The Homecare Deficit 2025: Why the Sector Is at Breaking Point and How Unique Homecare Is Fighting Back

The Homecare Association’s 2025 deficit report is brutal. It spells out exactly what many of us have been warning for years. Home care in the UK is being commissioned at prices that make high-quality, sustainable care almost impossible to deliver. Providers are expected to deal with rising costs, tighter compliance, increased demand, and growing workforce pressures, yet Local Authorities continue to commission at rates that simply do not reflect the true cost of care.

At Unique Homecare, we refuse to pretend the system is working. It is not. The report highlights that the UK’s average hourly price paid for home care is £24.36, well below the minimum price required for safe and sustainable delivery. England alone faces a funding gap of more than £2.6 billion in 2025 to 2026. If nothing changes, the quality and availability of care will continue falling, and more providers will walk away because they cannot keep operating at a loss.

We see the consequences every day in Lancashire. Families struggle to secure support for their loved ones, care workers are expected to do more for less, and those needing care are stuck in a hospital or left without the help they deserve. When commissioning is built on the lowest possible cost instead of real outcomes, everyone loses.

The reality providers are forced to operate in

Let’s not sugarcoat it. The operating environment is harsh. Employment costs have risen. Training, insurance, compliance, equipment, and travel costs continue to increase. Meanwhile, Local Authority fee rates barely cover the basics. That is exactly what the Homecare Association’s data shows. Many providers feel pressured to cut corners or accept contracts that undermine stable staffing, continuity and long-term quality. That approach creates a race to the bottom.We refuse to join that race. If you want care for pennies, you can find a provider who will try. They simply will not be able to sustain quality.

What Unique Homecare does differently

• We take a stand because we care about the people we support and the workforce that makes it possible.
• We insist on transparent, cost-reflective fee discussions with commissioners. If the numbers do not add up, we say so.
• We invest heavily in training, development and fair pay because skilled caregivers deserve more than the minimum.
• We build long-term, relationship-based care instead of fragmented, minute-by-minute, task-focused schedules.
• We maintain high staffing standards and do not overload our team with impossible rotas. Good care requires time, consistency and respect.

These decisions cost us more to deliver, but they also deliver far better outcomes for clients. That is the whole point of care. And frankly, it is the only ethical way to run a care service.

What needs to change across the system

The Homecare Association report makes it clear that the fix is not complicated. It requires political will, not another committee. The sector needs ring-fenced national funding, a realistic minimum price for home care, pay parity with equivalent NHS roles and commissioning that stops relying on cheap spot contracts. Capacity-based models and stable funding would give providers the confidence to invest, train and expand.
Local Authorities also need to recognise that high-quality home care saves them and the NHS money long term. Keeping people well at home reduces hospital admissions, shortens discharge delays and prevents avoidable deterioration. Cheap care is not cheap. It simply stores up bigger costs for later.

How Unique Homecare is moving forward

We will continue pushing for fair commissioning, supporting our workforce and delivering care that prioritises dignity, independence and personal choice. We will not compromise on quality, no matter how challenging the sector becomes. Lancashire deserves better, and we will fight for it. But we also expect commissioners and policymakers to do their part. If the UK does not close the funding deficit outlined in the report, the sector will continue shrinking, and vulnerable people will pay the price.

If you want a provider that refuses to cut corners and puts people first, get in touch with our team. We can talk through your needs, explore your care options and help you plan support that is genuinely safe, sustainable, and person-centred.

Ready to discuss care for yourself or a loved one?

Contact Unique Homecare today to explore high-quality home care options in Lancashire. You deserve a service that takes your well-being seriously.