A new report from the Homecare Association reveals the shocking extent of underfunding in the homecare sector – branding current commissioning practices as “state-sponsored labour exploitation.”
Key findings show:
- 27% of contracts in England fall below the legal minimum cost of employing a care worker (£12.21/hour including travel and training).
- Six councils have proposed 0% uplift in 2025–26 despite inflationary pressures of 10–12%.
- The average council fee is just £24.10/hour, far short of the £32.14/hour needed for safe, sustainable care.
- Only 1% of contracts meet the minimum threshold for quality care.
With over 418,000 people waiting for support, 57% of providers planning to hand back contracts, and care workers leaving the workforce – the sector is on the brink of collapse.
Ahead of the Comprehensive Spending Review, the Homecare Association is calling for a National Contract for Care and urgent reform to local authority commissioning and funding.
The Care Workers’ Charity supports the Homecare Association’s calls and urges the government to:
- Close the £1.6bn funding gap in adult social care to protect services and ensure legal pay standards are met.
- Deliver fair pay for care workers by aligning commissioning practices with the realities of workforce costs and the ambitions of the Fair Pay Agreement.
- Recognise care workers as skilled, essential professionals—not a low-cost solution to a growing national need.
Without adequate funding, care workers will continue to face exploitation, insecurity, and burnout.
The Care Workers’ Charity stands ready to work with government, providers, and care workers to embed long-overdue reform and deliver a future where care work is properly valued, fairly paid, and fully respected.
You can read the full reporthere.
