11th November 2026

Minimum wage, maximum headache for 658 named employers

On 3 September 2026, the government named 658 employers for underpaying the National Minimum Wage. Between them, they’d shortchanged more than 27,000 workers by around £4 million and picked up £7 million in penalties on top.

Plenty of the names are businesses you’d expect to get payroll right, including household-name retailers, NHS hospital trusts, care groups and nursery chains.

The National Living Wage rises to £13.21 an hour in April 2027 (see our Autumn Budget round-up), so you’ve got about 5 months to make sure the next uprating doesn’t land you on a future list.

Who made the list

This is the first round published since the Fair Work Agency launched in April 2026. HMRC is still doing the investigating on the agency’s behalf until the Fair Work Agency takes over fully in April 2027.

These are the biggest names by arrears, plus two that show how small an underpayment can be.

Employer Arrears Workers affected Average per worker
B&Q Limited £456,934.72 4,530 £101
Elysium Healthcare Holdings 3 Limited £330,048.81 1,095 £301
St George’s, Epsom and St Helier Hospital Group £123,331.97 75 £1,644
Support Staff Services Limited £119,715.13 323 £371
Forest Holidays Limited £100,308.68 598 £168
Five Guys JV Limited £54,642.47 3,699 £15
Kids Planet Day Nurseries Limited £117.72 11 £11

Five Guys underpaid 3,699 people by about £15 each and put it down to technical differences in how the payroll rules were applied. Kids Planet was named over £117.72 in total. There’s no minimum amount before your name goes on GOV.UK.

Scroll the full list and the same sectors keep coming up: care, nurseries, hospitality, cleaning and recruitment. They all employ lots of people paid on or close to the minimum, so the smallest slip takes someone under it.

How good employers end up on the list

The mistakes behind these names are mostly buried in the detail of how pay is calculated. These are the ones we see catch employers out most often.

Deductions that take pay below the rate

Someone on £12.71 an hour has no room for a deduction. Take £10 off for a polo shirt, a DBS check or a training course, and their pay for minimum wage purposes drops below the legal rate. Salary sacrifice for pensions, cars or bikes has the same effect.

Test pay after work-related deductions every pay period for anyone near the rate. Provide uniforms free or reimburse them in full, and don’t let salary sacrifice take anyone under.

Unpaid working time

Minimum wage applies to every minute someone works. Pre-shift briefings, security checks, handovers, compulsory training and travel between care visits all count, and so do the 7 minutes lost when a clock-in at 8.53 gets rounded to 9.00.

Pay from the moment work starts, whatever the rota says. List everything your people do before, between and after shifts, and check each one is paid.

Missing the April rise

Rates went up on 1 April 2026 to £12.71 for over-21s, £10.85 for 18 to 20 year olds and £8 for under-18s and apprentices. The usual traps are pay reference periods that straddle 1 April, and salaried staff whose pay looked fine last year but falls short once their actual hours are counted.

Load the new rates before April and apply them from the first pay reference period starting on or after 1 April. Then rerun the hours check for salaried staff. You’ll be doing all of this again for £13.21 next year.

The wrong rate for apprentices and birthdays

The £8 apprentice rate only applies to apprentices under 19 or in the first year of their apprenticeship. Once that first year’s up, an apprentice aged 19 or over is due the rate for their age. Birthdays catch people out as well, because a worker who turns 21 is due £12.71 from their next pay reference period.

Record start dates and dates of birth accurately, and set automatic flags for 19th and 21st birthdays and apprenticeship anniversaries.

Accommodation charges

If you provide accommodation, the most you can count towards minimum wage is £11.10 a day. Charge more, or add extras like utilities or laundry, and the difference comes straight off minimum wage pay.

Keep charges at or below the offset for anyone paid near the rate, and look hard at any add-ons.

Worker status

Calling someone self-employed, a volunteer, an intern or a trial shift doesn’t change whether they’re a worker. If they’re doing real work under your direction, they’re due at least the minimum wage.

Check status before anyone starts, based on what they actually do. Unpaid trial shifts and unpaid internships are red flags.

The wrong type of work

Minimum wage law splits work into 4 types:

  1. time work
  2. salaried hours work
  3. output work
  4. unmeasured work.

Each has its own calculation, so a role filed under the wrong type gets the sums wrong from day one.

Classify every role properly, keep the records each type needs and have someone who knows the rules sign it off.

Why small mistakes get expensive

A £15 underpayment sounds like loose change. Multiply it by 3,699 workers, then add:

  • arrears recalculated at today’s rate if the minimum wage has gone up since the error
  • a penalty of 200% of the arrears, capped at £20,000 per worker (halved if you pay within 14 days)
  • your name on GOV.UK, which stays in search results long after the penalty’s paid.

You have to keep minimum wage records for 6 years, and arrears can stretch back further than that. A habit you picked up years ago can still put you on a list today.

The Fair Work Agency is also set to enforce holiday pay and statutory sick pay, so the same process gaps could soon cost you twice. A once-a-year look at hourly rates won’t spot a deduction that went in last month. Compliance has to be part of every payroll run.

Your 10-minute minimum wage health check

Run through these this week. Any answer that makes you wince is your starting point.

  • Is everyone on at least the April 2026 rate for their age or apprentice status?
  • Do any deductions (uniforms, training, DBS checks, equipment) take anyone below the rate?
  • Could salary sacrifice push anyone under?
  • Are staff paid for briefings, security checks, handovers, training and travel between jobs?
  • Does your clock-in system round time in your favour?
  • Do salaried staff still clear the rate once their real hours are counted?
  • Are birthdays and apprenticeship anniversaries flagged automatically?
  • Are accommodation charges at or below £11.10 a day?
  • Is anyone doing unpaid trial shifts, internships or volunteering?
  • Could you prove all of the above for the last 6 years?
  • Is the £13.21 rate for April 2027 already in your plans?

If you find a problem, fix it, pay the arrears and put the process right. Acas offers free advice if you’re unsure where you stand.

Keep your name off the next list

A 7-minute rounding error can put you on the same list as a deliberate shortfall. That’s why minimum wage is best handled by people who work with the rules every day.

At Ascend, our payroll pros check minimum wage compliance on every run, including the deductions, hours and rate changes that catch others out. The April 2027 rates will be in before the first pay period that needs them, and when someone turns 21, their pay goes up on time.

If you’d like a second pair of eyes on your payroll, talk to our team and we’ll show you what payroll, perfected looks like.

Author

  • Paul - Ascend Team Member

    Paul started his career at the Inland Revenue, now HMRC, where he spent 14 years as a Tax Inspector, Employer Compliance & VAT Manager and PAYE Auditor. It gave him an inside view of how HMRC thinks and what it looks for when it comes knocking.

    He then spent 11 years at a regional accountancy practice, advising clients on tax and guiding them through HMRC investigations from the other side of the table.

    From there, it was a natural step into payroll. Paul took on a Compliance and Legislation role at an award-winning payroll provider, where he made sure processes were watertight and payroll teams were fully trained on every change.

    After a short break, he was tempted back and joined Ascend as Head of Legislation and Compliance in November 2024.

    Paul's focus is on keeping Ascend and its clients on the right side of the rules. He tracks new legislation as it lands, turns it into clear guidance for the team and writes many of Ascend's plain-English articles and guides.

    For Paul, good compliance is about getting ahead of change.

    "Employment law and payroll legislation are changing faster than I've seen in my whole career. The businesses that cope best are the ones that prepare early, long before a new rule becomes a deadline.
    My job is to take the complicated stuff and make it simple, so our team and our clients know exactly what's changing, what it means for them and what they need to do about it."

    That's the approach he brings to every update: spot what's coming, explain it clearly and make sure no client is caught out.

    View all posts

    Paul is Ascend's Head of Legislation and Compliance, with over 30 years of experience in tax and payroll, including a decade as a HMRC Tax Inspector. He leads on compliance, keeping the team and clients up to speed with the latest and future changes. When our clients have a specific challenge or complex query, Paul is the man to sort it out.

    everything PAYE, tax, National Insurance, pensions, keeping Ascend's team and clients one step ahead of every legislative change.

Frequently asked questions related to this blog

What is the National Minimum Wage in 2026?

From 1 April 2026, it’s £12.71 an hour for workers aged 21 and over, £10.85 for 18 to 20 year olds and £8 for under-18s and apprentices. In April 2027 the 21 and over rate rises to £13.21 and the 18 to 20 rate to £11.27.

How much do you have to underpay before you're named?

Employers are usually named once total arrears go over £500. That drops to £100 if you’ve had a notice of underpayment in the previous 6 years. Below the threshold you still have to pay the arrears, and penalties can still apply.

Can I take the cost of a uniform out of someone's wages?

Only if their pay for minimum wage purposes stays at or above the legal rate after the deduction. For anyone paid at or close to the minimum, the safe answer is to provide uniforms free or reimburse the cost in full.

Do I have to pay for trial shifts?

If someone is doing real work under your direction, they’re a worker and due at least the minimum wage for every hour. A short, unpaid trial is only safe if it’s a genuine assessment and they aren’t doing productive work.

When does the apprentice rate stop applying?

The £8 apprentice rate covers apprentices under 19, and those aged 19 or over in the first year of their apprenticeship. After that first year, an apprentice aged 19 or over is due the rate for their age.

What should I do if I find I've underpaid someone?

Pay back the arrears, calculated at the current rate if it’s gone up since the error. Then fix the process that caused it and keep records of what you changed. Acas offers free advice if you’re unsure where you stand.

Love this post? why not share it...

About the Author

Paul Chappell

Head of Compliance

Paul is Ascend’s Head of Legislation and Compliance, with over 30 years of experience in tax and payroll, including a decade as a HMRC Tax Inspector. He leads on compliance, keeping the team and clients up to speed with the latest and future changes. When our clients have a specific challenge or complex query, Paul is the man to sort it out. everything PAYE, tax, National Insurance, pensions, keeping Ascend’s team and clients one step ahead of every legislative change.

Let’s have a chat about how we can transform your payroll

"Ready to ascend" - Badge