In the latest round of checks (17 October 2025) under the national Minimum Wage naming scheme, HMRC has published details of almost 500 employers across the UK that have been issued penalties which total over £10 million. With around 42,000 employees receiving back-dated pay totalling over £6 million.
What is the national minimum wage naming scheme, and why does it exist?
The national minimum wage naming scheme is a UK government initiative used to identify employers who fail to pay employees the correct minimum wage. Once identified, the results are made available to the public.
A reminder that in April 2025, minimum wages were increased as shown below:
| 2024 rate | 2025 rate | |
| National Living Wage (21 and over) | £11.44 | £12.21 |
| 18 to 20 | £8.60 | £10.00 |
| Under 18 | £6.40 | £7.55 |
| Apprentice | £6.40 | £7.55 |
Some of the reasons for non-compliance are highlighted below:
– Failure to pay apprentices the correct rate of pay if they are 19 years old and have completed their first-year apprenticeship. Once their first-year apprenticeship is completed, they are entitled to the national minimum or living wage for their age group, which, as you can see from the above table, is a large increase.
– Failure to increase an employee’s wage after a birthday takes them into the next group. Keeping accurate records of your employees will ensure this situation doesn’t happen.
– Issues with final pay when employment has come to an end.
– Deductions or payments that take pay below the minimum wage. One of the typical deductions I see here is training costs. However, I see other deductions for parking, meals, with the list being endless. If you are making deductions from an employee’s salary, you must ensure this does not take them below the national minimum wage.
– Incorrect worker type. Are your employees paid a basic salary for a fixed contracted number of hours? Are they paid for hours worked, or piecework? Ensuring your contract of employment is watertight whilst complying with the agreed hours and salary will prevent underpayments to employees.
Here at Lambert Chapman, we have robust systems in place, with a wealth of knowledge from our expert payroll staff, to ensure that, as an employer, you will meet all the current national minimum wage requirements.
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.