Question

To ask the Secretary of State for Business, Innovation and Skills, if he will meet the Minister of State for Care and Support to discuss enforcement of the minimum wage in the care sector.

I have recently met with my Rt hon Friend the Minister of State for Care and Support (Alistair Burt) to discuss enforcement of the minimum wage in the care sector.

The Government is taking action to improve compliance with the National Minimum Wage in the social care sector. We are working closely with the Department of Health, and HM Revenue and Customs (HMRC).

Over the period 1 April 2011 to 31 March 2013, HMRC have made enquiries into 224 employers in the social care sector. Over half of these were paying less than the minimum wage- between them owing £1,347,150 arrears of pay to 6959 workers, with penalties issued with a total value of £158,239.

HMRC also opened 225 investigations in the period 1 April 2013 to 31 March 2015. 113 cases are closed with £110,943 arrears identified for 368 workers. Currently, there are 142 investigations open in social care.

The Department of Health has published statutory guidance for local authorities as part of the package of secondary legislation to accompany 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.

The Department of Health is also working with the Association of Directors of Adult Social Services (ADASS), the Local Government Association (LGA) and the Health Services Management Centre at Birmingham University to develop a set of Commissioning Standards. Local authorities will be encouraged to use these as a benchmark to support them to improve commissioning practices, including those which have an impact on the social care workforce such as employer compliance with National Minimum Wage.

In addition to the actions we are currently taking to reduce non-compliance in the social care sector, we will also be:

· issuing guidance to employers so that they understand the NMW law, including tips to avoid common mistakes and the records that they should be keeping to prove that they are paying their workers correctly.

· encouraging care sector workers who have been underpaid to make a complaint- making sure that they understand their entitlement.

Any worker who is concerned that they have not received what they are entitled to should call the Acas helpline on 0300 123 1100 for confidential advice. HMRC follow up every complaint.