Will care homes reform campaign bring about change?
Ali Willoughby of the Colliers’ healthcare team explores the formation of Providers Unite – a new campaign aimed at bringing reform to the social care sector

Ali Willoughby
Recent changes to National Insurance and other rising operational costs have prompted actors within the care home sector to set up a campaign called Providers Unite.
Its purpose is to lobby the Government to give greater priority to the sector at a time when many operators are faced with the possibility of not being able to fulfil care contracts, threatening the viability of a significant number of small and medium-sized homes.
Industry experts estimate 8%-10% increases in staffing costs will necessitate fee increases of around 5%, which can be passed on through cross-subsidisation in homes with a mix of private and state-funded residents (but will presumably result in even bigger fee increases for privately-funded residents).
Smaller homes which focus to a greater extent on local authority fees will be particularly affected.
According to the Office for Budget Responsibility (OBR) it is estimated these extra costs amount to £800 per employee per year.
Providers Unite is a new pressure group set up to raise awareness of the growing social care crisis in the UK, and a National Day of Action was called in late February, urging the Chancellor to reverse the National Insurance increases.
A total of 118 Members of Parliament have formally endorsed the new organisation, formed by Nadra Ahmed CBE, Katrina Hall, and the board of the National Care Association.
This isn’t about noise, it’s about real change rooted in purpose, powered by those who live and breathe social care every day
A survey conducted just before the Day of Action reported that 47% of 570 care providers would be handing back contracts to local authorities or integrated care boards due to funding pressures.
So far 4,500 the campaign has 4,500 signatories in support of its aims.
The House of Lords tabled amendments to overturn the NI ruling, but to no avail – and the social care sector looks set for yet another blow to its finances and morale as the system has failed to address current and long-projected demographic change.
Ahmed explains the raison d’etre for Providers Unite, saying: “We fully support the long-term goals of improving adult social care, but immediate action is essential to prevent more people in our communities from having to fight for the care and support they need.
“That is why Providers Unite was formed, and why we held the first rally at Parliament, enabling over 3,500 sector advocates to voice their genuine concerns about the impact of National Insurance changes, on top of years of funding pressures.
“Providers Unite members welcome continued discussions with Treasury and DHSC colleagues to identify practical solutions that protect both the sector and the people it serves.”
A member of the campaign added: “This isn’t about noise, it’s about real change rooted in purpose, powered by those who live and breathe social care every day.
“We need accountability over chaos; parity over power.”
Consequences for commercial real estate
Care home real estate is a significant business – total UK values reached £26.2bn at end of year 2024, compared to £22.2bn in March 2023.
However, operational markets are only viable if the service they provide can continue, and the sector is faced with significant harm inflicted on many providers, especially those reliant on council-funded placements which already struggle to reflect the true cost of care.
The worst case scenario? A slew of homes may be forced to close, destabilising the sector having corresponding adverse effects on the care home market.
There are currently 16,566 care homes in the UK, employing approximately circa. 1.59 million people and looking after 441,479 residents and non-residents – 51% (226,319) of these are funded by local authorities [source: carehome.co.uk & skillsforcare.org.uk].
Suddenly, the 47% statistic from the Providers Unite survey looks very ominous indeed.
The cover image of the March 2025 issue of Care Markets magazine is that of a pulverised orange above the caption ‘The squeeze on price’, with a full-page grab quote two pages later from William Laing, the executive chairman of LaingBuisson, the main provider of market intel for the sector.
“This discrepancy between council and private payer prices can’t continue, but it’s difficult to see how it can be resolved,” he said.
The worst case scenario? A slew of homes may be forced to close, destabilising the sector having corresponding adverse effects on the care home market
Essentially, the social care sector is facing a perfect storm of a range of cost hikes (i.e. National Living Wage pay increases which concertina up through the grades), and rising energy costs in 24/7 facilities.
The imposition of NI increases could well be the last straw for a significant number of providers who simply cannot meet all financial expectations as well as futureproof premises which were not designed for easy C21st net zero conversion.
And that’s not all… a survey of the County Councils Network found 85% of rural authorities are in a worse position that before the Autumn Budget and recent local government finance settlements, which is likely to result in further cuts to services and a further whittling away at sector resilience.
So what is the cure?
Mike Padgham, chairman of the Independent Care Group – a non-profit organisation supporting the sector across Yorkshire – said: “For me, the answer lies in creating a national care service.
“Not a nationalised system that removes the independence of providers, but a unified, national organisation that gives social care and health equal footing – one that values and supports care in the same way it does healthcare.
“We could learn a lot from how GPs operate within the NHS.
“They’re independent, self-employed professionals, yet they function within a stable national framework.
“That structure gives them clear expectations, financial security, and professional respect—something the social care sector sorely lacks.
The imposition of NI increases could well be the last straw for a significant number of providers who simply cannot meet all financial expectations as well as futureproof premises which were not designed for easy C21st net zero conversion
“But structure alone won’t fix the system. To truly raise the status and sustainability of social care, we need to back it with fair and consistent funding.
“This also means setting a national rate for care services.
“Too often, providers are forced to negotiate wildly-different fees with local authorities, creating a postcode lottery and constant financial strain.
“A single, fair rate across the country would bring greater stability, and respect, for the work we do.”
Finally, it’s worth bearing in mind that in mid-2022 there were 1.7 million people aged 85 years and over, making up 2.5% of the population.
By mid-2047, this is projected to nearly double to 3.3 million, representing 4.3% of the total UK population.
There will be many more of older age by 2047, in part because of larger cohorts from the 1960s now being aged over 80, as well as general increases in life expectancy [source: Office of National Statistics].
Perhaps these are the most-important numbers in this article.