William Eichler 25 October 2018

Care providers handing back contracts due to ‘inadequate’ council fees

Cash-strapped local authorities have been accused of not paying enough to allow private care providers to cover their costs.

Freedom of information requests sent to over 200 councils and care trusts by the UK Homecare Association have revealed that the average price paid for homecare in the UK is just £16.12 per hour.

This is almost £2 per hour less than UKHCA’s minimum price for homecare of £18.01 per hour.

Over 850,000 people are given support in their own home, about 80% of which is organised by councils. The work is then normally outsourced to care agencies.

UKHCA, the umbrella group for care firms, calculates that the UK’s homecare sector needs at least £402m per year to ensure homecare providers can meet their statutory obligations, including paying carers the National Living Wage.

The size of the deficit this year would be £921m if national governments and local councils committed to paying carers the Real Living Wage, UKHCA warned.

The UKHCA’s report, The Homeware Deficit 2018, notes that there is evidence of providers ‘ceasing trading and handing back homecare contracts’ on the basis of ‘inadequate fee levels.’

The report estimates that almost one third of councils in England (48) have seen homecare providers closing or ceasing to trade during a six-month period this year.

Adult social care currently amounts to almost 40% of council budgets and local authorities face a shortfall in care funding of £3.5bn by 2025.

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

Head of Legal and Monitoring Officer

Powys County Council
£90,347 – £98,135 per annum/y flwyddyn
We’re seeking an energetic, innovative, and inspirational leader to join our team at Powys County Council Powys
Recuriter: Powys County Council

Senior Business Development Officer (MaaS)

Essex County Council
£36341.0000 - £42754.0000 per annum
Senior Business Development Officer (MaaS)Fixed Term, 2-year contract with potential for extension Full Time, 37 hours per week£36,341 to £42,754 per England, Essex, Chelmsford
Recuriter: Essex County Council

Customer Advisor (Events) - Braintree District Council

Essex County Council
Up to £13.8000 per hour
Customer Advisor (Events) - Braintree District Council£13.80 PAYE / £17.67 Umbrella Braintree, EssexPart-Time, Temporary Closing Date
Recuriter: Essex County Council
Linkedin Banner