The Real Cost of Providing Hourly Home Care in the UK (2026 Guide)

The Hidden Price of Caring

If you're a carer working privately, you already know that every hour of paid care hides at least another hour of unpaid work. Travel, admin, scheduling, record-keeping, training—it all takes time. But when you're setting your rates, how much of that time actually makes it into your hourly charge?

Most carers underprice themselves by a significant margin. Not because they don't value their work, but because they underestimate the real cost of doing the job well. Many carers discover they're effectively earning below minimum wage once all their true costs are accounted for.

This guide unpacks what it actually costs to provide hourly home care in the UK in 2026—and how to set rates that reflect the true value of your work.

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Average Hourly Rates in 2026

Let's start with what clients are paying. Across the UK, hourly home care sits around £25–£32 depending on location and care type.

That might sound healthy, but if you're working independently, it doesn't mean £30 straight into your pocket. Here's what most self-employed carers and small agencies actually keep after expenses:

Type of Care	Average Client Charge	Real Take-Home (after costs)
Companionship/Basic Support	£20–£24	£13–£16
Personal Care	£25–£30	£16–£20
Specialist or Complex Care	£30–£38+	£20–£26
Live-in Care (daily)	£140–£180	£100–£130

That "gap" between what's charged and what's earned is where the hidden costs live. Understanding these costs is the first step toward sustainable pricing.

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The 12 Real Operating Costs Every Carer Must Account For

Every carer's setup is slightly different, but the same cost categories appear again and again. Let's examine each one in detail.

1. Travel Time and Mileage

This is often the biggest hidden cost. Fuel prices have risen significantly since 2020, and a carer working 30 hours a week can easily drive 150–250 miles just getting between clients.

The maths:

• HMRC approved mileage rate: 45p per mile (first 10,000 miles, then 25p)
• Average weekly mileage: 150–200 miles
• Weekly cost: £67–£90
• Annual cost: £3,500–£4,700

But it's not just the petrol. Vehicle wear and tear, servicing, tyres, and insurance all increase with mileage. If you drive 10,000 additional miles per year for work, the true cost (including depreciation) is closer to 60–70p per mile.

Often forgotten:

• Parking charges (especially in towns and cities)
• Congestion charges in urban areas
• Time spent finding parking

2. Time Between Clients (Unpaid Hours)

You can't always go client to client without a break in between. Travel, waiting, and buffer time add up significantly.

Typical scenario:

• Client A: 9:00–10:00am (1 hour paid)
• Travel: 10:00–10:25am (25 minutes unpaid)
• Client B: 10:30–12:00pm (1.5 hours paid)
• Travel: 12:00–12:20pm (20 minutes unpaid)
• Lunch break: 12:20–12:45pm (25 minutes unpaid)
• Client C: 1:00–2:00pm (1 hour paid)

Reality check: 3.5 hours of paid work required 5 hours of your time.

If you charge £26/hour and work like this, your effective hourly rate drops to around £18/hour—before any other costs.

3. Equipment, Supplies, and PPE

Small things add up. As a self-employed carer, you're responsible for providing your own:

Item	Typical Annual Cost
Disposable gloves	£60–£100
Aprons	£30–£50
Hand sanitiser	£40–£60
Face masks (if required)	£30–£50
Shoe covers	£20–£30
Notebooks/records	£20–£30
Mobile phone (work portion)	£150–£250
Uniforms/work clothing	£100–£150
Total	£450–£720/year

Some carers also purchase equipment like blood pressure monitors, lifting belts, or specialist aids—adding another £100–£300.

4. Insurance and Compliance

These aren't optional—they're essential for legitimate practice and protect both you and your clients.

Essential insurance:

• Public liability insurance: £100–£180/year (covers accidental damage or injury)
• Professional indemnity: £50–£100/year (covers advice or service errors)
• Personal accident insurance: £50–£80/year (covers you if injured at work)

Compliance costs:

• DBS check: £40 (renewed every 3 years, or £13/year for Update Service)
• HMRC self-assessment registration: Free, but accountancy costs £150–£400/year
• Professional registration: Variable (some roles require specific registration)
• Care Certificate validation: £50–£150 if not already held

Total annual insurance and compliance: £350–£700

5. Training and Continuing Professional Development

Many local authorities and care commissioners now expect care workers to maintain a portfolio of ongoing training. This is increasingly required for private clients too, especially those with complex needs.

Typical training costs:

Training	Cost	Validity
Care Certificate	£150–£300	Lifetime (with refreshers)
Moving and Handling	£80–£120	Annual refresh
Medication Administration	£60–£100	Every 2 years
First Aid at Work	£100–£150	3 years
Dementia Awareness	£50–£80	Recommended refresh
Safeguarding Adults	£40–£70	Annual refresh
Food Hygiene	£30–£50	3 years
Specialist training (PEG, stoma, etc.)	£100–£200 each	As required

Annual training budget: £300–£600

Time spent training is also time you're not earning. A full day's training course means losing £150–£200 in potential income.

6. Holidays, Sickness, and Emergency Fund

Self-employed carers don't get paid time off. This is one of the most commonly overlooked costs.

Building it into your rate:

• Legal holiday entitlement for employed workers: 5.6 weeks
• As a percentage of working time: 12.07%
• Add sickness contingency: 2–3%

This means you should add 14–15% to your hourly rate just to match what an employed carer receives in paid leave.

Example:

• If you want to earn £15/hour net
• Add 15% for leave: £2.25/hour
• Your base rate should be at least £17.25/hour before other costs

7. Administration and Record-Keeping

The paperwork of care work is substantial and entirely unpaid:

Admin Task	Time Required
Care notes and daily records	10–15 mins per client
Invoicing and payment chasing	2–4 hours/month
Scheduling and calendar management	1–2 hours/week
Client communications	30–60 mins/week
Expense tracking	1–2 hours/month
Tax preparation	4–8 hours/year (or £150–£400 for accountant)

Total admin time: 8–15 hours per month (unpaid)

At an equivalent hourly rate of £20, that's £160–£300 per month in hidden labour—or £2,000–£3,600 per year.

8. Technology and Software

Modern care work often requires digital tools:

Tool	Typical Cost
Smartphone (work portion)	£10–£25/month
Care management app	£0–£15/month
Accounting software	£0–£15/month
Website (if marketing privately)	£50–£150/year
Professional email	£0–£5/month

Annual technology cost: £200–£500

9. Marketing and Client Acquisition

Finding new clients costs time and money:

• Local advertising: £50–£200/year
• Online directories: £100–£300/year
• Business cards and leaflets: £50–£100
• Time spent on enquiries and assessments: Unpaid

Many carers spend 5–10% of their gross income on marketing when starting out, reducing to 2–5% once established.

10. Contingency and Equipment Replacement

Things break. Phones die. Cars need repairs. You need a buffer:

• Equipment replacement fund: £200–£400/year
• Unexpected costs reserve: £500–£1,000/year
• Quiet period buffer: 1–2 months' expenses

Building a 3-month emergency fund should be a priority for any self-employed carer.

11. Tax and National Insurance

Self-employed carers must pay:

Income Tax (2026/27 rates):

• Personal allowance: £12,570 (no tax)
• Basic rate: 20% on income £12,571–£50,270
• Higher rate: 40% on income above £50,270

National Insurance:

• Class 2: £3.45/week (if profits above £12,570)
• Class 4: 9% on profits £12,570–£50,270

Effective tax on mid-level income:

• If earning £30,000 profit: approximately £3,500 tax + £1,600 NI = £5,100/year
• That's about 17% of gross income

12. Professional Development and Networking

Building a sustainable care career means investing in yourself:

• Professional body membership: £50–£150/year
• Conferences or events: £50–£200/year
• Books, resources, subscriptions: £50–£100/year
• Time spent networking: Unpaid

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Putting It All Together: What You Really Need to Charge

Let's work through a realistic example for a self-employed carer wanting to earn a decent living.

Your goal: £30,000 take-home income after tax

Step 1: Calculate gross income needed

• Take-home target: £30,000
• Add tax and NI (~17%): £5,100
• Gross income needed: £35,100

Step 2: Add operating costs

Category	Annual Cost
Travel and mileage	£4,200
Equipment and supplies	£550
Insurance and compliance	£450
Training	£400
Holiday/sickness fund (15%)	£5,265
Admin costs (software, accountant)	£450
Marketing	£200
Contingency	£600
Total costs	£12,115

Step 3: Calculate total revenue needed

• Gross income: £35,100
• Plus costs: £12,115
• Total needed: £47,215/year

Step 4: Determine billable hours

• Working 45 weeks/year (allowing for holidays, sickness, training)
• 35 hours/week of paid client time
• Total billable hours: 1,575

Step 5: Calculate hourly rate

• £47,215 ÷ 1,575 = £29.98/hour

Minimum viable rate for this scenario: £30/hour

And that's for a £30,000 take-home—not an extravagant income by any measure.

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Care Rates Across the UK in 2026

Rates vary significantly by location. Here's what carers typically charge:

Region	Self-Employed Range	Agency Charge (for comparison)
Central London	£30–£40	£35–£45
Outer London	£26–£35	£30–£38
South East	£25–£32	£28–£35
South West	£23–£30	£26–£32
Midlands	£22–£28	£24–£30
North West	£20–£26	£22–£28
North East	£18–£24	£20–£26
Wales	£19–£26	£21–£27
Scotland (cities)	£22–£28	£24–£30
Rural areas	£22–£30	£24–£32

Note: Rural areas can command higher rates due to travel distances, even in lower-cost regions.

Regional living costs also affect your baseline. Fuel, parking, and even PPE prices can differ significantly by postcode.

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The Hidden Costs That Catch Most Carers Out

These often-overlooked expenses can derail your pricing:

1. No-shows and cancellations Clients cancel. Sometimes at the last minute. If you don't have a cancellation policy, you absorb this cost entirely.

Solution: Implement a 24-hour cancellation policy with partial or full charge.

2. Scope creep "While you're here, could you also..." Extra tasks eat into your time without additional pay.

Solution: Define service scope clearly and quote for additional services.

3. Client gifting Many carers feel obligated to buy birthday cards, small gifts, or treats for clients—at their own expense.

4. Emotional labour The psychological toll of caring work is real. Counselling, mental health support, or just recovery time are legitimate costs.

5. Delayed payments Waiting 30+ days for payment affects your cash flow and effectively reduces your rate.

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Why Knowing Your Cost Matters

When you know your real operating costs, you stop pricing from guesswork and start pricing with confidence. You can explain your rates to families clearly—not defensively. And you protect yourself from burnout.

Many carers feel guilty charging more, especially for clients they've worked with for years. But a sustainable rate keeps you reliable, consistent, and available for the people who depend on you. That's good business and good care.

Underselling yourself hurts everyone:

• You burn out faster
• You can't invest in training or equipment
• You might cut corners unconsciously
• The care sector as a whole is devalued

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Setting Rates for Different Scenarios

Not all care work is the same. Here's how to adjust:

Companionship and light support: Base rate - 10–15%

• Less physically demanding
• Lower insurance risk
• Typically longer, fewer visits

Personal care (standard): Base rate

• Your calculated sustainable rate

Complex care: Base rate + 15–25%

• Additional training required
• Higher risk (hoisting, medication)
• Greater emotional/physical demand

Specialist care: Base rate + 25–40%

• Dementia, end-of-life, complex health conditions
• Requires specialist qualifications
• Higher stress and responsibility

Weekend and unsociable hours: Base rate + 15–30%

• Reflects opportunity cost
• Aligns with industry standards

Bank holidays: Base rate × 1.5–2

• Standard across the care sector

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The Simple Way to Calculate Your Ideal Rate

If the maths above made your eyes glaze over, you're not alone. That's why the Care Rate Calculator exists—a free tool designed to help UK carers quickly work out what to charge.

Enter your:

• Desired take-home income
• Travel costs and mileage
• Insurance and training expenses
• Working hours and weeks

The calculator does the rest, showing you exactly what to charge to meet your goals sustainably.

Try the Care Rate Calculator to find your ideal rate for 2026.

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Communicating Your Rates to Clients

Once you know your rate is fair, you need to communicate it confidently:

Do:

• Be clear and upfront about your hourly rate
• Explain what's included (travel, mileage, PPE)
• Have a written terms of service document
• Discuss any additional charges for complex care
• Review rates annually

Don't:

• Apologise for your rate
• Undercut yourself to win clients
• Hide costs that will appear later
• Accept work at rates you know are unsustainable

Sample script: "My rate is £28 per hour for personal care visits. This includes all my travel time and mileage within the local area, PPE, and ongoing training to keep my skills current. I review my rates annually in line with costs and minimum wage changes."

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Frequently Asked Questions

What should I charge as a self-employed carer in the UK?

Based on typical costs, most self-employed carers need to charge £25–£35 per hour to earn a sustainable income equivalent to an employed care worker's salary. The exact rate depends on your location, costs, and desired income.

How do I know if my rate is too low?

Calculate your true hourly income after all costs, time, and taxes. If it's below the National Living Wage (£11.44/hour in 2026), your rate is definitely too low. If it's below £15/hour after costs, you're likely undervaluing your work.

Can I charge more than local agencies?

Yes, in many cases. Self-employed carers often offer greater continuity, flexibility, and personal service than agencies. Many clients happily pay a premium for a dedicated, reliable carer rather than rotating agency staff.

How often should I raise my rates?

Review annually, at minimum. The National Living Wage increases each April—use this as a prompt to review your own costs. A 3–5% annual increase is reasonable and expected.

What if clients can't afford my rate?

This is difficult but important: you cannot sustain caring for others if you're not caring for yourself. If a client genuinely can't afford private care, signpost them to local authority assessment, NHS Continuing Healthcare, or Attendance Allowance.

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Final Thoughts

Caring is emotional work. It's skilled, demanding, and deeply personal. But it's also a business—and businesses survive when they understand their numbers.

Whether you're brand new or twenty years in, take an hour this week to check your real costs. You might be surprised at what you're really earning per hour.

And you'll never look at a "£25/hour" job the same way again.

The care sector desperately needs experienced, committed carers. By pricing sustainably, you're not being greedy—you're ensuring you can keep providing excellent care for years to come.

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Last updated: January 2026. Costs and rates change regularly—use the Care Rate Calculator for up-to-date calculations.