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Social Care Homes Paying Under Minimum Wage ‘Named & Shamed’

  • Posted 26th March 2015

Social Care Homes Paying Under Minimum Wage ‘Named & Shamed’

HM Revenue & Customs (HMRC) is investigating about 100 social care homes in England for their failure to pay their workers a national minimum wage. Along with that, the government announced that HMRC has initiated investigation into six of the largest employers in the sector but has declined to name them due to taxpayer confidentiality. It has recently revealed East Midlands Crossroads for non-compliance and underpaying 184 care workers with just over £37,500. This was by far the largest among the 70 cases of companies who didn’t paid minimum wage. Care and Support Minister, Norman Lamb said “We know the 100 care companies being investigated are just the tip of the iceberg in the care sector and are absolutely committed to getting back the wages people have worked so hard for. We will continue to name, shame and fine these employers until every care provider gets the message.” This campaign is to show what employers will be facing a financial penalty and being publically named in case of not paying minimum pay rates to their employees. The current minimum wage rates for adult (21 and over) is £6.50 per hour, 18 to 20 year olds is £5.13 per hour, 16 to 17 year olds is £3.79 per hour, and apprentice rate is £2.73 per hour. Now, the government is working with the Association of Directors of Adult Social Services and other care sector organisations to identify the causes of non-compliance. Also, it is trying to raise awareness of wage standards with employers and care workers. This way if they are deprived of their national minimum wage, they will know how to complain. HMRC investigates areas where there is a higher risk for workers and helps them if any complaints is made. If any of you think you are not receiving a national minimum wage in the UK, contact HMRC helpline immediately.

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