Report highlights record number of workers still paid below minimum wage

According to a report conducted by the Low Pay Commission (LPC), a record number of UK workers are still being paid below the minimum wage.

The report has revealed that around 440,000 people were illegally paid under the hourly minimum wage in April last year, with 369,000 of those meant to receive the national living wage (NLW) because they are aged 25 or over.

The living wage figure saw an increase of 30,000 on the previous year, a record high since the NLW was introduced in 2016.

Currently, the NLW is at £8.21 per hour, whilst the minimum wage for younger workers stands at £7.70 for 21-24-year-olds, £6.15 for 18-20-year-olds, £4.35 for under 18’s and £3.90 for apprentices.

The LPC report also found that a greater number of women were underpaid compared to men and those at both the youngest and oldest ends of the spectrum were more likely to be underpaid than others.

Whilst the industries most affected include hospitality, retail, cleaning and childcare.

These findings have prompted calls by LPC to revert to previous methods of naming and shaming employers who underpay their staff and improve the ways in which the laws surrounding minimum wage are enforced.

In the past, companies including the likes of Wagamama, Marriott Hotels, TGI Friday’s, Stoke City Football Club and Shoe Zone had been named by the Government for paying less than the legal minimum wage.

LPC Chair, Bryan Sanderson, said: “It is vital for businesses to be able to operate on a level playing field and not be illegally undercut on wages.

“The government has made real progress with its enforcement of the minimum wage, but more needs to be done to ensure employers comply in the first place and workers know how to enforce their rights.”

A spokesperson for the Government said it was cracking down on employers who failed to pay the minimum wage.

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https://blog.mackrell.com/report-highlights-record-number-workers-still-paid-minimum-wage/
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Donna Martin

Donna Martin

Partner at Mackrell Turner Garrett
Donna Martin is a Partner in the Employment team at Mackrell Turner Garrett’s London office. She advises both employers and employees on a full range of contentious and non-contentious issues. As an employment law expert, Donna has significant experience in drafting employment contracts and handbooks, advising on grievance and disciplinary procedures and preparatory work prior to tribunals, including advising on the advantages and disadvantages of settling cases.