The scandal of low-paid care workers

A New Year’s resolution? Let’s stop paying less than the minimum wage to those who care for the elde

A friend who is a care worker employed by an agency has a moan to me about her work. Repeated 15 minute slots with a client followed by a frantic dash to another part of the city she lives in to do the same again. Care in a hurry, on the cheap. Welcome to home care for growing numbers in Britain: some of our most vulnerable people cared for by a growing number of overly stretched and underpaid workers.

Her first concern is about the always rushed, and often inadequate, care this way of working results in. But, to my initial surprise, she also expresses anger about not getting paid for the travel time that necessarily eats up a large chunk of her working day. She typically makes 40 journeys between clients a week, sometimes 50 (not counting her journey to and from work). "Surely", I say, "you must get paid for this travel time, or else I don't see how you would be getting paid the minimum wage". Indeed.

It's well known that social care is a notoriously low-paying sector, with the Low Pay Commission (LPC) estimating that one in four workers get paid below £6.50 an hour. Far less well known is that many of these workers get paid less than the national minimum wage. A new and authoritative report by Dr Hussein of Kings College London now reveals that, even under extremely conservative assumptions, there are at the very least 150,000 care workers getting paid less than the legal minimum - and quite probably far more.

How is it that the law of the land is being so widely flouted? My friend's pay slip sheds some light, exposing the chaotic system of pay that is the norm for many care workers, especially those working for agencies or private firms: constantly shifting hourly rates of pay - varying dramatically by client, length of each care visit, time of day, and day of the week. The opacity of pay rates makes it hard for those affected to fathom if they are getting their legal minimum; indeed the LPC has suggested that some employers don't themselves understand their own pay systems. A closer examination, together with records kept by my friend of her travel time over a period of a month, suggests there are weeks where she has clearly been paid significantly less than the minimum wage (though there are others where this is not the case). And the real story is worse than the pay slip suggests. She had to pay for her CRB check. There are no travel expenses even though travel is essential ('I couldn't afford to work if I didn't cycle'). Regular mobile phone use is essential to stay in close touch with the office - again, no expenses are paid. It just doesn't pay to care.

In theory the legal position governing the minimum wage is clear: workers should be paid for time spent travelling between clients (apart from between home and their place of work). Less clear is who in government or anywhere else is taking the lead for sorting this out and ensuring that the law is enforced. Awareness of this issue remains very low, this Panorama being an exception, and care workers are not anyone's political priority (can you imagine a Cabinet member, or for that matter the media, making a fuss about this issue as they did about graduate interns?).

All those responsible for this saga claim they have an alibi - which is cold comfort to those being under-paid. The LPC has repeatedly flagged up these sorts of working practices as a concern - though it has never taken it upon itself to make specific recommendations to government about non-compliance which in turn would require Whitehall to make a formal response. HMRC, which is responsible for enforcing the minimum wage, says that it takes any allegation of non-compliance very seriously. But it is yet to prioritise this issue as an area for its 'Dynamic Response Team' (lagging response times suggest that it could be, err, a bit more dynamic; though this is in part due to inadequate resourcing). The problems of the care sector currently fall behind unpaid internships in the queue for HMRC attention; though it is said that the care sector will receive priority at some point in 2012. For their part, local councils argue with some justification that they aren't receiving enough funds to cover the full cost of social care. And the Department of Health, who are ultimately responsible for social care in England, concede that Dr Hussein's report is a 'cause for concern' but maintain that pay is a matter for local employers so it's not really a question for them. All the while, the law on the minimum wage continues to be flouted.

There are lots of injustices in Britain that are so entrenched and complex that they would take a generation to turn around. This isn't one of them. The minimum wage is supposed to be a right, not a nice to have. So here's a resolution that we should stick to: let's make 2012 the year when every care worker gets what they are legally entitled to.

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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.