Leading UK care home provider, HC-One, has announced a £32.5 million investment in colleague pay, almost double the £18 million paid out in 2022.

The new pay rates from1 April 2023 mean a 10% increase in basic pay for workers on the lowest band with similar rises across more senior roles.

In addition, all colleagues will earn above the National Living Wage from day one of employment and above Real Living Wage after two years of service. HC-One projects that 75% of all colleagues will be above the Real Living Wage once the new rates are applied.

James Tugendhat, chief executive officer at HC-One, said: “I am delighted that we are announcing another substantial investment in colleague pay. Everything we do for those in our care starts with our frontline colleagues and we are determined to better reward colleagues for the incredible work they do. The challenges in the social care labour market are well known, and this investment will also be key in helping us to attract as well as retain the best and most experienced colleagues.

“We also want colleagues to feel they can build a career with HC-One, and we’re proud the opportunities we can offer for growth throughout the company, as well our new wider employee benefits, including our revamped rewards platform and enhanced maternity, paternity and adoption leave packages.

“We are also continuing to engage at length with our local authority and NHS partners, who fund the majority of the residents we support, to secure fee uplifts that will enable us to go further on colleague pay so we can continue to build the social care workforce to enjoy the professional recognition that their invaluable contribution deserves.”

To encourage people to continue developing their career in care, HC-One also offers higher rates of pay after six months’ service and again after two years’ service. This year HC-One is increasing the two-year service rates for all care colleagues by an additional 5p/hour in recognition of the expertise gained with experience.

The offer has been developed following consultation with the GMB, the recognised union for HC-One’s care colleagues, and is currently being balloted on by its members.

HC-One said: “We continue to consult with the GMB, and we remain hopeful that this will be received positively.”