A recent warning from Money Saving Expert has highlighted that a significant number of UK workers could still be underpaid, even after the latest increase in the National Living Wage. The advice comes amid new figures suggesting widespread non-compliance with minimum wage rules.
The alert urges employees to check their payslips carefully, as underpayment can occur in less obvious ways, including deductions and unpaid working time. With enforcement activity increasing, the issue has drawn renewed public attention.
The National Living Wage rose to £12.71 per hour for workers aged 21 and over on April 1. Yet, according to the Low Pay Commission, 445,000 workers were underpaid in 2024, indicating that legal requirements are not consistently met across all sectors.
Money Saving Expert, founded by Martin Lewis, has framed the wage increase as an opportunity for workers to review whether they are receiving their full legal entitlement. The organisation points to recent government action naming nearly 400 employers, including Costa Coffee, B&M, KPMG and Bupa, for failing to comply with minimum wage laws.
Hidden Deductions and Unpaid Hours Driving Underpayment
One of the most common causes of underpayment relates to job-related expenses. According to Money Saving Expert, costs for uniforms, tools or safety equipment can effectively reduce a worker’s hourly rate if not handled correctly by employers. These deductions must not bring pay below the legal minimum, regardless of how they are applied.
Unpaid working time is another major factor. The organisation notes that activities such as overtime, security checks, handovers, and opening or closing duties must all be included in pay calculations. According to the same source, time spent on call, in training, travelling between work locations or preparing for shifts should also be counted as working hours.
Additional complications arise in roles involving tips or commission. Money Saving Expert stresses that tips cannot be used to make up minimum wage shortfalls and must be paid on top of base pay. Similarly, commission-based earnings do not remove the employer’s obligation to meet minimum wage requirements independently of sales performance.
Accommodation arrangements can also affect wages. Employers are only permitted to offset up to £77.70 per week for housing, and any excess charge must not reduce pay below the statutory threshold, according to the guidance.
Workers Urged to Act as Enforcement Efforts Increase
The issue has gained prominence as enforcement measures have intensified. According to government data referenced by Money Saving Expert, hundreds of employers have recently been publicly named for breaching minimum wage laws, signalling a tougher stance on compliance.
Employees who suspect underpayment may be entitled to claim up to six years of back pay. Money Saving Expert advises raising concerns informally with employers or payroll departments as a first step. If the issue remains unresolved, workers can escalate complaints formally or seek support from trade unions.
Further options include contacting the Advisory, Conciliation and Arbitration Service (ACAS) for guidance. Workers can also report cases to HM Revenue and Customs, which has the authority to investigate and recover unpaid wages. According to the same guidance, individuals may choose to remain anonymous, although providing contact details can assist investigations.
The organisation also notes that some apprentices may be entitled to higher pay if they are not receiving structured training, a detail that could affect eligibility for different wage rates. The warning highlights the complexity of wage compliance and the importance of vigilance. For many workers, checking a payslip may reveal discrepancies that would otherwise go unnoticed.
