Homecare Association Budget Representation - Autumn 2025

The Homecare Association has submitted a representation to H.M. Treasury ahead of the Autumn Budget 2025.

In our response we highlight that social care contributed £77.8 billion gross value added (GVA) to the economy in England in 2024/25. Homecare capacity enables effective flow of patients through hospitals, prevents deterioration in people’s health and enables people with support needs and their family members to stay in work. Care is vital to people whose lives depend on it, to economic 
growth and the efficient functioning of the NHS. 

The Government’s aspiration to reform adult social care and establish a National Care Service will fail before it begins unless immediate action is taken to stabilise the sector.

We are calling on the Government to:

• Implement a National Contract for Care Services that sets a minimum price for local authorities and NHS commissioners to buy care to ensure efforts to reduce costs in commissioning do not drive labour exploitation, cross-subsidisation and regulatory non-compliance. £1.6bn is required to meet the current funding deficit in homecare.
• Ensure that immediate financial support is given to the CQC to address its inspection backlog, which is growing at a rate of 424 inspections per month.
• Fully fund the Fair Pay Agreement and ensure that pay is increased a meaningful amount. To uplift homecare staff to NHS Band 3 equivalent pay will cost around £1.97bn.
• Pay care providers more to undertake delegated healthcare tasks to ensure workers’skills are recognised. This requires £34.75-38.91 per hour in provider fees.
• Double the funding of the Fair Work Agency to match international labour inspection standards and ensure that the Employment Rights Bill is enforced