The Homecare Association welcomes the principles behind the Employment Rights Bill introduced on 10 October 2024; this aims to improve conditions for workers across the UK. We have long campaigned for improvements in the pay and terms and conditions of employment for care professionals. We worry about the financial impact on the care sector and, crucially, on care availability for those in greatest need.
Dr Jane Townson OBE, CEO of the Homecare Association, said:
"We fully support measures to enhance workers' rights and improve job security. The care sector, though, faces unique challenges which the government must address alongside these reforms. Data show the state funds over 80% of homecare services. At least 70% of the costs of delivering homecare are for staffing. This means any rise in employment costs will greatly affect our ability to provide care.
Our recent research reveals the average UK hourly fee rate paid by local authorities and Health and Social Care Trusts for homecare in 2024-25 is just £23.26. This is far below the true cost of care. Shockingly, only 1% of contracts meet our calculated Minimum Price for Homecare, which ranges from £28.53 to £30.58 per hour depending on the UK nation. Even more concerning, 6% of contracts fail to cover even the direct costs of employing a care worker.
Introducing day-one rights for sick pay, for example, could add at least 10p per hour to the cost of delivering homecare. While beneficial for workers, this will add financial burdens to care providers who already operate on tight margins. If local authorities and the NHS don't provide more funding, these new regulations could push many providers to the brink.
We suggest creating a National Contract for Care Services to support the care sector and benefit both care workers and recipients of care. This would require public bodies to pay a minimum price for care services. Such a rate must reflect the true cost of providing high-quality care, including fair pay and conditions for care workers. Our calculations show we need an extra £1.67 billion in England alone for 2024-25 to enable homecare workers to be paid at the same rate as their NHS counterparts (£13.13 per hour).
We call on the government to work closely with the care sector to find solutions that balance the laudable aims of the Employment Rights Bill with the need to maintain a viable and robust care system. We must address these challenges to protect and support both care workers and those they help.”
The Homecare Association wants to work with the government, local authorities, and others to find a sustainable solution. This must benefit care workers, providers, and the people who rely on care services.
[ENDS]
Contacts
Dr Jane Townson OBE, CEO, Homecare Association
Email - [email protected]
Mobile number - 07393 012 113
Notes to editors
-
The Homecare Association is the UK’s membership body for homecare providers, with over 2,200 members nationally. Our mission is to ensure that homecare receives the investment it deserves, so all of us can live well at home and flourish within our communities. The Homecare Association acts as a trusted voice, taking a lead in shaping homecare, in collaboration with partners across the care sector. It also provides hands-on support and practical tools for its members. The Homecare Association's members agree to abide by the Association's Code of Practice.
