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09 April 2024

What’s the outlook for Care Providers in 2024/2025 and is recruitment still a key concern?

What’s the outlook for Care Providers in 2024/2025 and is recruitment still a key concern?

The care sector continues to experience the seismic shifts which started with the pandemic in 2020. With the industry, as some see it, at crisis point, what’s the outlook for care providers over the next financial year ahead and will changes in policy at government level make things easier? Is recruitment set to continue to be problematic or will staff retention improve?

Care Industry Facts: the current situation:

  • There is an estimated 450,000 people that live in care facilities across the UK
  • This generates a revenue of nearly £20 billion a year
  • There are over 11,000 facilities for the elderly are operated by care home providers in the UK
  • In the UK the average cost of residential care is £4,021 per month
  • The number of people leaving the healthcare sector (NHS) rose by 25% between 2019 and 2022

Outlook for the Care Industry for 2024/25

Rosie Lovatt, KPI Care’s Business Development Manager, has spent ten years in recruitment, specifically for the care industry. We asked Rosie for some of her predictions for the financial year ahead;

  1. The demand for healthcare services is surpassing available capacity, with NHS waiting lists still on the rise due to the Covid backlog. In social care, providers are facing financial challenges as local authorities pay less than the cost of services, leading to contract returns or closures. Hospital patients are experiencing delays in going home due to inadequate support services. Bridging the gap between health and social care systems is crucial for positive outcomes for patients, staff, and taxpayers.
  2. Despite the success in international recruitment for health and care systems in 2023, changes to Health and Care Worker visa rules in 2024, preventing visa-holders from bringing dependents to the UK, are expected to slow down overseas worker intake. This could further strain existing staff and impact the quality of care provided.
  3. Anticipating a General Election in May, bookmakers favour a Labour majority, suggesting Keir Starmer as the Prime Minister-in-waiting. While Labour's plans for health and social care remain undisclosed, indications from the Health and Social Care Secretary in waiting, Wes Streeting, hint at a continuation of Conservative-like policies, including healthcare privatisation, technology prioritisation, and limited funding increase.
  4. The rising cost of care, coupled with an aging population, requires increased funding through tax hikes to sustain the quality of healthcare services. Acknowledging the absence of an unlimited funding source, the public needs to realise the necessity of contributing more through taxation to meet evolving care needs.
  5. To address the challenges of 2024 and beyond, care providers are expected to turn to technology for a resilient and productive workforce. Continuous up-skilling and technological adoption are crucial for delivering high-quality care.

In summary, the future foresees a Labour government, but funding challenges and workforce pressures are expected to persist. This emphasises the importance of proactive measures, such as strong leadership and technology adoption, for building a resilient and high-quality healthcare workforce. But without a motivated and skilled workforce, neither leadership nor tech, will solve the problems of the care sector, so recruitment of vocational staff should remain at the forefront of plans for success for care homes in 2024/25.

Need assistance with your care recruitment campaign? Call Rosie Lovatt on 01782 956420 or email RosieL@kpicare.co.uk for a free, informal chat.