New Sector Pulse Check report published

The Sector Pulse Check report, a piece of independent research commissioned by national learning disability charity Hft and Care England, illustrates the unique challenges facing the sector following the pandemic, cost of living crisis and decades of underinvestment by central Government.

Based on a representative survey of care providers in England, the report describes how cost pressures, including sky-high utility bills – rising by as much as 500% for some providers – and increasing workforce pay resulted in 82% of providers being in deficit or facing a decrease in their surplus in 2022.

Financial and workforce pressures have also seen 42% of providers forced to close parts of their organisation or hand back care contracts to local authorities.

One survey respondent described the current climate as ‘genuinely the most perilous period in the organisation’s 50-year history', going onto say that their 'ability to provide residential care and supported living is seriously compromised.’

The Sector Pulse Check report illustrates that workforce-related cost pressures, driven by increases in the National Living Wage, were a standout concern for providers, with 92% citing workforce pay as a key pressure on their organisation. 81% said that local authority fee increases did not cover the increasing costs of workforce pay in 2022.

Low wages relative to other sectors, as well as a perception that better opportunities exist elsewhere, were identified as key drivers of difficulties in recruitment and retention, with 95% of respondents saying that increasing pay would have the most impact on boosting staff numbers.