Homeworkers could benefit from proposals to change the national minimum wage rules.

To address concerns that some are not receiving the minimum wage, the Department of Trade and Industry plans to change the rules on the ways in which the UK's 700,000 homeworkers can be paid.

Under current regulations, homeworkers must either be paid the minimum wage for all hours worked, or paid under an agreement with the worker where the employer must estimate the time an average worker takes to complete the work.

The employer must then pay the minimum wage for that number of hours.

The consultation paper suggests amending the regulations so employers would be required to pay homeworkers either the minimum wage for all hours worked or a "fair piece rate".

The "fair piece" rate proposal would make three changes, including removing the four-fifths rule, which has allowed employers to pay output workers less than the average wage.

It would also require employers to provide details of the fair piece rate.