[WiLT] Volunteers childcare costs - a benefit or a cost?

[WiL Admin]

Volunteers childcare costs - a benefit or a cost?

Charities hit childcare minefield

Charities could be at risk of minimum wage claims from volunteers if
they reimburse childcare costs after new guidance was published by the
Department for Business, Enterprise and Regulatory Reform.

Minimum wage rules say that if a charity pays anything over and above
normal expenses to a volunteer, they are deemed to have a contract
with that person, which would entitle her or him to claim the minimum
wage.

The department has decided that childcare costs should be considered a
benefit rather than an expense.

In its consultation on volunteers and the minimum wage, Berr said that
reimbursing childcare costs would "represent a significant benefit in
kind and as such would change the nature of the relationship between
voluntary worker and qualifying organisation".

However, the Association of Volunteer Managers has launched a campaign
to reverse the decision.

It said it feared that if voluntary organisations were to stop
reimbursing childcare costs, it would deter carers on low incomes from
volunteering.

It argued that Berr's line contradicted guidelines from the Department
for Work and Pensions and legal precedent.

In the 2004 case of South East Sheffield Citizens Advice Bureau v
Grayson, the provision of childcare expenses and other out-of-pocket
expenses was considered reasonable and did not amount to a benefit to
volunteers.

"It's another example of government departments not communicating with
each other," said Kate Bowgett, a member of the Association of
Volunteer Managers. "We don't believe Berr has a legal leg to stand
on, and this definitely isn't in line with Gordon Brown's drive to
boost volunteer numbers.

"More and more organisations are reimbursing costs for volunteers who
are carers, so it would be very sad if they had to stop doing it."

The association is now calling on volunteer managers to write to Berr
in protest.

A spokeswoman for Berr said: "The Government response to consultation
said there was concern over whether the provision of childcare or
reimbursement of childcare expenses could alter the nature of
volunteering by introducing an element of obligation or gain.

"We have noted the issues raised on this post-consultation, and will
continue to work with voluntary organisations on this issue."

Last year, the DWP reversed its decision that volunteers would forfeit
income support or jobseeker's allowance if they claimed lunch expenses
from the charity.

This decision was made after a three-month dispute with charities (See
Third Sector, 11 October 2006
http://www.thirdsector.co.uk/Channels/Fundraising/Article/620953/Lunch-expenses-row-resolved/).

http://www.thirdsector.co.uk/News/DailyBulletin/772725/Charities-hit-childcare-minefield/971BE4F44BC69CC2CBB0FDA0742D82F7/

Posted on WiLT blog at
http://www.freecharity.org.uk/~womeninlondon/?p=489