(qlmbusinessnews.com . Fri 17th Oct, 2025) London, UK —
Fail to Pay Fair: Centrica and EG Group Among 500 Firms Penalized Over £10M for Minimum Wage Breaches
Centrica, the parent entity of British Gas, alongside Euro Garages and Holland & Barrett have been exposed by the British government for paying employees below the required minimum wage. The Department for Business and Trade (DBT) disclosed a roster detailing close to 500 businesses that collectively amassed fines surpassing £10 million, for their failure to comply with the national minimum wage standards, affecting approximately 42,000 workers who have since been compensated over £6 million.
The Business Secretary, Peter Kyle, highlighted the importance of adhering to wage regulations, stating, “I realize that no company desires to feature on this list. However, our strategy, dubbed ‘Plan to Make Work Pay', is adamant about penalizing those who flout these regulations.”
All implicated companies have cited historical payroll issues for the discrepancies, ensuring that all workers impacted have been fully compensated.
Substantial fines, amounting to twice the total underpaid wages for some, were imposed on all firms listed, covering misdemeanours dating back to 2013.
The TUC's general secretary, Paul Nowak, voiced his concerns, asserting that there's “absolutely no justification for depriving workers of their rightful earnings. This is detrimental for employees, their families, and the nation's economy at large.”
In the government's recent probe covering the period from 2018 to 2023, EG Group, formerly headed by billionaires Mohsin and Zuber Issa, emerged as the primary culprit, underpaying 3,317 staff by over £824,000, despite scaling down its UK operations.
EG Group, in defense, stated, “The previously mentioned payroll inaccuracies occurring between 2015 and 2019 have been duly corrected, with all affected personnel reimbursed in alignment with HMRC guidelines.” The firm reassured its commitment to fair employee treatment and compliance with UK laws.
British Gas's Centrica found itself in eighth place, neglecting to pay £167,815 to 356 workers. Despite its recent £1.7 billion acquisition expanding its energy supply control, Centrica attributed the underpayment to payroll system flaws, predominantly affecting salary sacrifice arrangements rather than direct wages.
Following close behind was Holland & Barrett, failing to meet the payment standards for 2,551 employees by more than £153,000. The company acknowledged the oversights, attributing them to outdated practices, affirming its resolve towards equitable remuneration.
Both companies emphasized their commitment to rectifying past mistakes and ensuring compliance with the national wage requisites. The revelation comes as a reminder of the ongoing scrutiny employers face regarding wage fairness, with the National Living Wage currently set at £12.21 per hour for those over 21.
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