With care homes facing mounting financial pressures, Jonathan Cooper, founder and director of The Director’s Helpline and The Director’s Choice, offers some tips on staying on top of your tax obligations
Across the UK, care home owners are facing a perfect storm of rising demand, increasing costs, and shrinking margins. What was once a difficult environment has now become an impossible one, meaning that, for many, the challenge is no longer just about providing good care, but about keeping the doors open.
According to the Care Policy and Evaluation Centre at the London School of Economics, demand for adult social care is set to rise from around 520,000 in 2022 to more than 750,000 by 2042. However, the resources to meet that demand are not keeping pace, leaving homes under significant pressure to deliver quality services with limited support.
At the same time, cost pressures are intensifying. The Nuffield Trust estimates that the changes to employer National Insurance Contributions (NICs) that were brought in in April 2025 will cost independent sector social care employers an extra £940m in 2025/26. For a people-intensive industry where staffing accounts for most of every pound spent, that is a significant additional weight to carry.
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