The Department for Business and Trade has published its latest report on National Minimum Wage (NMW) and National Living Wage (NLW) compliance and enforcement for the 2024/25 financial year.
Is the national living wage legally required?
According to the data, 25,200 workers were underpaid in 2024/25, with £5.8 million being paid in arrears. HMRC issued 750 penalties to employers during the same period totalling £4.2 million. The report highlights that the number of workers being underpaid has been decreasing since 2019/20, reaching its lowest level since 2015/16. This reduction is attributed to improved compliance amongst larger retail employers and HMRC’s targeted enforcement activities in this sector.
In 2024/25, HMRC closed 4800 cases with around 1200 cases resulting in workers being paid arrears, an increase from the previous year. Three employers were successfully prosecuted for underpaying the minimum wage.
The Government says that from 2026, the new Fair Work Agency will be responsible for publishing data on NMW and NLW enforcement. Through the Employment Rights Bill, the Government plans to establish the Fair Work Agency from April 2026 to act as a single enforcement body for employment rights, including statutory payments such as NMW/NLW, holiday pay and Statutory Sick Pay.