The suspension of national minimum wage enforcement for social care providers, in respect of sleep-in workers, has now been lifted by HMRC. Enforcement action was temporarily suspended between 26 July and 1 November 2017, in response to concerns over the impact of financial penalties and arrears of pay on social care providers. Penalties applicable to underpayments made prior to 26 July were  also waived.

A new Social Care Compliance Scheme (SCCS) has been introduced, to enable social care providers to identify what they owe to workers, and gives them a period of three months to pay any underpayments of the national minimum wage.

Social care employers who opt into the SCCS will have up to a year to identify what they owe to workers, supported with advice from HMRC. Provided arrears of pay are paid within three months, employers will not be subject to additional penalties for non-compliance with national minimum wage rates. Those who choose not to opt in will be subject to HMRC’s normal enforcement scheme. 

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