Care Sector AWR Impact

Impact of the Agency Workers Regulations on the Care Sector

The Care sector is struggling in terms of its temporary labour usage, due to harsh economic conditions like so many other industry sectors; they have come under pressure to reduce costs and maintain their competitive advantage.

Within the Care sector, spending has decreased considerably in 2011. This is due to spending cuts, caused by the following reasons:
•    The cost of Criminal Record (CRB) checks required on every new member of staff
•    The annual regulatory fees paid to the Care Quality Commission by all care homes will result in a significant increase for most care homes
•    The increase in National Minimum Wage, that with staffing accounting for at least 50% of expenditure in any care home, this will have a major impact on costs

In the UK, there is a shortage of high skilled workers, which is another disadvantage for the Care sector. The majority of their staff requirements are for Support Workers and Nurses, although GPs also hold a small percentage of the market.

After a turbulent year the implementation of the Agency Workers Regulations (AWR) is likely to cause further issues. Our data shows that on average temporary agency workers are located at more than one place in the same business and provided by multiple agencies. As the AWR qualifying period does not reset when a candidate moves agency, it is important that the worker is tracked effectively.