The Government has confirmed that it intends to name and shame those employers who fail to pay at least the National Living Wage and National Minimum Wage more often.
Announcement
In a document published on the 10th October 2024 on enforcement of the National Living Wage and National Minimum Wage, the Department for Business and Trade (DBT) stated: "The National Minimum Wage Naming Scheme remains a key deterrent to employers breaking minimum wage law. The Naming Scheme highlights non-compliant employers by publicly exposing their breaches and promoting their future compliance to deter other businesses from underpaying the minimum wage. The naming scheme also aims to increase compliance by publishing an educational bulletin tailored to the areas of non-compliance for that particular round."
The DBT added: "During the 2022 to 2023 financial year, there were no rounds of the naming scheme. This government now commits to regular naming rounds given the strong deterrence effect."
Named & Shamed
As we highlighted in an article back in February 2024, the last round of National Living Wage and National Minimum Wage naming and shaming was published on the 20th February 2024. In that round, 524 employers were named and shamed by the Department for Business and Trade (DBT) for a variety of breaches of their legal obligation to pay their employees at least the National Living Wage and National Minimum Wage.
The list of 524 employers included a number of major businesses, including Easyjet, Greggs, Staffline, Estee Lauder, Rank, Harrods, and River Island. Approximately 172,000 workers were found to have been underpaid almost £16 million by the 524 employers.
National Living Wage / National Minimum Wage: New Rates
The Government confirmed what the new rates for the National Living Wage and National Minimum Wage would be ahead of the 2024 Autumn Budget. They will take effect upon the 1st April 2025. The new rates will be:-
- For workers aged 21 and over (i.e. the National Living Wage), the rate will increase by £0.77 per hour (6.7%) from £11.44 per hour to £12.21 per hour
- For workers aged 18-20 inclusive, the rate will increase by £1.40 per hour (16.3%) from £8.60 per hour to £10.00 per hour
- For workers aged 16-17 inclusive, the rate will increase by £1.15 per hour (18.0%) from £6.40 per hour to £7.55 per hour
- The apprentice rate will increase by £1.15 per hour (18.0%) from £6.40 per hour to £7.55 per hour
- The daily rate for the accommodation offset will increase by £0.67 (6.7%) from £9.99 to £10.66
Council's Four-Day Working Week: Government Ends Opposition
Background
As we highlighted in a previous article, the last Government was opposed to the decision by South Cambridgeshire District Council to allow its staff to work a four-day working week. Indeed, it had threatened to legislate to prohibit local authorities from allowing staff to go onto a four-day working week arrangement.
Best Value Notice
Moreover, the Department for Levelling Up, Housing & Communities proceeded to issue a Best Value Notice against the Council on the 3rd November 2023, which was renewed on the 8th May 2024. The renewal letter stated that there were "ongoing concerns about its trial of a ‘four-day working week’."
Government Ends Opposition
Nevertheless, in a letter dated the 8th November 2024, the new Government has confirmed that it will not be renewing the Best Value Notice again, and that it has ended Government opposition to the Council's four-day working week.
The Government's letter stated: "Although it is not government policy to support a general move to a four day working week for five days’ worth of pay, we recognise that local authorities are independent employers who are rightly responsible for the management and organisation of their own workforces. We encourage active and ongoing dialogue with the workforce and trade unions on any changes to local working arrangements. In turn, local voters are best placed to make decisions about the effectiveness of local authority services in their own areas. With this in mind, the Notice will not be reissued."
