The Resolution Foundation said the national minimum wage should be enforced more toughly to stamp out the abuse, calling for a joint effort from national and local government as well as social care providers.
Every worker has the right to the minimum wage yet illegal non-payment is all too common in the social care sector.
It's scandalous that these workers, who do such demanding and valuable work, are being cheated out of £130 million every year through what is effectively wage theft by their employers.
Diminishing public funding and ever tighter commissioning practices are placing great pressure on care providers, but there is simply no excuse for breaking the law and HMRC urgently needs to get tougher on employers who do so.
More top news
Menna Fitzpatrick has become one of Britain's most decorated Paralympic athletes
A police officer has been sacked for stealing £50 from a wallet that was dropped outside a pub.
Houses near the cliff edge at Hemsby in Norfolk evacuated as the danger from high tides and hig winds increases