Employment Bill [Lords]

The payment of interest has been raised with us, but it would take us into complicated areas with regard to the tax treatment of the interest. I am sure that the hon. Lady would not want workers on the minimum wage to have to fill out a separate tax return simply because they had received a small amount of interest. Unfairness was developing in the way in which arrears were being paid because, as I said, upratings were not being taken into account. By taking upratings into account and paying all arrears at the current rate, even if the underpayment goes back several years, we shall deal with the issue of what could, in effect, have been an interest-free loan. On cadet force adult volunteers, when the minimum wage was introduced, it was designed to enable the voluntary sector to continue to operate successfully and with certainty within the law, while minimising the chance of sub-minimum wage jobs emerging which could be unfairly badged as volunteering. Last year's consultation showed that the rules were working well on the whole, but it also indicated that there was a need to clarify the position for cadet force adult volunteers, who occupy a unique role, as they are linked to the armed forces and undergo special training and security clearance. Cadet force adult volunteers devote a large amount of time and energy to engaging 130,000 young people in the cadet forces. I think the whole House will agree that we should be grateful for their dedication to making a positive difference to the lives of so many young people. Any confusion that may arise about eligibility for the minimum wage could seriously damage the ability of the cadet forces to continue to provide their services. For that reason, clause 13 amends the National Minimum Wage Act 1998 to make it clear that cadet force adult volunteers do not qualify for the minimum wage. I stress the fact that the provision does not change the current situation, but puts it beyond doubt in law. It will enable cadet force adult volunteers to operate exactly as they do currently and it will not affect any entitlement to the minimum wage that they may have outside cadet force activity. In addition to clarifying the position of cadet force adult volunteers, we have taken the opportunity to extend the range of expenses that voluntary workers can receive without triggering eligibility for the national minimum wage. That issue has been raised with us a number of times by voluntary organisations. Again, I am sure that hon. Members on both sides of the House want the voluntary sector to thrive and unnecessary barriers to volunteering to be removed. Currently, voluntary workers can be reimbursed for expenses incurred only in the actual performance of their duties. That was designed to ensure that extra expenses were not used as a method to avoid paying the minimum wage. However, voluntary workers clearly necessarily incur expenses to perform their duties, such as those involving child care, travel or the cost of specialist clothing or equipment. We recognise that voluntary workers should not be financially burdened as a result of their activities. Clause 14 will therefore enable voluntary organisations to reimburse such expenses where they are legitimate. That will enable voluntary workers to continue to make their highly valuable contributions to society, while ensuring that they are not out of pocket in doing so.