The conditions in social care markets remain challenging for operators. Funding for providers within LDA services is primarily from Local Authority contracts in contrast to older people services, and this means prices paid are heavily reliant on perennially tight Local Authority budgets.
At the same time, inflation and National Living Wage (NLW) have continued to grow at accelerated rates. Most care providers pay their frontline support staff at close to the NLW and this means the impact of increases is felt more keenly than in other sectors.
This can affect the ability of care providers to recruit effectively with high levels of competition within their own industry (across different types of service and cohorts) and externally from retail and hospitality sectors often pulling from the same pool of candidates. Recruitment continues to be a challenge cited by most care providers we engage with, and the resultant cost of agency staff required to meet commissioned