Care companies investigated in crackdown over failure to pay minimum wage

Around 100 care companies are being investigated over an alleged failure to pay the national minimum wage, the Government has revealed.

HM Revenue & Customs has also launched a “proactive” investigation into six of the largest employers in the sector.

HMRC is working with the Department of Health, the Department for Business, Innovation and Skills, the Association of Directors of Adult Social Services and the care sector “to understand more about the causes of non-compliance with the national minimum wage in the care sector and to raise awareness of the minimum wage with employers and care workers”.

This includes making sure that employees know how to complain if they believe they are not being paid the minimum wage.

The information was released as Business Minister Jo Swinson ‘named and shamed’ 70 employers across a range of sectors for failing to pay their workers the national minimum wage.

Care and Support Minister Norman Lamb said: “We want a fairer society where everyone gets the care they deserve - to do this we need a skilled, valued and fairly paid workforce. There is absolutely no excuse for employers that fail to pay the minimum wage.

“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.”

The 70 employers names by Swinson owed workers a total of more than £157,000 in arrears. They have been charged financial penalties totalling more than £70,000.

The Government had already named 92 employers since the new naming regime came into force in October 2013.

Ministers said they would also be increasing HMRC’s £9.2m enforcement budget by a further £3m. This will help fund more than 70 extra compliance officers.

Under the naming scheme the Government will name all employers that have been issued with a notice of underpayment unless employers meet one of the exceptional criteria or have arrears of £100 or less.