The measure

A consultation has been announced for the New Year on proposed changes to the national minimum wage regulations concerning 'travel schemes' that take advantage of the tax and National Insurance expenses rules relating to travel to a temporary workplace. Schemes where workers are paid at or near the national minimum wage are under the scrutiny of HMRC and the Department for Business, Innovation and Skills. They consider such schemes as potentially exploitative as workers' entitlement to earnings related social security benefits can be adversely affected and they are proposing legislative changes to tackle this problem.

Who will be affected?

Employers who have implemented travel schemes and have employees at or near the national minimum wage should follow this consultation. 

When?

There is no indication when the changes are timetabled for. However, if the consultation has the same momentum as that concerning tips and gratuities and the national minimum wage, we would anticipate that changes could be implemented soon.