The boss of a care organisation has accused the government of being complicit in “modern slavery.”
Dr Jane Townson OBE, chief executive of the Homecare Association said: “When public bodies buy care at prices that don’t even allow payment of the minimum wage, it’s not efficiency, it’s enabling modern slavery.”
State-funded home care crippled
She spoke out as a new report from the Homecare Association claimed government cuts have caused widespread exploitative commissioning by cash-strapped councils, crippling state-funded home care.
The Homecare Association is the only membership body in the UK dedicated to supporting home care providers and represents over 2,200 care providers.
It routinely conducts research on fee rates for homecare purchased by public bodies from independent providers across the United Kingdom.
Below minimum wage
New data collected since April 2025, when the National Living Wage rose to £12.21 per hour, shows nearly 30% of home care contracts in England are at rates below direct employment costs at the legal minimum wage.
The report claims contracts are undermining safety and quality of care, worker rights and continuity of services by causing cash-strapped councils to turn to exploitative commissioning.
Government pledges action
The government has pledged to introduce a fair pay agreement “so care professionals are recognised and rewarded.”
A government spokesperson told The Financial Times that “it was committed to tackling the challenges facing social care and had provided a funding boost of up to £3.7 billion for social care authorities in 2025/26.”
