Latest data has revealed a significant rise in reports by whistleblowers of employers failing to pay the National Minimum Wage (NMW). The figures show that HMRC received 7,622 tip-offs during the 2024/2025 financial year, an increase of 360% since 2020/21.
This upward trend is expected to continue following the recent increase in National Minimum Wage rates. With effect from 1 April 2026, the National Living Wage (payable to workers aged 21 and over) saw a 4.1% rise to £12.71 per hour and the National Minimum Wage for 18-20 year olds went up by 8.5% to £10.85 per hour.
The data also highlights a surge in enforcement activity as a result of whistleblowing with 1,137 investigations carried out by HMRC in 2025, a 24.8% increase compared to the year before, and £2.4 million in fines were issued, up from £1.7 million in the previous year. Employers should prepare for greater scrutiny in this area as responsibility for minimum wage enforcement transitions from HMRC to the new Fair Work Agency (FWA). The FWA is expected to take over NMW enforcement by April 2027.
The data coincides with the strengthening of whistleblowing protection under the Employment Rights Act 2025 that came into force on 6 April 2026. From this date, protection has been expanded to include disclosures relating to sexual harassment. As with other qualifying disclosures, the disclosure does not need to be substantiated, however the individual must have reasonable belief that it is true, and it must be in the public interest.
