Care providers across the UK are facing more and more pressures of increased National Insurance Contributions (NICs) and a higher National Living Wage (NLW). While these changes are aimed at improving outcomes for care workers, the financial impact on providers already stretched thin is significant.
Recent estimates suggest these measures will cost independent care providers in England nearly £3 billion in 2025–26. For many businesses, this level of increased expenditure could mean tough choices ahead, particularly with local authority fee uplifts often falling short of what’s needed to balance the books.
So how can care businesses like yours protect themselves, without compromising on care?
Understand the Financial Hit
Before you plan your response, it's important to know exactly where the pressure is coming from:
Higher Wages: The uplift in NLW for staff aged 21+ has increased your baseline wage bill.
Increased NICs: These are now applied at a higher rate and from a lower earnings threshold, pushing up the cost of every employee.
Staff Retention Challenges: With other industries competing for talent, you may feel under pressure to raise pay further just to keep the team you have.
These aren’t minor adjustments. Without action, they can become serious threats to sustainability, even leading to service reductions or closures.
The Good News: You Can Fight Back
At Quality Care Group, we work with hundreds of care providers every year, helping them find cost savings, improve resilience, and stay compliant. Here are some of the most effective ways we’re helping clients mitigate rising costs right now:
Smarter Workforce Planning & Retention
Reduce Agency Reliance: Effective rostering tools, especially those that consider resident dependency levels can ensure safe staffing without overstaffing.
Invest in Training: Building up your existing team can boost morale, support internal progression, and lower your recruitment costs.
Offer Better Benefits Smarter: Salary sacrifice schemes (e.g. electric vehicles, pension top-ups) can create win-wins for you and your staff by reducing tax and NICs liabilities.
Use Technology to Free Up Resources
Go Digital: Switching to digital care planning cuts down on admin time and errors, giving staff more time to focus on residents.
Automate Admin: From payroll to billing, automating repetitive tasks saves time and reduces wage costs.
Remote Monitoring: For domiciliary providers, remote tech can help reduce unnecessary visits and mileage.
Cut Operational Costs, without Cutting Corners
Slash Energy Bills: Our Energy Market Tracking service has helped care homes save up to 70%. Energy efficiency measures also bring long-term returns.
Review Supplier Contracts: From cleaning products to clinical supplies, we can help you negotiate better deals, or switch to group purchasing to save more.
Check Telecoms & IT: We regularly uncover savings for clients simply by reviewing outdated phone or broadband packages.
Plan Proactively to Reduce Risk
Now’s the time to ensure your business is protected from unexpected costs:
Accountancy & Financial Services: Look at tax efficiencies, cost modelling, and even business structure.
Comprehensive Insurance: From employers’ liability and public liability to business interruption and cyber cover, having the right insurance in place could be the difference between recovery and collapse if something goes wrong.
Your Next Step: Book a Free 30-Point Business Health Check
We’re here to help you take control of your costs, not just react to them. Our Head of Customer Solutions, Simon van Os, can help you uncover hidden inefficiencies, reduce risks, and improve your business resilience.
Whether it’s utilities, procurement, financial planning, or workforce strategy, we’ve got sector-specific solutions that deliver real savings.
Care is what you do best. Protecting and powering your business is what we do. Let’s work together to make sure rising costs don’t derail your commitment to delivering quality care, you can find out more about our cost saving solutions here, or give us a call on 01273 424904 today.
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