The Homecare Association has published its minimum price for home care for the next financial year (April 2024-March 2025).

The minimum hourly fee rate for local authorities and NHS of £28.53 allows for compliance with the new National Living Wage (£11.44) in April 2024 and the delivery of sustainable, good quality, regulated home care services.

Homecare Association’s chief executive, Dr Jane Townson, said: “Too many local authorities and the NHS continue to commission home care at fee rates far below the true cost of delivering care. Persistently underestimating providers’ costs risks diminishing the availability of services, the experience of the workforce, and providers’ ability to comply with the legal requirements placed on them.

“Low fee rates from councils and the NHS lead directly to home care workers receiving poor pay and terms and conditions of employment. It’s hardly surprising there is a shortage of home care workers.”

The Homecare Association has published equivalent free rates based on the Real Living Wage, the London Living Wage and NHS Band 3 with over two years’ experience.

A fee rate of £30.31 is required to pay care workers an equivalent wage to an NHS Band 3 healthcare assistant with over two years’ experience, or £34.34 for outer London.

The government sent aside funds in the Autumn Statement 2022 to improve fee rates for care providers via the Market Sustainability and Improvement Fund which is expected to amount to £683 million in 2024-25, however, the Homecare Association said over £2 billion is required to pay wages equivalent to similar NHS roles.

Townson added: ‘’We call on the government to recognise the value of home care and the vital role it plays in enabling people to live well at home. Delivering high-quality care at a fair price to all those that need it is within our grasp. This requires investment and coordinated effort across central government, local government and the NHS, as well as commitment by providers to delivering excellent services.

‘’With adequate funds for home-based and community support, we could help to extend healthy life expectancy, reduce inequalities, take pressure off the NHS and reduce costs for the health and care system.”

Cathie Williams, joint chief executive of ADASS, said: “We welcome the increase in the National Living Wage (NLW) to improve pay and conditions for care workers – one of the key causes of the staffing crisis. But the government has not set out plans to provide any new money to councils to fund this increase for frontline care staff – many of whom are paid at the NLW.

“The reality for next year is that if councils are left to pick-up the shortfall in funding for the wage increase, this may mean cuts to services for older and disabled people. Some people will end up in hospital or be delayed leaving hospital, increasing pressures on and costs for the NHS. And lives will be restricted or foreshortened for want of vital care.

“What we really need is a long-term investment in social care so we can pay staff properly and provide people with the care and support they need to live well, care and work.” 

A Department of Health and Social Care spokesperson said: “We are grateful for the work that homecare providers and their staff do.

“We set out our strategy for the social care workforce in our ‘People at The Heart of Care’ white paper last December. Our ‘Next Steps to Put People at the Heart of Care’ plan invests up to £250 million in workforce reform over the next two years to boost progression opportunities and encourage take up of professional qualifications, along with learning and development.”

“This government has now made available up to £8.1 billion of additional funding over two years to support adult social care and discharge – with up to £3.2 billion available in 2023/24 and up to £4.9 billion in 2024/25. This historic funding boost will put the adult social care system on a stronger financial footing and help local authorities address waiting lists, low fee rates, and workforce pressures in the sector.”