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Children's homes fear closure in face of back pay for carers' sleep time Children’s homes fear closure in face of back pay for carers’ sleep time
(about 1 month later)
Homes believe closure possible if they do not get help with bills after change in interpretation of wage rules for night staff
Press Association
Wed 25 Oct 2017 00.01 BST
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A number of children’s homes fear they could face closure due to a change in the interpretation of the law on pay for overnight carers, ministers have been told.A number of children’s homes fear they could face closure due to a change in the interpretation of the law on pay for overnight carers, ministers have been told.
The Independent Children’s Homes Association said a poll of 63 of its members – which include residential homes, residential children’s schools and short break or respite services – found a quarter believe their organisations could face closure if they do not get help with back pay for staff that have come about as a result of the change.The Independent Children’s Homes Association said a poll of 63 of its members – which include residential homes, residential children’s schools and short break or respite services – found a quarter believe their organisations could face closure if they do not get help with back pay for staff that have come about as a result of the change.
The association has joined forces with the learning disability charity Mencap to highlight its concerns.The association has joined forces with the learning disability charity Mencap to highlight its concerns.
Since 1999, care homes have operated under advice that the time care staff spent asleep in residential homes and supported living residences did not count as work time for the purposes of the national minimum wage, Mencap said.Since 1999, care homes have operated under advice that the time care staff spent asleep in residential homes and supported living residences did not count as work time for the purposes of the national minimum wage, Mencap said.
The payment of a flat-rate “on call” allowance had been the norm across the sector ever since, it said. But following two employment tribunals, new guidance in October last year recognised that the previous guidance was wrong and the minimum wage should be paid for sleep time instead.The payment of a flat-rate “on call” allowance had been the norm across the sector ever since, it said. But following two employment tribunals, new guidance in October last year recognised that the previous guidance was wrong and the minimum wage should be paid for sleep time instead.
The back pay bill for sleep in the learning disability sector alone is estimated at about £400m, the charity said.The back pay bill for sleep in the learning disability sector alone is estimated at about £400m, the charity said.
It has warned that many homes could face insolvency.It has warned that many homes could face insolvency.
Mencap’s chair, Derek Lewis, said: “We already knew that the impact on learning disability care would be devastating but it is only now emerging that many of the country’s 2,000 specialist children’s homes would also be seriously affected.Mencap’s chair, Derek Lewis, said: “We already knew that the impact on learning disability care would be devastating but it is only now emerging that many of the country’s 2,000 specialist children’s homes would also be seriously affected.
“It is estimated that up to 25% could close almost immediately if the government fails to fully fund or only partially funds the sector’s sleep-in back pay bill.“It is estimated that up to 25% could close almost immediately if the government fails to fully fund or only partially funds the sector’s sleep-in back pay bill.
“Like our own, these services would be some of the hardest to replace and once they are gone, they are gone. The government has created a perfect storm for providers from across the care sector.“Like our own, these services would be some of the hardest to replace and once they are gone, they are gone. The government has created a perfect storm for providers from across the care sector.
“I urge government to recognise its responsibilities and commit to funding all ‘sleep-ins’ back payment liabilities.”“I urge government to recognise its responsibilities and commit to funding all ‘sleep-ins’ back payment liabilities.”
Jonathan Stanley, chief executive of the Independent Children’s Homes Association, added: “Sleep-in back payments, which will range from £40k to over £2m for each provider, depending on the size of the provider and number of homes they run, will be the final nail in the coffin for so many who have faced a zero increase in fees from local authorities, the only purchaser and income source, over a number of years.Jonathan Stanley, chief executive of the Independent Children’s Homes Association, added: “Sleep-in back payments, which will range from £40k to over £2m for each provider, depending on the size of the provider and number of homes they run, will be the final nail in the coffin for so many who have faced a zero increase in fees from local authorities, the only purchaser and income source, over a number of years.
“Without urgent government assistance, the residential child care sector faces profound change and one of the most important care options for vulnerable children will be lost for ever.”“Without urgent government assistance, the residential child care sector faces profound change and one of the most important care options for vulnerable children will be lost for ever.”
In July the government announced that it would waive historical financial penalties owed by employers who underpaid their workers for overnight sleep-in shifts before 26 July this year and temporarily suspend HMRC enforcement activity concerning payment of sleep-in shifts by social care providers until 2 October.In July the government announced that it would waive historical financial penalties owed by employers who underpaid their workers for overnight sleep-in shifts before 26 July this year and temporarily suspend HMRC enforcement activity concerning payment of sleep-in shifts by social care providers until 2 October.
But Mencap said neither move addressed the impact of the back pay bill across the sector.But Mencap said neither move addressed the impact of the back pay bill across the sector.
On 28 September the government announced that enforcement action was suspended for a further month.On 28 September the government announced that enforcement action was suspended for a further month.
A number of celebrities have backed Mencap’s campaign, including Game of Thrones star Kit Harington and Doctor Who’s Jodie Whittaker.A number of celebrities have backed Mencap’s campaign, including Game of Thrones star Kit Harington and Doctor Who’s Jodie Whittaker.
Care workersCare workers
Minimum wageMinimum wage
ChildrenChildren
Social careSocial care
Child protectionChild protection
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