Thousands of former UK holiday camp workers will receive around £1 million in back pay after a court ruled they were unfairly charged for utility bills.

Butlins and Haven have been found guilt of breaching National Minimum Wage legislation after staff were charged £3 a week for gas and electricity during 2004 and 2005.

The Court of Appeal ruled the £3 a week utilities deduction meant staff received less than the national minimum wage.

Revenue and Customs and trade union GMB, which both took up the case, said up to 10,000 workers could receive back pay as a result of the ruling.

In his judgement, Lord Justice Buxton said: “The workers are seasonal staff and if the sum of £3 a week were to be deducted from their wages that would reduce remuneration below the NMW level.”

Bourne Leisure – owners of Butlins and Haven – said it’s “carefully considering” the verdict.

The company added it supplied gas and electricity at a reduced rate and is concerned staff  would have to pay more if meter controls were used. Price hikes would also be out of the company’s control, Bourne Leisure added.

The NMW currently stands at £5.35 for adults and £4.45 for workers aged between 18 -21 years old.