REGULATORY · MARKET STRUCTURE · UK
Nearly 400 employers ordered to repay £7.3m
Change
Nearly 400 employers are required to repay more than £7.3m to about 60,000 workers for underpayment of minimum wages.
Why it matters
A repayment order covers nearly 400 employers and totals more than £7.3m owed to about 60,000 workers for underpayment of minimum wages. Official minimum and living wage rates will rise in April 2026 for 2.7 million workers. The National Living Wage for those aged 21 and over has been £12.21 an hour since April 2025, equivalent to £24,784.50 a year for a 37.5-hour workweek. Hourly rates for 18- to 20-year-olds are £10, and the rate for 16- and 17-year-olds will increase to £8 in April 2026; apprentices’ rates vary by age and stage.
Implications
- · Repayment processing and back-pay disbursements create cashflow and administrative burdens for affected employers.
- · Payroll liabilities rise for employers of 2.7 million workers when new minimum and living wage rates take effect in April 2026.
- · Employers of 18- to 20-year-olds face higher hourly labour costs as that rate increases to £10, adding about £1,500 annually for a full-time worker on a 37.5-hour week.
- · Accounting and HR teams must reconcile past pay records to calculate and allocate the £7.3m in arrears to eligible workers.
Who is affected
- · Employers (HR and payroll teams)
- · Low-wage workers aged 21 and over
- · Low-wage workers aged 18–20
- · Low-wage workers aged 16–17 and apprentices
What to watch
- · April 2026 — new minimum and living wage rates take effect
Source
Topics
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