At least 21 social care homes failed to pay employees the National Minimum Wage since the scheme's introduction in October 2013.
A government announcement shows that over £200,000 was reportedly owed to workers in the social care sector.
The largest ever “naming and shaming” list of official National Minimum Wage offenders, published on Thursday, includes twenty one support companies - all of which have all been “cracked down on” and forced to pay workers.
The largest ever “naming and shaming” list of official National Minimum Wage offenders, published on Thursday, includes twenty one support companies - all of which have all been “cracked down on” and forced to pay workers.
Business Minister Margot James claimed: “It is not acceptable that some employers fail to pay at least the minimum wage their workers are entitled to.”
The shocking statistics reveal scandalous levels of underpayment: a total of three hundred and seventy six carers were owed £23,153 overall. Within this amount, each company owed employees - ranging from one to one hundred and one staffers - an average of £1,102.53.
And the neglected National Minimum Wage payments left workers on average £61. 58 out of pocket.
One social carer was left without nearly £3,000 to which he or she was entitled.
Royal Manor Nursing Home in Derby, operated by Pine View Care Homes Ltd, had already been reported as “requiring improvement” by Quality Care Commission in April 2015. And the new list shows Royal Manor also failed to pay an unnamed staffer £2,590.99.
Mr Dinesh Raja, its Registered Manager, was unavailable to comment at the time of publication. But an anonymous staff member, who said she had not heard about the underpayment, responded: “Oh my god.” She did not want to comment further.
Another social care provider, Azafran Ltd, trading as Bluebird Care, owed £3,708 to sixty seven workers. Director Sue McLaughlin apologised for “shortfall[s] in pay that any member of my team had” in an interview with Belfast Telegraph. Though the company was investigated by HM Revenue and Customs in 2014, its presence on the list will be seen as a success.
The Department for Business, Energy and Industrial Strategy’ (BEIS) plan to name employers who break minimum wage law was established in January 2011. Under the scheme, companies who pay workers less than the minimum wage have to pay back arrears of wages at current minimum wage rates, and may face further financial penalties of up to £20,000 per worker.
Thursday’s list names companies so far forced to comply. But an HM Treasury spokesman confirmed that “more than one hundred investigations into social care” have been launched across government.
The underpayment epidemic has already caused concern regarding private care. As reported by Low Pay Commission, approximately eleven per-cent of care workers (over 200,000 people) aren't paid the National Minimum Wage.
The news editor for carehome.co.uk, which lists care homes and reviews - including some mentioned on the list - was unable to comment. But Care Home Forum’s executive director, Des Kelly, wrote in May: “There can be no justification for care providers paying below the rate of the NLW.”
“We support HMRC taking a zero tolerance approach and using their powers to prosecute any such care providers.”
