The fees paid by councils for homecare are ‘significantly’ below the cost of recruiting and retaining a skilled workforce and delivering high-quality services, the Homecare Association warns.

Research by the UK’s membership body for homecare providers has revealed that the average fee rate paid for homecare in England by local authorities after 1 April 2022 was £19.01 per hour.

The research also revealed that the average fee rate paid for homecare in England by the NHS during the same period was £18.76 per hour.

Both figures are below the Homecare Association’s Minimum Price for Homecare for 2022-23 of £23.20 per hour, which is calculated as the minimum needed to ensure compliance with the legal minimum wage and provision of high-quality, sustainable services.

The association also found that seven councils were paying below even direct staff costs, calculated at £16.57 per hour. There was also evidence of a North/South divide. The North East average was £1.36 per hour below the average for all of England.

Commenting on the findings, Homecare Association’s CEO Dr Jane Townson said: ‘These low fee rates from councils and the NHS lead directly to homecare workers experiencing poor pay and terms and conditions of employment. It’s hardly surprising there is an exodus of homecare workers, as fuel prices remain high and they are struggling to pay their household bills.

‘Without investment from the Government, the social care workforce will continue to shrink at a time of rising need. Older and disabled people are already having to sit on council waiting lists, unable to receive the care they need. NHS trusts are struggling to ensure rapid ambulance response times and to reduce waiting lists, as discharge from hospital is hampered by inadequate capacity in social care and community services.

‘We need adequate funding for homecare, so we can enable people to live well at home, extend healthy life expectancy, reduce inequalities, take pressure off the NHS and reduce costs for the health and care system.’