Councils in England are paying far less for homecare than it costs to deliver, leaving a funding gap of around £2.3bn, according to the Homecare Association.
Its report found the average council fee rate is £25.37 an hour, against the association's Minimum Price for Homecare of £34.42. None of the 176 contracts studied, covering 107 local authorities, met that minimum.
Some 61% of contracts paid less than the direct employment cost of a care worker on the National Living Wage. Fee uplifts averaged 3.7%, below the 4.1% rise in the wage. Greater London had the lowest average rate at £22.66 an hour.
Chief Executive Dr Jane Townson OBE said Government ambitions for adult social care would "remain out of reach" if commissioners continued to buy care below cost.
The association is calling for ring-fenced investment, a statutory minimum price for homecare, commissioning reform and a fully funded workforce strategy.
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