Councils and the NHS purchase 80% of homecare services. The fee rates they pay fall far short of the amount needed for fair pay and quality, sustainable care. We calculate there is a funding deficit of £1.8 billion in homecare alone. Costs are escalating rapidly, with providers facing a 10% increase from the rise in the minimum wage and employers’ national insurance. The forthcoming Employment Rights Bill and fair pay agreement will add further large cost pressures.
Dr Jane Townson OBE, CEO of the Homecare Association, commented:
"We welcome recognition of the potential for technology to enhance homecare delivery and the focus on workforce development, but today's announcements largely repackage previously announced initiatives without addressing the critical funding shortfall that undermines their implementation. The proposed career pathway was announced in January 2024, and the reality is that in the current financial climate, it cannot be meaningfully implemented."
“Recent Skills for Care data show care workers with five or more years of experience receive on average only 4p per hour more than those who have just joined the sector. As the minimum wage and other costs have risen, salary differentials have compressed, removing financial incentives for progression. Why would care workers invest time in additional qualifications if the financial recognition is so minimal?"
“The integration of appropriate technology in homecare represents a vital opportunity to improve people's lives while addressing significant challenges in our sector. The announced Level 5 Digital Leadership Qualification is a positive initial step, but we must address fundamental barriers to successful technology adoption at scale."
The government's £12 million training fund will cover only a tiny fraction of total training costs. With 1.59 million workers in social care, this amounts to just £11.33 per worker. Training time must be paid and the 120-hour Digital Leadership Qualification alone will cost c. £3,800-£4,600 per staff member, excluding back-fill. Providers are expected to shoulder these costs but many may be forced to cut training to cover the hike in employment tax.
For technology solutions to work effectively, we need not only to address training but also other barriers to implementation. These include the way councils and the NHS commission and purchase homecare by time and task rather than outcomes, which restricts innovation; lack of clarity on who pays for care technology solutions – NHS, councils, providers or individuals - and how to evidence a return on investment; lack of dedicated monitoring and response centres; over-reliance on families, who may not live nearby; risk of increased demand through technology-generated alerts; inaccuracy of alerts and alert fatigue – some sensors cannot distinguish between people and their pets; limited data science expertise in social care; privacy concerns and data security requirements; fragmented systems across health and social care; interoperability limitations between technologies; and lack of common standards and platforms.
Dr Jane Townson OBE, CEO of the Homecare Association, added:
“Technology should augment, not replace, the human connection that is central to quality homecare," Dr Townson stated. "Our workforce needs to be empowered through technology, with solutions that reduce administrative burden and travel time while enhancing care delivery."
"We urge the government to address the £1.8 billion funding gap in homecare as the essential first step in transforming the sector. Without this foundation, even the most innovative technology solutions and well-designed career pathways will fail to deliver their promised benefits."
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