Changes to Minimum Wages – The Impact on Home Care Assistants
Home care specialists discuss the April 2024 minimum wage changes, their impact on recruitment, retention and why better pay is crucial for sector stability
Changes to the legal minimum wage employers are permitted to pay came into force in April, with additional adjustments to the ‘living wage’, extending the lower age brackets to include those in the workforce aged 21 and 22 – rather than applying only to employees aged 23 or above.
Despite the news of an increase being welcome, there remain concerns about whether this goes far enough and whether the lowest-paid workers in sectors like home care, which have been experiencing enormous demand coupled with sustained understaffing, will consider this income level sufficient to stay in the sector.
Guardian Angel Carers, an award-winning nationwide network of territories specialising in person-centred home care, shares thoughts and insights to reflect on the reality of working as a home care assistant with a minimum wage salary.
Recapping Changes to Minimum Wages From April 2024
Initially, we’d say that for the estimated 3 million people who will have received a nominal pay rise, equivalent to £1,800 a year or £150 a month for a full-time role, an uplift to the minimum wage and living wage is a good thing.
As a brief summary, the reforms in April have had the following effect on the lowest values employers can pay per hour:
Age Band / Employment Type | 2023/2024 Rate | 2024/2025 Rate | Percentage change |
Apprentice | £5.28 | £6.40 | 21% |
Under 18 | £5.28 | £6.40 | 21% |
Age 18 to 20 | £7.49 | £8.60 | 15% |
Age 21 to 22 | £10.18 | £11.44 | 12% |
Age 23 and above | £10.42 | £11.44 | 10% |
The national minimum wage applies to employees aged 21 or below or working in an apprenticeship. In contrast, the national living wage is the minimum businesses can pay workers aged 21 and above – newly extended from a previously higher age of 23 or over.
Aside from the figures, the big questions remain – are home care assistants paid enough to recognise the services they provide to local communities, and why are so many home care providers struggling with recruitment and retention?
Understanding Recruitment and Retention Challenges in the Home Care Sector
Most critics agree that to be competitive, attract skilled care professionals and provide viable career progression routes, home care providers should offer basic pay rates above the national minimum wage – and either in line or higher than comparable NHS salaries.
However, this doesn’t always reflect reality. Skills for Care’s December 2023 report, while based on the minimum pay rates in the previous tax year, shows that:
The median hourly care worker rate was £11 – or 8% above the minimum living wage with regional variances. For instance, the median pay rate in the West Midlands was £10.80, or 38p an hour above the obligatory minimum.
19% of care workers were paid at the same hourly rate as the minimum wage, and 60% were paid below the living wage, due to be introduced the following April.
Other persistent problems continue to impact the appeal of a career in care, with a study commissioned by the Health Foundation and Nuffield Trust finding that a startling 15% of social care staff continue to be paid less than the national wage.
Issues also exist around unpaid travel between visits, meaning visiting carers providing domiciliary and home care help might spend a proportion of their working hours on an unpaid basis. This raises concerns for families trying to afford private live-in care and full-time care support solutions.
The latest data from October 2023 shows an increase of 55,000 vacancies in the social care space, making the shortfall of professionals 165,000; something that is unlikely to change if home care assistants have the prospect of working harder, for a lower income than they could make in a less emotionally and physically demanding role.
Comparing Minimum Wage Home Care Jobs With NHS Scales
While the NHS itself has a distinct set of challenges, part of the controversy around the fact that such a high proportion of home care assistants are paid minimum wage is that the earnings they might make working in public healthcare may be higher.
Much may depend on the vacancies and roles in a specific area, but reporting by the Homecare Association has highlighted that an NHS healthcare assistant would usually be paid a Band 3 salary – with an hourly equivalent rate of between £12.08 and £13.13.
The newly elected Labour government has said that planned reforms to the NHS involve greater reliance on community-based care and providing care at home, especially for older adults and vulnerable people who are currently unable to be discharged from hospitals.
Dependency on private home care organisations, which do not receive government funding, means that, in effect, home care providers are being expected to extend capacity – yet with typically lower average salaries than are available elsewhere.
Finding Solutions to High Home Care Staff Turnover
Here at Guardian Angel Carers, we have long recognised that the services, compassion, kindness and dedication home carers offer are invaluable, protecting the right of individuals and families to remain safe and well at home, maintain their independence, and avoid reliance on residential care or NHS services against their needs or wishes.
We are proud to offer sector-leading remuneration packages, with above-average pay rates and reward schemes that ensure our CareAngels aren't just paid properly for their work but have opportunities to progress and excel in their chosen specialisms.
Considering all of the above aspects, we believe that this level of support, formal training, properly paid expenses and mileages, generous holiday entitlements, discounted goods and services and other bonuses and non-financial perks are fundamental to restoring the strength of the social care sector and being able to meet the demand that continues to grow.
Changes to minimum wage and national living wage are, undoubtedly, a step in the right direction. However, if all home care workers are paid a salary at least equivalent if not higher than that available elsewhere, as a sector, we will have better opportunities to build skills, improve resilience, and work alongside other areas in the healthcare service to meet the needs of our communities.
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About Guardian Angel Carers
Guardian Angel Carers is a leading home care provider dedicated to delivering compassionate, personalised care services. With a strong focus on independence, dignity, and quality of life, the company supports individuals in the comfort of their own homes, offering a range of services from companionship to complex care needs.
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Source Company – https://www.gacarers.co.uk/