Last week, our Health and Social Care team hosted an invitation-only roundtable dinner, bringing together care providers, funders and advisers to discuss the key challenges and priorities shaping the care sector. We were delighted to be joined once again by our distinguished guest Professor Martin Green OBE, Chief Executive of Care England and recently appointed Chair of the TEC Services Association, whose mission is to accelerate the shift to smarter, more person-centred, tech-enabled care across health, housing and social systems.
The conversation focused on how providers can remain resilient and sustainable while continuing to deliver high‑quality care and adopting ‘best in class’ technology in an increasingly complex environment.
Drawing on the key themes raised during the evening, we have summarised some of the most significant challenges and opportunities shaping the care sector over the next 12 to 24 months.
Workforce pressures and employment reform
Workforce issues continue to dominate conversations across health and social care. Recruitment and retention remain persistent challenges, compounded by rising employment costs and increased reliance on agency staff. Attendees noted that while these pressures are not new, they are becoming harder to absorb in a sector where margins are already tight.
Looking ahead, the impact of recent and upcoming employment law changes was a major concern. The introduction of statutory sick pay as a day-one right, reduced qualifying periods for unfair dismissal and further reforms affecting low-hours workers will all place additional financial and administrative strain on providers. Many around the table highlighted the difficulty of balancing compliance with these changes while continuing to prioritise residents’ care.
Howes Percival’s employment specialist Simon de Maid commented:
Forward planning will be essential. Providers should currently be reviewing their existing employment contracts, probationary arrangements and flexibility clauses to ensure they are better placed to manage risk as the legislative landscape continues to evolve.
A shifting regulatory environment
Regulation and oversight also featured heavily in the discussion. Rob Starr, Howes Percival’s head of Regulatory Services, noted that:
Our clients are reporting a clear increase in regulatory activity, with more frequent inspections and enforcement action, particularly around fire safety. While improved oversight is welcomed in principle, we often hear concerns raised about inconsistency in approach and a lack of proportionality in some cases.
Several attendees shared experiences of overzealous or reactive enforcement, including significant operational disruption where no incident had occurred. The message from the room was clear: providers need clarity, consistency and practical engagement from regulators to support improvement rather than hinder it.
Linked to this was a broader concern about capacity and change within regulatory bodies themselves. While investment and reform is underway, the pace and application of change continues to vary across regions, creating uncertainty for operators managing multiple services.
Technology, AI and the role of innovation
Against a backdrop of growing pressure on resources, technology and AI were seen as part of the solution rather than a luxury. There was strong interest in how digital tools can support care providers by freeing up management time, improving auditing and monitoring, and identifying gaps in care planning before issues escalate.
That said, regulatory acceptance of technology remains inconsistent. Examples were shared of identical systems being praised in one region and challenged in another, reinforcing the need for clearer guidance and a more consistent national approach.
Despite this, the consensus was that innovation will play a crucial role in the future of care. Providers who can demonstrate that technology is being used to support, not replace, high-quality care are likely to be better positioned for both regulatory scrutiny and long-term sustainability.
Funding, fragmentation and system-wide challenges
Funding pressures remain a defining issue for the sector. The discussion highlighted ongoing difficulties negotiating fee uplifts with local authorities, particularly where care needs increase over time. Unlike other parts of the healthcare system, care providers often lack collective bargaining power and are left negotiating on an individual basis.
The fragmentation between NHS and local authority funding was a recurring theme. Attendees shared examples of cost being shifted between systems, leading to inefficiencies and situations where the overall public purse bears greater expense while providers struggle to secure relatively modest uplifts. The expectation for care homes to take on delegated clinical or medical functions, without corresponding funding, was a particular concern.
There was also recognition that wider economic pressures, from energy costs to tightening visa rules, are being disproportionately absorbed by the care sector. These cumulative pressures underline the need for more joined-up thinking and long-term reform.
Looking ahead
Howes Percival’s head of Healthcare, Oliver Pritchard, summarised the key takeaways from the event:
The fascinating conversations at our roundtable reinforced the resilience, commitment and innovation within the care sector, but also highlighted the scale of the challenges ahead. Workforce reform, regulatory clarity, smarter use of technology and sustainable funding models will all be critical in shaping the future of care. Here at Howes Percival, our specialist Health and Social Care Team continues to work closely with care providers, investors and advisers to navigate this evolving landscape. If you would like to discuss any of the themes raised above, or explore what they mean for your organisation, please do not hesitate to contact one of the team.
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