Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

National Minimum Wage Manual

From
HM Revenue & Customs
Updated
, see all updates

Entitlement to national minimum wage: workers participating in a scheme after being homeless or residing in a hostel for homeless persons

Relevant legislation

The legislation that applies to this page is as follows:

For pay reference periods commencing

* on or after 6 April 2015; National Minimum Wage Regulations 2015, regulation 55
* before 6 April 2015; National Minimum Wage Regulations 1999, regulations 12(10), 12(11) & 12(12)

General

A worker who is provided with shelter and other benefits (including monetary benefits) as a result of participating in a scheme does not qualify for the national minimum wage in respect of work performed for his employer under such a scheme, providing that both of the following conditions are met;

[1] Immediately before joining the scheme;

  • the worker was either homeless or residing in a hostel for homeless persons, and
  • the worker was either:

    • In receipt of (or entitled to) income support or income based jobseeker’s allowance, or
    • Was not entitled to receive either of those benefits only because he was not habitually resident in the UK.

[2] The scheme itself satisfies all the following criteria;

  • it has arrangements in place to prevent the scheme operators or any other person profiting from the provision of the scheme unless:

    • any profit is only applied to run the scheme or similar schemes (run under these same arrangements), or
    • the scheme is a charity whose purpose is wholly or partly to alleviate poverty.
  • all the participants qualify under [1] above;
  • the person operating the scheme must provide the accommodation (or make it available under arrangements between themselves and another person);
  • the work done under the scheme must be both provided by, and performed for, the person operating the scheme.