Government names 500 firms for underpaying staff in record wage crackdown

Highlights

• Euro Garages, Red Contract Solutions, and CSG FM amongst worst offenders
• New Fair Work Agency to launch April 2026 with enhanced enforcement powers
• National Living Wage increased to £12.21 per hour for workers aged 21 and over

Wage violations enforced

The government has named and shamed nearly 500 employers across the UK for failing to pay the National Minimum Wage, forcing them to repay £6 million to 42,000 workers and imposing fines totalling £10.2 million in what officials described as the biggest enforcement action in a generation.

The enforcement action, announced on Friday, sees employers hit with fines totalling £10.2 million for short-changing their staff. The list includes well-known high street brands alongside smaller businesses across various sectors, from petrol stations to nurseries.

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Euro Garages Limited topped the list, failing to pay £824,383 to 3,317 workers, while Red Contract Solutions underpaid 11,631 workers by more than £650,000. Other prominent names include Mitchells & Butlers, Cineworld Cinemas, and William Hill. Business Secretary Peter Kyle noted "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." He added that the Plan to Make Work Pay ensures a level playing field where all businesses pay what they owe.

Workers' rights boost

The crackdown comes as the Government introduces what it calls the biggest upgrade to workers' rights in a generation. From April 2026, a new Fair Work Agency will be established with enhanced powers to tackle employers underpaying workers and failing to pay holiday and sick pay. Employment Rights Minister Kate Dearden pointed that, "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."

Workers who suspect they're being underpaid can check their pay at gov.uk/checkyourpay or contact HMRC's pay and work rights helpline. The naming rounds are designed to deter future violations whilst protecting legitimate businesses from unfair competition. National Living Wage rates increased to £12.21 per hour in April 2025 for workers aged 21 and over.