How DDC Can Help Care Homes Cut Costs Amid National Insurance Rises
For care homes in the UK, cashflow is tighter than ever, with tough conditions forcing constant re-assessment of budgets and fees.
Operational costs have steadily increased over the years, with soaring energy bills hitting particularly hard – not to mention the impact of inflation, which has made everyday essentials such as food and other necessities notably more expensive. Meanwhile, climbing mortgage rates make profitability an even bigger challenge, creating a perfect storm for care home managers who must balance the books.
Additionally, for many care homes, staffing creates one of the most significant financial headaches – And with National Insurance rises announced in the October 2024 budget, these pains could escalate further still.
Struggles with staff retention have led to a costly hiring process in the care sector.
At present, there are approximately 152,000 vacant positions[i], with an estimated 390,000 staff having left the sector in 2022/23 due to low pay and work challenges. This churn of high staff turnover is notoriously expensive (the total cost for recruiting one new care worker is estimated to be over £3,500[ii], while relying on agency workers to fill staffing gaps can cost 100% more than a regular employee).
Alongside a rise in the National Minimum Wage, the budget announced on 30th October 2024 revealed a significant increase in National Insurance contributions.
The rate of employer National Insurance contributions will rise from 13.8% to 15% starting in April 2025, leaving many providers facing difficult decisions about how to manage their budgets without compromising quality of care.
DDC can make balancing care home budgets easier by managing the maintenance your infection control machinery, so you can maximise the value of your capital equipment investment.
In this challenging climate, operational efficiency becomes a key lever to mitigate financial stress.
If you fear that the National Insurance hike could mean delaying essential renovations, increasing resident fees or even closing your doors, finding cost-effective strategies to simplify operations and reduce expenses has never been more critical.
Reliable sluice room equipment, maintenance and servicing - such as those offered by DDC - can provide care homes with practical solutions to manage financial pressures while maintaining the highest standards of safety and care.
DDC ARE EXPERTS IN CARE HOME INFECTION CONTROL. FIND OUT WHY HERE.
How DDC’s Equipment Servicing Helps Cut Costs
DDC’s complete equipment servicing is designed to reduce costs, improve operational efficiency, and maintain the safety and reliability of sluice room equipment.
Reduce Downtime with Regular Servicing
Sticking to a service schedule is vital for keeping equipment in good working order. DDC’s maintenance services help care homes:
- Prevent Costly Breakdowns. Routine inspections identify potential issues before they escalate into expensive repairs.
- Shrink Unexpected Expenses. With proactive servicing, care homes can avoid emergency repair costs and unplanned downtime.
- Ensure Consistent Operation. Properly functioning sluice room equipment enables carers to work more efficiently and focus on resident care.
Furthermore, DDC’s expert technicians can service all makes and models of sluice room equipment - even those by other suppliers - ensuring complete coverage.
Improve Energy and Water Use
Properly maintained sluice room machines operate more efficiently, leading to significant reductions in utility bills. For care homes under pressure to control costs, these savings on energy and water usage can be a lifeline. Additionally, improved efficiency supports sustainability goals, aligning with growing expectations for environmentally responsible practices.
Extend Equipment Lifespan
Equipment replacement is costly. Regular servicing helps to extend the lifespan of sluice room machinery, reducing the frequency of replacements and lowering the total cost of ownership (TCO). For budget-conscious care homes, this approach provides both financial and operational stability.
Enhance Infection Control
Infection outbreaks are dangerous, of course - but they’re expensive, too. Care homes often need to restrict staff movement or hire additional temporary staff during outbreaks, as well as increasing medical interventions for infected residents and investing in additional personal protective equipment (PPE), cleaning supplies and testing kits.
Well-serviced equipment ensures proper hygiene standards, reducing the risk of infections spreading among residents and staff. This helps care homes avoid costly health incidents while maintaining their reputation for safe and effective care.
Achieving Long-Term Financial Stability
Investing in reliable equipment and servicing delivers long-term benefits that go beyond immediate cost savings.
By reducing unexpected expenses and increasing the efficiency of operations, DDC’s solutions support better financial planning and stability. This is especially important as care homes navigate the financial uncertainties created by rising operational costs.
Proactive equipment servicing not only preserves budgets but also ensures that resources are used effectively, helping care homes maintain their commitment to high-quality care without compromising their financial health.
With the financial challenges posed by rising employer National Insurance contributions, care homes need practical, cost-effective solutions to manage their budgets. DDC’s equipment and servicing offers essential support, helping care homes cut costs, improve efficiency and maintain safety standards.
By preventing breakdowns, enhancing energy efficiency and extending equipment lifespan, DDC’s services provide care homes with the tools they need to stay operationally and financially resilient.
Contact DDC today to learn more about how our equipment and servicing solutions can help your care home navigate rising costs, while continuing to provide outstanding care for your residents.
[i] https://lottie.org/fees-funding/care-home-costs/
[ii] https://www.uniqueiq.co.uk/resource/the-cost-of-high-turnover/