Martin Lewis’ MSE warns Brits to check wages after 445,000 were underpaid last year
- Martin Lewis’ MSE urges Brits to check payslips after 445,000 were underpaid last year
- Common underpayment reasons include uniform costs, overtime, tips, and accommodation fees
- Workers can claim backpay for underpayment; MSE outlines steps to resolve issues with employers
Money Saving Expert (MSE) has urged UK workers to inspect their payslips, following news of widespread underpayments.
Recently-released figures from the Low Pay Commission revealed 445,000 Brits were paid less than they should’ve been in 2024 — and if you’re earning on or around £12.71 an hour, you might be among them.
In the latest edition of the its newsletter, the Martin Lewis-founded site highlighted that changes to the minimum wage which came into force on April 1 mean ‘it’s the perfect time for many to check you’re getting the right amount.’
The personal finance gurus noted a government list of nearly 400 businesses who failed to pay the minimum wage featured major names like Costa, B&M, KPMG, and Bupa, adding: ‘Don’t think “I work for a big firm so it must be correct”.’
Essentially, whoever your employer, it’s worth a check to ensure you’re getting what you’re owed. And MSE’s handy guide makes it simple.
UK minimum wage
The National Living Wage is the name given to the minimum wage guaranteed to workers aged 21 and over, which currently sits at £12.71an hour, having been increased from £11.44 on April 1.
If you work 35 hours a week, this will be an equivalent salary of £23,132.
The National Minimum Wage applies from school leaving age, with a rate of £8 an hour for apprentices in their first year and under-18s (£19,747 a year based on 35 hours’ work a week) or £10.85 for those aged 18 to 20 (equal to £14,560 annually).
Remember, this is different to the real living wage — the amount required to get by — calculated by the Living Wage Foundation.
According to the experts, there are a few common reasons why you might be underpaid when on or near minimum wage — even if the number on your payslip looks correct.
The first, and most common, is related to uniform, tools and safety clothing required to do your job.
‘Your employer must make sure any costs don’t cause your wage to drop below the legal minimum for that pay reference period,’ they explained.
‘It doesn’t matter how you pay for it: if you buy it in a shop, make a payment to your employer, or have the costs deducted from your salary – it all counts.’
Next is hours: if you factor in things like overtime, security checks, handovers, opening up, and being on call, does your hourly wage drop below the minimum?
Would you feel comfortable confronting your employer about potential underpayment?
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Yes, I would address it directly with them.
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No, I'd prefer to report it anonymously.
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It depends on the situation.
Tips and overtime can also pose an issue, as these must be in addition to the minimum wage, and your employer can’t use them to ‘top up’ lower pay.
On the contrary, employers must top up earnings for those in ‘commission only‘ roles with a salary to meet the minimum wage if they don’t make enough.
Then there are accommodation costs if your employer provides housing, with MSE writing: ‘Your weekly salary can only be reduced by a maximum of £77.70 a week below the minimum wage. Any housing costs over this amount can’t be “offset” against your salary.’
Lastly, if you’re being paid as an apprentice but aren’t receiving structured training, this could mean you’re on the wrong rate.
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If any of these ring true, you’re entitled to be paid more and to receive backpay going back a maximum of six years. But how you go about it will depend on your relationship with your employer.
For those who are comfortable directly raising the issue, start off by having an informal chat with your boss or payroll department. Then, if this doesn’t resolve the issue, you can submit a formal complaint in writing.
Union members can get help from their representative throughout this, and in cases where you don’t receive a reply, or you’re unhappy with the outcome, you can get in touch with ACAS for further assistance.
For those who’d prefer to complain anonymously or lodge a complaint about a former employer, your best route is through submitting a form with HMRC.
MSE recommends making sure you tick ‘yes’ when asked if you’re willing to be contacted by HMRC, adding: ‘It told us it’s really difficult for it to continue the investigation if you don’t.’
Unfortunately, it’s hard to remain completely anonymous if, for example, you work for a very small business. But while you may be scared of rocking the boat, remember that this is your legal right, and any decent employer will be keen to fix errors so their staff are fairly remunerated.
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