How to Face the Rising Financial Challenges in UK Adult Social Care

Adult social care in the UK is a cornerstone of society, providing much-needed support to protect the most vulnerable. However, the financial burden on this social care sector is becoming increasingly evident. Due to these ever-rising costs and insufficient funding, the quality and accessibility of adult social care are overall at risk. In this article, we will explore the financial challenges the current adult social care system faces and examine how remote staff augmentation can solve these issues.

If you are from the C-Suite level of a business in the adult social care sector, the information here will help you improvise strategies to face these challenges while mitigating risks.

Current State of Adult Social Care in the UK

The adult social care system in the UK is vast, encompassing a range of services from residential care homes to home-based support. A study done in 2019-20 found that around 840,000 adults received long-term support from local authorities, highlighting the sector's importance. The essential services include personal care, support with daily activities, and specialized medical care for those with complex needs.  

Due to the large number of people who depend on the adult social care system in the UK, the expenditures are high. According to a research briefing from the UK parliament, in 2023/24, the local authorities in England spent over £20.5 billion on adult social care. This spending is only second to the education sector and is a massive part of the annual budget.

The Rising Costs

The financial strain on adult social care in the UK is escalating, with significant additional funding needed in the future. The Health and Social Care Committee estimated an additional £7 billion per year was needed by 2023/24. Also, the Health Foundation projected that an extra £8.3 billion annually will be required by 2032/33 to meet growing demand. Despite the government’s commitment of £2.8 billion in 2023/24 and £4.7 billion in 2024/25, concerns remain that these funds are insufficient for the sector to address its challenges.

Major Factors Contributing to Financial Strain

• The growing ageing population in the UK means increased service demand, putting additional pressure on the system.

• Government funding cuts have left many services under-resourced, making it difficult to meet growing demands.

• Staffing shortages and wage pressures exacerbate the problem as care providers struggle to attract and retain qualified staff.  

• Compliance with strict regulatory standards in adult social care demands significant financial resources for ongoing staff training, detailed record-keeping, and safeguarding measures.

How to Resolve These Financial Challenges with Remote Staff Augmentation

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Among the key factors discussed above, the growing ageing population and the government funding cuts are beyond your control. However, there is a viable and potent solution for the challenges that involve staffing and compliance costs. This solution is in the form of remote staff augmentation that allows you to offshore important business operations of your care home business.

Even though you cannot offshore roles such as care and medical assistants, many back-office operations are viable in this case. It will allow you to cut costs by 50% by partnering with an offshore solutions provider. Let us discuss some of the back-office operations that you can implement remote staffing to save costs around your business.

Business Operations that are Easy to Offshore in the Care Home Sector

1. Accounting & Bookkeeping

You can offshore the accounting and bookkeeping of your company to remote staffing solutions to cut costs while maintaining financial efficiency, as hiring accountants can be quite expensive in the UK.

2. Recruitment & HR

Offshoring your recruitment and HR processes allows access to a broader talent pool, the ability to scale services according to your business needs and reduce the administrative burden on your in-house team.

3. Timesheet & Payroll Management

You can offshore the payroll management of your company to remote staffing solutions to not only cut costs but also to benefit from enhanced efficiency and accuracy

4. Onboarding & Compliance

Remote onboarding and compliance services offer scalability, allowing your business to adapt quickly to growth or changes in demand without the need for significant investments in additional resources or infrastructure.

How iBC Healthcare Saved Over £375,000 Annually with Remote Staffing

Here is how a renowned care home business in the UK, iBC Healthcare, improved their operations and saved over £375,000 annually by utilizing offshore solutions.

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iBC Healthcare faced significant challenges in their finance, HR, and payroll departments. By partnering with Your Team in Asia for remote staffing, they integrated 15 skilled remote professionals into their team, including finance experts, recruitment specialists, and payroll administrators.  

This partnership streamlined their accounts receivables and payables, optimized recruitment & HR processes, and improved payroll administration. As a result, iBC Healthcare not only saved over £375,000 annually but also tripled their operational efficiency, demonstrating the financial benefits of remote staffing.

Your Team in Asia – No.1 Offshore Solutions Provider in the UK

The financial strain on adult social care in the UK is a complex issue influenced by multiple factors, including the increasing complexity of care needs, regulatory and compliance costs, unpredictable funding streams, rising expectations of care quality, and economic downturns. Addressing these challenges requires a comprehensive approach including better funding, efficient service delivery, and innovative solutions like remote staffing.

To solve these issues, you can partner with Your Team in Asia and transform your business operations by providing access to skilled remote professionals dedicated to enhancing efficiency and reducing costs.

Here is why you should consider YTA for your staffing needs

• Benefit from over 8 years of experience in the care home sector, ensuring a deep understanding of your specific needs.

• Access qualified professionals at competitive rates of $11-16 per hour, providing excellent value for your investment.

• YTA recruits certified and skilled professionals for each position, ensuring you get the best talent for your business.

• Enjoy increased hiring speed and low employee turnover, making your recruitment process more efficient and stable.  

We will help reduce your HR Total Cost of Ownership by 50%, saving you an annual average of €15,000 per head. With overall costs down, the current financial strain on the Adult Social Care sector in the UK would not affect your business.

Book a consultation with Your Team in Asia today to discuss how we can help you achieve your business goals through remote staffing solutions.

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