Minimum Wage penalties to increase further
Today’s Queen’s Speech includes plans for legislation that will substantially increase penalties for non-compliance with National Minimum Wage (NMW).
March this year saw penalties rise from up to £5,000 to up to £20,000 per employer. We understand the Coalition’s proposal is that fines should be calculated by reference to underpaid workers, rather than per employer, as a further deterrent to non-compliance. So those who are found to have underpaid their staff could be liable for fines up to £20,000 per worker, putting non-compliant businesses and jobs at risk.
UKHCA Policy Director, Colin Angel, commented:
”This government is determined to crack down on non-compliance with NMW, but there is a risk that employers who have genuinely misunderstood how NMW applies to their sector will be caught out.
“Work patterns and travel in homecare make calculating National Minimum Wage extremely complicated. UKHCA’s National Minimum Wage Toolkit helps employers ensure they understand their obligations, and are compliant.
“Local authorities must also play their part by recognising the actual costs of care in the prices they pay. Both the Equality and Human Rights Commission and the BBC have uncovered widespread under-resourcing of state-funded homecare. It is vital that council contracts enable care workers to be properly remunerated for the valuable and skilled work they do.”
Ends.
Notes for Editors
1. The Queen’s Speech is available from: http://www.parliament.uk/about/how/occasions/stateopening/queensspeeches/
2. UKHCA National Minimum Wage Toolkit, available to UKHCA members: http://www.ukhca.co.uk/downloads.aspx?ID=422
3. Actual cost of care: Angel, C (2013) A Minimum Price for Homecare. Sutton: United Kingdom Homecare Association. http://www.ukhca.co.uk/downloads.aspx?ID=434
4. United Kingdom Homecare Association (UKHCA) is the professional association for more than 2,100 domiciliary care providers in Great Britain and Northern Ireland.
5. UKHCA’s mission, as a member-led professional association, is to promote high quality, sustainable care services so that people can continue to live at home and in their local community. We do this by campaigning, and through leadership and support to social care providers.
6. UKHCA has a vetting procedure for its members, all of whom agree to abide by the Association’s Code of Practice, which can be found at www.ukhca.co.uk/codeofpractice.aspx.
7. UKHCA represents 33% of independent and voluntary sector providers in the UK, and estimates that its member organisations employ over 119,000 homecare workers, who deliver over 2.79 million hours of care per week to around 166,000 service users, valued at £1.62 billion per annum.
8. Homecare encompasses provision of personal care, to people in their own homes. For many, homecare is the alternative of choice for people who would otherwise need to move into residential accommodation.
9. The majority of homecare is funded by the state (usually by local council social services departments, Clinical Commissioning Groups (CCGs) or Health and Social Care Trusts in Northern Ireland). However, homecare services are largely delivered by independent and voluntary sector providers working under contracts with the statutory sector.
10. Regularly updated statistical information about homecare services in all four UK administrations is available from "An Overview of the UK Domiciliary Care Sector" at www.ukhca.co.uk/downloads.aspx?id=109.
11. For further information please contact:
Colin Angel, Director of Policy and Campaigns
United Kingdom Homecare Association
Sutton Business Centre
Restmor Way
Wallington
SM6 7AH
Telephone: 020 8661 8188
Mobile: 07920 788993
E-mail: [email protected]
Website: www.ukhca.co.uk
Registered in England, No. 3083104.
