Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what assessment they have made of the impact on personal budget holders as a consequence of the retrospective implementation of the change in guidance on the national minimum wage and national living wage for sleep-in shifts for care workers.

Court and Employment Appeal Tribunal judgments have clarified, over time, what constitutes “work” in connection with sleeping time and therefore when the national minimum or living wage (NMW) is payable for sleep-in shifts. The Government recognises that cumulative financial liabilities relating to sleep-in shifts could pose challenges to some social care providers and individuals, including personal budget holders.

The Government is currently engaging with the social care sector to understand the impact of those liabilities and is exploring options to minimise the impact on the sector, including opening discussions with the European Commission to determine whether any support, if deemed necessary, would be subject to EU state aid rules.

The Government launched the Social Care Compliance Scheme (SCCS) on 1 November 2017. It aims to maintain care service provision, protect existing jobs and maximise the prospects of workers being paid arrears as soon as possible. The SCCS is open to all care sector employers, including personal budget holders and self-funders. It means that individuals affected can benefit from a certain period of time to review what is owed. In practice, where an individual is the subject of an NMW investigation, we expect local authorities to work closely with HMRC to ensure the right outcome in light of the individual’s needs where any liability is identified.