We are delighted to share with members our new calculation for the Minimum Price for Homecare in England is £32.14 per hour. This is effective from April 2025, when the UK statutory National Living Wage increases, and Autumn Budget measures come into effect.
Our Minimum Price is the amount required to ensure the minimum legally compliant pay rate for careworkers (excluding any enhancements for unsocial hours working), their travel time, mileage, and wage-related on-costs. The rate also includes the minimum contribution towards the costs of running a care business, which complies with quality and other legal requirements.
The significant increase from last year's minimum price reflects the 6.7% rise in the National Living Wage and substantial additional costs imposed by recent budget measures. These include an increase in employers National Insurance contributions from 13.8% to 15% and a dramatic reduction in the National Insurance threshold.
The Minimum Price calculation includes not just wage rates, but also associated costs such as employers National Insurance, statutory pension contributions, and holiday pay.
For the first time, we have calculated the impact of visit length on the Minimum Price per hour. We also show the effective cost per call duration. Shorter calls are more expensive because of a higher proportion of travel time and travel reimbursement costs per hour.
We have also produced the Minimum Price for Homecare for Wales, Scotland and Northern Ireland. These are now available on our website.
We hope our Minimum Price for Homecare calculations will assist you in your negotiations with your local authority and NHS commissioners. We will write to all Directors of Adult Social Services, Members of Parliament and leaders in health and social care to tell them about our analysis. We will continue to represent members on the vital importance of state commissioners paying a fair price for care.
If you would like to discuss this report in further detail or for any advice, please email the policy team on [email protected].
Homecare Association Minimum Price for Homecare - England 2025-2026
