The UK government recently launched the adult social care commission, shining a spotlight on the ongoing tensions between improving care delivery and maintaining financial stability. Fran Kirke, VP of Care at OneAdvanced with over 15 years' experience in the health and care sector, explains
As you’ll know, the UK government recently launched the adult social care commission and one thing’s clear – big changes should be on the horizon for care providers. But what does this actually mean for your business?
Well, before we dive into it, it’s worth briefly covering what exactly has been announced. The government has set out to invest in improving the adult social care sector with an additional £86 million being promised on top of the budget’s existing social care fund, taking the annual total to £711 million.
This is set to work alongside the earlier ‘Plan for Change’ announced just a couple of months ago in December 2024, that aims to support older people to remain out of hospital and at home for longer, and support those with disabilities to help keep them living independently at home too.
As well as these steps to reduce pressures on social care, the government has also stated they are planning long-term reformation of the sector. 2026 is primed to be phase one of the plan, where critical issues and recommendations will be identified for medium-term improvements. The second phase will be due in 2028, where long-term transformations of adult social care are due to be outlined.
So, is it great news? Well, yes and no. The specifics of the commission – timing, distribution, and conditions – remain frustratingly vague. And for care home providers, while these announcements are clearly welcomed, it shines a spotlight on the existing (and likely growing) tension between improving care delivery and maintaining financial stability going forward. Because as you may well be thinking, many organisations simply can’t afford to wait for answers.
And with technology expected to play a vital role in fulfilling these plans (such as a shared digital platform to be developed so up-to-date medical information can be shared between NHS and care staff), it’s clear that this is a topic care home providers will have at the forefront of their minds.
Why all this matters for your financial stability
While the new announcements of course place a key focus on those needing care, I can’t help but recognise that it fails to adequately acknowledge what the commission means for care providers and how this opportunity should offer a helping hand so organisations like yours can be financially healthy and in business in the medium to long term, so those requiring care can actually receive it.
It’s no secret that the social care sector has been under increasing financial strain for some time now, and care home providers have felt this acutely. Staffing shortages, sizable running costs, and the pressures to provide personalised care to an increasing population add up fast.
The recent Sector Pulse Check 2024 has highlighted key financial pressures faced by care providers today, one of which being a significant challenge around workforce costs. Their survey found that 95.8% of care providers place the increasing National Living Wage (NLW) as one of their biggest financial burdens.
The report also highlighted that over two thirds of providers have looked at internal efficiency savings – such as adapting their model of care or target group – to cope with financial pressures. And three in 10 providers have closed parts of their service or even handed care contracts back as a way to manage costs.
But it doesn’t end there. The report further stressed just how concerned care providers are about their medium-term financial stability. In 2023, 19% of providers with decreasing surplus said they expected to be in deficit in two to three years, with 3% saying they expected to be in deficit in three to four years. Those numbers have increased to 30% and 14% respectively in 2024.
And I mimic the report; it’s clear that previous short-term ‘fixes’ have failed to even scratch the surface of these sector-wide issues, and that long-term investments and digital transformation are critical for care providers to meet the needs of our ageing and increasingly care complex population going forward.
But I get it, investing in technology may feel like a risky step in these conditions. What I will say is when done wisely, digital transformation can provide a much needed financial lifeline for short, medium and long-term stability.
For instance, replacing manual processes with software designed specifically for the sector doesn’t just free up your back-office team’s time, but it reduces the chance of things like costly invoicing errors. Plus, tools that take the complicated out of the complex, such as simplifying your staff rostering even across multiple locations or ensuring accurate payroll first time, can help to boost efficiency across the board, leading to noticeable savings in the long run.
But of course, it’s not just about cutting costs. The right software solutions can improve the quality of care your organisation can provide, leading to happier residents, satisfied families and a boost in your services’ reputation.
The ‘Plan for Change’ also emphasised a renewed focus on empowering care workers throughout the sector, which again, can be complimented by the right tech. Being able to identify and provide training and development opportunities is vital for things like compliance, but also for building the picture that there are many career paths in care and in your organisation. Autonomy for your employees is another great example of tech supporting their empowerment. Easy, self-service access to pay, schedules and even being able to update resident care plans at the point of care doesn’t just improve your teams’ job satisfaction by making their lives easier; it translates into better care for your residents because your care employees can focus on them rather than the necessary (although time-consuming) admin.
The push towards digital transformation in social care
As I’ve mentioned, technology plays a vital role in these government plans, being key to alleviating some of the deepest challenges care home providers face. And part of why purpose built software can bring such strength to social care is the ability to imbed efficiency and accuracy from the roots of back office business operations, right through to face-to-face care delivery.
It’s exciting, yes – but may also be daunting for many. Choosing and implementing the right tech can be both time-consuming and expensive, so digital transformation can’t be taken lightly, particularly so for such a bustling and demanding sector like social care.
For care home providers, this means that any decisions about software investments can’t just focus on solving short-term challenges. They must also factor in the organisation’s long-term stability, because the wrong investment could cost more than just money.
Finding software that works for you
There are a multitude of specific tools and features you will need from your software so that it meets the exact requirements of your service, your employees and your residents. For now, I want to highlight a few key things any care home provider should be interested in when looking to implement new tech into their organisation. So, when weighing up your software options, it’s worth keeping the following in mind:
1. Upgradability – being future ready
The care sector never stands still. New regulations are announced, care standards evolve, and there may be a possibility for you to expand services, open more locations or acquire other services. Whatever the future holds, software solutions need to keep up with your business. Can the software easily handle that growth, or will it need replacing in a couple of years? A modern, flexible Software as a Service (SaaS) solution should be able to adapt to you as expectations shift, so you can ensure compliance and avoid costly disruptions. Because the last thing your organisation need is to be bogged down by technology that is simply not cut out for the job.
2. Cybersecurity – keeping data safe
Your care homes run 24/7, seven days a week and likely manage a significant amount of sensitive information, such as medical records, financial details and personal contact information. And your software provider has a duty to take data security seriously. Cloud-based software for example, encrypts your data, will automatically rollout system updates, and are designed to detect internal and external cyber threats so keep your service and resident data secure.
3. Interoperability – bringing it all together
As a care home provider, you may well be juggling multiple systems – rostering, care planning, financial management – so when you’re introducing something new, it needs to make life easier, not harder. Well-integrated solutions mean these different types of systems can “talk” to each other and share information, cutting down on manual work and mistakes. Imagine every roster (no matter how complex the schedule was or varying the pay rates were) automatically updates with payroll, so everyone – from back office staff to care facing teams – get accurate pay first time, every time. That kind of efficiency allows for a holistic view of your operations and, most importantly, a smoother care journey for your residents.
4. Support – help when it’s needed most
Even tech savvy employees using the best systems can stumble when they don’t get training, especially during those early days. As a care home provider, who may well already be stretched for time and resources, you can’t afford prolonged teething problems. That’s where strong support from your software provider can make all the difference. They should offer hands-on help, guiding your teams through training and setup. But it shouldn’t stop there – think ongoing support, regular updates, and even asking for your feedback on the software and its features so they can keep enhancing the system with you in mind. A good software provider should feel less like a seller and more like a partner that cares for your organisation just as much as you do.
Future proofing your care business
As you know, running a care home has always been a balancing act between delivering excellent care and keeping the business financially sound. The introduction of the new adult social care commission is set to bring both opportunities and challenges. And while its goal to expand funding and improve care across the sector is certainly welcomed, the reality is that this funding isn’t endless. Providers already face significant financial pressures, from rising operating costs to tightening margins. What’s more, the details surrounding how this funding will be distributed, or even when, remain up in the air.
With these uncertainties, future proofing the care sector becomes critical, and technology is a valuable tool to help care home providers get there. The right software can act as a bridge between delivering the high standards of care expected by government bodies and those you care for and maintaining the financial health of your organisation.
Of course, no one expects digital solutions to solve all the sector’s challenges overnight. But what they can do is offer care home providers a much-needed foundation for navigating the pressures that lie ahead. Thoughtfully selected software, tailored to the unique demands of this sector, gives providers the flexibility and resilience to adapt to regulatory changes, manage financial risks, and ultimately deliver the high-quality care your residents deserve – not just today, but in the years ahead.
Above all, I’m confident that we can all agree that whatever progress is set to be made shouldn’t just be about addressing the sector’s immediate needs. It needs to be about building a system fit for the future. And investing in the right technology today isn’t just about keeping up with the demands of today – it’s about setting your care home up to lead, thrive, and serve well into the future. The road ahead may have its twists and turns, but with the right tools and strategies in place, I truly believe that care home providers can be prepared to meet the challenges head-on and emerge stronger on the other side.