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<p>The Government is taking action to improve compliance with the National Minimum
Wage (NMW) in the social care sector. We are working closely with the Department of
Health, Communities and Local Government and HM Revenue and Customs (HMRC).</p><p>
</p><p>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 £1,319 729 arrears of pay to 6550 workers, with
penalties issued with a total value of £146,931. There are 94 investigations currently
underway in the social care sector.</p><p> </p><p>The Department of Health have recently
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.</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><p>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 as 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.</p><p> </p><p>In addition
to the actions we are currently taking to reduce non-compliance in the social care
sector, we will also be:</p><p> </p><p>• 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.</p><p>
</p><p>• encouraging care sector workers who have been underpaid to make a complaint-
making sure that they understand their entitlement.</p><p> </p><p>HMRC have started
work on new targeted enforcement work in the care sector.</p><p> </p><p>Any worker
who is concerned that they have not received what they are entitled to should call
the helpline on 0800 917 2368. HMRC follow up every complaint.</p><p> </p>
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