The government will regularly name and shame employers who breach national minimum wage rules as part of reforms expected to be announced by Rachel Reeves.
A Treasury source said the expected changes will provide further protection to vulnerable workers and ensure businesses have no place to hide.
The reforms are also aimed at clearing a backlog of cases.
The Treasury source said: “This government is cracking down on unscrupulous employers to protect the country’s lowest-paid workers and ensure fair pay for hard work.”
“We are sending a clear message – those who short change their staff will not be allowed to hide.”
Treasury figures said 500 employers failed to pay the minimum wage in October, affecting 42,000 workers.
They were hit with fines totalling £10.2m, as well as having to reimburse their employees.
The news comes ahead of Wednesday’s Budget when the chancellor is expected to announce an £18m scheme to revamp playgrounds in England.
A Treasury source said 200 play areas would benefit from the money, which follows the government’s Pride in Place programme providing £5 billion for communities to regenerate public spaces.
The source said: “This funding will breathe new life into play areas across England, creating safe, exciting spaces for thousands of children.”
“It will enrich and empower communities – giving every child a place to play and grow, wherever they live.”
Among other measures expected to be announced in the Budget, Border Force and HM Revenue & Customs will receive new powers to seize illegal vapes on the spot and issue £10,000 fines.
New criminal offences could land business owners who break the rules with prison time.
From October 2026, all vapes will need to have a digital duty stamp with a QR code which customers and law enforcement can scan to check for fakes.
Shops will have a six-month grace period to sell any unstamped stock.
A Downing Street source said: “Britain’s high streets are being flooded with illegal vapes by rogue traders.”
“The chancellor will crack down hard – giving Border Force and HMRC the power to seize dodgy vapes on the spot and hit offenders with £10,000 fines.”
“We’re protecting shoppers and backing honest businesses.”