Oral Answers to Questions

Paula Sherriff Excerpts

Tuesday 7th November 2017 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

15. What discussions he has had with Cabinet colleagues on providing funding to ensure minimum wage back-payment in the social care sector.

[Paula Sherriff (Dewsbury) (Lab)]

17. What discussions he has had with Cabinet colleagues on providing funding to ensure minimum wage back-payment in the social care sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

I have worked closely with ministerial colleagues to implement a national minimum wage enforcement approach that protects the interests of social care workers and vulnerable service users. The Government recognise the financial pressures that some providers face, and we are exploring further options to minimise any impact on the sector. Any intervention would need to be proportionate, and the Government have opened discussions with the European Commission about issues relating to state aid.

[Margot James]

We recognise that such individuals can be among the most vulnerable in society, and we are working to ensure that that group receives the necessary help and support. We expect local authorities to work with Her Majesty’s Revenue and Customs to ensure the right outcome for such individuals, but it is only fair that the budgets provided to personal budget holders reflect their legal obligations to pay the national minimum wage to workers on sleep-in duty both now and when it comes to any arrears owing.

[Paula Sherriff]

If enforcement action results in the closure of or disruption to service providers, how will the Government guarantee that vulnerable people will not be left without services?

[Margot James]

I would like to reassure the hon. Lady that the new social care compliance scheme will give providers up to a year to identify what they owe to workers and will be supported by advice from HMRC. Employers who identify arrears at the end of the self-review period will have three months to pay workers, so the scheme is designed both to support workers and to ensure the continuation of the crucial services that providers perform.