PART 6Exclusions

Work schemes for provision of accommodation to the homeless55

1

A worker, who meets the requirements in paragraph (2), does not qualify for the national minimum wage for work done for an employer, under a scheme which meets the requirements in paragraph (3), if the worker is provided with accommodation and other benefits (which may include money) under that scheme.

2

The requirements are that immediately before entry into the scheme the worker was homeless or residing in a hostel for homeless persons and—

a

was in receipt of, or entitled to any of the following benefits—

i

universal credit (payable under Part 1 of the Welfare Reform Act 201237),

ii

income support (payable under Part VII of the Social Security Contributions and Benefits Act 199238),

iii

income-based jobseeker’s allowance (payable under Part I of the Jobseekers Act 199539),

iv

income-related employment and support allowance (payable under Part 1 of the Welfare Reform Act 200740 or Part 1 of the Welfare Reform Act (Northern Ireland) 200741); or

b

was not entitled to receive any of those benefits only because the worker was not habitually resident in the United Kingdom.

3

The requirements for the scheme are as follows—

a

no one makes a profit out of the scheme other than—

i

a profit only applied to running the scheme or other qualifying schemes, or

ii

where the person operating the scheme is a charity, for a purpose of the charity relating to the alleviation of poverty;

b

every person participating in the scheme satisfies the same requirements as for workers in paragraph (2) (although they need not all be workers);

c

the accommodation available under the scheme is provided by the person operating the scheme or under arrangements made between that person and another person; and

d

the work done under the scheme is both provided by, and performed for, the person operating the scheme.