Women more likely to be underpaid says Low Pay Commission

A report from the Low Pay Commission, which advises the government on minimum wage levels, found that women made up the majority of workers whose employers failed to pay them the minimum wage.

The Commission's figures stipulated that two thirds of underpaid workers were in fact female, both part-time and hourly paid.

Although that was driven by the characteristics of minimum wage, women were also found to be least likely to complain about underpayment.

However, it also took some time for some employers to start paying the new minimum wage rates after they were introduced, so a large proportion of the 'non-compliance' was "frictional, according to the Commission.

Even so, the report also suggested that the amount of people who were not receiving the full minimum wage could be considerably higher than previously thought.

"Our analysis finds that up to one in five people who should be paid at least the minimum wage may in fact receive less. This equates to between 305,000 and 580,000 workers at its highest point, though it is a difficult thing to measure", said Bryan Sanderson, chair of the Low pay Commission.

It was also likely that "a significant amount of non-compliance" occured in the informal economy, with the most serious cases involving organised crime and forced labour.

On 16 August the government revealed that retailer Argos was among the worst offenders for underpayment, as well as hairdressers and beauty treatment businesses.

The current rate for the National Living Wage was set at £7.50 per hour, while the adult rate for the National Minimum Wage was £7.05 for those aged between 21 and 24.