A recent study called ‘Bailed out and Burned out’ has examined the financial impact of the pandemic on care homes and their staff. The study found that the Covid government funding ended to early with care homes and staff struggling with the aftermath of the pandemic.
What were the key findings?
The care sector saved from collapse
One of the key findings of the study was that the care sector would have certainty collapsed during the pandemic in 2020 if the government hadn’t intervened with £2 billion support package and the countless hours of unpaid overtime by care workers. The writer of this report cited that the continuous Covid outbreaks after the peak of the pandemic, staff shortages and inflation are all reason why the government funding should have continued for the care sector.
Care home staff
4 in 10 care staff said that they had financial issues during the pandemic as the study found that the majority of the government funding went to the organisations rather than the staff who had worked unpaid overtime. The study also found that staff in smaller organisations and not-for-profits had a more positive experience overall than those working for larger companies in the UK care sector.
2022 inflation
The winter of 2022 was particularly tough for the care sector. This was due to a combination of multiple factors including:
- The removal of government funding in March 2022.
- Covid outbreaks reducing new admissions.
- Increased spend on agency staff due to staff shortages. Historically the care sector has been reliant on migrant workers which there are now less of due to the new immigration rules post Brexit.
- Overall inflation, in particular energy bills. The study estimates that on average annual energy costs of a care home bed have increased by £4,000 from £660 to over £5,000.
How can we help?
At Hawsons our dedicated team of specialist accountants and tax advisors offer a wealth of experience in the care sector including residential homes, nursing homes and other specialist care services.
Our in-depth knowledge and understanding of the sector is applied and we work closely with our clients, ensuring that changes in the care sector are recognised promptly and appropriate strategies implemented and actions taken. We recognise that no two homes are the same.
Scott Sanderson
Partner, Sheffield
Free initial meeting
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