The Homecare Association welcomes the Business and Trade Committee's report on the Employment Rights Bill, particularly its recognition that "what is good for Britain's workforce is good for Britain and good for British business."
We strongly support the Committee's conclusion that employment rights reforms must prevent "rogue firms" from undercutting responsible employers by exploiting workers. However, we remain concerned that, on its own, the Bill will not improve employment conditions in the homecare sector.
Dr Jane Townson, CEO of the Homecare Association, said:
"We fully support better protections for homecare workers, but the Committee's report overlooks a fundamental reality in homecare - exploitation is driven primarily by inadequate funding and harmful commissioning practices in the public sector.
"Zero hours working at low wage rates is directly caused by zero hours commissioning at low fee rates. Only 1% of homecare contracts with public bodies are at prices that cover delivery costs. The Employment Rights Bill, without corresponding changes to funding and procurement, risks creating new burdens that will further destabilise care provision.
"Careworkers deserve fair pay and secure employment, but employers simply cannot offer fair pay without a fair price for care. With a £1.8 billion funding deficit for 2025-26, many providers face impossible choices that could lead to service reductions, business closures, and disruption to vital care services."
The Homecare Association calls on the Government to implement five key actions alongside the Employment Rights Bill:
- Introduce a National Contract for Care Services with legally specified minimum prices that enable compliance with employment regulations
- Outlaw zero-hours commissioning practices and ensure public bodies pay for planned rather than actual care delivery
- Reform procurement practices that encourage a race to the bottom on price
- Fully fund the increased employment costs resulting from the Bill
- Ensure robust enforcement of existing employment protections
Dr Townson added:
"Closing loopholes in employment law is important. Without addressing the funding deficit and harmful commissioning practices, these reforms risk becoming another missed opportunity to truly improve conditions for care workers and the quality of care for those who depend on these vital services."
Our full submission to the Business and Trade Committee is available here.
--ENDS--
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