Last Updated on October 25, 2016

A new report from the United Kingdom Homecare Association (UKHCA) exposes the widespread and systematic underfunding of homecare services for older people. The Homecare Deficit 2016 highlights the under-resourcing of state-funded homecare using information obtained under Freedom of Information enquiries to all councils in Great Britain and the Health and Social Care Trusts in Northern Ireland.

The findings provide further evidence of genuine risks to the viability of state-funded homecare services, and the possible consequences for over half-a-million people supported at home. This is despite the increasing recognition that home-based care should be the solution to meeting people's care needs at home, rather than being treated in hospital.

People who rely on homecare services and those who support them are being short-changed by councils, resulting in avoidable pressures on hospitals and community-based health services.

UKHCA's analysis in The Homecare Deficit also highlights serious implications for recruiting and retaining homecare workers, who are essential for effective home-based care. Care workers' pay and conditions are directly affected by low rates paid by councils, which are estimated to purchase around 80% of all homecare in the UK.

Analysis of the Freedom of Information Act enquiries sent to local councils in Great Britain and the Health and Social Care Trusts in Northern Ireland suggests a £513m deficit across the UK during 2016/17.

The report exposes the postcode lottery of the prices that individual councils are willing to pay for essential care services, even within the same region.

Homecare providers' costs will continue to rise, particularly as the new statutory National Living Wage increases from its current £7.20 per hour to around £9.00 per hour by 2018/19. UKHCA notes that homecare providers in many parts of the country need to pay considerably higher than the National Living Wage in order to recruit workers with the skills, abilities and experience needed to deliver safe and effective care.

UKHCA's Policy Director, Colin Angel, said, 'We know that an ageing population is increasing demand for homecare services. Councils which decide to pay inadequate rates for homecare are taking major risks with people's wellbeing and the jobs of local people who provide care.

'We have already seen evidence of homecare providers leaving the state-funded care market, or closing their doors for good because they cannot afford to remain in business.'

The £513m funding gap in state-funded homecare care requires urgent action from Government and individual councils, according to the Association. UKHCA calls on central Government (and devolved administrations in Wales, Scotland and Northern Ireland) to make adequate funding available to councils and Health and Social Care Trusts in Northern Ireland. This is on the basis that properly-funded homecare provides the services that people need, and will dramatically ease the pressures on an over-stretched national health service.

Governments of each of the UK's four administrations should ensure that councils actually use additional funds intended for social care, to avoid the current postcode lottery and instability in local care markets.

UKHCA says that individual councils must continue to make hard financial decisions which enable them to allocate a greater proportion of their income to homecare services. For councils in England, this includes continuing to raise an additional 2% of council tax as part of the Social Care Precept from 2017 onwards.

Colin Angel continued, 'People who use homecare services are already experiencing the consequences of unstable care markets. Underfunded homecare is an urgent situation, which must not be allowed to continue.'