Professional Services

What Legal Challenges are Facing Social Care Providers in 2022?

Social care providers have again faced a challenging year and 2022 looks to hold more of the same, says the market-leading Social Care team at the law firm Royds Withy King.

Here are the three things the social care sector will need to address in 2022.

A WORKFORCE CRISIS

Social care providers are facing one of the largest workforce crises in living memory and it is set to get worse, says James Sage, Employment law partner and Head of Health & Social Care at Royds Withy King.

“It is estimated that the mandatory vaccination requirement for care home staff has resulted in 60,000 staff being dismissed. This will be exacerbated when the requirement is extended to the wider social care sector and the NHS with the pool of potential workers getting ever smaller. The Government estimates that 123,000 NHS staff will be dismissed when its policy is enforced, and experience tells us that a short-staffed NHS will come hunting for workers in the care sector.

“In addition, staff retention continues to be a challenge with attrition rates currently standing over 30% and for some providers considerably higher. This is likely to continue into 2022, not least due to staff burnout caused by the pandemic.

“Some providers are responding with increased pay rates and bonuses to fight off competition from the likes of Amazon, and we are likely to see more of the same in the new year. But this remains a real challenge for smaller care providers and those reliant on public funds to pay staff wages. An improved financial package for social care is required but it looks like the new money promised will now be diverted into the NHS with the pandemic continuing.

“On a positive note, the Migration Advisory Committee has recommended that care workers be added to the Shortage Occupation List, opening the door to overseas workers. This is urgently needed and it is hoped that the Government will listen. We also wait to see the results of recent government funding for recruitment and retention and hope that councils pass this on to providers as they are best placed to find creative new ways to recruit and retain workers. ”

INDEPENDENTS LEAVING THE SECTOR

We have seen a significant lift in sales and acquisitions in the social care sector following the uncertainty of the last two years. It is being driven by providers disillusioned with the sector and lenders looking to exit, says Royds Withy King Corporate Partner Hazel Phillips.

“We have seen several mainstream lenders lose their appetite for the social care sector in 2021 and adopting a more aggressive position with care providers forcing in some instances a decision to sell. This is matched with increasing disillusionment in the sector from independents and family-operated homes following two extremely challenging years. We expect this to continue to drive M&A activity in the new year.

“On the plus side, there are lots of buyers and plenty of interest from private equity investors. Price expectations do need to be managed, particularly for homes reliant on more expensive agency staff. Sellers looking to go to market are advised to be well prepared as due diligence will be as detailed as ever, particularly around staffing costs and liability.

“The interest from private equity investors is likely to remain high throughout 2022 and despite recent criticisms surrounding their business model, we do not expect the government to introduce further regulation. ”

CHANGE TO CQC RATINGS IN 2022

The CQC’s rating system is changing. But will it drop in 2022 its KLOEs for more streamlined quality statements, asks Royds Withy King Partner Mei-Ling Huang?

“CQC appear to be heading towards slimming down its KLOEs and implementing a more numerically-based model. Scores on various criteria will be totalled to determine a rating. 2022 may see the introduction of more anodyne quality statements as the CQC tries to make standards more streamlined and comprehensible to the wider public.

“There is a very real worry that ratings will change without inspection based solely on the feedback the CQC receives with little consideration of bias or fact. The biggest unanswered question is whether care providers will be given any right to reply or to challenge a rating?

“We would urge care providers to engage with CQC in 2022 as much as they possibly can, either through their care association or inspection manager. It is vitally important that the voices of care providers are heard and that they fight for this right to reply. ”

Government Relaxes Rules to Add Care Workers to the Shortage Occupation List

Aston Brooke Solicitors working in conjunction with Care England, the largest representative body for independent providers of adult social care, had urged the government to provide more support to stem the workforce crisis in adult social care, which included adding carers to the shortage occupation list.

Care England wrote to the Secretary of State for Health and Social Care, Sajid Javid, outlining the crisis in the sector and the steps required to be adopted by Government with immediate effect.

Finally, the Government has relaxed immigration rules on care-worker jobs as the social care sector increasingly struggles to attract and retain key staff.

This recent announcement means that the Government has finally recognised the voice of the sector and this important change builds on the government’s delivery of the new points-based immigration system introduced in January 2021.

The decision follows a recommendation from the Migration Advisory Committee (MAC) that the care worker role coupled with home care workers are made eligible for the health and care visa and placed on the list, which is designed to help migrants get work visas to fill jobs where there are shortages.

This was called for “immediately ” to temper “severe and increasing difficulties” the sector is facing with recruitment and retention, the MAC said in mid-December.

Home Secretary Priti Patel MP said:

“The care sector is experiencing unprecedented challenges prompted by the pandemic and the changes we’ ve made to the health and care visa will bolster the workforce and help alleviate some of the pressures currently being experienced. ”

Health Secretary Sajid Javid MP said the measure would help to “ensure short-term sustainability ” as he also urged care workers to get vaccinated.

Professor Martin Green OBE said:

“Care England has long called for care workers to be on the Shortage Occupation List with our partner law firm Aston Brooke Solicitors. Social care has a workforce crisis and the news that care workers are to be added to the shortage occupation list is very good news for a very hard pressed sector. Care England commends the work that Aston Brookes have done to raise this issue and secure this outcome”

Kashif Majeed, Director at Aston Brooke Solicitors welcomed the announcement and said:

“The addition of the carer position to the shortage occupation list is welcomed by the social care sector in its entirety. This means care providers are now able to recruit suitable candidates outside of the UK. However, the minimum annual salary of £20,480 for carers is the same set for senior care workers and this may become a pressing issue for care providers but it will interesting to see how the Government tackles this in the coming weeks and months. ”

The Home Office confirmed that the Health and Care visa will allow applicants and their dependents to benefit from fast-track processing, dedicated resources in processing applications and reduced visa fees.

The measures will be set in place for a temporary period of a minimum of 12 months and expected to come into force in January 2022. There will be a further review after 12 months and possible extension of the measures.

As part of the points-based immigration system, people applying to come to the UK through the skilled worker route must reach 70 ‘points’ to be eligible for a work visa.

A job on the Shortage Occupation List is worth 20 points. Combined with the mandatory criteria – having an acceptable standard of English, an offer from a licensed sponsor and the required skill level, which are worth 50 points – will ensure people in these roles reach the 70 points necessary.

Aston Brooke is working tirelessly to address the recruitment crisis by assisting care providers. If any care providers require further information, please contact Mr Kashif Majeed at km@astonbrooke.co.uk

Global assists clients throughout the U.K. who specialise in the healthcare sector to achieve their objectives of purchase, development and refinance.

We have organised over £1.8bn for clients in the past 30 years, providing clients with competitively priced funding to refinance existing debt, ease cashflow and develop businesses further.

From helping clients make their first purchase through to allowing groups to grow significantly in size we assist at every stage of your business expansion.

Every proposal is individual and deserves to be treated that way, so we hope you will allow us to be of assistance to you and call us to chat through your plans and requirements, I am sure we will be able to tailor a facility to your requirements.

Call us on 01242 227172 or e-mail us at

enquiries@globalbusinessfinance.net

Care Home Finance from Global Business Finance