THE government has named and shamed three companies which together failed to pay 24 workers the minimum wage.

The Department for Business, Energy and Industrial Strategy has named 359 businesses who underpaid 15,513 workers a total of £994,685, with employers in the hairdressing, hospitality and retail sectors the most prolific offenders.

As well as recovering arrears for some of the UK’s lowest paid workers, HMRC issued penalties worth around £800,000.

For the first time, the naming list includes employers who failed to pay eligible workers at least the new National Living Wage rate, which is currently £7.20 for workers aged 25 and over.

The firms are listed by local authority; with one in Barrow Borough Council's locality and two in South Lakeland District Council's locality.

The list includes three firms in South Cumbria:

The Swan Hotel at Newby Bridge failed to pay a total of £5,674.29 to 14 workers;

CS Drinks in Grange failed to pay £1,270.49 to one worker;

Brian O'Loughlin of Thomas's Bakery in Dalton failed to pay £779.75 to nine workers.

Mr O'Loughlin, company director for the bakery, called the figures a “slight anomaly”.

He said: “It's a pride of business: We've never underpaid anyone.

“We have a kitty for the tea and coffee and the workers would put a pound in the jar every week.

“All the staff gave us permission, instead of doing that we'd take it out of their wages.

“Some of the staff didn't drink it so their wages weren't effected.”

“One member of staff took exception to it and complained to HMRC. We were confident we hadn't done anything wrong, we had written verification from all the staff.

“I got the shock of my life when I found out it was illegal and we stopped it immediately.”

The bakery was hit with a substantial fine of around £800.

The nine workers were all from the company's warehouse on Broughton Road.

Mr O'Loughlin said: “I was quite annoyed at them because now we're being named and shamed.

“I don't feel like we've done anything wrong but I see HMRC's point.

“It's kind of fake news. They knew we didn't deliberately underpay anyone. We've got to let the public make their own minds up now.

“If people want to support our business come and buy our pies.”

Excuses for underpaying workers included using tips to top up pay, docking workers’ wages to pay for their Christmas party and making staff pay for their own uniforms out of their salary.

Business Minister Margot James said: "Every worker in the UK is entitled to at least the national minimum or living wage and this government will ensure they get it.

"That is why we have named and shamed more than 350 employers who failed to pay the legal minimum, sending the clear message to employers that minimum wage abuses will not go unpunished."