Media Releases
29 Oct 2026

Homecare Association responds to Autumn Budget 2026

The Homecare Association has expressed concern that the Autumn Budget has not provided the additional immediate investment needed to secure sustainable adult social care. While the Government has committed to fund a National Care Service, with personal care free at the point of use, from the next Parliament, homecare services face a funding shortfall now, threatening the sustainability of services and the ability of members to deliver fair pay and conditions. 

Jane Townson OBE, Chief Executive of the Homecare Association, said: 

“Measures to make life fairer for unpaid carers and help working people with the cost of living are welcome. But if the Government is serious about improving health and care, it cannot overlook the essential role of homecare. 

“We welcome the Government’s commitment to personal care free at the point of use, which would benefit many of the older and disabled people our members support at home. However, it is to be funded from savings on a Triple Lock adjustment that does not begin until April 2030, and the Independent Commission on Adult Social Care will not now report until 2027. Free personal care can only succeed if it is built on a stable homecare market that is paid the true cost of the care it delivers. 

“Our members support almost 1.5 million older and disabled people, helping them live independently at home, supporting families to remain in work and enabling people to leave hospital when they are ready. Yet the funding available for publicly commissioned homecare continues to fall short of the cost of sustainable care. The Budget provides £190 million for NHS winter pressures, but no equivalent support for the homecare services that help people leave hospital safely. 

“Our latest research estimates that England needs an additional £2.3 billion across councils and the NHS to enable homecare workers to receive at least the statutory minimum wage while ensuring that services are financially sustainable. 

“Sixty-one per cent of homecare contracts in England pay less than £26.17 per hour, the amount needed to cover the direct employment costs of a careworker paid at the statutory minimum wage, before other operating costs. Our Minimum Price for Homecare, which also covers those operating costs, is £34.42 per hour. The Government’s announced 3.9% increase in the National Living Wage, to £13.21 an hour from April 2027, will add further pressure unless the Government funds councils and the NHS to raise fee rates in line with rising employment costs, and commissioners pass that funding on in full. 

“Without action to address this funding gap, the sector will struggle to deliver the quality, capacity and workforce stability that people and communities need. The sector cannot wait for long-term reform: homecare needs sustainable funding now. 

“We welcome the Government’s commitment to ending the punitive Carer’s Allowance earnings cliff edge. Unpaid carers should not be penalised for increasing their hours or earning a little more. However, with the reform not due to take effect until 2030–31, carers will continue to face the existing rules for several more years. 

“The Government’s decision to make the 55p tax-free mileage rate permanent, and to increase the rate for higher-mileage drivers from April 2027, is welcome. We are pleased that the Budget specifically recognises care workers among those who will benefit. However, tax-free mileage rates do not require employers to reimburse careworkers at those levels, nor do they provide additional funding for publicly commissioned homecare. Where careworkers use their own vehicles to travel between visits, the costs of that travel must be recognised in commissioning arrangements. Members cannot sustainably absorb rising costs through contracts that already fail to cover the cost of delivering care. 

“Ultimately, we need a Budget and wider funding settlement that recognise care as an investment, not simply a cost. Without sustainable funding for homecare, ambitions for prevention, neighbourhood health and a more productive NHS will be much harder to achieve. 

“We urge the Government to make funding for social care a priority at next year’s spending review, ensure that public contracts reflect the true cost of care, and fully fund the employment reforms needed to improve pay and conditions for careworkers.” 

Jane Townson OBE 
Chief Executive, Homecare Association

Notes to editors
  1. The Homecare Association is the UK’s leading membership body for homecare providers, with over 2,100 members. 
  1. Homecare Association reports of relevance include: 
  • Our most recent report on fee-rates in state funded homecare in England found that the average fee rate paid for homecare by local authorities in England in 2026-27 is £25.37 per hour, which is far below the sustainable delivery cost of £34.42. 
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