New agency chair appointed to crack down on minimum wage underpayment and worker exploitation
Source: gov.uk (2025-10-13)

Matthew Taylor to lead Government's new Fair Work Agency from April 2026.

- Taylor Review author Matthew Taylor appointed as first Fair Work Agency chair to support the government’s mission to kickstart economic growth.
- New agency to transform labour market enforcement, protecting workers from bad employers who flout minimum wage and other labour laws, levelling the playing field for businesses that pay fairly.
- Better enforcement will put more money in the pockets of working people, improving living standards as part of the Plan for Change.
Once in a generation employment rights reforms that will benefit over 15 million UK workers came a step closer today as ministers confirmed Matthew Taylor CBE will chair the brand-new Fair Work Agency.

A key part of the government’s Make Work Pay plans, the Fair Work Agency will transform how employment rights are enforced across the UK.

From 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 finally bring the ambition needed to properly tackle worker exploitation in the UK.

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.

Business Secretary Peter Kyle said:

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.

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.

Employment Rights Minister Kate Dearden said:

Matthew Taylor’s extensive experience will be vital in ensuring this new agency delivers real change for people who’ve been let down by poor employment practices for far too long.

Our Fair Work Agency will make a real difference, providing a single point of contact for workers and employers, and crucially, having the teeth to take action against businesses that flout the rules.

This is about creating workplaces where people are treated with dignity and respect. It’s exactly the kind of backing working people in this country deserve.

New Fair Work Agency Chair Matthew Taylor CBE said:

For years inside and outside Government I argued that employers and workers need a single enforcement body for employment rights.

It is an honour to be asked to be the first Chair of the Fair Work Agency, the body that will meet that need.

The Agency has a vital job in strengthening labour market compliance and enforcement. This is essential to provide workers with protection and employers with a supportive and level playing field on which to invest and grow.

TUC General Secretary Paul Nowak said:

The Fair Work Agency is a vital opportunity to turn the page on the era of inadequate enforcement. For too long, bad bosses have got away with flagrantly breaking the law. This isn’t right – it fails workers and the many decent employers who play by the rules.

That’s why the Fair Work Agency is so important. It is a chance to create a properly resourced body with real teeth to help good employers comply with the law and come down hard on those who refuse to do right by their staff.

We look forward to working with Matthew Taylor in his role as chair to realise the Agency’s full potential, protect workers in every corner of the country and work with unions to drive up the quality of work.

Neil Carberry, REC Chief Executive, said:

Matthew Taylor will bring a combination of deep care for workers being treated well and an understanding that work itself is changing fast. Both workers and businesses need flexibility that goes beyond the structures of the past, while ensuring we avoid exploitation.

The new Fair Work Agency is vital to this, so long as it builds on the expertise of its predecessor bodies, in particular the Employment Agency Standards Inspectorate. For too long, employment laws have been passed that the vast majority of firms comply with, absorbing the costs of adoption in the interests of fair treatment. But those who flout the law have found it too easy to get away with it. That damages great firms and exposes workers to poor treatment.

We look forward to working with Matthew and the FWA team to address this in the interest of compliant businesses across the country.

Peter Cheese, chief executive of the CIPD, the professional body for HR and people development, said:

The appointment of Matthew Taylor as chair of the new Fair Work Agency is an important step toward building a more coherent, fairer system of labour market enforcement. His experience and leadership will be crucial in driving forward the agency’s mission to prevent exploitation and promote fair treatment for all workers.

To ensure its success, the Fair Work Agency must be equipped with the right resources and a strong employer-side voice from the outset. Employers - particularly smaller businesses - need clear guidance and support to comply with the new Employment Rights Bill. At the CIPD we look forward to working with Matthew to help the Fair Work Agency deliver on its ambition.

Notes to Editors
- Matthew Taylor was appointed chair following a fair and open recruitment process.
- The Fair Work Agency will launch in April 2026. Matthew 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.
- 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.
- Research shows the scale of the challenge the Fair Work Agency will address: 900,000 UK workers annually have their holiday pay withheld, worth around £2.1 billion, whilst nearly 20% of minimum wage workers are underpaid.