Homecare Association representation ahead of the Spring Budget 2024-25

The homecare sector is already operating at a deficit. Our Homecare Deficit research shows that the fee rates being paid by public sector commissioners do not meet the true cost of delivery. On top of this, the sector is facing significant financial stress because of wage pressures, difficulties with recruitment and retention and inflationary pressures for factors such as transport. The sector needs to change and modernise, including digitising care records. The funding allocated to date is insufficient.

We urge the Government to provide adequate funding for the social care sector to cover costs in full and meet rising demand. The Health Foundation has estimated that this will require an additional £8.4bn for 2024/25.

In order to maintain service quality and people’s confidence in social care services, we recommend a consistent approach to regulatory oversight of care, which is based on activities delivered, rather than the employment status of workers.

In our submission, we also challenge the rationale for charging care providers Care Quality Commission (CQC) fees, as well as international recruitment related costs (such as sponsorship fees). We suggest that the care sector should be zero-rated for VAT purposes. Transport costs significantly affect the sector, including the mileage allowance. We suggest increasing this allowance and implementing taxation on company vehicles based on their current market value.