HMRC ‘is taking a punitive approach’ to care worker back-pay issue

The Voluntary Organisations Disability Group says there is a lack of clarity with the scheme to make care charities give sleep-in staff back pay within 15 months

A charity representing more than 80 voluntary sector and not-for-profit disability and care organisations has accused the government and the taxman of taking a punitive approach to charities over the back-pay issue for sleep-in care workers.

The Voluntary Organisations Disability Group accused HM Revenue & Customs of “bullish tactics” and of sending “ultimatum letters” that give organisations 30 days to sign up to a voluntary scheme drawn up by the government to resolve the issue.

The VODG said there was a lack of clarity around the scheme, making it difficult for its members to decide whether they should sign up.

Sleep-in care workers, who are widely used in the sector to care for vulnerable adults, were typically paid a flat rate of between £35 and £45, with workers receiving either the national minimum wage or the national living wage for any hours actually spent providing care rather than being asleep, according to VODG.

But in the wake of two employment tribunal decisions from last year, the government changed its guidance to ensure that the national minimum wage applied to sleep-in carers for the entirety of the time they are present.

Mencap estimated in the summer that the back-pay bill could cost the sector £400m and bankrupt many social care charities and providers.

Earlier this month, the government and HMRC published details of a scheme that gave providers a year to identify what they owe and a further three months to pay off the arrears.

But charities criticised the announcement, with Mencap saying that organisations signing up to the scheme could be “writing their own suicide notes”.

They want the government to foot the bill because they believe the issue has arisen as a result of the government providing incorrect guidance on the matter.

In the VODG statement yesterday, Steve Scown, chair of the organisation, said: “There are too many unresolved questions for providers to make an informed decision as to whether to join the government’s compliance scheme.

“In the absence of answers, and funding to cover the back-pay bill, HMRC’s approach and the timeframe it is imposing is unhelpful to a sector that is at full stretch financially.”

The chief executive of one disability charity, who did not want to be named, said: “This appears to be a concerted and planned campaign by government to undermine the sector when a constructive, not punitive, approach is needed.

“At a time when we need more funding for social care, the sector is instead being hammered by the HMRC, intent on taking away resources from the sector.”

An HMRC spokesman said the government had consistently made it clear that all employers were expected to pay workers according to the law. 

“The social care compliance scheme is designed to maximise the prospects of workers being paid arrears owed to them, while at the same time protecting existing jobs and the stability of the sector,” he said. 

“HMRC is engaging with the sector to help providers consider whether they are eligible for the scheme. As part of this we have contacted all social care providers who were already subject to a National Minimum Wage investigation at the scheme’s launch and where we have received a worker complaint.”

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MPs quiz government on social care back-pay bill

Social care charities have been given 15 months to repay an estimated £400m in back-pay for sleep-in providers

Conservative and Labour MPs have questioned the government’s position on the 15-month deadline for social care charities to repay approximately £400m in back-pay to sleep-in care workers.

Speaking in the House of Commons on Tuesday, Rebecca Long-Bailey, the shadow business secretary, asked Greg Clark, the business secretary, whether the government would commit funding to social care providers to pay sleep-in care workers back-pay of up to six years.

Sleep-in care workers were originally paid a flat-rate, but two employment tribunal decisions last year forced the government to change its policy and make the workers eligible for the minimum wage.

This led to HM Revenue & Customs pursuing charities for back-pay, which Mencap claimed could cost the sector as much as £400m, and led to a new government initiative, the Social Care Compliance Scheme, being announced last week to address the problem.

The SCCS gives social care organisations a year to work with HMRC to identify the amount of back-pay they owe, and an additional three months to settle any outstanding sums with their workers.

Long-Bailey told parliament that the government’s proposals had been branded “inadequate” and many charities felt they were “writing their own suicide notes” if they took part.

She asked Clark whether the government would “commit the necessary funding in the Budget to avert a crisis in the care sector, which could see many businesses struggle to survive, impacting on already fragile care services, and leave thousands of care staff without the wages they are owed”.

Clark responded that the interim proposal had been made to ensure a “robust” solution to the issue of back-pay could be formed by the government.

The government’s statement announcing the SCCS confirmed that it was talking with the European Commission to see if government support for the social care sector would contravene EU state-aid rules.

In questions to the business department, which also took place in the Commons on Tuesday, Peter Aldous, the Conservative MP for Waveney, said the SCCS “unfortunately adds to the uncertainty facing the social care sector” and urged the government to “get back round the table with the sector to find an acceptable long-term solution”.

Margot James, a business minister, said in response that the department was working with the Department of Health and the Department for Communities and Local Government to put pressure on the Treasury to provide a long-term solution to the back-pay issue.

Kevin Hollinrake, the Conservative MP for Thirsk and Malton, asked whether it would be sensible “to consider revisiting the legislation in this place simply to return to the pre-tribunal position”.

James said even if the government changed the law, which she said it certainly would not, “it would not have any impact on workers’ eligibility for historical back-pay liabilities”.

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Social care charities given 15 months to settle estimated £400m back-pay bill

An announcement by the government says the organisations have a year to identify what they owe sleep-in carers and a further three months to pay the arrears

Charities that owe back-pay to sleep-in care workers have been given 15 months to pay up to six years’ worth of arrears totalling an estimated £400m, under a scheme set out by the government.

The Department for Business, Energy & Industrial Strategy, the Department of Health and HM Revenue & Customs yesterday published the headline details of a voluntary scheme designed to encourage charities to pay back-pay to sleep-in care workers, which gives organisations a year to identify what they owe and a further three months to pay off the arrears.

But charities and lawyers criticised the announcement, with the learning disability charity Mencap warning that charities signing up to the scheme could effectively be “writing their own suicide notes”.

Sleep-in care workers, who are widely used in the sector to care for vulnerable adults, were typically paid a flat rate of between £35 and £45, with workers receiving either the national minimum wage or the national living wage for any hours actually spent providing care rather than being asleep, according to the Voluntary Organisations Disability Group.

But in the wake of two employment tribunal decisions last year, the DBEIS changed its guidance to ensure that the national minimum wage applied to sleep-in carers for the entirety of the time they are present.

Mencap estimated in the summer that the back-pay bill could cost the sector £400m and bankrupt many social care charities and providers.

Under the new Social Care Compliance Scheme, HMRC will begin writing to social care employers that have complaints against them for underpaying sleep-in care workers to encourage them to sign up to the programme.

Employers that choose not to take part “will be subject to HMRC’s normal enforcement approach”, the government said.

The statement from the government said it was looking at ways to minimise the impact on the charity sector, and was discussing with the European Commission whether any government support for the social care sector would contravene EU state-aid rules.

But the announcement has been met with fury from charities and representative bodies in the social care sector.

Mencap, which would owe £20m in back-pay and has said it would face closing 200 residential care homes and services and making 4,000 staff redundant if forced to pay, claimed the government’s announcement failed to provide reassurance to patients and staff.

Derek Lewis, chair of Mencap, said: “Three months on from the government’s commitment to seek a solution to the devastating £400m liability hanging over the sector, there is only the promise of further delay and no commitment, even in principle, to accept responsibility for a liability created by government changing the rules.

“Details of the scheme have not yet been made available. Many providers, particularly smaller ones, might be reluctant to take part in the absence of any funding assurance, concerned that they will be writing their own suicide notes.

“It is quite wrong that providers should be expected to subsidise the increased cost of on-going sleep-in care.”

Steve Scown, chair of the VODG, said the government had failed to consult properly with the social care sector, despite the VODG providing detailed analysis and advice to the Department of Health.

“The announcement raises lots of uncertainties and unanswered questions, which we shall be taking to government,” said Scown. “This situation risks yet more unintended consequences as the limbo for providers and personal budget holders continues.”

Rhidian Hughes, chief executive of the VODG, said: “Voluntary sector care and support providers are disproportionately affected by social care budget cuts because the people they mainly support are publicly funded. The sleep-in crisis is placing immense strain on the sector and we are calling on government to urgently identify a long-term and sustainable funding solution for social care.”

Martin Green, chief executive of the representative body Care England, said the government “needs to accept the responsibility for meeting the substantial costs of backdating sleep-in costs and take full account of the reality that the sector has been operating for years within very contradictory guidance”.

Matt Wort, a partner at the law firm Anthony Collins Solicitors, urged charities not to sign up to the SCCS until an appeal by Mencap about sleep-in care workers’ wages had concluded.

“This is once again an ill-considered move by government that could have a devastating impact on the UK social care industry,” Wort said.

“Local authority and NHS commissioners won’t have funded providers sufficiently for the shifts in question to compensate this shortfall. Forcing care providers to pay for its own mistakes and leaving essential services at the mercy of HMRC is both unethical and nonsensical.

“Businesses and individuals must not sign up to this self-assessment scheme until they have further clarity. Mencap’s forthcoming court of appeal case, due to be heard in March 2018, could change the position as to whether sleep-in carers are entitled to the minimum wage.”

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Movers: Mark Adams becomes chief executive of Community Integrated Care

Plus: Rohan Putter joins Bloodwise; Stephen Ballantyne to take up new role at the Amber Foundation; NCT welcomes Peter Pedersen and more

The health and social care charity Community Integrated Care has appointed Mark Adams as chief executive. Adams, who joined the charity today, was working in Dubai as chief executive of the healthcare operator Anglo Arabian Healthcare, which he founded.

Rohan Putter has been appointed director of fundraising and marketing at the blood cancer research charity Bloodwise. He was deputy director of fundraising at Barnardo’s.

Stephen Ballantyne has been appointed head of fundraising and communications at the Amber Foundation, which works with marginalised young people. He was executive director of fundraising at Together for Short Lives.

The parenting charity NCT has appointed Peter Pedersen as chief technology officer. He joins from a similar role at Channel 4. The charity has also announced that Carey Oppenheim, outgoing chief executive at the Early Intervention Foundation, David Shanks, senior legal counsel at Google, and Stephanie Maurel, chief executive of the volunteering charity Concordia, have all joined its board.

The humanitarian mapping charity MapAction has promoted Ian Davis from head of partnerships to director of fundraising and marketing.

St Margaret’s Hospice in Somerset has appointed Max Watson as visiting professor, supporting teaching at the charity’s academy, which provides training for professionals working in end-of-life care. Watson was medical director at the Northern Ireland Hospice.

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Back-pay issue threatens care sector ‘as never before’, says Mencap chair

Derek Lewis says government should foot the bill to give back-pay to overnight sleep-in support workers, which could cost some charities up to £50,000

The learning disability sector is “under threat as never before”, according to Derek Lewis, chair of Mencap.

Lewis spoke out today as part of the sector’s continuing dispute with the government over who should fund £400m of back-pay for care workers that provide overnight sleep-in support.

Mencap has claimed that, besides the threat posed to charities that employ sleep-in carers, the issue could also affect up to 100,000 families who pay for sleep-in support through personal care budgets. Some, it says, might face bills of up to £50,000.

The row has been simmering for several months after the government changed its guidance on sleep-in care workers. Until recently, most overnight care workers received a flat rate of £35 to £45, according to the Voluntary Organisations Disability Group, which represents charities that provide services to people with disabilities.

But after two employment tribunal decisions, the Department for Business, Energy & Industrial Strategy changed the guidance to say staff should be paid the national minimum wage. Sleep-in staff are now eligible to claim for loss of earnings dating back six years.

Mencap began paying the national living wage in April, but Lewis said it would “cause us severe problems” if it had to foot the bill for six years of back pay. He warned that a number of major care providers could collapse unless the government stepped in.

Ministers, said Lewis, had previously issued incorrect guidance and the government should therefore pay. “For a government that spent £780.3bn in the 2017 fiscal year, £400m doesn’t seem like much to ask,” said Lewis.

He said families and care workers were suffering growing uncertainty and anxiety while the issue remained unresolved. Charities also faced uncertainty, he said. Voluntary organisations account for about 60 per cent of the 200 care organisations affected by the ruling.

“The learning disability sector is under threat as never before,” said Lewis. “For Mencap, it is the worst crisis that the charity has faced in its 70-year history.

“About 178,000 people across the UK have serious learning disabilities and depend on the care that charities like Mencap provide.

“At Mencap, we worry about the effect that this is having on our staff, families and the people we care for. Our care workers do a fantastic job and we want to pay them fairly. Since April we have been complying with new government guidance and paying the national living wage, but trying to fund six years of back pay would cause us severe problems”.

Last month BEIS announced “exceptional measures” to “minimise disruption”. These included temporarily suspending HMRC enforcement action over payment of sleep-in shifts until 2 October and waiving historical financial penalties against employers who underpaid workers for sleep-in shifts before 26 July. But organisations still face the prospect of having to find £400m after 2 October.

A statement from BEIS said: “The government will continue to look at this issue extremely carefully alongside industry representatives to see how it might be possible to minimise any impact on provision of social care, and ensure that action taken to protect workers is fair and proportionate.”

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Movers: Martin Warhurst made chief at Martin House Hospice Care for Children

Plus: Jim Minton takes over at Toynbee Hall, Julia Margo appointed head of the Genesis Research Trust and CICRA makes Nick Posford its first chief

Martin House Hospice Care for Children has welcomed Martin Warhurst as its new chief executive. He was managing director of Cestria Community Housing.

Jim Minton, director of membership and communications at London Youth, has been appointed chief executive of the community anti-poverty charity Toynbee Hall. He will take up the role in October.

The Genesis Research Trust, which funds medical research in gynaecology, obstretrics and the care of new-borns, has appointed Julia Margo as chief executive. She has been chief executive of the Family and Childcare Trust since July 2015.

CICRA, which funds research and provides support for children and young adults affected by Crohn’s and colitis, has appointed Nick Posford as its first chief executive. He joins from the same role at Kingston University’s students union.

Laura Thurlow has been promoted to chief executive of the Community Foundation for Surrey. She had been deputy chief executive of the charity since 2012 and interim chief executive since May this year.

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Merger of National Council for Palliative Care and Hospice UK to be finalised this week

Half of the NCPC’s 14 staff have moved to Hospice UK, and the merger will be completed on 1 July

The National Council for Palliative Care will be absorbed into Hospice UK when the charities finalise their merger later this week.

The merger, which will be completed on 1 July, is being carried out to help the two charities expand their work, reduce duplication of effort and build on the already close working relationship between the two organisations, a spokesman for the charities said.

Of the NCPC’s 14 staff, five took voluntary redundancy, two were made redundant and the rest have moved to Hospice UK, which has 57 staff.

The NCPC’s board will be wound up and the new charity will operate under Hospice UK’s name, the spokesman said.

The charities’ boards agreed in March to work towards a formal merger, and said Tracey Bleakley, chief executive of Hospice UK, would be acting chief executive of both organisations from 31 May while the merger was finalised.

Bleakley has today been confirmed as chief executive of the merged organisation and Claire Henry, former chief executive of the NCPC, has become director of improvement and transformation at Hospice UK.

Both charities already share a building in London, which will remain the merged charity’s headquarters, the spokesman said.

Hospice UK had an income of £5.9m in the 2016/17 financial year, while the NCPC had an income of £1.4m.

Bleakley said: “We need a bold new approach to caring for adults and children facing life-shortening conditions and confronting the taboo subjects of death and bereavement. This merger will greatly strengthen our ability to do this.

“As we join forces, we are looking at how we can open up good end-of-life care for everyone no matter who you are, where you are or what condition you have.”

Baroness Ilora Finlay, outgoing chair of NCPC and now vice-president of Hospice UK, said: “I’m delighted that our organisations are joining forces to further strengthen the voice for excellent palliative and end-of-life care for all.

“By coming together, we will continue to provide a clear vision and an even stronger voice for end-of-life care everywhere, because the most important person in end-of-life care is the person with the life-limiting condition and their family.”

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Asda’s Jane Macaulay joins Community Integrated Care, plus other movers

A round-up of the latest appointments including Julia Brown at Kisharon and Kerry Geldart at the Oral Health Foundation

The health and social care charity Community Integrated Care has welcomed Jane Macaulay as director of human resources. She previously spent 20 years working for the retailer Asda, most recently in senior HR and operational positions.  

The Oral Health Foundation has welcomed Kerry Geldart as director of operations. She was deputy chief executive at the Society for the Environment and takes over from Sharon Broom, who has left the charity after 17 years to take up the same role at the British Society of Dental Hygiene and Therapy. 

Dr Fiona Sim, senior clinical adviser for NHS England (Central Midlands), has been appointed chief medical adviser at the alcohol education charity Drinkaware. She will take up the role in November. 

The grant-maker Hanfod Cymru has appointed Siôn Brynach as chief executive. He joins from BBC Cymru Wales.

Julia Brown has been appointed director of operations and development at Kisharon, which supports people with learning disabilities. She has been working for the charity since March as a consultant.

Adele Duncan has been appointed chief executive of the Gordon Moody Association, which supports people with gambling issues. She will join in July from Phoenix Futures, which works with people with substance misuse problems, where she is director of operations.

Diana Owen has announced she is to step down as chief executive of the Shakespeare Birthplace Trust in early 2018, after more than 10 years in the role.

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Джейн Маколей из Asda присоединилась к Community Integrated Care, а также другим движкам

. Обзор последних встреч, в том числе Джулии Браун в Кишароне и Керри Гельдарте в Oral Health Foundation

Благотворительная и социальная благотворительная организация Community Integrated Care приветствовала Джейн Маколей в качестве директора по человеческим ресурсам. Ранее она 20 лет работала в розничном магазине Asda, в последнее время занимая руководящие должности и занимая руководящие должности.

Фонд орального здоровья приветствовал Керри Гельдарта в качестве директора по операциям. Она была заместителем главы исполнительной власти в Обществе по вопросам окружающей среды и взяла на себя ответственность с Шарон Брум, который покинул благотворительность после 17 лет, чтобы занять ту же роль в Британском обществе стоматологической гигиены и терапии.

Д-р Fiona Sim, старший клинический советник NHS England (Central Midlands), был назначен главным медицинским консультантом в благотворительной организации по алкоголю Дринкаваре. Она займет эту должность в ноябре.

Грантодатель Ханфод Цимру назначил Сиона Бринаха исполнительным директором. Он присоединяется к BBC Cymru Wales.

Джулия Браун была назначена директором по операциям и развитию в Кишароне, которая поддерживает людей с ограниченными возможностями обучения. Она работает на благотворительность с марта в качестве консультанта.

Адель Дункан была назначена исполнительным директором Ассоциации Гордона Муди, которая поддерживает людей, занимающихся азартными играми. Она присоединится в июле от Phoenix Futures, которая работает с людьми с проблемами злоупотребления психоактивными веществами, где она является директором операций.

Диана Оуэн объявила о том, что она должна уйти в отставку в качестве главы исполнительной власти Шекспировского фонда рождения в начале 2018 года, после более чем 10 лет в роли.

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