If accepted, this could have wider implications, potentially extending to boarding schools and other residential settings where staff undertake sleep-in duties.
The LPC is an independent body that advises the UK government on the NMW and National Living Wage (NLW). Its role is to monitor wage policies, assess their economic impact, and make evidence-based recommendations to ensure fair pay while balancing business sustainability. The Government typically considers its recommendations when shaping wage-related legislation.
The LPC’s 2024 report highlights concerns over the exclusion of sleep-in shift workers from NMW entitlement. Under current law, workers on sleep-in shifts are only entitled to NMW for hours when they are actively working—not while asleep, even if required to remain on-site.
The LPC recommends that the government reassess this position within the framework of the planned Fair Pay Agreement for social care. This could lead to policy changes on how sleep-in shifts are classified for NMW purposes, potentially requiring higher pay for affected workers.
Although the recommendation focuses on social care, any government review of sleep-in shift pay could have broader implications. Sectors such as boarding schools and other residential institutions also rely on sleep-in shift arrangements. If the government initiates a review, it may consider whether similar rules should apply across different settings where overnight supervision is required.
Employers in social care and beyond should monitor developments carefully, as a change in policy could significantly impact pay structures and operational costs. Even if legislative changes take time, organisations should assess their reliance on sleep-in shifts and consider whether contingency plans may be needed if NMW entitlement is extended.