National Minimum Wage

National Minimum Wage
Care Workers
4.47 Evidence for the 2011 Report highlighted difficulties
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faced by care workers as they tried to ensure they
were paid at least the NMW. Both worker and
employer representative bodies again submitted
evidence suggesting action was needed to help
maintain compliance in the sector, particularly in
relation to provision of home care.
“There are grey areas in the
NMW guidance around time
spent ‘on-call’ and time spent
travelling.”
UNISON oral evidence
4.48 We were told, including during our visits around the
UK, that local authorities often commissioned home care on the basis of payment for visit
contact time only. The UKHCA told us survey data showed an increase in both 15-minute and
30-minute visits between 2009 and 2010, but a decrease in 60-minute visits. Payment for
visit contact time put pressure on wage costs and providers in turn frequently paid their staff
on a visit time basis. UNISON was concerned that visits often took longer than the time
allocated, and staff were not paid for the additional time. It called on HMRC, BIS and the
Department of Health (DH) to investigate ‘15 minute slot’ visit payment systems used by
home care agencies, and provide best practice guidance to ensure staff were paid their full
minimum wage entitlement.
4.49 We received evidence, including from UNISON, that a system of paying staff according to
visit contact time may lead to a failure to pay them for their full travel time between home
care visits. In oral submission we heard that the UKHCA was aware that UNISON believed
there to be evidence of providers breaking NMW rules. UKHCA pointed to evidence that the
average home care hourly wage was above the NMW, so it would be possible for employers
not to pay for travel time and remain compliant. However, we are concerned that given the
cost pressures in the system and complexity in pay systems, breaches of the NMW may be
occurring, whether by design or default.
4.50 Both UNISON and UKHCA evidence expressed concern
about the possible implications of the continued
expansion of self-directed support through
employment of Personal Assistants, including the risk
of non-payment of the NMW. Both organisations also
saw a lack of clarity and need for better guidance on
the rules for staff during ‘stand-by’/‘on-call’ time.
UKHCA was seeking to develop further guidance for
its members but also called in its oral evidence for
improvements in the official guidelines.
“BIS guidance is too generic for
social care. We would like sector
specific guidance.”
UKHCA and Registered Nursing
Home Association oral evidence
4.51 We met a representative from the Association of Directors of Adult Social Services and
discussed the scope to remind members of the rules that providers should be following in
respect of travel time. We also heard from HMRC that compliance issues in social care were
on its radar, and we welcome its efforts to target issues in the sector.
4.52 The sector requires greater awareness of the NMW rules, good guidance and appropriate
enforcement. It also requires guidance by the lead departments in social care to dovetail with