Reports of employers failing to pay the National Minimum Wage have surged to a five-year high.
Data obtained by TWM Solicitors reveals that HMRC received 7,622 whistleblower tip-offs in the 12 months to 5 April 2025, marking a 360% increase compared with 2020-21. The figures showed a consistent year-on-year rise in complaints, suggesting increasing awareness among employees as well as mounting strain on employers, said the firm.
The rise coincides with some significant increases in minimum wage rates. While the national living wage for workers aged 21 and over increased to 12.71 per hour on 1 April 2026, a 4.1% rise, the national minimum rates for 18 to 20-year-olds rose 8.5% to 10.85.
Andrew Peters, a partner at TWM Solicitors, warned that the upward trend in reports was unlikely to slow. He said: “We expect more businesses to be reported for failing to pay the national minimum wage as cost pressures on employers continue to grow.”
“It’s clear that many businesses in sectors like retail and hospitality, where starting salaries are just above the NMW, are under particular pressure to keep their payroll costs down.”
The data also shows enforcement activity is increasing. HMRC carried out 1,137 whistleblower-led investigations last year, up 24.8% on the previous year. Enforcement responsibilities transferred to the Fair Work Agency on 7 April.
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