Tag: minimum wage

Low Pay Britain: “miserly” sick pay system is punishing low-paid workers, says TUC

LPB-2023Download

The UK workforce expanded in the three months to February, driven by young people leaving full-time education and moving into work, but the longer-term problem of rising ill-health continues to worsen, the Resolution Foundation said in response to the latest ONS labour market statistics yesterday.

The UK workforce continued to expand in recent months, with employment up 170,000 on the quarter, and economic inactivity down 230,000. The fall in inactivity was driven by full-time students: the number of people inactive due to being a full-time student was down 180,000 on the quarter.

The labour market has loosened overall, with short-term unemployment (up to 6 months) rising by 52,000 to above normal pre-pandemic levels, and vacancies falling by 47,000 on the quarter.

Less encouragingly, inactivity among older workers aged 50-64 remains high – up 298,000 on pre-pandemic levels – while the number of people inactive due to ill-health rose to a record high of over 2.5 million.

Reversing this trend – which predated the pandemic – is a huge priority that is likely to take years to address, says the Foundation, and a key test of the new Health and Disability White Paper.

Nominal pay growth strengthened in February, driven by the gap between public-sector (5.3 per cent) and private sector (6.1 per cent) pay growth closing. However, with inflation still at double digits, pay packets continue to shrink in real terms.

Louise Murphy, Economist at the Resolution Foundation, said: “Britain’s workforce continued to expand in early 2023 as thousands of full-time students moved into work. But while the young entered work, but the old and sick did not. Reversing these trends are a major problem for policy makers across government to confront.

“Strong growth in the public sector has helped to close the gap in pay growth with the private sector. But the picture remains that almost all workers across Britain are seeing their pay packets shrink in real terms, which will continue for the foreseeable future.”

Commenting on the Resolution Foundation’s Low Paid Britain Report, which criticises the UK’s lack of decent sick pay, TUC General Secretary Paul Nowak said: “Nobody should be plunged into financial hardship if they become sick. 

“But Britain has one of the most miserly sick pay rates in Europe. 

“This is disproportionately punishing low-paid workers and leaving them without a safety net. 

“We must fix our broken sick pay system by making statutory sick pay available from day one and raising it to the level of the real living wage. 

“The lack of decent sick pay cost us dear during the pandemic. The government should have learned this lesson.” 

On the need for a higher minimum wage and sector-wide fair pay agreements, Paul Nowak added: “Let’s not kid ourselves. Low-paid workers remain under huge financial strain. 

“Energy bills have shot up by £67 a month and food prices are through the roof. 

“It’s time to put an end to low-pay Britain once and for all. That means getting the minimum wage to £15 per an hour as soon as possible.  

“And it means introducing industry-wide fair pay agreements so that all workers have a minimum set of pay and rights.”  

LPB-2023-1Download

TUC calls on ministers to get pay rising, as real wages fall again

Commenting on Tuesday’s labour market figures published by the ONS, which show real wages falling by 4.1 per cent (on CPI measure) as the cost of living crisis intensifies, TUC General Secretary Frances O’Grady said: “Everyone who works deserves financial security. 

“But with the Bank of England predicting the worst decline in real pay for 100 years, energy bills soaring and a recession on the horizon, millions of working families are worried they won’t be able to keep their heads above water this winter. 

“We need action from ministers now. They should cancel the increase to the energy price cap. And they must do far more to get pay rising – starting with boosting the minimum wage this autumn and giving public sector workers a decent pay rise.”  

Zero-hours contracts 

Commenting on the latest data on zero-hours contracts also published by the ONS yesterday, which show more than one million people are employed on these terms, Frances added:  ““The government promised a high skill, high wage economy. 

“But too many workers are stuck on insecure contracts that give them and their families no security. As the cost of living crisis escalates, the case for banning hated zero-hours contracts is stronger than ever.” 

The ONS figures are available at: 

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/august2022  

Latest figures published this morning show INFLATION rose to 10.1% in July.

Carnegie UK Trust report: The future of the Minimum Wage

The UK Government has been urged to hold firm on its commitment to boosting the minimum wage over the course of this parliament, in order to give low paid workers a much needed pay rise. But the government must also take wider measures to boost job quality and tackle poverty, and provide additional support for employers to adapt to higher minimum wage.

New research published by the Carnegie UK Trust and the Learning and Work Institute argues that despite the pandemic and the recession it has triggered, the ambitious minimum wage targets of the next four years are both deliverable and vital for low paid workers.

In 2019, the Government pledged to increase the National Living Wage – the legal minimum wage for workers aged 25 and over – to two thirds of median pay by 2024, and to extend this rate to workers aged 21 and over. Polling commissioned by Learning and Work Institute and Carnegie UK Trust shows that a majority of workers (66%) and businesses (54%) support the move.

The report argues that increases in the minimum wage must be part of a wider mission to support ‘good work’ across the economy.

Polling of employers as part of the research found that 22% of employers with a high proportion of workers on low pay said they may respond to a higher wage floor by using more insecure job contracts, with 17% saying they would cut back on non-pay benefits. 12% of low pay employers said they may remove supervisory or managerial roles in response to a higher minimum wage, risking more ‘bunching’ of workers at or near the wage floor and making progression more challenging. 

The report calls for the increase to the minimum wage to be part of a wider strategy for good work, including promoting sectoral collective agreements in low pay sectors, in order to agree common standards beyond the minimum wage.

While recent increases in the minimum wage have been successful in reducing the number of people on low pay, the number of people in in-work poverty has continued to rise.

This is in part because increases in the wage floor have been accompanied by cuts to in-work benefits for those on low incomes and with high living costs, which have pushed more working people into poverty. Any increases in the wage floor need to be accompanied by better support through the social security system, including through retaining the £20 uplift in Universal Credit which is due to end in April.

The report considers support needed to help employers who are hard hit by the coronavirus pandemic to adapt to the new wage floor.

It calls for a temporary re-balancing of employer national insurance contributions (NICs) as a transitional measure to support employers to adapt and minimise any risks to employment of a higher minimum wage.

Through both increasing the threshold at which employers start to pay NICs, and increasing the rate at which NICs are paid, government could reduce the tax burden on employers who are impacted by the increase, supporting them to adjust to higher wage costs, whilst protecting overall revenue for the Treasury.

Douglas White, Head of Advocacy at Carnegie UK Trust, said: “Good work has a vital role to play in supporting wellbeing – and decent pay is of fundamental importance. Many low pay workers have been on the frontline during the pandemic and we were pleased that November’s spending review confirmed a rise in the minimum wage.

“Our report sets out a path towards future sustainable minimum wage increases – providing support for employers as they recover from the pandemic and ensuring that workers receive the pay rise that they deserve and need.

“We also urge government to be ambitious in driving forward other crucial aspects of their good work agenda, including supporting workers to train and re-skill and making progress to build back a resilient labour market from the pandemic”. 

Joe Dromey, deputy director of research and development at Learning and Work Institute and author of the report, said: “Government can still achieve its commitment to boosting the minimum wage, but this will be trickier after the pandemic. A temporary rebalancing of employer national insurance contributions would help businesses to adapt to a higher wage floor, minimising any potential job losses.

“While increasing the minimum wage would deliver a much-deserved pay rise to millions of low-paid workers, this alone will not tackle the scourge of in-work poverty. Government must ensure sufficient support through the social security system, starting by retaining the £20 increase in Universal Credit.”

We have published the final report in our series looking at the future of the minimum wage, and exploring its impact on workers, employers and the economy.

The UK’s minimum wage is widely regarded as a successful policy which has achieved broad political support over the last two decades, and successfully reduced extreme low pay without damaging employment.

Despite these successes, a rising minimum wage has not been enough to tackle in-work poverty.

And even before the pandemic inflicted severe pressures on the economy, there was a need to understand the ability of businesses to adapt to a higher wage floor, and ask whether changes made by employers to accommodate higher pay might compromise other important aspects of job quality, such as progression or terms and conditions.

Given the significant impact of the pandemic on the economy and household income, the future of the minimum wage is even more important and contested. Low paid workers need a pay rise, but businesses may need extra support to adapt to a higher wage floor.

Our report makes recommendations about the future path of the minimum wage, and sets out proposals for how an increased minimum wage can be delivered as part of a wider labour market strategy that promotes good work and tackles in-work poverty.

We would be delighted to hear your views on the ideas in the report.

You can get in touch with us on Twitter @CarnegieUKTrust, using the hashtag #MinimumWage or you can let us know your thoughts by emailing Gail Irvine, Senior Policy and Development Officer, ongail.irvine@carnegieuk.org.

Kind regards,

Sarah Davidson

Chief Executive, Carnegie UK Trust

Twitter: @CarnegieUKTrust

www.carnegieuktrust.org.uk

Rogue firms named and shamed for minimum wage breaches

Tesco, Superdrug and St Johnstone FC among culprits

  • 139 companies, including major household names, have short-changed their employees and have been fined
  • offending firms failed to pay £6.7 million to their workers, in a completely unacceptable breach of employment law
  • Business Minister Paul Scully says the list should be a ‘wake-up call’ to rogue bosses, as department relaunches naming scheme after 2-year pause

Almost 140 companies, including some of the UK’s biggest household names, are being named and shamed today for failing to pay their workers the minimum wage.

Investigated between 2016 and 2018, the 139 named companies failed to pay £6.7 million to over 95,000 workers in total, in a flagrant breach of employment law. The offending companies range in size from small businesses to large multinationals who employ thousands of people across the UK.

Preserving and enforcing workers’ rights is a priority for this government. While the vast majority of businesses follow the law and uphold workers’ rights, the publication of the list is intended to serve as a warning to rogue employers that the government will take action against those who fail to pay their employees properly.

This is the first time the government has named and shamed companies for failing to pay National Minimum Wage since 2018, following reforms to the process to ensure only the worst offenders are targeted.

Business Minister Paul Scully said: “Paying the minimum wage is not optional, it is the law. It is never acceptable for any employer to short-change their workers, but it is especially disappointing to see huge household names who absolutely should know better on this list.

“This should serve as a wake-up call to named employers and a reminder to everyone of the importance of paying workers what they are legally entitled to.

“Make no mistake, those who fail to follow minimum wage rules will be caught out and made to pay up.”

One of the main causes of minimum wage breaches was low-paid employees being made to cover work costs, which would eat into their pay packet, such as paying for uniform, training or parking fees.

Also, some employers failed to raise employees’ pay after they had a birthday which should have moved them into a different National Minimum Wage bracket.

Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates. They also face hefty financial penalties of up to 200% of arrears – capped at £10,000 per worker – which are paid to the government. Each of the companies named today have paid back their workers, and were forced to pay financial penalties.

While not all breaches of minimum wage rules are intentional, it is the responsibility of all employers to ensure they are following the law. With this round, we are also publishing a short educational bulletin that summarises public guidance on paying workers and common reasons for underpayment – helping to ensure that workers are not short-changed in future.

National Minimum Wage Naming Scheme, Round 16: educational bulletin

The companies the government is naming today were served a notice of underpayment between September 2016 and July 2018, following investigations by HMRC.

Last month, the government announced a measured increase in National Living Wage and National Minimum Wage rates, which will come into effect from April 2021. Every worker is entitled to the National Minimum Wage, no matter their age or profession.

This is the full list of companies named for failing to pay the National Minimum Wage:

  • Tesco stores Limited, Welwyn Hatfield AL7, failed to pay £5,096,946.13 to 78,199 workers
  • Pizza Hut (U.K.) Limited, City of Edinburgh WD6, failed to pay £845,936.41 to 10,980 workers
  • The Lowry Hotel Limited, trading as The Lowry Hotel, Salford EC4A, failed to pay £63,431.51 to 99 workers
  • Doherty & Gray Limited, Mid and East Antrim BT42, failed to pay £43,470.16 to 128 workers
  • Independent Care & Support Ltd, Medway ME2, failed to pay £40,275.17 to 55 workers
  • Amber Valley Council for Voluntary Services, trading as Amber Valley Centre for Voluntary Services, Amber Valley DE5, failed to pay £37,346.46 to 104 workers
  • Premier Care Limited, Salford M27, failed to pay £31.198.61 to 407 workers
  • Hill Biscuits Limited, Tameside OL7, failed to pay £25,867.06 to 247 workers
  • Sendon Garage Services Limited, Lambeth SW8, failed to pay £24,869.52 to 2 workers
  • Natural Nails Beauty London Ltd, Haringey N15, failed to pay £15,265.58 to 4 workers
  • Superdrug Stores PLC, Croydon CR0, failed to pay £15,228.57 to 2222 workers
  • St Johnstone Football Club Limited (The), Peth and Kinross PH1, failed to pay £14,266.74 to 28 workers
  • Home Grown Hotels Limited, New Forest SO43, failed to pay £13,790.44 to 25 workers
  • Rebus Construction Ltd, Hart RH12, failed to pay £13,379.94 to 5 workers
  • Mrs Emma Hartley, trading as Whitehall Hairdressing, Leeds, failed to pay £12,882.14 to 2 workers
  • The Walshford Inn Limited, trading as The Bridge Hotel & Spa, Harrogate W1W, failed to pay £11,947.23 to 26 workers
  • Southern Health and Social Care Trust, Armagh City, Banbrige and Craigavon, failed to pay £11,285.34 to 269 workers
  • Müller UK & Ireland Group LLP, Shropshire TF9, failed to pay £10,702.11 to 54 workers
  • Dakota Forth Bridge Limited – Dissolved 20/03/2020, City of Edinburgh S70, failed to pay £10,236.50 to 4 workers
  • Pinnacle PSG Limited, City of London NW1, failed to pay £10,166.03 to 10 workers
  • Preystone Property Investments Limited, trading as Battlesteads Hotel and Restaurant, Northumberland NE48, failed to pay £9767.15 to 26 workers
  • Western Brand Poultry Products (NI) Ltd, Fermanagh and Omagh BT92, failed to pay £9,275 to 50 workers
  • Nahid Residential Limited, trading as Manor House Hotel, Guildford GU1, failed to pay £9,159.53 to 5 workers
  • Norfolk Coastal Pubs Limited, trading as The Golden Fleece, North Norfolk NR23 failed to pay £8,141.69 to 14 workers
  • Worldwide Foods (Birmingham) Limited, trading as Al-Halal Supermarket, Birmingham B10, failed to pay £8,062.88 to 1 worker
  • Eat Food Limited, trading as Albatta Restaurant, Colchester CO1, failed to pay £7,987.15 to 5 workers
  • G & J Properties Limited, Bolton BL7, failed to pay £7,858.16 to 1 worker
  • Adi’s Hand Car Wash Ltd – Dissolved 19/02/2019, Barking and Dagenham RM8, failed to pay £7,750.84 to 2 workers
  • South Eastern Health and Social Care Trust, Lisburn and Castlereagh BT16, failed to pay £7,564.66 to 193 workers
  • Discount Wallpapers Limited, trading as O’Neills Decorating Centre, Bolton WA12, failed to pay £7,446.14 to 11 workers
  • Sturgess & Thompson Limited, Leicester LE1, failed to pay £7,385.40 to 2 workers
  • Belfast Health and Social Care Trust, Belfast BT9, failed to pay £7,303.41 to 192 workers
  • Helio Leisure Limited, trading as Helio Fitness, Fylde FY3, failed to pay £7,298.69 to 26 workers
  • Northern Health and Social Care Trust, Antrim and Newtownabbey, failed to pay £6,900.72 to 146 workers
  • Hoar Cross Hall Limited, East Staffordshire OX7, failed to pay £6,651.94 to 26 workers
  • Renard Resources Limited, Westminster WC2E, failed to pay £6,492.95 to 484 workers
  • Imago @ Loughborough Limited ,Charnwood LE11, failed to pay £6,319.05 to 101 workers
  • Western Health and Social Care Trust, Derry City and Strabane, failed to pay £6,170.97 to 170 workers
  • Littlemoss Preservation Limited, Tameside M43, failed to pay £5,434.18 to 4 workers
  • Mr Phillip Brookman, trading as Phillip Brookman Decorator & Plasterer, Cardiff failed to pay £5,141.70 to 1 worker
  • O & H Electrical Limited, Torbay TQ2, failed to pay, £5,139.02 to 6 workers
  • Mr Jonathan Evans, trading as Jonty Evans Equestrian Activities, Gloucester, failed to pay £5,008.16 to 5 workers
  • SKL Professional Recruitment Agency Limited, trading as SKL Homecare, Hertsmere WD19, failed to pay £4,628.69 to 43 workers
  • Wigan Rugby League Club Limited, trading as Wigan Warriors, Wigan WN5, failed to pay £4,559.24 to 1 worker
  • Mr Blerim Bajrami, trading as Secure Hand Car wash, Cannock Chase, failed to pay £4,475.01 to 3 workers
  • Tring Park Day Nursery Ltd, Dacorum HP23, failed to pay £4,415.63 to 2 workers
  • Pet Charmer Ltd – Company in liquidation April 2019, trading as Wild Animal Adventures and Pet Mania, Stockton-on-Tees LS15, failed to pay £4,168.90 to 1 worker
  • WKW Partnership Limited, trading as Cairngorm Hotel, Highland KA21, failed to pay £4,057.00 to 7 workers
  • Mr Roan Bradshaw and Ms Joy Bradshaw, trading as First Glance, Lewisham, failed to pay £3,997.58 to 1 worker
  • Costco Wholesale UK Limited , Hertsmere WD25, failed to pay £3,747.52 to 58 workers
  • Gregg Little Testing Centre Limited, County Durham TS18, failed to pay £3,703.90 to 4 workers
  • Solent Build Group Limited – Company Status Liquidation 06/12/2018, Southampton SO51, failed to pay £3,676.33 to 1 worker
  • Blakerin International Holdings Limited, trading as Cumbria Park Hotel, Carlisle LA12, failed to pay £3,611.13 to 46 workers
  • Multitech Site Services Limited, Uttlesford CM6, failed to pay £3,294.52 to 1 worker
  • Dr Jaskaram Bains and Dr Bernie Chand, Hanwell Dental Practice, Unknown, failed to pay £3,072.25 to 5 workers
  • Byron Hamburgers Limited, Westminster W1D, failed to pay £3,062.03 to 77 workers
  • Nina’s Nursery (Davenport) Limited, Stockport SK2, failed to pay £3,058.20 to 18 workers
  • Walton Bannus Estates Limited, Harborough LE17, failed to pay £3,051.60 to 2 workers
  • Circus in Schools Limited – Notice of voluntary strike-off – Nov 17, Cornwall TR13, failed to pay £2,958.85 to 2 workers
  • KKM Enterprises Limited- Liquidation- 23/08/2019, trading as The Cleaning Company, Redbridge B77, failed to pay £2,876.68 to 4 workers
  • The Bobby Dhanjal Practice Limited, trading as Bobby Dhanjal Wealth Management, Blaby LE19, failed to pay £2,868.69 to 3 workers
  • Manor House Country Hotel Limited, Fermanagh and Omagh BT94, failed to pay £2,837.04 to 139 workers
  • Morden Estates Company Limited, Dorset BH20, failed to pay £2,761.45 to 43 workers
  • The Education Development Service Ltd, Telford and Wrekin TF4, failed to pay £2,520.40 to 2 workers
  • Mr Malcolm Gilmour and Mr David Gilmour, trading as Gilmour Bros, South Lanarkshire, failed to pay £2,446.58 to 3 workers
  • Storrs Hall Limited, South Lakeland BB1, failed to pay £2,402.23 to 3 workers
  • DCS&D Limited Heritage Healthcare, Darlington DL1, failed to pay £2,393.39 to 13 workers
  • Rainbow Room (East Kilbride) Limited, South Lanarkshire G74, failed to pay £2,378.77 to 15 workers
  • Mr Darran Vaughan, trading as VAS Car Sales, Newry, Mourne and Down, failed to pay £2,351.41 to 1 worker
  • Mr Gnanenran Arumugam, trading as Lavender Convenience Store, Cheshire East, failed to pay £2,335.88 to 1 worker
  • The Calderdale Community Childcare Company Ltd, Calderdale HX2, failed to pay £2,321.81 to 2 workers
  • Gzim Workshop Limited Valeting Car wash, Haringey N17, failed to pay £2,297.21 to 3 workers
  • Alaska Fast Foods Ltd – Dissolved 05/02/2019, trading as Freddy’s Chicken & Pizza, Hyndburn M21, failed to pay £2,180.93 to 7 workers
  • Tracy Hart, trading as Little Oaks Pre School, Dacorum, failed to pay £2,134.47 to 1 worker
  • Chi Yip Group Limited , Oldham M24, failed to pay £2,121.51 to 14 workers
  • Four Pillars Hotels Limited, Harrogate HG2, failed to pay £2,092.55 to 29 workers
  • Mr William Fleeson, trading as Rainbow Room International, Stirling, failed to pay £2,089.66 to 11 workers
  • D & D Decorators Limited, East Ayrshire KA3, failed to pay £2,080.35 to 1 worker
  • Kiddi Day Care Limited-Liquidation of the company commenced Feb 2019, trading as Blue Giraffe Childcare, Birmingham SA1, failed to pay £1,978.57 to 9 workers
  • Dessian Products Limited, Belfast BT12, failed to pay £1,885.00 to 1 worker
  • Crewe Hotel Trading Limited, trading as Holiday Inn Express Crewe, Cheshire East S43, failed to pay £1,871.52 to 19 workers
  • Fast Fresh Ltd- Liquidated Dec 2019, trading as Subway, Sunderland BN1, failed to pay £1,833.02 to 3 workers
  • Document Transport Limited, trading as Kegworth Hotel, North West Leicestershire PE2, failed to pay £1,801.07 to 10 workers
  • Larne Coachworks Limited, Mid and East Antrim BT1, failed to pay £1,791.69 to 1 worker
  • Mrs Therese Ann Binns, trading as Winston Churchill, Bradford, failed to pay £1,774.35 to 3 workers
  • Mr Brian Wilde, Ms Mariella Gabbutt, Mr Tony Wilde, Mr Joseph Wilde, trading as J & B Wilde & Sons, Manchester, failed to pay £1,717.23 to 4 workers
  • UKS Group Limited, Bristol, City of BS1, failed to pay £1,666.88 to 13 workers
  • LM Bubble Tea Ltd, trading as Mooboo, Liverpool L15, failed to pay £1,628.49 to 14 workers
  • The Wensleydale Heifer Limited, Richmondshire DL8, failed to pay £1,625.89 to 3 workers
  • Fewcott Healthcare Limited, Cherwell OX27, failed to pay £1,575.00 to 2 workers
  • Hotel Birmingham Ltd , trading as Travellers Inn, Sandwell B69, failed to pay £1,516.25 to 3 workers
  • Keasim Glasgow Limited, trading as Malones Glasgow, Glasgow City G2, failed to pay £1,503.43 to 1 worker
  • Shades Hair Design Limited- Dissolved 18/12/2018, trading as Shades Hair & Beauty, Bridgend CF32, failed to pay £1,487.98 to 2 workers
  • Signature Inns Limited, trading as Westmead Hotel, Bromsgrove B48, failed to pay £1,456.81 to 5 workers
  • Kingsland Engineering Company Limited (The), North Norfolk NR26, failed to pay £1,331.79 to 4 workers
  • The Roxburghe Hotel Edinburgh Limited (we have been notified that this company is no longer operating and that the Roxburghe Hotel is under new management), City of Edinburgh EH3, failed to pay £1,317.43 to 47 workers
  • Business Services Organisation, Belfast BT2, failed to pay £1,310.69 to 32 workers
  • Clare McFarlane and Suzanne McGill, trading as Rainbow Room International, South Lanarkshire, failed to pay £1,304.77 to 16 workers
  • Mrs Krystle Purdy, trading as Krystalized, Epping Forest, failed to pay £1,294.13 to 1 worker.
  • Oakminster Healthcare Limited, trading as Cumbrae House Care Home, Glasgow City G41, failed to pay £1,292.30 to 21 workers
  • Rainbows Day Care (Pembrokeshire) Limited-Company dissolved 03/03/2020, Pembrokeshire SA66, failed to pay £1,273.38 to 46 workers
  • Maltings Entertainment Limited, trading as Carbon Nightclub and The Mill Bar and Grill Restaurant, Mid Suffolk IP6, failed to pay £1,263.44 to 1 worker
  • Ben Ong UK Limited – Company Status Liquidation 28/11/2018, Barnet N12, failed to pay £1,257.12 to 3 workers
  • Mr Nosh Fusha, trading as Green Lane Car Wash, Walsall, failed to pay £1,254.73 to 1 worker
  • Cygnet Health Care Limited, Tonbridge and Malling TN15, failed to pay £1,249.55 to 15 workers
  • Thurlaston Meadows Care Home Ltd, Rugby CV23, failed to pay £1,223.54 to 1 worker
  • Trent Park Catering Limited Companies Status- Active Proposal to Strike Off, trading as Trent Park Café, Enfield EN4, failed to pay £1,213.77 to 10 workers
  • Lord Hill Hotel Limited, Shropshire SY2, failed to pay £1,168.91 to 18 workers
  • Smart Solutions (Recruitment) Limited, Newport NP18, failed to pay £1,152.09 to 90 workers
  • Black Rock Hotels Limited, trading as Leighinmohr House Hotel,Mid and East Antrim BT42, failed to pay £1,138.05 to 30 workers
  • Gino’s Dial-A-Pizza Ltd, Cannock Chase WS11, failed to pay £1,117.38 to 7 workers
  • Mitras Automotive (UK) Limited, Cheshire West and Chester CW7, failed to pay£1,048.29 to 3 workers
  • Anjana Bhog Sweets Limited-Dissolved 17/09/19, Brent UB3, failed to pay £1,020.00 to 1 worker
  • Mr Mohammed Nasir, trading as Omar Khayyam, City of Edinburgh, failed to pay £935.31 to 2 workers
  • About Face Beauty Clinic Limited, Glasgow City G74, failed to pay £924.51 to 6 workers
  • Mr Howard Coy, trading as H Coy & Son, Melton failed to pay £902.29 to 1 worker
  • Jameson Knight Estates Limited-Dissolved 29/01/2019, Tower Hamlets E2, failed to pay £885.06 to 2 workers
  • Croome International Transport Limited, Maidstone ME17, failed to pay £869.19 to 8 workers
  • Rainbow Room (24 Royal Exchange Square) Limited, Glasgow City G1, failed to pay £851.70 to 6 workers
  • The Coaching Inn Group (No2) Limited-Application for voluntary strike-off – Dec 2019, Boston PE21, failed to pay £811.88 to 2 workers
  • Cotswold Motor Group Limited, Cheltenham GL51, failed to pay £796.31 to 2 workers
  • Glenpac Bacon Products Limited , Newry, Mourne and Down BT35, failed to pay £752.02 to 2 workers
  • Mistsolar Limited, trading as Bridgend Ford, Bridgend CF31, failed to pay £739.00 to 1 worker
  • Robinson’s of Failsworth (Bakers) Limited, Tameside M35, failed to pay £736.82 to 9 workers
  • Mr Timothy Lock and Mrs Beatrice Lock, trading as Woodborough Hall, Gedling, failed to pay £723.60 to 2 workers
  • Nova Display Limited, Leeds LS25, failed to pay £722.78 to 1 worker
  • Dessert House on the River Limited- Compulsory notice to strike off – 17/03/20 suspended 29/04/20, trading as Kaspa’s Desserts, Lewisham M16, failed to pay £719.10 to 1 worker
  • Mr Edwin Minchin, trading as Eddie’s Diner, Great Yarmouth, failed to pay £670.13 to 3 workers
  • The Izaak Walton Hotel (Dovedale) Ltd, Staffordshire Moorlands LA22, failed to pay £667.60 to 2 workers
  • Mr David Blake, trading as Foxhills Farm and Riding Centre, Walsall, failed to pay£667.54 to 1 worker
  • Shaoke Hospitality Ltd- Dissolved 30/04/2020, trading as Mooboo, Leeds L15, failed to pay £664.94 to 5 workers
  • Richard Webster & Co Limited, Eastleigh SO50, failed to pay £621.23 to 1 worker
  • Newemoo Limited, Birmingham B5, failed to pay £591.86 to 2 workers
  • Regional Buildings Assessments LLP, Hyndburn BB1, failed to pay £562.89 to 2 workers
  • Ace Hospitality Ltd, trading as Holiday Inn Express Birmingham- South A45, Birmingham B73, failed to pay £556.15 to 14 workers
  • Mrs Elizabeth Norris and Dr Terry Hooper, trading as St Bart’s Day Nurseries, Dover, failed to pay £552.53 to 9 workers
  • The Club Company (UK) Limited, Wokingham RG10, failed to pay £540.30 to 11 workers
  • Eat Tokyo Limited, Barnet NW11, failed to pay £530.83 to 2 workers
  • Molescroft Nursing Home (Holdings) Limited, trading as Beverley Grange Nursing Home, East Riding of Yorkshire HU13, failed to pay £510.24 to 1 worker

The Naming Scheme was paused in 2018 so that an evaluation into its effectiveness could be carried out. On 11 February 2020 the government announced that the Naming Scheme would resume.

The government undertook a review of the Naming Scheme in order to ascertain its effectiveness and ensure naming was used in the most efficient way. The review was published in February 2020.

Report explores employer views on Minimum Wage

New research shows there is broad employer support for further increases to the minimum wage, but that government must help businesses to adapt to a higher wage floor.

The report – based on a survey of over 1,000 businesses conducted at the outset of the coronavirus crisis – shows that over half (54%) support the UK government’s policy of increasing the national living wage to two-thirds of median income by 2024, with fewer than one in ten (9%) opposing this move.

The report – produced by Learning and Work Institute and Carnegie UK Trust – finds that most employers said that the increase would not have a negative impact on their business, or on wider UK employment. A majority (54%) of businesses said that a higher minimum wage could help boost UK productivity.

The report showed that there was more concern among the employers that would be most impacted by an increase in the minimum wage, and among the sectors hit hardest by coronavirus.

Over half (55%) of employers with higher levels of low pay said the planned increase in the minimum wage would have a negative impact on their business, nearly double the figure for all employers (29%). Employers in hard hit sectors such as hospitality (41%) and retail (38%) were also more likely to fear a negative impact on their business.

While half (50%) of businesses said that they would not need to do anything to respond to a higher minimum wage, some employers said they would have to make changes which could have implications for consumers and workers:

  • 22% of businesses said they would pass the cost on to consumers;
  • 15% would hire fewer members of staff;
  • 10% would increase the use of temporary or flexible contracts;
  • 10% would also reduce staff benefits such as bonuses, breaks and discounts.

Most employers believe additional government support would be necessary to help employers manage an increase in the minimum wage. The most popular measure was additional help to invest in skills and training (supported by 37% of employers) followed by a temporary reduction in national insurance contributions (33%). Just one in six (17%) said government should not provide any support to employers.

Joe Dromey, deputy director for research and development at Learning and Work Institute, said: “Increasing the minimum wage could eradicate low pay, and help to tackle in-work poverty. Our research has shown that not only is a higher minimum wage popular among workers – it is supported by most employers too.

“The government can still deliver on their commitment to increase the minimum wage. But with higher unemployment as a result of the coronavirus crisis, we need to ensure that employers are supported to adapt.”

Douglas White, Head of Advocacy at the Carnegie UK Trust, said: “That most employers support a higher minimum wage is encouraging: even before the onset of the pandemic, there were too many workers struggling on low pay.

“The economic challenges caused by COVID-19 means it is even more important that future decisions around the minimum wage are ambitious in delivering better pay for low paid workers, while recognising the real challenges that many businesses are experiencing and providing them with essential support. 

“We hope the ideas put forward in our employers’ survey are a helpful starting point for a dialogue about how the government can pursue its ambition to raise the wage floor without endangering job quality or employment.’  

In our next and final report in the Future of the Minimum Wage series, we will set out recommendations for how government can achieve a balance between raising the wage floor, locking in job quality and protecting employment for more workers.

We would be pleased to hear your views on the findings of the report and the future of minimum wage policy in the UK.

You can get in touch with us on Twitter @CarnegieUKTrust, using the hashtag #MinimumWage, or you can let us know your thoughts by emailing Gail Irvine, Senior Policy and Development Officer, on gail@carnegieuk.org.

“Broken economy” is driving record levels of household debt, warns TUC

Low pay, insecure work and austerity are feeding a growing debt crisis, the TUC has warned.

New TUC analysis published today shows that:

  • Unsecured debt per household rose to £15,880 in the first quarter of 2019, up £1,160 on a year earlier.
  • Over half of households report having unsecured debt, most commonly in the form of credit card debt (60%), overdraft (28%), personal loans (25%) and car finance (25%).
  • Young people are disproportionately likely to be in debt. 70% of 18-34 year-olds report having a type of unsecured debt. This drops to 33% among people over 65.

The TUC believes that persistent low pay is the key driver of household debt. Real wages are still lower than they were before the 2008 crisis and working families are struggling to make ends meet without going into the red.

The latest analysis also shows that of those households with unsecured debt:

  • 1 in 5 say repayments are a “heavy burden on their finances”.
  • 1 in 7 (14%) have fallen more than two months behind on repayments in the last year.
  • 45% don’t feel that they have enough money set aside for emergencies.

TUC General Secretary Frances O’Grady said: “Our broken economy is forcing working families deep into debt.

“Low pay, insecure work and austerity have pushed millions of households to the financial cliff edge. Big corporations are raking in huge profits at working people’s expense. And successive governments have done nothing to avert the crisis.

“It’s time to reset the balance of power in our workplaces and our economy. Government must make more employers negotiate pay and conditions with unions. That will lift wages for everyone and stop working families having to rely on credit cards and overdrafts to get through the month.”

The TUC has published new proposals to ensure that workers get the chance to negotiate better pay and conditions through trade unions. These include:

– unions having access to workplaces to tell workers about the benefits of trade union membership, following the model in New Zealand

– new rights to make it easier for unions to gain the right to negotiate at workplace level

– new rights for unions to negotiate right across sectors, starting with hospitality and social care

The TUC is also calling for:

  • a £10 National Minimum Wage to be introduced as quickly as possible
  • a ban on zero-hours contracts, and a crack down on insecure work that means people don’t know how much they’ll earn from one week to the next

Biggest ever increase to National Living Wage comes into effect

  • Full-time workers receiving National Living Wage will be more than £2,750 better off a year compared to 2015, when the rate was first announced
  • the National Living Wage will go up today by the highest rate since it was first introduced, increasing by almost 5% to £8.21 per hour
  • 2.1 million workers set to benefit from minimum wage increases, including almost 800,000 retail and hospitality workers
  • increases to the minimum wage rates form part of government’s commitment to protect the UK’s lowest paid workers through its modern Industrial Strategy

1.8 million workers earning the National Living Wage (NLW) will receive an additional £690 over the year from today (Monday 1 April), as the biggest ever increase to NLW comes into effect. Continue reading Biggest ever increase to National Living Wage comes into effect

£15.6 million underpayment identified for workers on the minimum wage

More than 200,000 workers who were paid less than the minimum wage have been identified following a record government clampdown.

  • Record £15.6 million of underpayment identified for more than 200,000 workers
  • Employers fined unprecedented £14 million for not meeting legal obligations
  • More than 600 employers named in 2017/18 as part of ‘naming’ rounds
  • Ramped up efforts by HMRC to crackdown on underpayment and boost compliance

Her Majesty’s Revenue and Customs (HMRC) achieved record enforcement results this year, identifying £15.6million of underpayments.

The number of workers identified as underpaid was double that in 2016/17 and the highest number since the National Minimum Wage came into force. In every case, the government instructs employers to repay their workers and enforces the return of the missing cash.

The rise in cases follows increased efforts by HMRC to promote compliance and improve employer awareness of the minimum wage.

Business Minister Kelly Tolhurst, said: “We are dedicated to stopping underpayment of the minimum wage. Employers must recognise their responsibilities and pay their workers the money they are entitled to.

“The UK’s lowest paid workers have had the fastest wage growth in 20 years thanks to the National Living Wage and today’s figures serve as a reminder to all employers to check they are getting their workers’ pay right.”

Over the past year, 56 employers took advantage of a HMRC pilot scheme where employers were encouraged to come forward outside of an investigation. This resulted in nearly £250,000 in arrears being declared for just under 700 workers.
The year also set a new record for penalties issued by the government, with £14 million in fines issued to employers.

More than 600 employers who were found to have underpaid their workers the minimum wage were named in 2017/18. This is the largest number in any single year since the scheme began in 2014.

This year, the social care, retail, commercial warehousing and gig economy sectors have been prioritised by HMRC for enforcement of the minimum wage. This is alongside employment agencies, apprentices and migrant workers. These sectors are where non-compliance with National Minimum Wage is believed to be more widespread.

Penny Ciniewicz, HMRC Director General of Customer Compliance, said:
“HMRC is committed to ensuring that workers receive the wages they are legally entitled to, irrespective of their employer’s size or business sector, and today’s figures highlight our success over the last year.

“If anyone thinks they are not receiving at least the minimum wage, they can contact the Acas helpline on 0300 123 1100 in confidence or submit a query online through our complaints form.”

Low Pay Commission Chairman Bryan Sanderson said: “All workers are entitled to be paid at least the minimum wage, so it is good to see increased focus on enforcement bearing fruit and securing more arrears for more workers.

“Awareness of the minimum wage is vital for workers and employers alike, and strong enforcement is critical to its success.”

Funding for minimum wage enforcement has reached record levels, rising to £26.3 million in 2018/19 from £20 million in 2016/17.

For more information about your pay, or if you think you might be being underpaid, get advice and guidance at www.gov.uk/checkyourpay. Workers can also seek advice from workplace experts Acas.