New research reveals local authorities are ‘consistently failing to fund homecare’, with 27% of contracts falling below minimum wage.

In their recent report, the Homecare Association reveals only 1% of homecare contracts analysed in the financial year 2025-2026 met the ‘benchmark for the legal and operational cost of safe, regulated care’.

Whilst the Homecare Association’s minimum fee rate for workers is valued at £32.14 per hour, the report outlines that the average council’s fee rate stands at £24.10, leading researchers to conclude that ‘national and local government are complicit in state-sponsored labour exploitation’.

The report also confirmed an estimated homecare funding gap of ‘at least £1.6bn in England alone’, despite local authorities receiving £3.7bn to commission adult social care.

Dr Jane Townson OBE, Chief Executive of the Homecare Association said: ‘When public bodies buy care at prices that don’t even allow payment of the minimum wage, it’s not efficiency, it’s enabling modern slavery.’

To rectify the crisis, the association has urged both the Government and local authorities to deliver sufficient and sustainable homecare funding ahead of the Spending Review, whilst also improving commissioning across the sector.

They are also calling for the development of a 10-year workforce plan that provides opportunities for training and career development, as well as ‘pay parity with equivalent NHS roles’.

Lee Peart is editor of Hemming Group’s Healthcare Management magazine.