The Current State of Private Carer Pay 2024: Challenging but with glimmers of hope

Introduction

Despite continued pay growth for hourly carers and signs that pay growth is returning to live-in care, private carers in the UK are now no better off than they were prior to the pandemic, thanks to inflation. However, there are some signs of improvement in 2024, as inflation comes back under control and wage growth returns to the live-in care sector.

Overall, Livein carers are about as well off today as they were prior to hte pandemic, whislt Hourly carers have seen their pay fall in real terms. There is no doubt that the recent reduction of inflation will be seen as good news, so long as this doent come hand in hand with significant levels of unemployement. If it does, then we may see both Hourly and live-in carers pay fall, with a probably larger impact on hourly carers.

Live-in Carers: A Pandemic Boom Followed by Stagnation, but Maybe There Is a Future After All

In 2020, private live-in carers, who provide continuous care by residing in their clients’ homes, saw significant pay growth thanks to the pandemic. The specialised nature of the role, requiring carers to stay away from their homes for extended periods, meant their numbers remained relatively stable, while demand shot up almost 20% as clients attempted to reduce the risk of infection from hourly carers.

However, pay growth has since stagnated. As borders reopened and families reverted to hourly carers, live-in carers’ daily pay remained at £120/day through early 2024. Adjusting for inflation, live-in carers experienced a real terms pay cut, making them no better off at the start of this year than they were at the start of 2020, before the pandemic.

There may be light at the end of the tunnel for live-in carers. Several factors suggest potential wage increases:

• Crackdown on illegal workers: A large hike in fines for employing illegal workers has resulted in many avoiding any risk.
• Increased migrant worker restrictions: Measures to prevent migrant carers from bringing their families over may have deterred people from coming to the UK, reducing competition for existing live-in carer work.
• Slowing Inflation: Inflation is now at its lowest levels in three years, easing some economic pressures and making it easier for pay to grow in real terms.

These changes have begun to drive live-in carers’ wages above the level of inflation again.

Hourly Carers: Persistent Lag Behind Inflation as They Move Closer to Becoming Low Wage Workers

Hourly carers typically provide care for shorter periods throughout the day, facing a markedly different trajectory from their colleagues in live-in care. During the pandemic, the demand for their services collapsed due to fears of spreading infections, which led to a drop in wages of about 7%. While nominal wage increases have occurred, rising from £13.10/hour in 2021 to £15.10/hour in 2023, they have not kept pace with inflation.

Initially, hourly carers saw their pay recover quickly, growing 9% between 2021 and 2022. However, growth slowed to a below-inflation 5% in 2022-2023 and just 2% in 2023-2024, leading to a decline in real wages. This may be because:

• New workers entering the sector: Increased competition from workers entering the sector from retail and other industries is further dragging on their pay and keeping it below inflation.
• Families stepping in: Family members, who find themselves without gainful employment, may also be stepping in to care for others, reducing the need to hire an external carer.

These factors may be leading to downward pressure on hourly carer pay.

Conclusion

The trends in pay for private carers in the UK reflect the profound impacts of the pandemic and subsequent economic shifts. While live-in carers initially benefited from a wage boom, they are now no better off in real terms than before the pandemic. Hourly carers, meanwhile, have seen their wages fall further behind inflation. However, the recent positive signs for live-in carers provide a glimmer of hope. Addressing these wage disparities and supporting carers across the board will be crucial as the sector adapts to ongoing changes.