Council fined for not paying staff minimum wage

Five members of staff at Coventry City Council were not paid the national minimum wage

Coventry City Council faces being fined by the government for failing to pay staff the National Minimum Wage.

The council is among five employers in the city that were named and shamed in a list of 500 across the UK by the government on Friday as part of its Plan to Make Work Pay initiative, which aims to enforce workers' rights.

The report detailed a sum of £5,167 not paid to five members of staff at the council.

The council told the BBC there was a delay in updating apprentice pay rates, which was corrected "immediately", with all arrears paid.

The other four Coventry-based companies include Allsopp & Allsopp Limited, which failed to pay £14,062 to 21 workers, and Malcolms Stores Limited, which failed to pay £3,137 to six workers.

Ballicom Limited also failed to pay £1,557 to seven workers, and Smarteenies Limited failed to pay £1,316 to 22 workers.

The Department for Business and Trade (DBT) has fined employers across the UK £10.3m for not paying the minimum wage. It said 42,000 workers were repaid more than £6m.

Business Secretary Peter Kyle said the government will not tolerate "rogue employers who short-change their staff".

He said: "I know that no employer wants to end up on one of these lists. But our Plan to Make Work Pay cracks down on those not playing by the rules.

"This ensures a level playing field where all businesses pay what they owe whilst workers receive the boost to their living standards they deserve."

'Taking direct action'

This action comes as the government introduces the biggest upgrade to workers' rights and enforcement for a generation through its Plan to Make Work Pay, which is set to directly benefit around 15m people, or half of all UK workers.

From April 2026, the Employment Rights Bill will also establish a new Fair Work Agency with more powers to tackle employers underpaying workers and failing to pay holiday and sick pay.

Employment Rights Minister Kate Dearden said: "This government is taking direct action to ensure workers get every penny they've earned and to put an end to bad businesses undercutting good ones.

"We are proud to have delivered a strong minimum wage, and enforcing it thoroughly is crucial in our mission to put pounds back in your pocket."

A council spokesperson said: "A small delay in updating apprentice pay rates led to an underpayment for five members of staff. This was corrected immediately and all arrears were paid.

"We have since reviewed and improved our processes to ensure this does not happen again."