Published on 18/09/2007

There is cause for concern amongst the 1,500 UK Homecare Association members that unless there is a step change in the way independent care services are funded by local authorities the industry may face collapse. UKHCA claims that it is the way in which many councils “abuse their dominant purchasing power to drive down” contract rates and squeeze independent companies to provide their services. This means that many organisations are left funding a significant gap to meet the full cost of homecare.

Homecare Sector On Verge Of Collapse

On average 75% of state-funded care services provided by local authorities in England are outsourced to the independent sector and commissioners are being urged by UKHCA to adopt an open book costing approach to review the cost of care services. According to a recent survey conducted by the UKHCA 62% of independent care providers received a contract price rise of 1.77% this year leaving 38% with no increase. However UKHCA say the actual cost of providing homecare services is rising above inflation with increasing costs of recruitment, staff retention, training and regulation.

Skills for Care estimates that staff turnover in the homecare sector is as high as 29.5%. Colin Angel, UKHCA’s head of policy and communication, said: “This is unsustainable. Rewarding workers for their expertise is vital to maintain and develop capacity.”

Chief executive of UKHCA Lesley Rimmer called on the government to increase resources for social care in the current comprehensive spending review.