2022
9
UK Adult Social Care Market Report 2022
2022-09-22T17:35:52+01:00
OX1101791
1495
155803
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Report
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“With the industry only slowly recovering from the effects of the pandemic over the last two years, the additional strain now arising from staff shortages and rising costs, whether via…

UK Adult Social Care Market Report 2022

£ 1,495 (Excl.Tax)

Description

The UK Adult Social Care Market Report provides comprehensive and current information on the residential and domiciliary care markets, and the persistent impact of COVID-19 on the adult social care market. This report covers the UK residential and domiciliary care market size, market forecast, market segmentation and trends in the UK adult social care market.

 

UK Adult Social Care Market and Domiciliary Care – Current Market Landscape

Care fees and costs have risen, and with inflation likely to remain at double digits into 2023, UK adult social care market providers are expected to increase their fees again. Occupancy rates in the UK residential care market are still lower than pre-pandemic, with some prospective care users being averse to becoming full-time residents.

 

UK Adult Social Care Market and Domiciliary Care – Key Industry Trends

New social care reforms are likely to be introduced during 2023-34, which will influence the funding and operation of the UK adult social care market. The market will take some time to adjust to the new payment structure regarding self-funders and also to the new level of funding that the UK adult social care market will receive via the Health and Social Care Levy.

  • UK residential care market has a value of £23,218 million in 2021/22.
  • 27.6% of local authority expenditure in UK domiciliary care market is spent on learning disabled adults.

 

UK Residential Care Market & UK Domiciliary Care Market – Future Trends

The UK domiciliary care market is likely to be boosted by a growing number of people who wish to avoid entering a care home. Larger care home groups and retirement housing units are likely to lead innovation in the UK residential care market going forward as they will be able to develop purpose-built properties that are as ‘pandemic-proof’ as possible.

To discover more about the UK Adult Social Care Market Report 2022, read our UK Private Healthcare Market Report 2022, or take a look at our extensive Healthcare and Medical Market Research.

 

Quickly Understand

  • The impact of COVID-19 on the UK adult social care market and how providers and care users have reacted to market conditions.
  • How the UK adult social care market is adapting to the post-Brexit and ‘living with COVID’ phase of the pandemic.
  • The UK social care market size and value of individual segments in the market in 2022 and beyond.
  • Explores the operators in the UK domiciliary care market and UK residential care market.

 

Covered in this Report

Companies: LGA, homecare.co.uk, Silver Trees Care, Log my Care, Shared Care, NHS, CRG Homecare, Allied Healthcare, M&A, Grosvenor Health & Social Care, , City & County Healthcare Group, Midway Care Group, Care Unique, Four Seasons Health Care Group, Priory Adult Care, Portland Care Group, Sandstone Care Group, Lifeways Group, Bluebird Care, Cera Care. Home Instead Senior Care, Dimensions UK, Caremark, Voyage Group, Mencap, Sanctuary Group.
Products:
Residential and domiciliary care.

 

Expert Analysis from a B2B Specialist

This report, written by Lewis Cone, a leading analyst in the B2B sector, delivers in-depth commentary and analysis to highlight current trends in the UK adult social care market and add expert context to the numbers.

With the UK adult social care market only slowly recovering from the effects of the pandemic over the last two years, the additional strain now arising from staff shortages and rising costs, whether via energy prices or the increase to the National Living Wage, has only placed further pressures on adult social care providers and their ability to provide at least satisfactory care services to those in need of care.”

Lewis Cone - Research Analyst

Lewis Cone
Senior B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • Five-year outlook for adult social care
      • Figure 1: Five-year outlook for adult social care, 2022-27
    • Market Forecast
    • Additional funds from the Levy will see market spending grow, but planned changes to payment structure may cause concern
      • Figure 2: UK adult social care forecast, by type of care, 2022/23-2026/27 (£ million)
    • Domiciliary Care
    • Boosts to NHS and LA funding drive market growth in 2021/22
      • Figure 3: Segmentation of the UK domiciliary care market, by type of purchaser, 2017/18 and 2021/22 (£ million)
    • Residential Care
      • Figure 4: Segmentation of the UK residential care market, by type of purchaser, 2018 and 2022 (£ million)
  3. Issues and Insights

    • Soaring energy prices could lead to a rise in care home provider insolvencies
    • Social care reform impact likely to be muted unless staff shortage is acted upon
  4. Domiciliary Care

    • Market size
    • Market value falls marginally as COVID-19 funds are gradually reduced
    • Emergency COVID-19 funding
      • Figure 5: UK market for domiciliary care, 2017/18-2021/22 (£ million)
    • Commercial domiciliary care market
      • Figure 6: UK commercial market for domiciliary care, 2017/18-2021/22 (£ million)
    • Market segmentation
    • Boosts to NHS funding and LA funding rise drive market growth in 2021/22
      • Figure 7: Segmentation of the UK domiciliary care market, by type of purchaser, 2017/18-2021/22 (£ million)
    • Local authority expenditure
      • Figure 8: Segmentation of local authority expenditure on domiciliary care for older people (65+) in the UK, by type, 2016/17-2020/21 (£ million)
      • Figure 9: Segmentation of local authority expenditure on domiciliary care for adults aged 18-64 in the UK, by client type, 2016/17-2020/21 (£ million)
      • Figure 10: Segmentation of UK local authority expenditure on domiciliary care, all adults, by client type, 2016/17 and 2020/21 (%)
    • Regional LA expenditure
      • Figure 11: Local authority expenditure, all adults, by region, 2016/17-2020/21 (£ million)
      • Figure 12: Local authority expenditure, older people (65+), by region, 2016/17-2020/21 (£ million)
      • Figure 13: Local authority expenditure, adults (18-64), by region, 2016/17-2020/21 (£ million)
    • NHS expenditure
      • Figure 14: Segmentation of NHS expenditure on social care community services, by country, 2017/18-2021/22 (£ million)
    • Private expenditure
      • Figure 15: Segmentation of private expenditure on domiciliary care in the UK, by type, 2017/18-2021/22 (£ million)
    • Informal care
      • Figure 16: Informal carers, by relationship to person receiving care in England, 2016/17-2020/21 (% of informal carers)
      • Figure 17: The UK market for informal domiciliary care, 2017/18-2021/22 (£ billion and hours)
  5. Residential Care

    • Market size
    • Market expenditure rises by 4% in 2021/22, but has not fully recovered from the pandemic
      • Figure 18: UK residential care market, by value, 2017/18-2021/22 (£ million)
    • Rate of care home closures quickens over the last year
      • Figure 19: UK residential care market, by number of registered care homes, 2018-22 (units)
    • Number of places declines by 1.6% in 2022
      • Figure 20: UK residential care market, by number of registered places, 2018-22 (000)
    • Average number of places and revenue per home reach another record high
      • Figure 21: Average number of places, revenue per care home and revenue per place, UK, 2018-22 (average number of places, revenue in £000)
    • Market segmentation
    • Accommodation type
      • Figure 22: Segmentation of the UK residential care market, by type of accommodation, 2018-22 (number of homes, retirement housing in 000 units)
    • Care purchaser
      • Figure 23: Segmentation of the UK residential care market, by type of purchaser, 2018-22 (£ million)
    • Provider type
      • Figure 24: Segmentation of the UK residential care market, by type of provider, 2018-22 (£ million)
    • Local authority expenditure
      • Figure 25: Segmentation of local authority-commissioned residential and nursing care expenditure, by provider and client type, 2018-22 (£ million)
      • Figure 26: Segmentation of local authority-commissioned residential and nursing care expenditure, by provider and service type, 2018-22 (£ million)
    • Older people (65+) expenditure
      • Figure 27: Segmentation of local authority expenditure on residential care services for older people (65+), by service type, 2018-22 (£ million)
    • Adults aged 18-64 expenditure
      • Figure 28: Segmentation of local authority expenditure on residential care services for adults aged 18-64, by service type, 2018-22 (£ million)
    • NHS care expenditure
      • Figure 29: Segmentation of NHS expenditure on residential and nursing care, by provider type, 2018-22 (£ million)
    • Private care purchasers
      • Figure 30: Private expenditure on residential and nursing care, 2018-22 (£ million)
    • Retirement housing
      • Figure 31: The development of retirement housing in the UK, 2018-22 (000 units)
    • Extra-care housing
  6. Adult Social Care Market Forecast

    • Five-year outlook for adult social care
      • Figure 32: Five-year outlook for adult social care, 2022-27
    • Learnings from the last recession
      • Figure 33: Industry performance following the last recession, 2009/10-2014/15 (£ million)
    • Additional funds from the Levy will see market spending grow, but planned changes to payment structure may cause concern
      • Figure 34: Forecast UK adult social care market value, 2022/23-2026/27 (£ million at 2022 prices)
    • £7 billion committed to Better Care Fund
    • Expansion of integrated retirement communities will help reduce unmet care levels and staffing shortage
  7. Market Trends

    • Old age support ratio expected to decline although recent increases to state pension age will have an impact down the line
      • Figure 35: UK population projections, by age, 2022-47 (000 people)
    • Minimum price for homecare surges to new record high as cost-of-living crisis escalates
      • Figure 36: Estimated minimum price for homecare, April 2022-March 2023 (£)
    • Number of filled posts declines for first time in a decade, as vacancies rise
    • Filled positions
    • Vacancy rates
    • Pay
    • Care quality standards remain consistent with pre-pandemic levels
  8. Market Drivers

    • Government lays out plans to reform adult social care reform…
    • Proposed care cost cap
    • Proposed changes to social care means test
    • Fair cost guidance
    • …but implementation remains some time away as plans face backlash
    • Over 200% rise in care assessment queries with half a million waiting for assessment
    • Care sector workers added to SOL in an effort to reduce vacancy rates
  9. Industry Structure

    • Industry development
    • Domiciliary care
    • LGA co-develops homecare cost toolkit to help councils and partners obtain an understanding of costs
    • Review site now allows care users to leave opinions online
    • Welsh council uses new integrated homecare model and ends ‘time and task’ commissioning
    • Residential care
    • Log my Care launches electronic medication admin record
    • Shared care record introduced to drive two-way interoperability between social care and healthcare settings
    • M&As and other industry movements
    • Domiciliary care
    • Residential care
    • Market share
    • Domiciliary care
      • Figure 37: Independent sector domiciliary care providers’ market share, 2022 (% of total independent sector market)
    • Residential care
    • Changes in the structure of the industry
      • Figure 38: Analysis of changes in the structure of the ‘other human health activities’ industry, 2017-21 (number of outlets and businesses)
      • Figure 39: Analysis of changes in the structure of the ‘social work activities without accommodation for the elderly and disabled’ industry, 2017-21 (number of outlets and businesses)
      • Figure 40: Analysis of the changes in the structure of the ‘residential nursing care activities’ industry, 2017-21 (number of outlets and businesses)
      • Figure 41: Analysis of the changes in the structure of the ‘residential care activities for the elderly and disabled’ industry, 2017-21 (number of outlets and businesses)
      • Figure 42: Analysis of the changes in the structure of the hospital activities – medical nursing home activities industry, 2017-21 (number of outlets and businesses)
    • Structure by employment
      • Figure 43: Analysis of the employment structure of the ‘other human health activities’ industry, 2020 and 2021 (number of outlets and outlet employment size)
      • Figure 44: Analysis of the employment structure of the ‘social work activities without accommodation for the elderly and disabled’ industry, 2020 and 2021 (number of outlets and outlet employment size)
      • Figure 45: Analysis of the employment structure of the residential nursing care activities industry, 2020 and 2021 (number of outlets and outlet employment size)
      • Figure 46: Analysis of the employment structure of the residential care activities for the elderly and disabled industry, 2020 and 2021 (number of outlets and outlet employment size)
      • Figure 47: Analysis of the employment structure of the hospital activities – medical nursing home activities industry, 2020 and 2021 (number of outlets and outlet employment size)
    • Structure by turnover
      • Figure 48: Analysis of the financial structure of the ‘other human health activities’ industry, 2020 and 2021 (£000 and % of total turnover)
      • Figure 49: Analysis of the financial structure of the ‘social work activities without accommodation for the elderly and disabled’ industry, 2020 and 2021 (£000 and % of total turnover)
      • Figure 50: Analysis of the financial structure of the residential nursing care activities industry, 2020 and 2021 (£000 and % of total turnover)
      • Figure 51: Analysis of the financial structure of the residential care activities for the elderly and disabled industry, 2020 and 2021 (£000 and % of total turnover)
      • Figure 52: Analysis of the financial structure of the hospital activities – medical nursing home activities industry, 2020 and 2021 (£000 and % of total turnover)
  10. Competitive Strategies

    • HC-One launches several recruitment campaigns to promote careers in care…
    • …while HRM Homecare launches campaign to recruit one carer per day in 2022
    • Cera raises £260 million and aims to expand its care provision
    • Autumna launches live rating service for care homes
    • Simply UK targets becoming the biggest care provider in the UK after making several acquisitions
  11. Company Profiles

    • Domiciliary care
    • City & County Healthcare Group
      • Figure 53: Financial analysis of City & County Healthcare Group, 2017-21 (£ million)
      • Figure 54: Financial analysis of Advantage Healthcare Ltd (formerly Interserve Healthcare), 2016-20 (£000)
      • Figure 55: Financial analysis of MiHomecare, 2017-21 (£000)
    • Lifeways Community Care
      • Figure 56: Financial analysis of Lifeways Community Care, 2017-21 (£000)
    • Sevacare
      • Figure 57: Financial analysis of Sevacare, 2017-21 (£ million)
    • Residential care
    • Abbeyfield (formerly known as The Abbeyfield Society)
      • Figure 58: Financial analysis of Abbeyfield, 2017-21 (£ million)
    • Barchester Healthcare
      • Figure 59: Financial analysis of Barchester Healthcare, 2016-20 (£000)
    • Hallmark Care Homes
      • Figure 60: Financial analysis of Hallmark Care Home Group, 2017-21 (£ million)
    • HC-One
      • Figure 61: Financial analysis of HC-One, 2017-21 (£ million)
    • Housing 21
      • Figure 62: Financial analysis of Housing 21, 2017-21 (£ million)
    • Sanctuary Care
      • Figure 63: Financial analysis of Sanctuary Care, 2017-21 (£ million)
  12. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • B2B research methodology
  13. Further Sources and Contacts

    • Trade associations
    • Age UK
    • Care England
    • Carers UK
    • Homecare Association
    • National Care Association
    • National Care Forum
    • Trade magazines
    • Care Home Professional
    • Care Management Matters
    • Care Talk
    • Caring Times
    • Caring UK
    • Community Care
    • Tomorrow’s Care
    • Trade events
    • Care England 2023
    • Care Roadshow London 2022
    • Care Show
    • Community Care Live 2022
    • Health + Care 2023
    • The Integrating Health and Social Care Conference 2022
    • UK Care Week 2023

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