Nearly half of care home providers pay less than national minimum wage

Nearly a half of care home providers investigated by HMRC have paid one or more of their workers less than the national minimum wage, according to a new report.

HMRC’s report ‘National Minimum Wage compliance in the social care sector’ found that in 183 concluded investigations, 48 per cent of care providers had paid one or more of their workers below the national minimum wage.

However United Kingdom Homecare Association (UKHCA) warns that these figures should not be seen as a national picture of non-compliance throughout the social care sector.

Fifty-two per cent of care home providers investigated were non-compliant with the figure dropping to 33 per cent for homecare providers.

The selection of employers was determined by care home workers and home care reporting concerns about underpayment of national minimum wage to Government’s Pay and Work Rights Helpline, third-party intelligence indicating potential non-compliance and a selection of employers by HMRC on the basis of perceived risk.

As of 1 October 2013, the national minimum wage for people aged 21 years and above is £6.31 per hour.

The report summarises the findings of 224 investigations into compliance with the national minimum wage opened between 1 April 2011 and 31 March 2013, of which 183 were concluded and a further 41 were ongoing.

Earlier this year, Sukhi Gidar, director of Gold Care Homes called for a minimum wage of £8.50 for care home staff to “entice more well-qualified people to work in care homes”.

He added: ““A lot of care homes pay the national minimum wage and they are competing against supermarkets for staff. We pay our staff above the minimum wage.”

The United Kingdom Homecare Association (UKHCA) blames the non-compliance with the national minimum wage on the low prices being paid by councils for care.

UKHCA chair, Mike Padgham, said: “We believe that non-compliance with national minimum wage is a symptom of the wider picture of under-funded social care, and not the deliberate action of individual employers.

“While it is essential that employers comply with the law, it is a disgrace that social care is so poorly funded that employers struggle to keep ahead of the minimum wage. This is a sad reflection of the low value society places on the social care workforce and the outcomes our vital workforce secure for older and disabled people.”