Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, with reference to National Minimum Wage Compliance in the Social Care Sector published by HM Revenue and Customs in November 2013, what steps he has taken since that date to tackle low pay in the social care sector.

HMRC investigates every complaint made to the Pay and Work Rights Helpline and conducts risk-based enforcement activities in sectors or areas where there is a higher risk of workers not getting paid the legal minimum wage.

The Government is also taking specific action to improve compliance with national minimum wage legislation in the social care sector. The Department of Health has recently consulted on statutory guidance for local authorities as part of the package of secondary legislation to accompany the Care Act, which 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. Responses to the consultation are currently being analysed and the final guidance will be published in October.

BIS is also working with HMRC to identify how best to promote the useful information for workers and employers contained in HMRC’s evaluation report on the social care sector. It is also considering the next steps to increase compliance in this sector.