In this current climate of economic austerity, local authorities are having to adapt by making budget cuts. These cutbacks are heavily impacting the amount of funds allocated to social care. Although traditionally, many care businesses soley relied on local authority to get clients, now is the time to expand your reach and attract more private paying clients. 

Why Relying On Local Authority Clients Is Killing Your Care Business - Budget CutsThis is because the cutbacks and the rise in the cost of care meand that the local councils are struggling to keep up with supporting the growing number of aged people in Britain who are in need of care.

When discussing the impact of the National Living Wage on social funding, The Guardian reported,

“Some local authorities are paying less than £2 an hour towards the cost of caring for a resident.”

That is less than what people spend on their morning coffee.

As reported by The Telegraph, in an audit completed over a period of six months by the Association of Directors of Social Services, thousands of people in councils all across the UK have been affected by care business closures.

At least 58 councils have seen care and nursing homes close and 48 councils experienced home care business closures impacting the accessibility to socially funded care.

Care businesses need to attract private clients

Traditionally, care businesses have relied on referrals from local authorities as their main source of clients.

With these shocking statistics, care home and home care businesses cannot solely rely on the councils. Care businesses need to attract private clients in order to grow.

With private paying clients, you can increase your prices. This additional revenue will allow you to:

  • Pay Your Staff. (Retention & Job Satisfaction)
  • Have Enough Margin For Growth.
  • Be In Control Of The Success Of Your Business.

    Why Relying On Local Authority Clients Is Killing Your Care Business - Graph

Relying on local authority for your care business is risky, however if you are a care business owner and want to know how to attract self-funded clients to your business, book in time with us. Sign Up Here!