British Gas Owner, EG Group, Holland & Barrett Fined for Underpaying Workers
The UK government has fined nearly 500 companies, including Centrica – the parent company of British Gas – Euro Garages (EG Group), and Holland & Barrett, for failing to pay workers the national minimum wage.
The Department for Business and Trade (DBT) said the named employers were ordered to repay over £6 million to about 42,000 affected workers and faced penalties exceeding £10 million. Some of the violations dated as far back as 2013.
Business Secretary Peter Kyle said the move was part of efforts to ensure fair pay for all workers. “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,” he said.
According to the government’s investigation, EG Group topped the list after underpaying 3,317 workers by over £824,000 between 2015 and 2019. The company, founded by billionaire brothers Mohsin and Zuber Issa, attributed the lapse to historic payroll errors, adding that all affected employees had since been reimbursed in full.
“These historic payroll issues… have been fully rectified,” an EG Group spokesperson said. “We have improved our systems to ensure full compliance with UK employment laws.”
Centrica, which owns British Gas, ranked eighth on the DBT’s list, having failed to pay £167,815 to 356 employees. The company blamed technical errors in its payroll system between 2015 and 2019, saying the issue was promptly corrected once identified.
“This related primarily to salary sacrifice arrangements and training bonds, rather than take-home pay,” a Centrica spokesperson explained. “The matter has since been resolved.”
High street retailer Holland & Barrett was also cited for underpaying 2,551 employees more than £153,000 between 2015 and 2021. The company said the issue, which stemmed from unpaid training and specific footwear requirements, was fixed in 2022.
“This was not a case of deliberate underpayment,” a company spokesperson said. “We have since corrected the issue and now pay our store teams about 5% above the National Living Wage.”
The Trades Union Congress (TUC) condemned the widespread breaches, describing them as inexcusable. “There’s no excuse for workers being cheated out of money they’re owed. It’s bad for workers, families and the economy,” said TUC General Secretary Paul Nowak.
The current National Living Wage stands at £12.21 per hour for workers aged 21 and above, while those aged 16 to 20 are entitled to a minimum of £10 per hour.
