The National Minimum Wage: travel and subsistence expenses schemes

Seeking views on exploitative arrangements implemented for some temporary workers paid at or near the National Minimum Wage.

This consultation looked at addressing the problem of the potentially exploitative arrangements which are implemented for some temporary workers paid at or near the National Minimum Wage (NMW). It aimed to develop the best solution to this problem and the Government welcomed feedback on the proposed changes to the NMW Regulations.

The Government has carefully considered the responses to the consultation and on balance considers that action should be taken in relation to these arrangements where they involve National Minimum Wage (NMW) workers. Annex A sets out the proposed amendment to the NMW Regulations and the intention of this is only to exclude the payment of expenses for travel to a temporary workplace from counting as pay for NMW purposes. This will take effect on 1 January 2011.