Question

To ask the Secretary of State for Business, Innovation and Skills, pursuant to the contribution of 5 November 2014 by the Minister of State in his Department, Official Report, column 240WH, on care workers, when the themed work on minimum wage enforcement in the care sector will start.

We are considering how further targeted enforcement in the care sector may be undertaken as part of our annual review of HM Revenue and Customs’ (HMRC) service level agreement for national minimum wage enforcement, taking account of the Minister of State for Care and Support’s views that this sector should be prioritised. This service level agreement sets out priority areas for enforcement activity.

In addition to targeted enforcement activity, HMRC respond to every complaint made to the Pay and Work Rights Helpline. Any worker who believes that they are being paid below the minimum wage should call the helpline on 0800 917 2368.

In relation to the last targeted enforcement activity, HMRC published findings on 25 November 2013. Over the period 1 April 2011 to 31 March 2013, HMRC had made enquiries into 224 employers in the social care sector. Of the cases completed by the end of September 2014, HMRC have found non-compliance in 108 (48%) of their enquiries, identifying £1,319,729 arrears of pay for 6,550 workers, with penalties issued with a total value of £146,931.

As part of this targeted enforcement activity, HMRC have collaborated with care sector representative bodies to improve understanding of compliance risks and design controls within payroll systems that prevent workers being underpaid the minimum wage.

The Department of Health has recently published statutory guidance for local authorities as part of the package of secondary legislation that accompanies the Care Act. The chapter of statutory guidance on commissioning and market shaping explicitly states that local authorities should have evidence that contract terms, conditions and fee levels will not compromise care providers’ ability to pay at least minimum wages.

The Department of Health is asking all Local Authorities to sign up to the Social Care Commitment which incorporates a statement about employer compliance with minimum wage legislation. The Association of Directors of Adult Social Services has written out to all its members encouraging them to support the Commitment as a way of raising standards in adult social care.