Latest news with #underpayment
CBC
2 days ago
- Business
- CBC
N.S. government looks to compensate rent supplement recipients who were underpaid
Nova Scotia's minister responsible for housing has asked officials in his department to look at compensating people who receive rent supplements that were underpaid for the last two years. Colton LeBlanc told reporters on Thursday that the underpayments — discovered as part of a recent audit of the program — would have been in the range of $10 to $30 per month. While those could be considered smaller amounts, "for folks who rely on a rent supplement, it could be big," the minister said. LeBlanc said the internal audit performed by EY was ordered to take a look at what is a relatively new program that has grown "significantly and exponentially" to support people who need help making rent. The province now spends more than $70 million on rent supplements, compared to about $11 million when the Progressive Conservatives came to power in 2021. "We've tripled the number of people being supported with this rent supplement program," said LeBlanc. "We know of its importance to so many Nova Scotians." 'Human error does occur' The audit findings showed that 104 recipients in East Hants and Timberlea were underpaid during the last two years because their supplement was based on incorrect geographic information. Rent supplements are calculated based on average market rent for a given area. Although the audit found there were also some overpayments to clients due to miscalculations, the minister and his department were unable to provide further details. There are 1,200 total program clients in the assessed area. LeBlanc said that after the errors were detected, corrections were made to ensure appropriate payments beginning with recipients' respective renewal dates. He wasn't sure if people were notified that they were underpaid. "Human error does occur, so we've made changes to the program where now this is automated to avoid these instances moving forward," he said. The audit was made public through the province's freedom of information disclosure website, although the government did not publicize it. NDP Leader Claudia Chender told reporters that the government should have provided more public disclosure about the audit and its findings. She noted the underpayments come at a time when many people in Nova Scotia are still struggling to maintain or find a place to live. "The rent supplement program has been a large part of this government's answer to that and it's clear that they've been mismanaging that."
The Independent
3 days ago
- Business
- The Independent
Pizza Express, Lidl and Halfords named by Government for minimum wage failures
A number of well-known British businesses, including Pizza Express, Lidl, British Airways, and Capita, have been identified by the government for failing to pay some employees the minimum wage. The Department for Business and Trade (DBT) has released a list of 518 employers that underpaid nearly 60,000 workers over several years. The underpayment meant that pay for some staff fell short of the national minimum wage, or the national living wage, which is what the government calls the minimum wage for those aged over 21. Capita, a major government supplier, topped the list, owing £1.15 million to 5,543 workers. This equates to individual employees being underpaid by about £208 on average. A spokesman for Capita said it was 'inadvertent underpayments' between 2015 and 2021, due to some issues including adding 25 minutes per week for call centre staff to log in for their shifts. 'All owed monies were paid immediately, and we are sorry for any impact this had on colleagues and former colleagues at that time,' the company added. 'Our processes and systems were updated to ensure there would be no further issues; we have continued to monitor them carefully, as well as any changes to employment regulations.' Pizza Express failed to pay £760,702 to 8,470 workers – amounting to about £90 on average. A spokeswoman for Pizza Express said: 'Once we were made aware of this historic unintentional technicality, which occurred between 2012 and 2018, we swiftly identified who was impacted, apologised and rectified. 'There's nothing more important to us than fairly and accurately paying our team members.' Lidl was also high on the list, having owed £286,437 to 3,423 employees. And British Airways was named for failing to pay £231,276 to 2,165 workers. A spokesman for BA said: 'Back in 2017, an audit revealed we had accidentally slightly underpaid some of our cabin crew who joined us between 2014 and 2017 during their first two months of employment. 'We apologised and issued backdated payments several years ago.' Meanwhile, smaller groups of employees were underpaid larger sums by some British companies – such as hotel chain Hilton UK which underpaid 20 members of staff an average of £946 each. Restaurant chain Prezzo, motoring and cycling retailer Halfords, and travel group Tui were also found to have been underpaying some workers over several years. All the workers left short will be repaid a combined £7.4 million, following investigations by HMRC between 2015 and 2022. The national living wage was £11.44 in the year to the end of March, and has risen to £12.21 since April. The minimum wage for 18-20-year-olds rose to £10 this year, and for those aged under 18 it rose to £7.55. Justin Madders, the minister for employment rights, said: 'There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don't pay their employees what they are owed.' The Government said that not all minimum wage underpayments are intentional, but those who do not pay staff correctly will be penalised. The businesses named on Thursday faced financial penalties of up to 200% of the total amount they underpaid. Lidl has been contacted for comment.
The Independent
3 days ago
- Business
- The Independent
Capita, Pizza Express and Lidl named by Government for minimum wage failures
Pizza Express, Lidl, British Airways, and outsourcing firm Capita are among the British businesses named by the Government for failing to pay some of their staff the minimum wage. The Department for Business and Trade (DBT) released a list of 518 employers and businesses that underpaid workers over several years. It means pay for some staff fell short of the national minimum wage, or the national living wage, which is what the Government calls the minimum wage for those aged over 21. In total, nearly 60,000 people had been left out of pocket, the DBT said. Capita, one of the Government's biggest suppliers with major public sector contacts, was top of the list, owing £1.15 million to 5,543 workers. This meant individual employees were underpaid about £208 on average. A spokesman for Capita said it was 'inadvertent underpayments' between 2015 and 2021, due to some issues including adding 25 minutes per week for call centre staff to log in for their shifts. 'All owed monies were paid immediately, and we are sorry for any impact this had on colleagues and former colleagues at that time,' the company added. 'Our processes and systems were updated to ensure there would be no further issues; we have continued to monitor them carefully, as well as any changes to employment regulations.' Pizza Express failed to pay £760,702 to 8,470 workers – amounting to about £90 on average. A spokeswoman for Pizza Express said: 'Once we were made aware of this historic unintentional technicality, which occurred between 2012 and 2018, we swiftly identified who was impacted, apologised and rectified. 'There's nothing more important to us than fairly and accurately paying our team members.' Lidl was also high on the list, having owed £286,437 to 3,423 employees. And British Airways was named for failing to pay £231,276 to 2,165 workers. Meanwhile, smaller groups of employees were underpaid larger sums by some British companies – such as hotel chain Hilton UK which underpaid 20 members of staff an average of £946 each. Restaurant chain Prezzo, motoring and cycling retailer Halfords, and travel group Tui were also found to have been underpaying some workers over several years. All the workers left short will be repaid a combined £7.4 million, following investigations by HMRC between 2015 and 2022. The national living wage was £11.44 in the year to the end of March, and has risen to £12.21 since April. The minimum wage for 18-20-year-olds rose to £10 this year, and for those aged under 18 it rose to £7.55. Justin Madders, the minister for employment rights, said: 'There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don't pay their employees what they are owed.' The Government said that not all minimum wage underpayments are intentional, but those who do not pay staff correctly will be penalised. The businesses named on Thursday faced financial penalties of up to 200% of the total amount they underpaid.
The Sun
3 days ago
- Business
- The Sun
More than 500 firms named for underpaying workers as 60,000 set to get refunds worth £7.4million – how to check YOUR pay
TENS of thousands of workers are in line for a financial boost after over 500 companies failed to pay the national living wage. Almost 60,000 employees were underpaid, with a total of £7.4million now owed to them in repayments. The Department for Business and Trade has revealed that 518 companies failed to pay the national minimum and living wage to their staff between 2015 and 2022. These companies have now been publicly named and shamed for breaking the law. You can check if your company was guilty of underpaying its staff in our tool above. Under the national minimum wage (NMW) rules, workers must be paid a set hourly rate. However, investigations found that many employers ignored this legal requirement. Among the companies listed are Capita HR Solutions, which underpaid 5,543 workers by an average of £208.27 each, and Pizza Express, which short-changed 8,470 staff members by an average of £89.81 each. Virtual Marketing Services (Gibraltar) Ltd recorded the highest average underpayment, owing £11,665.43 to each of its 41 employees. Other well-known names on the list include Lidl, which underpaid 3,423 workers by an average of £83.68, British Airways, with £106.82 owed to 2,165 employees, and Halfords, which underpaid 4,341 staff by £32.44 each. These employers have since been forced to repay what they owed, and have faced financial penalties of up to 200% of the underpayment. Justin Madders, minister for employment rights, said: "There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don't pay their employees what they are owed. Pay rise for millions Rachel Reeves announces in autumn budget "Ensuring workers have the support they need and making sure they receive a fair day's pay for a fair day's work is a key commitment in our Plan for Change. "This will put more money in working people's pockets, helping to boost productivity and ending low pay." What is the national minimum wage? At the moment, there are two different minimum rates all workers are supposed to get across the UK - the national minimum wage (NMW) and the national living wage (NLW). The NMW is the minimum hourly rate for workers who have finished school. For those under 18 and apprentices, the rate is at least £7.55 an hour. Workers aged 18 to 20 must earn a minimum of £10 an hour. The NLW applies to workers aged 21 and over and is slightly higher. At present, everyone over the age of 21 must be paid at least £12.21 an hour. Who gets the National Minimum Wage and am I entitled? TO qualify for the National Minimum Wage, you have to be of school-leaving age, which is usually above 16. You are eligible to receive the pay rate if you work full-time, part-time or as a casual labourer. You are also entitled to the National Minimum Wage if you are an agency worker. Apprentices also qualify for a National Minimum Wage, as well as trainees and staff still in their probationary period. The rates also apply to disabled workers. Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage. Au pairs, members of the armed forces, and people on a government employment programme are also not entitled to the payment. How to check if you've been underpaid There are several reasons why you might not be receiving the minimum wage, despite it being illegal for employers to underpay. One common issue is unpaid working time, which can lower your hourly rate below the legal minimum. This includes tasks like overtime, training hours, or being asked to arrive early for shifts. Your employer might fail to increase your pay when rates rise every April or neglect to adjust your salary if you move into a higher wage bracket as you get older. Even having to purchase a uniform for work can reduce your earnings to below the minimum wage. To check if you're being paid correctly, you can use the government's national living wage calculator. It will help you determine whether your salary matches the legal requirements. How to get the money you're owed If you believe you've been underpaid, there are two main ways to address the issue. You can anonymously report the company to HMRC online. During the process, you'll need to provide personal details and information about your complaint. It's important to agree to let HMRC contact you, as they may need additional details to progress your claim. If HMRC has enough evidence, they will launch an investigation into your employer. If you've been underpaid, HMRC can force your employer to repay the missing amount, backdated by up to six years at the current minimum wage rate. If other employees have also been affected, they will receive refunds as well. HMRC may fine your employer or even take them to court if they refuse to pay. However, these investigations can take several months, so it's not the quickest route to recover your money. Alternatively, you could begin with an informal chat with your boss. Decide whether you'd like to request back pay for what you're owed or focus on ensuring you're paid the correct rate going forward. Come prepared with evidence of your claim, such as payslips and an estimate of how much you've been underpaid. If this informal discussion doesn't resolve the issue, you can escalate by making a formal complaint. Check with your company's HR department for guidance on how to do this. If all else fails, your final option is to take the company to an employment tribunal.
Telegraph
15-05-2025
- Business
- Telegraph
Retirees wrongly denied £450m in state pensions
Retirees were underpaid nearly half a billion pounds in state pensions last year, official figures show. Six in 100 state pension claims were underpaid – an increase of 20pc since the previous tax year – working out at an average underpayment of £5,770, figures show. The Department for Work and Pensions (DWP) also overpaid an extra £90m as a result of its own errors last year compared to the previous year, paying out £110m too much. In order to claim the 'full' new state pension, currently £11,973, a taxpayer must have accrued 35 years of National Insurance contributions and be older than the current state pension age of 66. Those with more than 10 years' of contributions get a reduced state pension. The amount spent on the state pension increased by nearly 15pc last year, rising from £123.9bn to £142bn. The increase in spending was driven by the triple lock, which guarantees a rise of at least 2.5pc a year in payments. In April, payments increased by 4.1pc, to £230.25 a week for the new state pension. Former pensions minister, Sir Steve Webb, partner at pension consultants LCP, said: 'It is shocking that six in 100 state pension claims are still being underpaid despite years of work to correct historic errors. 'After a lifetime of work and contributions, people have a right to expect to be paid the right amount of state pension.' Sir Steve said that taxpayers struggle to know how much they are owed, 'so it's even more important that DWP gets it right'. He added: 'DWP clearly needs to step up the amount of time spent checking cases and contacting those who may have been underpaid so that this problem can be brought under control.' In the last four years, more than £800m in state pension arrears have been paid out to more than 100,000 pensioners by the department. Jon Greer, of wealth manager Quilter, said: 'That includes many women who were impacted by historical issues with Home Responsibilities Protection, a now-defunct mechanism designed to protect the pensions of those with caring responsibilities. 'These legacy issues continue to plague the system despite a correction programme being in place.' Between 1978 and 2010, those claiming child benefit for children under 16 or those with support for looking after a sick or disabled person, could top up their state pension entitlement with Home Responsibilities Protection. But state pensions have been consistently underpaid to those who were paid child benefit before May 2000, and didn't provide their National Insurance number when they claimed it. This meant their records weren't properly updated, and they were underpaid when they came to retire. Overpayments of pension credit, which is available to low-income pensioners, also hit a record high of 10.3pc, after Chancellor Rachel Reeves scrapped the winter fuel allowance for all but those who claimed the benefit. The overpayments cost the taxpayer £610m a year, with fraud accounting for £270m of the total. Underpayments of pension credit came to just £70m, but nearly 70pc of this was due to administrative failings. Mrs Reeves removed up to £300 from nearly 10 million pensioners last year when she scrapped the winter fuel payment, in an effort to save the Treasury £1.3bn. This led tens of thousands of the poorest pensioners to apply for pension credit, in a bid to keep the winter fuel allowance. In the eight weeks after the announcement in July 2024, there were 74,400 applications for the benefit, an increase of 152pc on the eight weeks before.
