Shropshire Star

Shrewsbury retirement home failed to pay workers minimum wage

A retirement home in Shrewsbury is one of 70 companies named by the government that have failed to pay workers the minimum wage.

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Carol Ann Daker, trading as Swan Hill House Residential Home, neglected to pay £4,395.78 to 27 workers under minimum wage legislation.

Between them, the 70 employers owed workers a total of more than £157,000 in arrears and have been charged financial penalties totalling over £70,000.

  • The latest naming and shaming comes days after the Low Pay Commission recommended a three per cent rise in the adult minimum wage from £6.50 an hour to £6.70 an hour from October.

  • That would be the biggest increase since 2008 if it is accepted by the government. A decision will be made in the coming weeks.

  • The rate for 18 to 20-year-olds would go up to £5.30 an hour, £3.87 for 16 and 17-year-olds and £2.80 an hour for apprentices.

  • Last year the adult minimum wage rose by three per cent from £6.31 to £6.50.

  • Labour leader Ed Miliband said last year that the minimum wage would rise to £8 an hour over the course of the next parliament if his party wins the general election.[/breakout]

The government has already named 92 employers since the new naming regime came into force in October 2013. They had total arrears of over £316,000 and total penalties of over £111,000.

Business Minister Jo Swinson said paying less than the minimum wage was illegal, immoral and completely unacceptable.

"Naming and shaming gives a clear warning to employers who ignore the rules, that they will face reputational consequences as well as financial penalties of up to £20,000 if they don't pay the minimum wage," she said.

Legislation is being planned so that the fine can be applied to each underpaid worker, rather than per employer.

"We are helping workers recover the hundreds of thousands of pounds in pay owed to them as well as raising awareness to make sure workers are paid fairly in the first place," Ms Swinson added.

TUC general secretary Frances O'Grady called for more prosecutions and higher fines.

"Cheating bosses who fleece their workers out of their hard earned pay must end up in court - and there are still lots of under-paying employers who are getting away with it," she said.

No one from the care home in Shrewsbury wished to comment today.

Mrs Daker is the registered manager of the home, which was judged to be meeting all the necessary care standards when it was last inspected by officials on June 26 last year.

On its website it says: "Swan Hill House is perfect for those residents who would enjoy living in an elegant Georgian town house in the centre of the beautiful medieval town of Shrewsbury.

"All our staff are highly trained and our team is led by the owner and registered manager Mrs Carol Ann Daker who is assisted by her son Charles."

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