Home care workers underpaid by £130m every year

Home care workers are missing out on an estimated £130m each year because their pay rates are in breach of the National Minimum Wage.

The underpayment affects the pay of an estimated 160,000 home care assistants who have been paid on average £815 per year less than the amount which would adequately cover their work.

Underpayment for the time spent in between home visits, unpaid training time and ‘on call’ time are the main areas in which home care providers have failed to comply with the National Minimum Wage.

The findings have been published by non-partisan think tank Resolution Foundation in its publication ‘The scale of minimum wage underpayment in social care’ which now wants action to be taken to end pay inequality within the sector.

Pay inequality

Davina Ludlow, director of homecare.co.uk, the UK’s leading guide to home care providers, said: “Care workers provide a lifeline to some of the most vulnerable people in our society. But as the Resolution Foundation’s research confirms, they are amongst the lowest paid.

“Pressure from commissioners to tighten budgets means care providers are only paid for ‘contact time’ and not a penny more.

“Travelling between care visits is unpaid – pushing their real-world pay below the National Minimum Wage. No wonder employers have to cope with a high turnover of staff.

“What we need to see is the Government addressing the fundamental problem with the way home care is funded, or both carers and individuals will continue to suffer.”

The Resolution Foundation believes local government must take greater responsibility for the action of care providers and wants to see national Government recognising the impact budget cuts to care contracts have on local authorities.

The think tank has also called for a joint effort between national Government, local authorities and home care providers to address the problem of low pay affecting 160,000 of the 1.4 million home care workers.

Workers' rights

Laura Gardiner, a 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 £130 million every year through what is effectively wage theft by their employers.

"If we want to see dignity for those receiving care then we need to start investing in the workers who provide it."

"Social care will need to fill up to a million additional jobs in the next decade to meet the needs of our ageing population, so tackling the broader issue of low pay in this sector is a real priority.”

George McNamara, head of policy and public affairs at the Alzheimer’s Society, commented on the findings, saying: “It's disgraceful and unacceptable that dedicated care workers are being devalued and subjected to these pay conditions. It is vital that the Government acts to end this scandalous practice, which denies workers from getting the minimum wage and tackles the low levels of pay across the sector.

“We need to invest in care workers and ensure that they are given the support they need to provide the best care possible. The current social care system is broken and urgently needs to be fixed - otherwise we'll all be paying the price in the future.”