Homecare Association representation on Draft Welsh Government Budget 2026/27

The Homecare Association has submitted a representation to the Senedd Finance Committee on the Draft Welsh Government Budget for 2026-27. 

In 2025/26 fee rates did not keep pace with cost increases driven by the Real Living Wage and employers National Insurance Contributions. We estimate that homecare in Wales is currently underfunded by around £100m and urge the Welsh Government to address this. As well as increases in wage costs, costs will also increase in 2026/27 as we see some of the provisions of the UK Employment Rights Bill coming into force, including provisions on Statutory Sick Pay.  

We therefore urge the Welsh Government to:

• Implement a National Contract for Care Services – a compulsory minimum fee rate, calculated by a method agreed with those involved in the sector, to ensure commissioners do not purchase homecare below that rate.
• Provide ~£100m of funding for homecare services to cover the historic deficit in costs, including for eNICs .
• Provide additional funding in the 2026/27 budget to cover the increased costs of the Real Living Wage for commissioned social care services across Wales.
• Ring-fence all funding to ensure clarity and assurance for commissioners and providers that the Welsh Government has covered these costs.
• Work collaboratively with local government, the NHS, and provider representative bodies to guarantee that funding reaches providers at the start of the financial year.