UK Govt confirmed £1,400 Financial Boost: Govt Delivers the biggest upgrade to Worker’s Rights

UK Govt confirmed £1,400 Financial Boost: The UK Government has announced that employers will repay over £7.4 million to nearly 60,000 workers who were previously underpaid. This significant action builds on recent increases to the National Living Wage (NLW) and National Minimum Wage (NMW), which have already put an additional £1,400 into the pockets of full-time workers and millions of families across the country.

This latest move is part of the Government’s ambitious Plan for Change, which focuses on raising living standards and growing the economy by ensuring that people have financial security while in work.

Key Details of the Announcement

• 518 employers have been publicly named for failing to pay workers the correct wages.
• These employers have repaid their employees in full and faced financial penalties up to 200% of the amount owed.
• The investigations were carried out by His Majesty’s Revenue and Customs (HMRC), covering cases from 2015 to 2022.
• The Government is simultaneously pushing forward the largest update to worker’s rights in a generation through the Employment Rights Bill.

Ministerial Statements

Justin Madders, Minister for Employment Rights, emphasized:

“There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don’t pay their employees what they are owed.”

He added that ensuring workers receive fair pay for a fair day’s work is a central commitment in the Plan for Change and will help boost productivity while ending low pay.

Baroness Philippa Stroud, Chair of the Low Pay Commission, welcomed the announcement:

“Underpayment leaves workers out of pocket and disadvantages the majority of employers who do abide by the rules. These naming rounds are vital in ensuring all workers get their full wages and know that support is available.”

She highlighted that putting more money in the pockets of the lowest-paid workers improves financial security, boosts staff retention, and reduces recruitment costs for businesses.

Supporting Small Businesses and Rate Relief

Ahead of plans to permanently reduce tax rates for the retail, hospitality, and leisure (RHL) sectors starting 2026/27, the Government has extended the current RHL relief for another year. This extension means over 250,000 RHL properties continue to benefit from a full 40% reduction in their business rates. Additionally, the small business multiplier has been frozen to provide further relief.

Educational Support for Employers

To help employers comply with wage laws, the Government has released an educational bulletin aimed at increasing awareness of National Minimum Wage legislation and advising companies on correctly paying their workers.

• Educational Bulletin for Round 21 (PDF, 310 KB, 11 pages)
• List of Named Employers in Round 21 (Excel Spreadsheet, 101 KB)

What Workers Should Know

If workers suspect they are being underpaid, they can:

• Visit gov.uk/checkyourpay for information on their rights and how to check their pay.
• Call the Acas helpline at 0300 123 1100 for free, impartial, and confidential advice.
• Report concerns or complaints to HMRC’s Pay and Work Rights Helpline.

The minimum wage legislation applies across all parts of the UK, and employers are urged to carry out proper pay checks, following guidance available at Calculating the Minimum Wage.

National Living Wage and Minimum Wage Rates

Source: https://www.gov.uk/government/news/over-74-million-put-back-in-working-peoples-pockets-by-employers

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