HMRC cracks down on employers paying less than minimum wage, details of the Zero Carbon Services Hospitality Trial and the UK’s economic growth is set to slow more than expected
HMRC have named 518 employers who have paid staff less than minimum wage, we give you the low down on the Zero Carbon Services Hospitality Trial and disappointing news as the UK’s economic growth is set to slow more than expected.
Named and Shamed: Employers Failing to Pay Minimum Wage
In its latest round of investigations, HM Revenue and Customs (HMRC) have named 518 employers who have failed to pay the National Living or National Minimum Wage correctly to their staff.
A total of £7.4 million will be paid by these employers to almost 60,000 workers. In addition, the employers face financial penalties of up to 200% of the amount they underpaid.
HMRC accepts that not all minimum wage underpayments are intentional, however it is clear that they will take enforcement action wherever they find employers are not paying staff correctly.
The government has provided a resource for workers to check what they are being paid and are encouraging them to use this. Support is also available from Acas.
What does this mean for employers?
Where you employ staff, it’s key that you make sure that all your staff are at least paid the National Living or National Minimum Wage rate that applies to them.
This is not always straightforward as there can be several factors to consider. It’s advisable to check the guidance each time you take on a new employee. Some common errors employers make include:
- Making a wage deduction for items or expenses that relate to the job.
- Making wage deductions that are for the employer’s own use and benefit.
- Failing to pay for additional time added on to an employee’s shift.
- Failing to pay for time spent travelling on business.
- Failing to pay an employee for time they spend training.
- Failing to apply the annual rate increase on 1 April
Rates for 2025/26
Beginning 1 April 2025, the National Living and National Minimum Wage rates are as follows:
| Rate per hour | |
| National Living Wage (21 and over) | £12.21 |
| 18 to 20 | £10.00 |
| Under 18 | £7.55 |
| Apprentice | £7.55 |
If you need any help with paying your staff the correct amount or understanding how the Minimum Wage legislation applies, please get in touch at any time. We would be happy to help you!
See: https://www.gov.uk/government/news/over-74-million-put-back-in-working-peoples-pockets-by-employers
Emissions Cutting Trial to Benefit Hospitality Businesses
The government has published details of a new emissions cutting trial that could benefit UK pubs, cafes, restaurants and hotels.
The Zero Carbon Services Hospitality Trial will run from May 2025 until March 2026 and has been provided with £350,000 of funding. The trial will put hospitality business owners in direct contact with the expertise of trusted energy and sustainability advisers.
Could the trial be worthwhile?
It is estimated that the average pub loses £2,000 a year through energy waste. Making some gains in energy efficiency could have a real impact on the business’ bottom line.
What will the trial involve?
A total of 615 small and medium-sized businesses will be offered support during the trial. Experts will help to show where energy is being wasted and how to fix it. For instance, the scheme will help businesses in making changes such as fixing insulation gaps, upgrading to low energy lighting, and tweaking heating settings.
Businesses will receive a tailored Carbon Reduction Plan as well as having a Carbon Coach. Businesses that take part will receive around seven hours of support each month over a 3-month period.
Register your interest
If you are in the hospitality sector and are interested in receiving this support, you can register your interest and apply on the Zero Carbon Company’s website.
See: https://www.gov.uk/government/news/britains-hospitality-sector-to-save-3-million-under-new-scheme
OECD Downgrades UK Growth Forecast, Citing Debt and Trade Barriers
The UK’s economic growth is set to slow more than expected, according to the Organisation for Economic Co-operation and Development (OECD), which has downgraded its forecast for 2025 to 1.3%, down from 1.4% earlier this year.
The global think tank pointed to high government debt interest payments and new trade barriers – particularly from the US – as key reasons for the cut. It also warned that the UK’s public finances leave little room for surprises, urging Chancellor Rachel Reeves to consider a mix of targeted spending cuts and tax reforms to shore up the economy.
While the OECD acknowledged that growth in early 2025 had been better than expected, it said business confidence is now weakening and predicted further slowing to 1% growth in 2026. The state of the UK’s finances, it said, poses a real risk if fiscal rules are to be met.
Different to the IMF
To place their comments in context, the OECD’s growth forecast is still higher than the 1.2% estimated by the International Monetary Fund (IMF) reported on last week. For the IMF, this was an uplift on their previous forecast.
What’s next?
The timing of the OECD’s warning comes just ahead of Reeves’ upcoming Spending Review, where she’ll be tasked with deciding how to allocate funds between government departments.
It’s not just the UK
Due to trade tensions having a global effect, the OECD also downgraded growth forecasts for most major economies. It noted that the global economy is slowing and warned that “weakened economic prospects will be felt around the world, with almost no exception.”
While national growth forecasts can influence general outlook, they don’t have to define your business’s future. If you’re looking for practical ways to keep your business moving forward in uncertain times, get in touch – we’re here to help you explore the options and make confident decisions.