COSTS
On average, laundry costs can exceed £56 per resident per week when factoring in energy usage, staff hours, chemical costs, and equipment maintenance. We encourage providers to review their current
systems. Moving to optimised in-house operations, or outsourcing where appropriate, can reduce these costs by up to 35 per cent. These savings are achieved through quicker wash cycles, reduced chemical consumption, and energy-efficient equipment. For providers with limited space, outsourcing can free up valuable rooms for other care functions or income-generating activities. The capital cost is often low, and the return on investment is significant, making this one of the most accessible areas to begin delivering savings.
Utilities: energy and water audits With utility markets volatile and water prices rising, auditing current energy and water contracts is a vital first step for providers looking to stabilise costs. Many are unknowingly overpaying, often due to historic billing errors, unclaimed VAT exemptions, or poor broker arrangements that do not reflect the needs of care services. Care England has helped its members recover significant sums through simple, no-cost audits. In one case, switching energy providers after an audit resulted in a 73 per cent reduction in annual energy expenditure. Audits also uncover billing mistakes, incorrect meter readings, and charges that can be challenged retroactively, with millions recovered for care providers due to incorrect billing and the incorrect application of VAT rates. The process is straightforward and disruption-free, making it one of the most effective ways to unlock immediate savings without upfront investment.
Workforce strategies: end-to-end solutions Recruitment and retention are long-standing pressures for the sector. High turnover, interview no-shows, and short-lived hires continue to erode
10 THE CARE HOME INDUSTRY HANDBOOK 2026
morale and inflate staffing costs. As well, it costs more than £6,000 to recruit and onboard a new care worker in their first year. We support a multi-faceted approach to
recruitment that starts with values. Hiring for attitude, empathy, and suitability rather than just experience has been shown to significantly improve retention and performance. Values-based recruitment can reduce turnover
by 5.6 per cent and improve productivity by over 70 per cent. Employee referral schemes reward staff for
recommending suitable candidates, lowering turnover by up to 38 per cent and fostering team cohesion. Character assessments help pre-screen
candidates, improving interview-to-hire ratios and reducing failed probations by 22 per cent. These approaches lead to more stable teams,
better quality of care, and major cost savings on recruitment cycles.
Catering: foodservice audits Food is both a daily necessity and a key marker of quality in care. Yet with prices up 35 per cent over three years, catering budgets are under pressure. Many providers continue to overpay for core items due to fragmented purchasing or a lack of benchmarking.
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