firms have been separately identified for minimum wage breaches, with nearly 700 workers affected across Scotland alone.

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This article was sourced from bbc

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