Big crackdown on minimum wage and worker exploitation in the UK

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Once in a generation employment rights reforms that will benefit over 15 million UK workers have taken a step closer as ministers confirmed Matthew Taylor CBE will chair the brand-new Fair Work Agency.

The Fair Work Agency is expected to transform how employment rights are enforced across the UK. This includes using new powers to ensure the estimated 900,000 people who have holiday pay withheld each year finally receive it, to cracking down on those employers failing to pay the minimum wage.

The Fair Work Agency will have robust powers to investigate and tackle employers flouting the law, including workplace inspections, civil penalties for underpayments, and the ability to bring proceedings on workers’ behalf. It will also provide support to businesses on following employment laws, helping create a level playing field for all where those who want to do the right thing aren’t undercut by those who don’t.

It will bring together the responsibilities of three existing enforcement bodies to create a single agency, ending the current fragmented system so that workers and employers know where to turn to for support.

Matthew Taylor led the influential Taylor Review of Modern Working Practices in 2016, which provided the foundation for many of the transformative reforms now being delivered through the Employment Rights Bill. His work on this review led to him being recognised in the 2019 Birthday Honours list, being appointed a CBE.

Since 2021 he has also served as Chief Executive of both the NHS Confederation, following a stint at the RSA and an interim period as Director of Labour Market Enforcement. This means he brings exceptional experience to this role.

“The current enforcement system doesn’t deliver for businesses or working people. Our Fair Work Agency will be a game-changer in ensuring rights are properly enforced, whilst backing those businesses that already do the right thing,” said Business Secretary Peter Kyle.

“Matthew brings exceptional leadership experience to this pivotal role and I look forward to working with him to deliver our Plan to Make Work Pay and put more money into the pockets of workers across the country.”

The Fair Work Agency will launch in April 2026. Taylor will continue in his role as CEO of the NHS Confederation until then while also working with government, business and unions helping to shape the strategy of the new organisation.

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