HC-One invests £17m to increase wages for care workers in 'new pay and reward' scheme

Care home group HC-One has announced its largest ever investment of over £17 million to pay care workers above the Real Living Wage and ensure the work they do is “well rewarded, respected and professionalised.”

From early 2022, all staff will be paid at least the new national living wage of £9.50. This increase will come into force earlier than the April start the government set in the last Budget.

In addition, new care workers who are just beginning their career in care will receive a pay increase after they have completed their first six months with HC-One, in recognition of the learning and experience gained.

James Tugendhat, chief executive of HC-One, said: “Our care colleagues contribute an incredible amount to the communities we serve. Our enhanced pay and reward strategy recognises that value and is the significant next step on our ongoing journey to ensure that the social care workforce is well rewarded, respected and professionalized.

“Our new pay and reward offer is designed to help us to attract and retain the very best people to provide high quality, kind care to our residents and to help us achieve our mission to be the first choice for families, colleagues and commissioners in the communities we serve.

“It is important to us HC-One is an environment where colleagues are supported to grow and make the most of the award-winning learning and development opportunities we offer at all levels of the organisation.”

'Tackling the sector-wide workforce challenges is a priority'

HC-One employs around 21,000 members of staff and since February, the group has seen vacancy rates triple, and turnover has risen to around 550 staff members a month in the last three months.

It is hoped the incentives will also stop care workers from leaving the sector to find employment in other sectors such as retail and hospitality.

Mr Tugendhat said: “We are grateful to have the financial support of long-term owners who continue to recognise that tackling the sector-wide workforce challenges is a priority, and who have enabled us over the past six years to invest in our HC-One colleagues.

“We look forward to continuing to work closely with commissioners and our local authority partners to further recruitment and retention initiatives, building on the welcomed support of the government including the £162.5 million workforce recruitment and retention fund in England.”

Care workers in London will receive above the London Real Living Wage rate (£11.05/hour) after six months, to reflect the costs of living in the capital.

The enhanced pay and reward offer builds on HC-One’s April 2021 announcement of a minimum three per cent pay-rise for all colleagues, and the introduction of £9 per hour minimum pay for care colleagues regardless of age.

Care workers in Scotland will continue to be paid at least £10.02 per hour in line with the national Real Living Wage and the new national minimum hourly rate.

With the new enhanced pay and rewards scheme, HC-One said they will go further to incentivise new and existing care colleagues to continue their career development in the sector, and to recognise the dedication and skills of longer-serving care workers.

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