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<p>We are considering how further targeted enforcement in the care sector may be undertaken
as part of our annual review of HM Revenue and Customs’ (HMRC) service level agreement
for national minimum wage enforcement, taking account of the Minister of State for
Care and Support’s views that this sector should be prioritised. This service level
agreement sets out priority areas for enforcement activity.</p><p> </p><p>In addition
to targeted enforcement activity, HMRC respond to every complaint made to the Pay
and Work Rights Helpline. Any worker who believes that they are being paid below the
minimum wage should call the helpline on 0800 917 2368.</p><p> </p><p>In relation
to the last targeted enforcement activity, HMRC published findings on 25 November
2013. Over the period 1 April 2011 to 31 March 2013, HMRC had made enquiries into
224 employers in the social care sector. Of the cases completed by the end of September
2014, HMRC have found non-compliance in 108 (48%) of their enquiries, identifying
£1,319,729 arrears of pay for 6,550 workers, with penalties issued with a total value
of £146,931.</p><p> </p><p>As part of this targeted enforcement activity, HMRC have
collaborated with care sector representative bodies to improve understanding of compliance
risks and design controls within payroll systems that prevent workers being underpaid
the minimum wage.</p><p> </p><p>The Department of Health has recently published statutory
guidance for local authorities as part of the package of secondary legislation that
accompanies 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.</p><p> </p><p>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.</p><p> </p>
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