Homecare Association Report Outlines the Stark Reality of Commissioning Care

The Homecare Association’s recent report outlines the stark reality of Local Authorities commissioning homecare, with striking findings that, “27% of homecare contracts in England are at rates below direct employment costs at the legal minimum wage, undermining safety and quality of care, worker welfare and rights, and continuity of services”

Professor Martin Green OBE, Chief Executive of Care England commented:

“Local Authority commissioning rates do not allow care providers to comply with their legal responsibilities and this means that local government is complicit in exploiting care staff, which the Homecare Association’s recent report reinforces. Homecare workers remain underappreciated, underpaid and undervalued, and as the government pushes to reduce international recruitment, how can they possibly expect domestic workers to join the sector, when this is the reality? There needs to be a robust, long-term commitment from the government to help fund social care which enables local authorities to pay at least fees which are capable of covering the National Minimum Wage at the very minimum.”

Ongoing changes to international recruitment rules and Employer’s National Insurance changes on top of rising operational cost pressures place overwhelming financial strain on providers coupled with inconsistent and inadequate local authority annual fee uplifts that fail to cover minimum pay costs, is driving the sector to breaking point.

The report outlines that a fee rate of £32.14 per hour is the minimum needed for hourly paid care – not a fair price for care workers, however, the recent Sector Pulse Check Report 2024 outlines that 85% of providers reported local authority fees fail to increase in line with statutory pay increases in 2024, which shows that providers are challenged to provide a fair wage, which could positively impact recruitment and retention.

Professor Martin Green OBE continued:

“Homecare workers dedicate so much to our sector and those they care for, and this report identifies how unsupported they truly are by a government which fails to fund commissioners of care sufficiently to cover at least the minimum wage. Without a direct commitment from government, the risk of exploitation will intensify.”

While the government has committed to a Fair Pay Agreement, which won’t commence until autumn 2026 at the earliest, too far away for many providers already set to fail under immense financial strain. Before the Fair Pay Agreement is implemented, as per the Homecare Association’s recommendations, the government needs to provide greater funding for local authority social care budgets which must be ringfenced to prevent further decline.

Key findings:
• 27% of contracts fall below the minimum cost of employing a care worker at £12.21/hour, including travel and training.

• Six councils in England, including Labour-led authorities, offered 0% uplift in 2025–26, despite 10–12% increase in cost on providers.

• The average council fee rate is just £24.10/hour, compared to the Homecare Association’s Minimum Price of £32.14/hour.

The upcoming Spending Review gives the government ample opportunity to support the social care sector and prevent further exploitation and neglect for care workers.

Professor Martin Green OBE concluded:

“We now need a direct commitment from the government that they will start to prioritise social care, otherwise, vulnerable individuals will be left to face the consequences”.