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09/02/2015
Social Care Workers 'Cheated' By Employers - Report
Social care workers are losing out on £130 million a year due to pay rates that are in breach of the National Minimum Wage, according a report by the independent think-tank the Resolution Foundation.
The report estimates that around 160,000 care workers, out of 1.4 million, are being paid less than the minimum wage when all working time is considered. The average loss for those not receiving the minimum wage is around £815 per year.
The Resolution Foundation believes that far tougher enforcement of the minimum wage is needed to stamp out the abuse. The government has stepped up its activity to crack down on illegal underpayment recently, but far more can be done.
Laura Gardiner, Senior Research and Policy Analyst at The Resolution Foundation, said: "Every worker has the right to the minimum wage yet illegal non-payment is all too common in the social care sector. It’s scandalous that these workers, who do such demanding and valuable work, are being cheated out of £130m every year through what is effectively 'wage theft' by their employers.
"Diminishing public funding and ever tighter commissioning practices are placing great pressure on care providers, but there is simply no excuse for breaking the law and HMRC urgently needs to get tougher on employers who do so. It's welcome that the government has started to draw attention to this issue and beefed up enforcement powers but far more needs to be done given the scale of abuse."
(CD/IT)
The report estimates that around 160,000 care workers, out of 1.4 million, are being paid less than the minimum wage when all working time is considered. The average loss for those not receiving the minimum wage is around £815 per year.
The Resolution Foundation believes that far tougher enforcement of the minimum wage is needed to stamp out the abuse. The government has stepped up its activity to crack down on illegal underpayment recently, but far more can be done.
Laura Gardiner, Senior Research and Policy Analyst at The Resolution Foundation, said: "Every worker has the right to the minimum wage yet illegal non-payment is all too common in the social care sector. It’s scandalous that these workers, who do such demanding and valuable work, are being cheated out of £130m every year through what is effectively 'wage theft' by their employers.
"Diminishing public funding and ever tighter commissioning practices are placing great pressure on care providers, but there is simply no excuse for breaking the law and HMRC urgently needs to get tougher on employers who do so. It's welcome that the government has started to draw attention to this issue and beefed up enforcement powers but far more needs to be done given the scale of abuse."
(CD/IT)
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