Report blames government funding shortfall for low fees for homecare providers
Public bodies are paying home care providers well below the level needed to pay care workers fairly, according to a new report.
The report, by the Homecare Association – the representative body for homecare providers – was based on data from all 276 public bodies in the UK that buy homecare from independent providers.
The report said the fee rates public bodies are paying are on average 25-35 percent below the amount needed to pay care workers fairly (defined as £12.45 hourly pay, equivalent to NHS Band 3 workers with 2+ years’ experience), and ensure high-quality, sustainable care services. The average fee paid across the UK is £21.56 per hour, with Northern Ireland the lowest at £18.63 per hour.
The Homecare Association said that prolonged lack of government funding had increased the occurrence and risks of poor workforce experience, higher staff turnover, increased unmet need. poor quality care, and reduced sustainability of services.
Only five percent of UK public organisations paid the minimum price for homecare calculated by the Homecare Association. This minimum is based on a care worker receiving the National Living Wage of £10.42 per hour in England, and the real Living Wage in the devolved administrations. None of the Local Health Boards in Wales, councils in Scotland, or HSC Trusts in Northern Ireland met the Homecare Association’s minimum price.
Eighteen public bodies buy homecare at rates below the amount needed to cover direct care worker costs at the legal minimum wage in each devolved administration, plus statutory employment on-costs.
The Homecare Association said it should be unlawful for public bodies to purchase care at fee rates which do not enable compliance with employment and care regulations, leading to high staff turnover, poor quality care, and unsustainable services.
The report said many councils are worsening the impact of low fee rates by adding more providers to their frameworks and spreading the hours across all of them.
On average, public bodies have increased their homecare hours by eight percent compared to last year, but because of the fragmentation of hours, many providers are reporting a reduction of 25-35 percent in hours available to them.
The cost per hour of homecare delivery is highly sensitive to the volume of hours delivered. The Homecare Association said that losing 25% or more hours creates substantial risk to the viability of many homecare providers.
Dr Jane Townson, CEO of the Homecare Association, said:
‘We have cash-strapped councils and NHS bodies driving down fee rates; driving down wages; driving down quality; fragmenting the hours and the workforce; not paying their bills on time; destabilising local markets; encouraging approaches which risk non-compliance with care, employment, tax, and benefit regulations; and, sometimes, potentially breaching human rights.
‘Quality care, a strong workforce, and sustainable services cannot be delivered on the cheap.
‘We urge the government to invest an additional £2.08bn per year in homecare right away to address the Homecare Deficit we have identified. This figure is for existing hours purchased. Much more is required to address unmet need.
‘We want to see the government walking the talk and ensuring a positive future for us all.’
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