Grantham Manufacturing Limited and the Lincolnshire Co-operative among the Lincolnshire businesses to be named, shamed and fined, in £10.2m UK government minimum wage crackdown

Nearly 500 employers across the UK have been named, shamed, and fined by the government for failing to pay the national minimum wage — including here in Lincolnshire.

The government crackdown has led to about 42,000 workers being repaid more than £6m by their employers, with businesses found to have broken the rules receiving fines totalling £10.2m.

Across Lincolnshire three employers were caught out for failing to pay the national minimum wage.

Grantham Manufacturing Limited, in Grantham, failed to pay £22,697.35 to eight workers, and The Garage (Gainsborough) Limited, in Gainsborough, failed to pay £9,309.34 to seven workers.

The largest employer was the Lincolnshire Co-Operative Limited, in Lincoln, which failed to pay £42,103.11 to 12 workers.

However, its situation is complicated.

It says that employees, who had independently chosen to rent Lincolnshire Co-op owned-accommodation, were deemed to have been underpaid, as their rental payments took them underneath National Minimum Wage (NMW).

A spokesperson for Lincolnshire Co-op said: “As well as a community retailer, we are also a residential landlord with around 100 rental properties.

“Colleagues who had independently rented our accommodation through letting agents - which was unrelated to their employment or remuneration - were deemed to have been underpaid by HMRC, as their rental payments took them underneath National Minimum Wage (NMW).

"We appealed to various government bodies at that time as we felt our situation justified an exemption, similar to that allowed to local authorities/social landlords but unfortunately this was unsuccessful.

“In line with the findings of the review, we refunded past and current employees monies owed and we are no longer renting accommodation to Society colleagues.

“This legislation is welcome to protect employees from being exploited, especially when accommodation is part of the remuneration, or benefits package offered. However, we do believe that there may be more exemptions possible in cases where accommodation is independent from employment. We hope this will be considered in future reviews of the legislation.”

The crackdown comes as the Government introduces its new Plan to Make Work Pay, aimed at upgrading workers’ rights and enforcement, and will directly benefit around 15m UK workers.

Business Secretary Peter Kyle said: “Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short-change their staff.

“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.”

In April this year, the national minimum wage was increased; from £11.44 £12.21 for those 21 and over, from £8.60 to £10.00 for 18 to 20-year-olds, from £6.40 to £7.55 for under 18s and from £6.40 to £7.55 for apprentices

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.

“I know this news will be welcomed by brilliant businesses across the country, those who know that happy well-paid staff are at the heart of building a successful company.

“With our new Fair Work Agency and the coming Employment Rights Bill, this government is keeping our promise to Britain to make work pay again."

Baroness Philippa Stroud, Low Pay Commission chairman, said: “We are pleased the government is keeping up momentum with the publication of today’s naming round.

“It is vital that businesses understand the mistakes which can lead to underpayment, and that workers know where to go to enforce their rights.

“Continuing to raise the profile of the NMW enforcement system will give the Fair Work Agency a solid foundation when it comes into operation next year.”

Niall Mackenzie, chief executive of the employer advice service Acas, said: “Not only is it important for employers to pay the correct minimum wage rates, it is also the law.

“Failing to do so can result in grievances and potentially legal action, including costly employment tribunals, as well as being named and shamed.”