Recently, Howes Percival’s health and social care sector team partnered with Care Talk for their annual exclusive dinner at the historic Kilworth House Hotel in Leicestershire. The event brought together a dynamic mix of operators, funders, and advisers in the care sector, offering a platform to share and debate issues facing the sector today.
Professor Martin Green OBE, Chief Executive of Care England, illuminated the room with insights into the challenges facing care providers, the discussions covered a range of pressing issues facing the care sector. One of the key topics explored was the impact of the minimum wage rise and national insurance changes on care providers and workforce sustainability, with conversations centring on how businesses are adapting to these shifts. The Employment Rights Bill was also a significant point of discussion, highlighting the risk that it poses to the sector, especially given the uncertainty around the complex proposals relating to the introduction of new rights for zero hours workers.
Simon deMaid, Employment Partner commented,
Staff retention remains a problem for the sector, as does finding good quality candidates. This often means an increased reliance on agency workers, which not only leads to additional costs. It may also mean the quality and consistency of care being provided is adversely impacted. Many care providers are reporting that they are struggling to meet the increased costs attributable to a sizeable increase to the national minimum wage, coupled with changes to national insurance. As a result, many people within the sector are concerned about providers withdrawing from contracts altogether due to additional financial burden. This also raises alarms about potential gaps in care provision, and it may ultimately lead to the eventual disappearance of individual providers.
Regulation and oversight remain major concerns to all care providers, with a consensus that the CQC’s new regulatory approach simply isn’t working. A particular issue that providers are keen to be addressed is the lack of effectiveness of the CQC inspection regime, with some attendees reporting delays of up to seven years between inspections.
According to Robert Starr, Regulatory Partner,
This is a common theme across the sector and something we hear regularly from our clients. The CQC has many challenges at the moment, not the least getting its own house in order following a number of senior personnel departures. However, the recent changes to the inspection regime, coupled with excessive waiting times between CQC inspections, is something that it needs to address quickly. The delays have a significant impact on providers, especially those who may have made substantial improvements to their services but are left in limbo under a historic rating.
Corporate activity was another focal point, with positive sentiments around pricing and activity levels. Oliver Pritchard, Corporate Partner commented,
The domestic health and social care sector is less exposed than many other sectors to the current uncertainties around tariffs and sanctions affecting international trade. It therefore appeals as an attractive sector for investment in the current climate, notwithstanding the significant challenges of funding levels, recruitment and retention of staff, and increased employment costs
Patrick Quinn, of Care Talk, reflected on the evening,
This year’s dinner was a timely reminder of the vital role played by the frontline workforce in sustaining our care system. The discussions around workforce pressures, regulatory reform and financial sustainability underscored the need to better support those delivering care day in, day out. Their dedication remains the backbone of the sector, and it’s clear that meaningful change must begin with recognising and investing in their contribution.
As we reflect on this year’s event, we are already looking forward to next year’s dinner at Kilworth House. If you would like to register your interest, please email Lauren Costello at [javascript protected email address]. The event will take place in April 2026.
If you would like to discuss your plans for the future on a highly confidential and no obligation basis, please contact Corporate Partner, Oliver Pritchard at oliver.pritchard@howespercival.com; Employment Partner, Simon deMaid at simon.demaid@howespercival.com; or, Regulatory Partner, Rob Starr at robert.starr@howespercival.com.
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