Carers: Back Pay Liability

Baroness Richardson of Calow Excerpts

Wednesday 16th May 2018 Lords Chamber

Asked by

[Baroness Richardson of Calow]

To ask Her Majesty’s Government what plans they have made to assist financially with the historic back pay liability of providers of commissioned care for people with learning difficulties.

[The Parliamentary Under-Secretary of State, Department of Health and Social Care (Lord O'Shaughnessy) (Con)]

My Lords, the Government recognise that sleep-in liabilities are placing financial pressures on the adult social care sector and are exploring future options to minimise the impact. Any such intervention would need to be legal, proportionate, fair and necessary. To support providers now, HMRC has created the social care compliance scheme to allow participating social care providers until March 2019 to make payments to workers.

[Baroness Richardson of Calow (CB)]

My Lords, I thank the Minister for his answer and his concern, because this is a concern that is widely felt within the social care sector. I am associated with a charity called Walsingham Support, which supports adults with learning difficulties: those with brain-acquired injury, autism and complex needs. Like many other care providers, it is finding it very difficult to comply with the current exercise, which is for back-pay liability in respect of night-working. Until fairly recently, night workers who were permitted to sleep were given a flat rate and the full wage if they were required to work during the night.

[Noble Lords]

Question?

[Baroness Richardson of Calow]

I am so sorry. I have got a question; I have three questions but I hoped that I could give a little bit of background. Will the Government clarify the funding position as a matter of urgency? Will they commit to funding the estimated £400 million of back pay directly to those recipients? Will they commit to the additional funding needed by the social care sector to pay all sleep-in shifts? Perhaps I may be permitted to give a little—

[Noble Lords]

No!

[Baroness Richardson of Calow]

Okay.

[Lord O'Shaughnessy]

I recognise the concern expressed by the noble Baroness, which the Government share. Even though the position on the change of the status on paying sleep-in payments changed in October 2016, we understand the size of civil liabilities for some providers who, of course, are, in many cases, providing for some of the most vulnerable people in society. That is why this HMRC scheme was set up. It gives providers extra time—up to 15 months—to get their house in order, understand their liabilities and pay them. That comes to an end in March 2019, which is why we are working on looking at other interventions and talking to the European Commission about the legality and state-aid rules in relation to that. I am afraid that I cannot give her any more detail at this stage, but I can tell her that it is a priority.