Two days after an MP tried (and failed) to lower the age limit for the National Living Wage, the government named 233 employers for failing to pay the National Minimum Wage to their workers. 

Sponsored by Holly Lynch, the Labour MP for Halifax, the aim of the private member’s bill was to bring in legislation so that the National Living Wage (currently £7.83 per hour for over 25s) applied to all workers aged 18 to 20 who currently receive only £5.90 per hour, while those aged 21 to 24 are entitled to receive £7.38 per hour.

As a result of the policy introduced in 2016 allowing employers to pay under 25s less than other workers under the law, Ms Lynch argued that some employers were circumventing age discrimination legislation by actively seeking to recruit under 25s in order to cut wage costs.

Although the National Living Wage (Extension to Young People) Bill was adjourned at its second reading, the debate will be resumed on 23 November.

Two days after the bill ran out of time, the government announced the names of 233 employers who had underpaid 22,400 UK workers by a total of £1.44 million. The back pay identified by HMRC was for more workers than in any previous single naming list and has generated record fines of £1.97 million.

The top five reasons for National Minimum Wage underpayments given by employers were:

  • taking deductions from wages for costs such as uniforms
  • underpaying apprentices
  • failing to pay travel time
  • misusing the accommodation offset
  • using the wrong time periods for calculating pay.

Neil Todd of Thompsons Solicitors commented: “TUC research has suggested that there are at least a quarter of a million workers who are being denied pay in accordance with the National Minimum Wage. HMRC has indicated it is committed to addressing this problem but there is still much more to do.

“Holly Lynch’s Private member’s Bill should also have cross-party support. Research by the House of Commons Library shows that an 18 year old working full time on the minimum wage will earn £3,774 a year less than an equivalent colleague aged 25 or over.

“No cogent argument has been put forward by the Government as to why this disparity in treatment is justified. Young workers are no less deserving and should be afforded the same protections.”

Visit the government website for advice about pay and visit the Acas website for guidance.

Visit the UK parliament website to read the debate in its entirety.