Social care overhaul: What it means for your business

The government’s latest announcements on an overhaul of social care have certainly caught the sector’s attention. While the proposed changes bring potential improvements, they also introduce challenges and risks that care providers must navigate.

One key aspect of the overhaul is its timeline—implementation is targeted for 2028. With proposals on its long-term funding unlikely to be delivered before 2028 at the earliest. While the reforms promise enhanced integration and efficiency, this long horizon raises concerns for an already stretched sector. In this article we review some other aspects of the overhaul and the impact it could have on the insurance requirements of carte providers.  

Workforce shortages

Workforce shortages continue to be a critical challenge in the social care sector, with an estimated 8.3% of social care roles unfilled in 2023/2024 equivalent to around130,000 vacancies. This persistent staffing crisis not only places immense pressure on existing care professionals but also impacts the quality and consistency of care provided to vulnerable individuals. The growing demand for social care services, driven by an ageing population and increasing complexity of needs, further exacerbates the issue.

To address this, urgent action is required through enhanced recruitment strategies, improved working conditions, competitive pay, and greater recognition of the vital role care workers play. Without decisive intervention, the sector risks further strain, compromising the well-being of both staff and those who rely on care services.

Extension of NHS routine medical checks by care home staff

In the short term, care workers will receive training to perform a wider range of health checks in an effort to enhance care for elderly and vulnerable individuals while alleviating pressure on the NHS. As part of this initiative, the government plans to empower care home staff to carry out routine medical assessments, helping to improve residents' well-being and reduce hospital admissions. Some of the tasks care workers may soon be responsible for include:

• Monitoring blood pressure
• Redressing wounds
• Managing diabetes, including insulin administration
• Adjusting catheters
• Providing mental health support

While these measures could streamline care, they also bring increased risk.  Many existing care home insurance policies may not cover these expanded responsibilities, leaving providers vulnerable to potential claims. Most care home insurance policies typically include public and employers' liability coverage, however, coverage for specific medical procedures—such as monitoring blood pressure, redressing wounds, managing diabetes (including insulin administration), and adjusting catheters—may not be automatically included. These activities involve a higher level of medical responsibility and may require wider additional coverage, such as extended treatment risk or medical malpractice insurance. Treatment risk typically covers ’errors or omission in the provisos of care services’ but will exclude diagnoses and prescription’ one clear example is that most insurers will not include prescribing nurses without agreement and others will not be able to cover such activities and services at all.

Given the varying scopes of standard policies, it is essential for care home operators to review their existing insurance coverage to ensure it aligns with the medical services they provide. Consulting with an insurance specialist can help determine if additional coverage is necessary to protect against potential liabilities associated with these medical procedures.

Digitisation and data sharing

A significant focus of the reforms is digitisation. By the next election, all care providers are expected to be fully digitised, with access to hospital and GP records for discharged patients. This joined-up approach aims to enhance care quality and efficiency, supported by tools such as:

• Sensors to prevent falls
• National guidance on recommended technologies

However, with digitisation comes heightened cyber risks. The integration of systems means that a failure in one area can have widespread effects elsewhere. Safeguarding sensitive patient and resident data will be critical, and providers must stay vigilant against cybercriminals who may exploit these advances. Robust cyber insurance coverage can serve as a vital backstop for potential catastrophes.

Preparing for the future

The planned reforms represent both opportunities and challenges for the social care sector. To navigate this evolving landscape effectively care providers must:

1. Review insurance policies: Ensure your policies can accommodate the new medical responsibilities and digitisation risks.
2. Enhance staff training: Equip your team to handle new medical duties safely and competently.
3. Strengthen cybersecurity: Adopt a proactive approach to safeguarding data and mitigating cyber threats.
4. Stay informed: Keep abreast of updates to ensure compliance with new regulations and guidance.

We are here to support you as you adapt to these changes. If you have any questions about your insurance coverage or need tailored advice, please get in touch.