Table of Contents
Overview
-
- What you need to know
- Covered in this Report
Executive Summary
-
- The market
- Market value reaches five-year high
-
- Figure 1: UK market for domiciliary care, 2013/14-2017/18, (£ million)
- Informal care drives growth
-
- Figure 2: Segmentation of the UK domiciliary care market, by type of purchaser, 2013/14-2017/18, (£ million)
- Old age support ratio to continue to decline
-
- Figure 3: Old age support ratio, 2018-43, (ratio)
- Home care still accounts for majority of delays in the transfer of care from NHS hospitals
- Market value to rise by 5% to 2022/23
-
- Figure 4: Forecast UK domiciliary care market value, 2018/19-2022/23, (£ million at 2018 prices)
- Companies and brands
- Many care providers struggle to survive in a high-cost, low-profit climate
- The consumer
- 68% of people have not thought about how they would fund their long-term care
- 40% would prefer a family member or friend to provide them with care over an agency
- Choosing when a carer visits and the care time provided are key factors behind agency choice
- What we think
Issues and Insights
-
- Green paper delay leading to uncertainty
- The facts
- The implications
- New innovations drive cost efficiency and could increase service provision
- The facts
- The implications
The Market – What You Need to Know
-
- Market value reaches five-year high
- Informal care drives growth
- Market value to rise by 5% to 2022/23
Market Size
-
- Market value reaches five-year high
-
- Figure 5: UK market for domiciliary care, 2013/14-2017/18, (£ million)
-
- Figure 6: UK commercial market for domiciliary care, 2013/14-2017/18, (£ million)
Market Segmentation
-
- Informal care drives growth
-
- Figure 7: Segmentation of the UK domiciliary care market, by type of purchaser, 2013/14-2017/18, (£ million)
- Local authority expenditure
-
- Figure 8: Segmentation of local authority expenditure on domiciliary care for older people (65+) in the UK, by type, 2012/13-2016/17, (£ million)
-
- Figure 9: Segmentation of local authority expenditure on domiciliary care for adults aged 18-64 in the UK, by client type, 2012/13-2016/17, (£ million)
-
- Figure 10: Segmentation of UK local authority expenditure on domiciliary care, all adults, by client type, 2012/13-2016/17, (%)
- Regional LA expenditure
-
- Figure 11: Local authority expenditure, all adults, by region, 2012/13-2016/17, (£ million)
-
- Figure 12: Local authority expenditure, older people (65+), by region, 2012/13-2016/17, (£ million)
-
- Figure 13: Local authority expenditure, adults (18-64), by region, 2012/13-2016/17, (£ million)
- Number of contact hours
-
- Figure 14: Number of contact hours of home care provided in the UK, by sector and country, 2013/14-2017/18, (million hours)
- NHS expenditure
-
- Figure 15: Segmentation of NHS expenditure on social care community services, by country, 2013/14-2017/18, (£ million)
- Private expenditure
-
- Figure 16: Segmentation of private expenditure on domiciliary care in the UK, by type, 2013/14-2017/18, (£ million)
- Informal care
-
- Figure 17: Informal carers by relationship to person receiving care in England, 2012/13-2016/2017, (% of informal carers)
-
- Figure 18: The UK market for informal domiciliary care, 2013/14-2017/18, (£ billion and hours)
Market Forecast
-
- Market value to rise by 5% to 2022/23
-
- Figure 19: Forecast UK domiciliary care market value, 2018/19-2022/23, (£ million at 2018 prices)
- Informal care to remain dominant industry provider, but growth is starting to stagnate in relation to demand
-
- Figure 20: Forecast UK domiciliary care market segmentation value, by type, 2018/19-2022/23, (£ million at 2018 prices)
Market Trends
-
- Old age support ratio to continue to decline
-
- Figure 21: UK population projections, by age group, 2018-43, (000 people)
- Minimum price for home care still not widely met, leading to insufficient delivery of care services
-
- Figure 22: Estimated minimum price for home care, 2018, (£)
- Care worker and manager turnover rates rise, although average wages have improved
-
- Figure 23: Annual workforce turnover rates in the independent and voluntary domiciliary care sector, England, 2015-17, by employee position, (%)
-
- Figure 24: Average annual pay in the independent and voluntary domiciliary care sector, England, 2015-17, by employee position, (£)
- Home care still accounts for majority of delays in transfer of care from NHS hospitals
Market Drivers
-
- Current care service shortages and provider failings will force changes to provision…
- …while the increase in the number of elderly people and changes to the pension system will also affect the industry’s operating model
- Staff costs continue to rise due to the increased NLW and NMW rate, but U-turn over ‘sleep-in’ back pay has provided temporary relief
- Implications of Brexit
- Other factors
- NICE guidelines
Legislation
-
- Community Care Act
- Care Standards Act
- Regulation and Inspection of Social Care (Wales) Act
- The Carers (Scotland) Act
- The Care Act 2014 and Better Care Fund
- Pensions Act
- Other legislation
Companies and Brands – What You Need to Know
-
- Many care providers struggle to survive in a high-cost, low-profit climate
- Providers handing back contracts to councils
Industry Structure
-
- Industry development
- M&As and other industry movements
- Market share
-
- Figure 25: Independent sector domiciliary care providers’ market share, 2018, (% of total independent sector market)
- Changes in the structure of the industry
-
- Figure 26: Analysis of the changes in the structure of the ‘other human health activities’ industry, 2013-17, (number of local units and businesses)
- Figure 27: Analysis of the changes in the structure of the ‘social work activities without accommodation for the elderly and disabled’ industry, 2013-17, (number of local units and businesses)
- Structure by employment
-
- Figure 28: Analysis of the employment structure of the ‘other human health activities’ industry, 2016 and 2017, (number of local units and local unit employment size)
- Figure 29: Analysis of the employment structure of the ‘social work activities without accommodation for the elderly and disabled’ industry, 2016 and 2017, (number of local units and local unit employment size)
- Structure by turnover
-
- Figure 30: Analysis of the financial structure of the ‘other human health activities’ industry, 2016 and 2017, (£ 000 and % of total turnover)
-
- Figure 31: Analysis of the financial structure of the ‘social work activities without accommodation for the elderly and disabled’ industry, 2016 and 2017, (£ 000 and % of total turnover)
Competitive Strategies
-
- Many care providers struggle to survive in a high-cost, low-profit climate
- Providers hand back contracts to councils
- New integrated care models tested through vanguards
Company Profiles
-
- Allied Healthcare (now part of Aurelius Group)
- Recent company activity
- Financial information
-
- Figure 32: Financial analysis of Allied Healthcare Group, 2012-16, (£ million)
- Interserve Healthcare (formerly Advantage Healthcare)
- Recent company activity
- Financial information
-
- Figure 33: Financial analysis of Interserve Healthcare, 2013-17, (£000)
- Lifeways Community Care
- Recent company activity
- Financial information
-
- Figure 34: Financial analysis of Lifeways Community Care, 2012-16, (£000)
- Mears Group
- Recent company activity
- Financial information
-
- Figure 35: Financial analysis of Mears Group, 2013-17, (£ million)
- MiHomecare
- Recent company activity
- Financial information
-
- Figure 36: Financial analysis of MiHomecare, 2013-17, (£000)
- Sevacare
- Recent company activity
- Financial information
-
- Figure 37: Financial analysis of Sevacare, 2013-17, (£ million)
The Consumer – What You Need to Know
-
- 68% of people have not thought about how they would fund their long-term care
- 40% would prefer a family member or friend to provide them with care over an agency
- Choosing when a carer visits and the care time provided are key factors behind agency choice
Care Payment
-
- 68% of people have not thought about how they would fund their long-term care
-
- Figure 38: Domiciliary care payment plans, April 2018, (% of respondents)
- Half of women over-65 have considered the financial consequences of care compared to less than a third of men over 65
-
- Figure 39: Domiciliary care payment plans, by age and gender, April 2018, (% of respondents)
- Personal savings expected to fund long-term care
-
- Figure 40: Domiciliary care payment method, April 2018, (% of respondents)
Home Care Provider
-
- 40% would prefer a family member or friend to provide them with care over an agency
-
- Figure 41: Domiciliary care provider, April 2018, (% of respondents)
- Lack of care payment plans will drive people towards care from family or friends
-
- Figure 42: Domiciliary care provider, by care payment plans, April 2018, (% of respondents)
Care Service Features
-
- Choosing when a carer visits and care time provided are key factors behind agency choice
-
- Figure 43: Domiciliary care service features, April 2018, (% of respondents)
Future Care Concerns
-
- Rising fees affecting care affordability represent people’s largest concern...
-
- Figure 44: Future domiciliary care concerns, April 2018, (% of respondents)
- ...with this concern rising with age
-
- Figure 45: Future domiciliary care concerns, by age and gender, April 2018, (% of respondents)
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Methodology
Further Sources and Contacts
-
- Trade associations
- Age UK
- Care England (formerly English Community Care Association)
- Carers UK
- National Care Association
- National Care Forum
- United Kingdom Home Care Association (UKHCA)
- Trade magazines
- Care Management Matters
- Care Talk
- Caring Times
- Caring UK
- Community Care
- Trade events
- Care England 2018
- Care Show 2018
- Care Roadshow London 2018
- Community Care Live 2018
- Health + Care 2019
- Primary Care and Public Health 2019
Back to top