By Abbey Milne, Social Care Lead of Sona
Back in April 2022, the Health and Care Worker visa scheme opened a vital channel for UK providers to address escalating workforce shortages. But with the Labour Government now proposing to shut that route down, care providers find themselves bracing once again for another wave of staffing uncertainty.
The timing couldn’t be more critical. The sector is already under immense pressure, with over 150,000 vacancies across social care. And the cost of employing staff is rising fast, forecasted to jump by up to 10% in 2025 alone, largely due to higher National Living Wage rates and increased employer National Insurance burdens. If international recruitment is curtailed, the already limited talent pool shrinks further, tightening an already strained system.
This isn’t just about policy; it’s about frontline impact. Overseas recruitment has become an essential lever for many providers, helping them fill roles that domestic candidates consistently overlook, often due to low pay, unsociable hours and a lack of perceived value in the work.
Removing access to this talent could significantly increase reliance on agency staffing. That’s a costly alternative, with some providers paying 30% more per shift, not to mention the disruption it brings to continuity of care and team cohesion.
And all of this was unfolding even before the changes in immigration. Many providers were already grappling with intense financial pressure. A typical organisation with £100 million in income is now confronting £5.5 million in additional staffing-related outgoings. These include a £7 million hike in wages and a £5 million rise in NI contributions.
Add to this the demands of the new Employment Rights Bill and the picture becomes even more complex. Since April, providers must comply with stricter requirements around predictable scheduling, penalty pay for last-minute changes and tougher rules on zero-hours contracts. This translates to increased admin overheads, reduced workforce flexibility and further cost escalation.
Clearly, something has to give. Traditional budget-tightening tactics, like cutting carer ratios, freezing perks, or lobbying for higher council rates, just won’t cut it anymore. Quality and compliance remain non-negotiable and there’s little room left to squeeze.
The most forward-thinking organisations are shifting away from fire-fighting and toward operational reinvention. By investing in technology, they’re making their labour work smarter, not just cheaper.
Our latest industry report explores how this transformation is already delivering tangible results.
Digital scheduling platforms that broadcast open shifts internally have cut agency spend by 38% within a month of implementation in some organisations.
Geo-fenced clock-ins, automated payroll and accurate absence reporting have helped save up to £4.2 million annually by preventing overpayments and eliminating redundant admin.
Real-time data and intelligent scheduling are enabling providers to match rotas precisely to commissioned hours, avoiding costly under or over-staffing. The savings? Between 2–5% of total labour spend, or up to £3 million per year.
With compliance expectations only increasing, automation and integration are becoming essential. End-to-end systems that unify scheduling, HR and payroll don’t just cut admin, they free up hundreds of hours annually for managers to focus on quality and leadership.
A joint report by Hft and Care England found that one in three providers is now considering exiting the market altogether due to unmanageable costs and uncertainty. But for those ready to evolve, there’s a clear path forward.
At Sona, we’re proud to support this transformation. Advinia, a residential care provider with over 4,000 employees transformed their internal scheduling and reduced their weekly agency bill from £40,000 to £16,000. That’s not just a financial gain, it’s a step-change in how care is delivered.
This moment demands action, not just analysis. The divide between those investing in digital operations and those holding out is widening rapidly. Those who adapt and empower their teams with modern, integrated systems, will not only withstand the pressure but lead the sector into a more sustainable, resilient future.
We can’t control government policy. But we can decide how we respond. The providers that lean into digital transformation now will be the ones shaping the next chapter of social care, not just surviving it.
