Coventry City Council faces fine for failing to pay staff minimum wage

Coventry City Council faces a government fine after it was found that its employees were not being paid the National Minimum Wage.

The council was listed alongside almost 500 other employers as part of the government’s new ‘Plan to Make Work Pay’ initiative, which aims to raise working standards across the UK by tackling low pay, poor working conditions, and poor job security.

It was found that a total of £5,167 was not paid to five employees at the council.

This controversy comes as the Employment Rights Bill is set to come into effect in April 2026 to further protect workers’ rights

A council spokesperson claimed that the problem was caused by a delay in updating the pay rates for apprentices.

They told the BBC: “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.”

This controversy comes as the Employment Rights Bill is set to come into effect in April 2026 to further protect workers’ rights, including by introducing further powers which will protect employees from being underpaid.

Our Plan to Make Work Pay cracks down on those not playing by the rules

Peter Kyle MP, Business Secretary

The government has promised to be proactive in ensuring workers get paid every last penny they are owed, with Business Secretary Peter Kyle saying that “rogue employers who short-change their staff” will not be tolerated.

He added: “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.”

With the number of 16-25-year-olds not in employment or education at an 11-year-high, the move to tighten worker security may prove a positive one for those now able for the workplace.